Blackbaud, Inc. (NASDAQ: BLKB) announced unaudited financial results for the third quarter ended September 30, 2026. The company reported GAAP total revenue of $292.6 million for the quarter, representing a 4.1% increase compared to the same period in 2025. Non-GAAP organic revenue also increased by 4.1%.
On the income statement, GAAP income from operations was $60.0 million, yielding an operating margin of 20.5%. Non-GAAP income from operations was $94.6 million, with a margin of 32.3%. GAAP net income was $46.1 million, or $1.02 per diluted share, while non-GAAP net income was $61.2 million, or $1.36 per diluted share.
Non-GAAP adjusted EBITDA was $111.1 million, with a margin of 38.0%. The company reported a Rule of 40 score of 42.1%. Regarding cash flow, GAAP net cash provided by operating activities was $141.7 million, and non-GAAP free cash flow was $126.0 million.
Blackbaud reaffirmed its 2026 full-year financial guidance, expecting GAAP revenue between $1.173 billion and $1.179 billion. The company also expects 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.
In terms of capital allocation, Blackbaud announced that as of September 30, 2026, approximately $832 million remained under its common stock repurchase program. The company stated that total repurchases during 2026 are expected to represent between 7% and 10% of outstanding common stock as of December 31, 2025.
During the quarter, Blackbaud highlighted several product innovations, including the introduction of Platform for Good, a unified operating system for social impact, and Lantern, a domain-specific language model for fundraising intelligence developed in collaboration with Databricks. The company also announced a strategic partnership with BILL to simplify accounts payable processes within its financial management solutions.
