Blackbaud Inc. Common Stock (BLKB)

FairStock Score: 63/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital and sell at a sensible price. Blackbaud provides software to nonprofits, a niche where switching costs may exist, but the numbers must prove durability. The filed record shows a turnaround: in fiscal 2024, the year ended 2024-12-31, it lost $299.5M, while in fiscal 2025, the year ended 2025-12-31, it earned $115.0M. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $290.6M and net income was $35.4M, versus revenue of $282.0M and net income of $26.5M in fiscal Q2 2025. Free cash flow over the trailing twelve months was $276.6M, and FairStock calculates a 12.7% FCF yield on the $2.2B market cap as of the 2026-10-13 close. That is the strongest part of the story. But the balance sheet gives me pause: FairStock's Altman Z-Score is 0.65, the given debt-to-equity is 17.27, and FairStock's ROCE is only 5.50%, even though FairStock's ROE calculation is 194.45%, likely reflecting a thin equity base. FairStock's Graham Number is $10.29, so at $48.06 the margin of safety is negative 367.06%. On earnings, at the 2026-10-13 close, FairStock's P/E is 15.02 and PEG is 0.45, with FairStock's Piotroski F-Score of 7/9. So this is not a classic Graham bargain; it is a cash-generative turnaround with a fair-to-full price and balance-sheet risk. I would want more than the modest revenue increase shown by fiscal Q2 2026 versus fiscal Q2 2025 and more consistent returns on capital before calling it a durable compounder.

In plain English: Blackbaud sells software that helps nonprofits with fundraising, engagement and financial management. The business looks healthier than a few years ago: it has returned to profit, and its latest reported quarter showed higher sales and net income than the same quarter a year earlier. At $48.06, the price looks mixed: it is not cheap compared with the company's book value, but it looks more reasonable compared with earnings and cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer