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Blackbaud Announces 2026 Second Quarter Results

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Company Expects to Finish Fiscal Year 2026 in the Upper Half of Financial Guidance Ranges

CHARLESTON, S.C., July 29, 2026 /PRNewswire/ — Blackbaud (NASDAQ: BLKB), the world’s leading provider of AI-powered solutions for social impact, today announced financial results for its second quarter ended June 30, 2026.

“Our second quarter and first-half results came in as expected, and combined with our confidence in the second half, position us to finish in the upper half of our FY26 guidance ranges for revenue, adjusted EBITDA, non-GAAP EPS, and free cash flow, with EPS and free cash flow at the high end,” said Mike Gianoni, president, CEO and vice chairman of the board of directors, Blackbaud. “We continue to invest aggressively in AI, reflected in the accelerating pace of innovation across our Agents for Good™ solutions, which help customers advance their missions and operate more efficiently while also strengthening our own productivity and profitability.”

Second Quarter 2026 Results Compared to Second Quarter 2025 Results:

GAAP total revenue was $290.6 million, up 3.0% and non-GAAP organic revenue increased 3.0%.GAAP recurring revenue was $285.3 million, up 3.3% and represented 98.2% of total revenue. Non-GAAP organic recurring revenue increased 3.3%.GAAP income from operations was $62.0 million, with GAAP operating margin of 21.3%, an increase of 100 basis points.Non-GAAP income from operations was $94.6 million, with non-GAAP operating margin of 32.6%, a decrease of 110 basis points.GAAP net income was $35.4 million, with GAAP diluted earnings per share of $0.79, up $0.24 per share.Non-GAAP net income was $59.7 million, with non-GAAP diluted earnings per share of $1.33, up $0.11 per share.Non-GAAP adjusted EBITDA was $110.3 million, up $1.2 million, with non-GAAP adjusted EBITDA margin of 38.0%, a decrease of 70 basis points.Rule of 40 score was 41.0%.GAAP net cash provided by operating activities was $91.1 million, an increase of $24.1 million, with GAAP operating cash flow margin of 31.3%, an increase of 760 basis points.Non-GAAP free cash flow was $75.3 million, an increase of $23.8 million, with non-GAAP free cash flow margin of 25.9%, an increase of 760 basis points.

“We again executed well against our operating plan while investing in innovation and efficiency across the business,” said Chad Anderson, executive vice president and CFO, Blackbaud. “We’re building the foundation for substantial shareholder value, supported by an attractive financial model and steady momentum toward our long-term goals. We also remain aggressive in repurchasing our shares having already repurchased just over 6% this year, reducing our total shares outstanding by approximately 15% since the fourth quarter of 2023.”

An explanation of all non-GAAP financial measures referenced in this press release, including the Rule of 40, is included below under the heading “Non-GAAP Financial Measures.” A reconciliation of the company’s non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.

Recent Company Highlights

Blackbaud announced multiple new Agents for Good™ and AI-powered product enhancements planned as part of a reimagined cloud-native, AI-first connected platform, underscoring the company’s continued innovation momentum and differentiated position as the trusted AI engine for social impact.The Blackbaud Institute published research that shows that while AI adoption is accelerating across the social impact sector, the organizations seeing transformational results have higher levels of AI maturity, moving beyond fragmented experimentation to systemic, governed AI use. To support the long-term health of the sector, Blackbaud has convened the AI Coalition for Social Impact, which has launched a free certification program to equip professionals to adopt AI responsibly, confidently and effectively.At its bi-annual Product Update Briefings and annual bbdevdays Developers Conference, Blackbaud showcased continued product and platform innovation highlighting new AI-powered capabilities, expanded connected workflows, and developer tools that reinforce the company’s trusted AI engine strategy and help customers build, extend, and scale purpose-built solutions for social impact.Blackbaud strengthened its leadership in education, launching an Innovation Partnership and strategic investment in Student First to help higher education institutions build a more connected campus operating model, and unveiling new AI innovation for K–12 independent schools, including an Admissions Agent in development to help schools deliver more personalized, efficient admissions experiences.The company earned recognition from the American Business Awards for AI innovation and leadership, was named to Newsweek’s World’s Greenest Companies list for the second consecutive year, and was honored on the TIME America’s Best Companies 2026 list, underscoring continued momentum in responsible innovation, sustainability and workplace excellence.Blackbaud released its 2025 Impact Report, highlighting progress across responsible AI, sustainability and global social impact, reinforcing the company’s commitment to using purpose-built technology and responsible business practices to help customers and communities drive measurable outcomes.

Visit www.blackbaud.com/newsroom for more information about Blackbaud’s recent highlights.

