Core Viewpoint - Blackbaud reported strong financial performance for Q2 2025, with non-GAAP earnings per share of $1.21, exceeding analysts' expectations of $1.06, and a 6.8% organic revenue growth, leading to an increase in full-year guidance for 2025 [1][10]. Financial Performance - Non-GAAP earnings per share increased by 12.0% from $1.08 in Q2 2024 to $1.21 in Q2 2025 [2][5]. - Non-GAAP revenue reached $281.4 million, surpassing the forecast of $276.5 million, while reported GAAP revenue declined by 2.1% year-over-year to $281.4 million due to the sale of EVERFI [1][2]. - Non-GAAP organic revenue grew by 6.8%, driven by strong recurring revenue streams, with recurring revenue accounting for 98% of total sales at $275.6 million [5][6]. Profitability Metrics - GAAP operating margin improved by 5.4 percentage points year-over-year to 20.1%, attributed to cost management and headcount reductions [2][6]. - Non-GAAP adjusted EBITDA was $108.5 million, reflecting a year-over-year increase of $5.9 million [2][6]. - Adjusted free cash flow rose significantly by 45.9% year-over-year to $53.1 million [9]. Strategic Focus Areas - Blackbaud is concentrating on enhancing its leadership in social impact software, driving product innovation particularly in AI, and optimizing revenue streams [4][11]. - The company is rolling out advanced AI features, including a "Copilot" AI agent for tailored fundraising recommendations, and evaluating future business models for AI capabilities [7][11]. - A strategic integration of fundraising software with Constant Contact has been completed, and international platforms like JustGiving and YourCause have performed well [8]. Future Guidance - Management raised its full-year 2025 guidance, now expecting GAAP revenue between $1.120 billion and $1.130 billion, with non-GAAP adjusted EBITDA margin projected at 35.4% to 36.2% [10]. - Non-GAAP earnings per share are forecasted to be between $4.30 and $4.50, with adjusted free cash flow projected in the range of $190 million to $200 million [10].