Blackbaud, Inc. Q1 FY2026 earnings call

Mike Giannone mentioned delivering solid execution against operating plan with focus on efficiency and product innovation. AI enablement key, investing aggressively in AI innovation. New customer logo wins and upselling to existing customers. AI used internally to improve speed and operational efficiency. Long-term aspirations of double-digit annual EPS growth driven by organic revenue growth, adjusted EBITDA growth, and stock repurchases

Q1 organic revenues grew 4.2% to $281 million. Non-GAAP adjusted EBITDA of $99 million was up $7 million with an approximately one percentage point improvement to adjusted EBITDA margin. Non-GAAP EPS increased to $1.14, up 20% compared to $0.95 last year, and free cash flow was up nearly $50 million year-over-year to $37 million in the quarter

Reaffirmed 2026 full year guidance ranges. Expected quarterly financial performance heavily weighted to back half of year. Confident in free cash flow growth. Anticipate utilizing at least 50% of cumulative free cash flow from 2026 to 2030 for share repurchases

Comments contain forward-looking statements subject to risk and uncertainties. Please refer to most recent Form 10-K and other SEC filings for more information on those risks

Q: Brian Peterson with Raymond James asked about AI adoption for Agents for Good and cohorts.

A: Mike said first agentic product launched, targeted to thousands of existing BlackBot customers, with more products to come.

Q: Rob Oliver with Baird asked about new logo wins.

A: Sales teams focused on vertical markets, seeing new logo wins including large enterprise deal.

Q: Parker Lane with Stiefel asked about AI investment impact.

A: Mentioned gross margin improvement opportunities and AI investments in new product builds and engineering.

Q: Kirk Maturne with Evercore ISI asked about pricing structure for agents.

A: First product has annual subscription fee, looking at other pricing models, and addressable market outside IT budgets