Financial Outlook
Blackbaud today reaffirmed its 2026 full year financial guidance and expects to finish in the upper half of the range across all four key metrics:

GAAP revenue of $1.173 billion to $1.179 billionNon-GAAP adjusted EBITDA of $430 million to $438 millionNon-GAAP diluted earnings per share of $5.15 to $5.25Non-GAAP free cash flow of $280 million to $290 million

Included in its 2026 full year financial guidance are the following updated assumptions:

Non-GAAP annualized effective tax rate is expected to be approximately 24.5%Interest expense for the year is expected to be approximately $62 million to $66 millionDiluted weighted average shares outstanding for the year are expected to be approximately 45.0 million to 46.0 millionCapital expenditures for the year are expected to be approximately $60 million to $70 million, including approximately $52 million to $62 million of capitalized software development costs

Blackbaud has not reconciled forward-looking full-year non-GAAP financial measures contained in this news release to their most directly comparable GAAP measures, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to compensation, acquisition transactions and integration, tax items or others that may arise during the year. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts.

Stock Repurchase Program
As of June 30, 2026, Blackbaud had approximately $850 million remaining under its common stock repurchase program that was expanded, replenished and reauthorized in December 2025. Based on our current plans, and stock repurchases to date, we expect total repurchases during 2026 to represent between 6% and 10.0% of our outstanding common stock as of December 31, 2025.

Conference Call Details

What: 

Blackbaud’s 2026 Second Quarter Conference Call

When: 

July 29, 2026

Time:   

8:00 a.m. (Eastern Time)

Live Call: 

1-877-407-3088 (US/Canada)

Webcast:   

Blackbaud’s Investor Relations Webpage

About Blackbaud
Blackbaud (NASDAQ: BLKB) is the world’s leading provider of AI-powered solutions for social impact. Serving nonprofits, educational institutions, companies committed to corporate social responsibility and individual change makers, Blackbaud propels impact at scale with the sector’s most intelligent solutions for fundraising and engagement, education solutions, financial management and CSR and grantmaking. With the deepest expertise powered by the world’s largest philanthropic data set, the most connected workflows, and the most powerful impact network, Blackbaud’s solutions are building a future where resources are unleashed at the speed of need. Blackbaud has been recognized by Fast Company, Newsweek, Quartz, Forbes and more for AI innovation, responsible leadership and workplace excellence. Blackbaud has operations in the United States, Australia, Canada, Costa Rica, India and the United Kingdom, supporting users in 100+ countries. Learn more at www.blackbaud.com, or follow us on X/Twitter, LinkedIn, Instagram, and Facebook.

Investor Contact
IR@blackbaud.com

Media Contact
media@blackbaud.com

Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the predictability of our financial condition and results of operations. These statements involve a number of risks and uncertainties. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: management of integration of acquired companies; uncertainty regarding increased business and renewals from existing customers; a shifting revenue mix that may impact gross margin; continued success in sales growth; risks related to the development, deployment, regulation, security, market adoption and perception of artificial intelligence technologies; cybersecurity and data protection risks and related liabilities; potential litigation involving us; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from Blackbaud’s investor relations department. Blackbaud assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

Trademarks
All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.

Non-GAAP Financial Measures
Blackbaud has provided in this release financial information that has not been prepared in accordance with GAAP. Blackbaud uses non-GAAP financial measures internally in analyzing its operational performance. Accordingly, Blackbaud believes these non-GAAP measures are useful to investors, as a supplement to GAAP measures, in evaluating its ongoing operational performance and trends and in comparing its financial results from period-to-period with other companies in Blackbaud’s industry, many of which present similar non-GAAP financial measures to investors. However, these non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies.

The non-GAAP financial measures discussed above exclude the impact of certain transactions that Blackbaud believes are not directly related to its operating performance in any particular period, but are for its long-term benefit over multiple periods. Blackbaud believes these non-GAAP financial measures reflect its ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business.

While Blackbaud believes these non-GAAP measures provide useful supplemental information, non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures.

Non-GAAP free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software development, and capital expenditures for property and equipment. Blackbaud believes non-GAAP free cash flow provides a useful measure of the company’s operating performance. Non-GAAP free cash flow is not intended to represent and should not be viewed as the amount of residual cash flow available for discretionary expenditures.

In addition, Blackbaud uses non-GAAP organic revenue growth, non-GAAP organic revenue growth on a constant currency basis, non-GAAP organic recurring revenue growth and non-GAAP organic recurring revenue growth on a constant currency basis, in analyzing its operating performance. Blackbaud believes that these non-GAAP measures are useful to investors, as a supplement to GAAP measures, for evaluating the periodic growth of its business on a consistent basis. Each of these measures excludes incremental acquisition-related revenue attributable to companies, if any, acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, each of these measures reflects presentation of full-year incremental non-GAAP revenue derived from such companies as if they were combined throughout the prior period. In addition, each of these measures excludes prior period revenue associated with divested businesses, if any. The exclusion of the prior period revenue is to present the results of the divested businesses within the results of the combined company for the same period of time in both the prior and current periods. Blackbaud believes this presentation provides a more comparable representation of its current business’ organic revenue growth and revenue run-rate.

Rule of 40 is defined as non-GAAP organic revenue growth plus non-GAAP adjusted EBITDA margin. Non-GAAP adjusted EBITDA is defined as GAAP net income plus interest, net; income tax provision (benefit); depreciation; amortization of intangible assets from business combinations; amortization of software development costs; stock-based compensation expense; Global Capabilities Center (“GCC”) workforce transition costs; acquisition and disposition-related costs; and Security Incident-related costs.

Blackbaud, Inc.

Consolidated Balance Sheets

(Unaudited)

(dollars in thousands, except per share amounts)

June 30,
2026

December 31,
2025

Assets

Current assets:

Cash and cash equivalents

$          34,388

$          38,914

Restricted cash

846,620

720,061

Accounts receivable, net of allowance of $6,672 and $5,876 at June 30, 2026 and
December 31, 2025, respectively

134,888

80,517

Customer funds receivable

6,378

1,308

Prepaid expenses and other current assets

96,620

89,290

Total current assets

1,118,894

930,090

Property and equipment, net

85,499

85,076

Software development costs, net

158,999

155,842

Goodwill

1,055,923

1,056,815

Intangible assets, net

93,379

106,654

Other assets

81,802

56,205

Total assets

$      2,594,496

$      2,390,682

Liabilities and stockholders’ equity

Current liabilities:

Trade accounts payable

$          35,431

$          27,344

Accrued expenses and other current liabilities

37,603

43,272

Due to customers

851,793

719,833

Debt, current portion

22,595

22,660

Deferred revenue, current portion

403,630

368,986

Total current liabilities

1,351,052

1,182,095

Debt, net of current portion

1,127,412

1,087,037

Deferred tax liability

33,407

21,981

Deferred revenue, net of current portion

2,773

2,778

Other liabilities

12,822

11,737

Total liabilities

2,527,466

2,305,628

Commitments and contingencies

Stockholders’ equity:

Preferred stock; 20,000,000 shares authorized, none outstanding

—

—

Common stock, $0.001 par value; 180,000,000 shares authorized, 74,035,437 and
72,312,354 shares issued at June 30, 2026 and December 31, 2025, respectively;
45,513,708 and 46,705,325 shares outstanding at June 30, 2026 and December 31, 2025, respectively

74

72

Additional paid-in capital

1,438,227

1,391,641

Treasury stock, at cost; 28,521,729 and 25,607,029 shares at June 30, 2026 and December 31, 2025, respectively

(1,452,356)

(1,316,224)

Accumulated other comprehensive loss

(925)

(5,948)

Retained earnings

82,010

15,513

Total stockholders’ equity

67,030

85,054

Total liabilities and stockholders’ equity

$      2,594,496

$      2,390,682

Blackbaud, Inc.
Consolidated Statements of Comprehensive Income (Unaudited)

(dollars in thousands, except per share amounts)

Three months ended
June 30,

Six months ended
June 30,

2026

2025

2026

2025

Revenue

$     290,597

$     282,030

$     571,737

$     551,966

Cost of revenue

112,434

113,633

227,015

228,448

Gross profit

178,163

168,397

344,722

323,518

Operating expenses

Sales, marketing and customer success

46,256

44,046

93,605

88,690

Research and development

34,856

33,595

71,772

67,154

General and administrative

34,449

32,856

64,710

89,535

Amortization of intangible assets

586

566

1,174

1,100

Total operating expenses

116,147

111,063

231,261

246,479

Income from operations

62,016

57,334

113,461

77,039

Interest expense

(17,579)

(18,411)

(33,615)

(35,356)

Other income, net

1,984

1,118

4,380

3,223

Income before provision for income taxes

46,421

40,041

84,226

44,906

Income tax provision

11,063

13,575

17,729

14,117

Net income

$      35,358

$      26,466

$      66,497

$      30,789

Earnings per share

Basic

$         0.79

$         0.55

$         1.47

$         0.64

Diluted

$         0.79

$         0.55

$         1.46

$         0.63

Common shares and equivalents outstanding

Basic weighted average shares

44,759,580

47,784,062

45,158,724

48,104,780

Diluted weighted average shares

44,884,337

48,248,057

45,605,260

48,786,793

Other comprehensive income (loss)

Foreign currency translation adjustment

$        (117)

$        7,324

$      (1,597)

