📊 BLKB Key Takeaways
Is Blackbaud Inc. (BLKB) a Good Investment?
Blackbaud operates a profitable software business with healthy margins (59.2% gross, 18.3% operating) and positive free cash flow generation ($49.8M). However, the company is burdened by an unsustainable capital structure with a debt-to-equity ratio of 33.66x, critically low liquidity (0.74x current ratio), and declining revenues (-2.3% YoY), creating significant financial distress risk that outweighs operational strengths.
Blackbaud shows solid underlying profitability and excellent cash conversion, with a 22.8% free cash flow margin and meaningful operating income despite a modest revenue decline. However, the balance sheet is the main constraint: very high leverage, weak liquidity, and a thin equity base make the improved earnings profile less durable and raise financial risk if growth or margins soften.
Blackbaud Inc. Key Strengths (BLKB)
- High gross margins (59.2%) and operating margins (18.3%) indicate strong pricing power and unit economics typical of quality software businesses
- Positive free cash flow generation ($49.8M, 17.7% FCF margin) demonstrates ability to generate cash despite revenue headwinds
- EPS growth of 140% YoY shows operational leverage and discipline in capital allocation
- Strong free cash flow generation with $257.78M of free cash flow and a 22.8% FCF margin
- Healthy gross margin of 58.8% and operating margin of 16.9%, indicating durable software economics
- Net income and diluted EPS improved sharply year over year, showing materially better bottom-line execution
BLKB Stock Risks: Blackbaud Inc. Investment Risks
- Critically high leverage with debt-to-equity ratio of 33.66x creates severe financial distress risk and limits strategic flexibility
- Deteriorating liquidity position with current ratio of 0.74x below 1.0, indicating potential short-term funding challenges
- Declining revenue (-2.3% YoY) combined with low interest coverage ratio (3.2x) leaves company vulnerable to operational or market stress
- Stockholders' equity of only $34.6M relative to $2.1B in total assets indicates equity base has been severely eroded
- Revenue declined 2.3% year over year, which weakens confidence in growth quality
- Leverage is elevated with $1.11B of long-term debt, 13.06x debt-to-equity, and only 2.8x interest coverage
- Liquidity is tight with a 0.79x current ratio and only $38.91M in cash against a highly leveraged balance sheet
Key Metrics to Watch
- Debt reduction progress and refinancing ability given low interest coverage
- Revenue stabilization or return to growth to support debt servicing capacity
- Operating cash flow sustainability under declining revenue trajectory
- Current ratio improvement to above 1.0 for liquidity restoration
- Organic revenue growth and recurring revenue retention
- Debt reduction progress and interest coverage improvement
Blackbaud Inc. (BLKB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
BLKB Profit Margin, ROE & Profitability Analysis
BLKB vs Technology Sector: How Blackbaud Inc. Compares
How Blackbaud Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Blackbaud Inc. Stock Overvalued? BLKB Valuation Analysis 2026
Based on fundamental analysis, Blackbaud Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Blackbaud Inc. Balance Sheet: BLKB Debt, Cash & Liquidity
BLKB Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Blackbaud Inc.'s revenue has grown significantly by 24% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.06 reflects profitable operations.
BLKB Revenue Growth, EPS Growth & YoY Performance
BLKB Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $269.9M | $4.3M | $0.09 |
| Q3 2025 | $269.9M | $3.0M | $0.06 |
| Q2 2025 | $281.4M | $4.9M | $0.42 |
| Q1 2025 | $270.7M | $4.9M | $0.10 |
| Q3 2024 | $277.6M | $2.1M | $-0.07 |
| Q2 2024 | $271.0M | $2.1M | $0.04 |
| Q1 2024 | $261.8M | $5.2M | $0.10 |
| Q3 2023 | $261.3M | $2.1M | $-0.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Blackbaud Inc. Dividends, Buybacks & Capital Allocation
BLKB SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Blackbaud Inc. (CIK: 0001280058)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BLKB
What is the AI rating for BLKB?
Blackbaud Inc. (BLKB) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BLKB's key strengths?
Claude: High gross margins (59.2%) and operating margins (18.3%) indicate strong pricing power and unit economics typical of quality software businesses. Positive free cash flow generation ($49.8M, 17.7% FCF margin) demonstrates ability to generate cash despite revenue headwinds. ChatGPT: Strong free cash flow generation with $257.78M of free cash flow and a 22.8% FCF margin. Healthy gross margin of 58.8% and operating margin of 16.9%, indicating durable software economics.
What are the risks of investing in BLKB?
Claude: Critically high leverage with debt-to-equity ratio of 33.66x creates severe financial distress risk and limits strategic flexibility. Deteriorating liquidity position with current ratio of 0.74x below 1.0, indicating potential short-term funding challenges. ChatGPT: Revenue declined 2.3% year over year, which weakens confidence in growth quality. Leverage is elevated with $1.11B of long-term debt, 13.06x debt-to-equity, and only 2.8x interest coverage.
What is BLKB's revenue and growth?
Blackbaud Inc. reported revenue of $281.1M.
Does BLKB pay dividends?
Blackbaud Inc. does not currently pay dividends.
Where can I find BLKB SEC filings?
Official SEC filings for Blackbaud Inc. (CIK: 0001280058) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BLKB's EPS?
Blackbaud Inc. has a diluted EPS of $0.67.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is BLKB's fundamental grade?
Based on our AI fundamental analysis in June 2026, Blackbaud Inc. has a C grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is BLKB stock overvalued or undervalued?
Valuation metrics for BLKB: ROE of 90.1% (sector avg: 22%), net margin of 11.1% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
What is BLKB's AI grade for 2026?
Our dual AI analysis gives Blackbaud Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BLKB's free cash flow?
Blackbaud Inc.'s operating cash flow is $51.5M, with capital expenditures of $1.7M. FCF margin is 17.7%.
How does BLKB compare to other Technology stocks?
Vs Technology sector averages: Net margin 11.1% (avg: 18%), ROE 90.1% (avg: 22%), current ratio 0.74 (avg: 2.5).
Is Blackbaud Inc. carrying too much debt?
BLKB has a debt-to-equity ratio of 33.66x, which is above the Technology sector average of 0.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.
Why is BLKB's return on equity (ROE) so high?
Blackbaud Inc. has a return on equity of 90.1%, significantly above the Technology sector average of 22%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 11.1% net margin.