Blackbaud Inc. (NASDAQ: BLKB) is a leading provider of software solutions focused on social impact, serving sectors such as nonprofits, education, and corporate social responsibility. The company reported its financial results for the first quarter of 2025, indicating a stable operational condition with notable growth figures.

In the first quarter of 2025, Blackbaud generated total revenue of $270.7 million, reflecting a decrease of 3.1% year-over-year, primarily due to the divestiture of its subsidiary, EVERFI. However, on an organic basis, revenue grew by 5.8%. Recurring revenue for the quarter amounted to $264.1 million, also a decline of 2.8%, yet organic recurring revenue increased 5.8%.

Blackbaud’s non-GAAP adjusted EBITDA for Q1 reached $92.8 million, an increase of approximately $3.9 million compared to the same quarter in the previous year, resulting in a margin of 34.3%. Non-GAAP diluted earnings per share were reported at $0.96, up from $0.93 a year earlier.

The company performed share repurchases amounting to approximately 4% of its outstanding shares during the quarter, as part of its plan to buy back between 3% to 5% of its common stock throughout 2025. This follows a buyback of about 10% in 2024. The free cash flow exhibited a negative figure of $12.3 million, largely influenced by a one-time cash release associated with the Washington, D.C. office lease, increased interest expense related to the share repurchase program, and timing fluctuations in vendor payments.

Looking ahead, Blackbaud reaffirmed its full-year guidance for 2025, projecting revenue of between $1.115 billion to $1.125 billion, indicating organic growth of 4.5% to 5.4% on a constant currency basis. Non-GAAP adjusted EBITDA margins are expected to range from 34.9% to 35.9%, with non-GAAP earnings per share approximated between $4.16 and $4.35, correlating to a year-over-year increase of 2% to 7%.

In summary, Blackbaud’s first quarter results represent a foundation for stable growth, backed by strong organic revenue performance, improved profit margins, and an ongoing commitment to returning capital to shareholders through share repurchases.