Blackbaud (BLKB) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $292.641M, up 4.1% YoY; recurring revenue was $287.030M, or 98.1% of total.

• Adjusted EBITDA was $111.081M, non-GAAP diluted EPS was $1.36, and adjusted free cash flow was $126.0M.

• Priorities included profitable growth, operating efficiency, product innovation, AI integration and cloud infrastructure investment.

Financial highlights

• Q3 GAAP revenue was $292.641M vs. $281.143M YoY; non-GAAP organic revenue growth was 4.1%.

• Q3 GAAP operating income was $59.951M vs. $54.573M; GAAP net income was $46.068M vs. $47.492M, and diluted EPS was $1.02 vs. $0.98.

• Q3 adjusted EBITDA was $111.081M vs. $99.659M; non-GAAP diluted EPS was $1.36 vs. $1.10.

• Nine-month revenue was $864.378M vs. $833.109M; operating cash flow was $284.244M and non-GAAP free cash flow was $238.289M.

Outlook and guidance

• FY26 guidance was reaffirmed: revenue $1,173M–$1,179M and adjusted EBITDA $430M–$438M; expectations were for the upper half of ranges.

• FY26 non-GAAP EPS guidance is $5.15–$5.25 and non-GAAP free cash flow guidance is $280M–$290M; expectations are at or above the high end.

• FY26–FY30 targets include 4%–6% revenue CAGR, 6%–8% adjusted EBITDA CAGR, non-GAAP EPS growth of 13%+ and FCF margin of 28%+.

• The 2026 renewal cohort is ~40% larger YoY, reducing FY26 revenue growth by 0.5–0.75 percentage points; gross dollar retention is expected to return to 91%–92% by end-2027.

• 2026 workforce transition costs are expected at $8M–$10M, up from the prior $6M–$8M estimate; activity continues through 2027.