Blackbaud, Inc. reported its financial results for the second quarter of 2025, revealing a revenue of $281.4 million, a decrease of 2.1% compared to $287.3 million in the same period of 2024. For the first half of 2025, total revenue was $552.0 million, down 2.6% from $566.5 million year-over-year. The decline in revenue was primarily attributed to a decrease in contractual recurring revenue, which fell by $13.3 million in the second quarter and $28.2 million in the first half, largely due to the sale of its EVERFI business. However, the company saw an increase in transactional recurring revenue, which rose by $7.6 million and $15.0 million for the respective periods, driven by higher transaction volumes in its payment processing services.
In terms of profitability, Blackbaud reported a net income of $26.0 million for the second quarter, up from $21.8 million in the prior year, marking a 19.2% increase. For the first half, net income was $30.8 million, compared to $27.1 million in 2024. The increase in net income was supported by a reduction in operating expenses, which decreased by 7.8% in the second quarter and 6.1% in the first half, primarily due to lower compensation costs and decreased amortization expenses related to the EVERFI sale. The company’s earnings per share for the second quarter were $0.54, up from $0.42 a year earlier.
Operationally, Blackbaud's customer base remains strong, with a gross dollar retention rate of approximately 92% for the twelve months ending June 30, 2025. The company continues to focus on transitioning its revenue contracts from one-year to three-year terms, enhancing predictability for its revenue base. Additionally, Blackbaud is expanding its operations in India to tap into a larger talent pool, although it does not anticipate immediate sales in that market.
The company has also been active in its stock repurchase program, having repurchased 1.5 million shares for $100 million during the first half of 2025. As of June 30, 2025, Blackbaud had $544.5 million remaining under its stock repurchase authorization. The company’s total debt stood at approximately $1.16 billion, with a net leverage ratio of 2.70 to 1.00, indicating compliance with its debt covenants.
Looking ahead, Blackbaud remains optimistic about its growth prospects, emphasizing its commitment to innovation and operational efficiency. The company plans to continue investing in its cloud solutions and AI technologies, which it believes will enhance customer engagement and drive future revenue growth. However, it acknowledges potential risks associated with market conditions and regulatory changes, particularly concerning its AI initiatives.
About BLACKBAUD INC
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