Core Insights - Blackbaud's CEO Michael Gianoni emphasized the central role of AI in the company's product strategy and operations, stating that the company is fully committed to AI initiatives and requires all employees to undergo AI training [1][5][7] Financial Performance - For FY2025, Blackbaud reported organic revenue growth of 5.5%, reaching $1.128 billion, with adjusted EBITDA of $405 million and a margin of 35.9% [4][8] - Non-GAAP EPS increased to $4.45, reflecting a year-over-year growth of approximately 12% after accounting for the impact of the EVERFI divestiture [3][8] - The company generated adjusted free cash flow of $208 million, exceeding the upper limit of its revised guidance [3][8] Capital Allocation - Blackbaud accelerated its share repurchase program, buying back about 8% of its outstanding common stock in 2025, following an 11% repurchase in 2024 [2][8] - Debt leverage improved, decreasing from 2.9x in Q1 to 2.5x by year-end [2][8] 2026 Guidance - The company provided guidance for 2026, projecting revenue between $1.173 billion and $1.179 billion, representing 4% to 4.5% organic growth [6][15] - Adjusted EBITDA is expected to be between $430 million and $438 million, indicating a growth of 6% to 8% year-over-year [6][15] - Non-GAAP EPS is forecasted to be between $5.15 and $5.25, marking a growth of 16% to 18% [15][19] Long-term Targets - Blackbaud aims for organic revenue growth of 4% to 6% from 2026 to 2030, with adjusted EBITDA growth of 6% to 8% CAGR and an expansion of adjusted EBITDA margin to over 40% [18] - The company plans to allocate at least 50% of cumulative free cash flow from 2026 to 2030 for stock repurchases [18] AI Initiatives - The company is rolling out generative AI features across its products, including the introduction of "Blackbaud AI Chat" and the "Blackbaud Agents for Good" initiative, which aims to enhance donor engagement [9][11] - The first product under the Agents for Good initiative is a subscription-based fundraising development agent, expected to generate new revenue streams [12][13] Customer Environment - Gianoni noted that while some customers face funding challenges, the overall environment remains stable, with no significant business closures reported among clients [22] - The company is focusing on internal productivity gains from AI and expanding operations in India to drive margin improvements [23]