Blackbaud (BLKB) Down 1.9% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Blackbaud (BLKB). Shares have lost about 1.9% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Blackbaud due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Blackbaud, Inc. before we dive into how investors and analysts have reacted as of late.Blackbaud's Q2 Earnings Beat EstimatesBlackbaud reported second-quarter 2025 non-GAAP earnings per share (EPS) of $1.21, which surpassed the Zacks Consensus Estimate by 15.2%. The bottom line increased around 12% year over year.Total revenues decreased 2.1% year over year to $281.4 million. This was due to the divestiture of EVERFI. The top line surpassed the Zacks Consensus Estimate by 1.3%.The company is increasing its full-year 2025 financial guidance across all major metrics, reflecting its strong first-half performance. Management stated that revenue results and profitability highlight disciplined execution, continued productivity gains and the resilience of its financial model. Blackbaud remains committed to creating long-term value for both its customers and shareholders.GAAP recurring revenue declined 2% to $275.6 million, primarily due to the divestiture of EVERFI, accounting for 98% of total revenue.Non-GAAP organic revenues were up 6.8% on a reported basis and 6% on a constant-currency basis, year over year. Non-GAAP organic recurring revenues rose 6.9% on a reported basis and 6.1% on a constant-currency basis.Margin DetailsNon-GAAP gross margin was 63.4% compared with 62.9% a year ago. Total operating expenses fell 7.8% on a year-over-year basis to $111.1 million.GAAP operating margin increased 540 basis points (bps) to 20.1%.Non-GAAP operating margin increased 350 bps to 33.5%. Non-GAAP adjusted EBITDA margin was 27.9%.Balance Sheet & Cash FlowAs of June 30, 2025, Blackbaud had total cash, cash equivalents and restricted cash of $911.8 million compared with $456.6 million as of March 31, 2025. Total debt (including the current portion) as of June 30, 2025, was $1.1 billion compared with $1.2 billion as of March 30, 2025.For the second quarter, cash provided by operating activities was $66.9 million compared with $53.8 million in the prior-year quarter. Non-GAAP adjusted free cash outflow was $53.1 million against the free cash flow generated of $36.4 million in the year-ago quarter.As of June 30, 2025, Blackbaud had nearly $545 million available under its stock buyback program, which was expanded and renewed in July 2024.In the first half of 2025, Blackbaud repurchased around 4% of its outstanding shares. Overall, the company expects to repurchase up to 5% of its outstanding common stock during fiscal 2025.2025 OutlookBlackbaud raised its guidance for full-year 2025. The company projects GAAP revenues between $1.120 billion and $1.130 billion, reflecting approximately 5% organic growth at the midpoint on a constant currency basis. This represents a $5 million increase, driven by strong transactional revenue in the first half of the year and favorable foreign exchange impacts compared to initial expectations. Earlier, the company anticipated GAAP revenues of $1.115 billion and $1.125 billion.The company projects non-GAAP adjusted EBITDA margin in the range of 35.4-36.2% compared with the prior projection of 34.9-35.9%. Non-GAAP EPS is anticipated to be between $4.30 and $4.50 compared to the earlier expectation of $4.16 and $4.35. Non-GAAP adjusted free cash flow for 2025 is forecasted to be in the range of $190-$200 million compared with $185-$195 million projected earlier.Non-GAAP annualized effective tax rate is still anticipated to be approximately 24.5%. Interest expense is expected in the band of $65 million to $69 million.Fully diluted shares are still estimated to be 48.5 million to 49.5 million. Capital expenditures are expected to be in the range of $55 million to $65 million, which includes $50-$60 million of capitalized software and content development costs.How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a flat trend in estimates revision.VGM ScoresCurrently, Blackbaud has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.Outlook Blackbaud has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Blackbaud, Inc. (BLKB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks