Blackbaud Q3 10-Q: Revenue Up 4.1% to $292.6M, Non-GAAP EPS $1.36, $128.4M Buybacks YTD
BLKB has more than doubled off its 52-week low of $25.58.
Summary
Blackbaud's Q3 10-Q confirms 4.1% revenue growth to $292.6M and $1.36 non-GAAP EPS, with strong free cash flow of $238.3M year-to-date funding $128.4M of repurchases. Retention softened to ~90% on a larger renewal cohort and 2026 restructuring costs were raised to $8M-$10M.
Key Events · Earnings and Guidance · BLKB
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Q3 Revenue Grows 4.1%
Revenue of $292.6M versus $281.1M a year ago; nine-month revenue $864.4M, up 3.8%.
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Cash Generation Jumps
Nine-month operating cash flow $284.2M vs $207.5M and free cash flow $238.3M vs $162.5M, funding buybacks and debt paydown.
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Buybacks Pace Toward Target
2,846,852 shares repurchased for $128.4M in nine months, about 7.2% of Dec 31, 2025 shares outstanding, with $832.1M left on the $1.0B authorization.
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Retention Slips on Renewal Cohort
Gross dollar retention ~90% for the trailing twelve months; the 2026 renewal cohort is ~40% larger than 2025, with improvement expected by end of 2027.
Analysis · BLKB · Technology
The headline numbers were already out this morning via the 8-K, but the full 10-Q is where the cash story lives: nine-month operating cash flow jumped to $284.2M from $207.5M and free cash flow to $238.3M from $162.5M, funding $128.4M of buybacks while debt was paid down $77.1M. Against that, gross dollar retention slipped to about 90% as the 2026 renewal cohort is roughly 40% larger than 2025's, and management raised its 2026 workforce transition cost estimate to $8M-$10M from $6M-$8M. Net leverage of 2.29x sits comfortably inside the 3.75x covenant, so the buyback and dividend-restricted capital return program has room to continue.
How filings like this one have moved
In the 30 days to Oct 29, 2026, 31% of the 1656 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.01%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, BLKB was trading at $52.51 on NASDAQ in the Technology sector, with a market capitalization of approximately $2.4B. The 52-week trading range was $25.58 to $70.71. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.