blkb-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the quarterly period ended March 31, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from to .

Commission file number: 000-50600

Blackbaud, Inc.

(Exact name of registrant as specified in its charter)



Delaware			11-2617163
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

65 Fairchild Street

Charleston, South Carolina 29492

(Address of principal executive offices, including zip code)

(843) 216-6200

(Registrant’s telephone number, including area code)



Securities Registered Pursuant to Section 12(b) of the Act:
Title of Each Class	Trading Symbol(s)	Name of Each Exchange on which Registered
Common Stock, $0.001 Par Value	BLKB	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☑

The number of shares of the registrant’s Common Stock outstanding as of April 27, 2026 was 45,932,106.

TABLE OF CONTENTS


CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS		2

PART I.	FINANCIAL INFORMATION	3

Item 1.	Financial statements
	Condensed Consolidated Balance Sheets (Unaudited)	3
	Condensed Consolidated Statements of Comprehensive Income (Unaudited)	4
	Condensed Consolidated Statements of Cash Flows (Unaudited)	5
	Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2.	Management's discussion and analysis of financial condition and results of operations	20
Item 3.	Quantitative and qualitative disclosures about market risk	39
Item 4.	Controls and procedures	39

PART II.	OTHER INFORMATION	40

Item 1.	Legal proceedings	40

Item 2.	Unregistered sales of equity securities and use of proceeds	40
Item 5.	Other information	41

Item 6.	Exhibits	42

SIGNATURES		43


First Quarter 2026 Form 10-Q						1

Table of Contents

Blackbaud, Inc.


						CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, including the documents incorporated herein by reference, contains forward-looking statements that anticipate results based on our estimates, assumptions and plans that are subject to uncertainty. These "forward-looking statements" are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements consist of, among other things, trend analyses, statements regarding future events, future financial performance, our anticipated growth, the effect of general economic and market conditions, our business strategy and our plan to build and grow our domestic and international businesses, our operating results, our ability to successfully integrate developed and acquired businesses and technologies, including artificial intelligence ("AI"), the effect of our stock repurchase program, the effect of foreign currency exchange rate and interest rate fluctuations on our financial results, the impact of expensing stock-based compensation, the sufficiency of our capital resources, our ability to meet our ongoing debt and obligations as they become due, cybersecurity and data protection risks and related liabilities, and current or potential legal proceedings involving us, all of which are based on current expectations, estimates, and forecasts, and the beliefs and assumptions of our management. Words such as “believes,” “seeks,” “expects,” “may,” “might,” “should,” “intends,” “could,” “would,” “likely,” “will,” “targets,” “plans,” “anticipates,” “aims,” “projects,” “estimates” or any variations of such words and similar expressions are also intended to identify such forward-looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions that are difficult to predict. Accordingly, they should not be viewed as assurances of future performance, and actual results may differ materially and adversely from those expressed in any forward-looking statements.

Important factors that could cause actual results to differ materially from our expectations expressed in forward-looking statements include, but are not limited to, those summarized elsewhere in this report, in our Annual Report on Form 10-K for the year ended December 31, 2025 and in our other filings made with the United States Securities & Exchange Commission ("SEC"). Forward-looking statements represent our management's beliefs and assumptions only as of the date of this Quarterly Report on Form 10-Q. We undertake no obligation to update or revise any forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in any forward-looking statements, whether as a result of new information, future events or otherwise.


2						First Quarter 2026 Form 10-Q


						PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS


Blackbaud, Inc. Condensed Consolidated Balance Sheets (Unaudited)
(dollars in thousands, except per share amounts)	March 31, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	34,096	$	38,914
Restricted cash	418,671		720,061
Accounts receivable, net of allowance of $5,924 and $5,876 at March 31, 2026 and December 31, 2025, respectively	75,691		80,517
Customer funds receivable	7,605		1,308
Prepaid expenses and other current assets	106,158		89,290
Total current assets	642,221		930,090
Property and equipment, net	85,053		85,076

Software development costs, net	156,628		155,842
Goodwill	1,055,777		1,056,815
Intangible assets, net	99,279		106,654
Other assets	70,340		56,205
Total assets	$	2,109,298	$	2,390,682
Liabilities and stockholders’ equity
Current liabilities:
Trade accounts payable	$	46,884	$	27,344
Accrued expenses and other current liabilities	37,515		43,272
Due to customers	425,124		719,833
Debt, current portion	23,160		22,660
Deferred revenue, current portion	333,996		368,986
Total current liabilities	866,679		1,182,095
Debt, net of current portion	1,163,182		1,087,037
Deferred tax liability	27,333		21,981
Deferred revenue, net of current portion	6,054		2,778

Other liabilities	11,496		11,737
Total liabilities	2,074,744		2,305,628
Commitments and contingencies (see Note 8)
Stockholders’ equity:
Preferred stock; 20,000,000 shares authorized, none outstanding	—		—
Common stock, $0.001 par value; 180,000,000 shares authorized, 74,015,631 and 72,312,354 shares issued at March 31, 2026 and December 31, 2025, respectively; 46,297,968 and 46,705,325 shares outstanding at March 31, 2026 and December 31, 2025, respectively	74		72
Additional paid-in capital	1,415,521		1,391,641
Treasury stock, at cost; 27,717,663 and 25,607,029 shares at March 31, 2026 and December 31, 2025, respectively	(1,423,843)		(1,316,224)
Accumulated other comprehensive loss	(3,850)		(5,948)
Retained earnings	46,652		15,513
Total stockholders’ equity	34,554		85,054
Total liabilities and stockholders’ equity	$	2,109,298	$	2,390,682

The accompanying notes are an integral part of these condensed consolidated financial statements.


First Quarter 2026 Form 10-Q						3


Blackbaud, Inc. Condensed Consolidated Statements of Comprehensive Income (Unaudited)
(dollars in thousands, except per share amounts)	Three months ended March 31,
		2026		2025
Revenue		$	281,140	$	269,936
Cost of revenue		114,581		114,815
Gross profit		166,559		155,121
Operating expenses
Sales, marketing and customer success		47,349		44,644
Research and development		36,916		33,559
General and administrative		30,261		56,679
Amortization of intangible assets		588		534


Total operating expenses		115,114		135,416
Income from operations		51,445		19,705
Interest expense		(16,036)		(16,945)
Other income, net		2,396		2,105
Income before provision for income taxes		37,805		4,865
Income tax provision		6,666		542
Net income		$	31,139	$	4,323
Earnings per share
Basic		$	0.68	$	0.09
Diluted		$	0.67	$	0.09
Common shares and equivalents outstanding
Basic weighted average shares		45,562,304		48,429,061
Diluted weighted average shares		46,351,379		49,445,079
Other comprehensive income (loss)
Foreign currency translation adjustment		$	(1,480)	$	3,259
Unrealized gain (loss) on derivative instruments, net of tax		3,578		(6,692)
Total other comprehensive income (loss)		2,098		(3,433)
Comprehensive income		$	33,237	$	890

The accompanying notes are an integral part of these condensed consolidated financial statements.


4						First Quarter 2026 Form 10-Q


Blackbaud, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited)
(dollars in thousands)	Three months ended March 31,
	2026		2025
Cash flows from operating activities
Net income	$	31,139	$	4,323
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	20,551		21,647
Net provision for credit losses and sales returns	1,128		788
Stock-based compensation expense	23,880		22,170
Deferred taxes	4,257		(221)
Amortization of deferred financing costs and discount	486		699



Other non-cash adjustments	—		(5,384)
Changes in operating assets and liabilities, net of acquisition and disposal of businesses:
Accounts receivable	3,613		4,770
Prepaid expenses and other assets	(18,048)		(5,192)
Trade accounts payable	19,258		(4,651)
Accrued expenses and other liabilities	(3,186)		(8,134)
Deferred revenue	(31,619)		(29,427)
Net cash provided by operating activities	51,459		1,388
Cash flows from investing activities
Purchase of property and equipment	(1,668)		(688)
Capitalized software development costs	(12,798)		(12,970)

Cash used in disposition of business	—		(12,235)

Net cash used in investing activities	(14,466)		(25,893)
Cash flows from financing activities
Proceeds from issuance of debt	139,900		216,200
Payments on debt	(74,968)		(85,523)


Employee taxes paid for withheld shares upon equity award settlement	(25,112)		(37,948)
Change in due to customers	(294,090)		(320,248)
Change in customer funds receivable	(6,395)		(2,483)
Purchase of treasury stock, including excise tax payments	(82,103)		(100,030)
Net cash used in financing activities	(342,768)		(330,032)
Effect of exchange rate on cash, cash equivalents and restricted cash	(433)		1,668
Net decrease in cash, cash equivalents and restricted cash	(306,208)		(352,869)
Cash, cash equivalents and restricted cash, beginning of period	758,975		809,512
Cash, cash equivalents and restricted cash, end of period	$	452,767	$	456,643

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown above in the condensed consolidated statements of cash flows:


(dollars in thousands)	March 31, 2026		December 31, 2025
Cash and cash equivalents	$	34,096	$	38,914
Restricted cash	418,671		720,061
Total cash, cash equivalents and restricted cash in the statement of cash flows	$	452,767	$	758,975

The accompanying notes are an integral part of these condensed consolidated financial statements.


First Quarter 2026 Form 10-Q						5

Blackbaud, Inc.

Condensed Consolidated Statements of Stockholders' Equity

(Unaudited)


(dollars in thousands)	Common stock			Treasury stock			Additional paid-in capital		Accumulated other comprehensive loss		Retained earnings		Total stockholders' equity
	Shares	Amount		Shares	Amount
Balance at December 31, 2025	72,312,354	$	72	(25,607,029)	$	(1,316,224)	$	1,391,641	$	(5,948)	$	15,513	$	85,054
Net income	—	—		—	—		—		—		31,139		31,139
Purchase of treasury shares under stock repurchase program, inclusive of excise tax	—	—		(1,601,057)	(82,507)		—		—		—		(82,507)
Vesting of restricted stock units	1,032,903	—		—	—		—		—		—		—
Shares withheld to satisfy tax withholdings	—	—		(509,577)	(25,112)		—		—		—		(25,112)
Stock-based compensation	—	—		—	—		23,880		—		—		23,880
Restricted stock grants	684,889	2		—	—		—		—		—		2
Restricted stock cancellations	(14,515)	—		—	—		—		—		—		—
Other com

SEC Form 10-Q filed by Blackbaud Inc.