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Jun 30
Blackbaud Q2 2025 Earnings Report
Blackbaud announced its second quarter 2025 financial results, exceeding the Rule of 40 and raising full-year financial guidance.
Key Takeaways
Blackbaud reported strong second quarter 2025 results, with GAAP total revenue of $281.4 million and non-GAAP organic revenue growth of 6.8%. The company significantly exceeded the Rule of 40, achieving its highest quarterly performance in this metric, and raised its full-year 2025 financial guidance across all key metrics.
GAAP total revenue was $281.4 million, a 2.1% decrease year-over-year, primarily due to the divestiture of EVERFI.
Non-GAAP organic revenue increased by 6.8%, demonstrating strong underlying business growth.
GAAP diluted earnings per share increased to $0.54, up $0.12 per share, while non-GAAP diluted earnings per share rose to $1.21, up $0.13 per share.
The company achieved a Rule of 40 score of 45.3%, marking its highest quarterly performance in this metric and indicating strong growth and profitability.
Blackbaud
Blackbaud
Blackbaud Revenue by Segment
Revenue by Segment
GAAP Recurring Revenue
CapyFin.com Forward Guidance
Blackbaud raised its full-year 2025 financial guidance across all key metrics, reflecting strong first-half performance and disciplined operational execution.
Positive Outlook
- GAAP revenue is projected to be between $1.120 billion and $1.130 billion.
- Non-GAAP adjusted EBITDA margin is expected to be between 35.4% and 36.2%.
- Non-GAAP earnings per share are anticipated to be between $4.30 and $4.50.
- Non-GAAP adjusted free cash flow is guided to be between $190 million and $200 million.
- The company expects to continue improving its Rule of 40 performance towards a Rule of 45.
Challenges Ahead
- The guidance does not account for the future impact of the One Big Beautiful Bill Act.
- Interest expense for the year is expected to be approximately $65 million to $69 million.
- Capital expenditures for the year are expected to be approximately $55 million to $65 million.
- Capitalized software development costs are projected to be approximately $50 million to $60 million.
- Reconciliation of forward-looking non-GAAP measures to GAAP measures is not provided due to unreasonable efforts required for estimation.