(image from blackbaud.com)
Social impact tech firm Blackbaud generated generally accepted accounting principles (GAAP) total revenue of $1.1 billion for 2025, down 2.3%, the decline driven by its divestiture of education platform EVERFI. Blackbaud reported its non-GAAP organic revenue increased 5.5%.
The data was released as part of its disclosure of fourth quarter results of GAAP total revenue of $295.3 million, down 2.3%, again driven by the divestiture of EVERFI, and a non-GAAP organic revenue increase of 4.3%.
The firm’s stock on NASDAQ opened after today’s announcement at $51.50 per share, up from the previous day’s close of $48.25 per share. It is up 1.7% for the previous five days but down roughly 22% year to date and 38% for the previous 12 months.
GAAP income from operations for the year was reportedly $190.8 million, with GAAP operating margin of 16.9%, an increase of 4,040 basis points. Non-GAAP income from operations was $344.4 million, with a non-GAAP operating margin of 30.5%, an increase of 290 basis points.
GAAP net income for 2025 was $115 million, with GAAP diluted earnings per share of $2.37, up $8.29 per share. Non-GAAP net income was $215.5 million, with non-GAAP diluted earnings per share of $4.45, up $0.39 per share.
The GAAP revenue reportedly represented 98% of total revenue. Non-GAAP organic recurring revenue increased 5.8%.
The year 2025 “was another clear example of Blackbaud’s multi-year trajectory of extending our market leadership position and delivering strong financial results, such as our achievement of Rule of 40 two years ahead of schedule, as we executed on our key strategic and operational initiatives,” Mike Gianoni, Blackbaud’s president, CEO and vice chairman of the board of directors, said via a statement.
The Rule of 40 is a financial health metric for software as a service (SaaS) companies, stating that their combined annual revenue growth rate and profit margin (typically earnings before interest, taxes, depreciation, and amortization or free cash flow) should exceed 40%. It balances rapid, cash-burning growth with operational profitability, signaling a sustainable business model to investors.
“We enter 2026 with tremendous optimism and confidence in our long-term strategy and a proven ability to execute,” Gianoni, said via the statement. “When you combine these two factors with our mission critical solutions empowered by AI, we believe Blackbaud is well positioned to benefit from the next wave of technological change alongside our customers.”
The statement included projections for 2026 that include GAAP revenue of $1.173 billion to $1.179 billion, non-GAAP adjusted EBITDA of $430 million to $438 million, non-GAAP diluted earnings per share of $5.15 to $5.25, and non-GAAP free cash flow of $280 million to $290 million.