$      10,583

Unrealized gain (loss) on derivative instruments, net of tax

3,042

(5,314)

6,620

(12,006)

Total other comprehensive income (loss)

2,925

2,010

5,023

(1,423)

Comprehensive income

$      38,283

$      28,476

$      71,520

$      29,366

Blackbaud, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

Six months ended
June 30,

(dollars in thousands)

2026

2025

Cash flows from operating activities

Net income

$       66,497

$       30,789

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

41,293

43,346

Net provision for credit losses and sales returns

3,020

2,973

Stock-based compensation expense

46,586

49,422

Deferred taxes

9,380

(653)

Amortization of deferred financing costs and discount

1,269

1,346

Other non-cash adjustments

1,313

(5,407)

Changes in operating assets and liabilities, net of acquisition and disposal of businesses:

Accounts receivable

(57,465)

(64,984)

Prepaid expenses and other assets

(11,416)

(8,955)

Trade accounts payable

6,818

(8,408)

Accrued expenses and other liabilities

530

(9,910)

Deferred revenue

34,688

38,770

Net cash provided by operating activities

142,513

68,329

Cash flows from investing activities

Purchase of property and equipment

(4,117)

(1,311)

Capitalized software development costs

(26,127)

(27,787)

Cash used in disposition of business

—

(12,235)

Other investing activities

(8,675)

—

Net cash used in investing activities

(38,919)

(41,333)

Cash flows from financing activities

Proceeds from issuance of debt

209,500

272,300

Payments on debt

(180,857)

(187,666)

Employee taxes paid for withheld shares upon equity award settlement

(25,319)

(38,655)

Change in due to customers

132,582

128,582

Change in customer funds receivable

(5,175)

(3,262)

Purchase of treasury stock, including excise tax payments

(111,637)

(103,205)

Net cash provided by financing activities

19,094

68,094

Effect of exchange rate on cash, cash equivalents and restricted cash

(655)

7,212

Net increase in cash, cash equivalents and restricted cash

122,033

102,302

Cash, cash equivalents and restricted cash, beginning of period

758,975

809,512

Cash, cash equivalents and restricted cash, end of period

$      881,008

$      911,814

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown above in the consolidated statements of cash flows:

(dollars in thousands)

June 30,
2026

December 31,
2025

Cash and cash equivalents

$       34,388

$       38,914

Restricted cash

846,620

720,061

Total cash, cash equivalents and restricted cash in the statement of cash flows

$      881,008

$      758,975

Blackbaud, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited)

(dollars in thousands, except per share amounts)

Three months ended
June 30,

Six months ended
June 30,

2026

2025

2026

2025

GAAP Revenue

$   290,597

$   282,030

$   571,737

$   551,966

GAAP gross profit

$   178,163

$   168,397

$   344,722

$   323,518

GAAP gross margin

61.3 %

59.7 %

60.3 %

58.6 %

Non-GAAP adjustments:

Add: Stock-based compensation expense

2,714

3,250

5,801

5,948

Add: Amortization of intangibles from business combinations

5,404

7,020

11,671

14,072

Add: Employee severance

—

302

—

302

Add: GCC workforce transition costs(1)

267

—

542

—

Subtotal

8,385

10,572

18,014

20,322

Non-GAAP gross profit

$   186,548

$   178,969

$   362,736

$   343,840

Non-GAAP gross margin

64.2 %

63.5 %

63.4 %

62.3 %

GAAP income from operations

$     62,016

$     57,334

$   113,461

$     77,039

GAAP operating margin

21.3 %

20.3 %

19.8 %

14.0 %

Non-GAAP adjustments:

Add: Stock-based compensation expense

22,706

27,252

46,586

49,422

Add: Amortization of intangibles from business combinations

5,990

7,586

12,845

15,172

Add: Employee severance

—

2,147

—

2,147

Add: GCC workforce transition costs(1)

1,974

—

3,000

—

Add: Acquisition and disposition-related costs(2)

866

264

1,013

25,396

Add: Security Incident-related costs

—

395

—

2,575

Add: Impairment of capitalized software development costs

1,056

—

1,056

—

Subtotal

32,592

37,644

64,500

94,712

Non-GAAP income from operations

$     94,608

$     94,978

$   177,961

$   171,751

Non-GAAP operating margin

32.6 %

33.7 %

31.1 %

31.1 %

GAAP income before provision for income taxes

$     46,421

$     40,041

$     84,226

$     44,906

GAAP net income

$     35,358

$     26,466

$     66,497

$     30,789

Shares used in computing GAAP diluted earnings per share

44,884,337

48,248,057

45,605,260

48,786,793

GAAP diluted earnings per share

$       0.79

$       0.55

$       1.46

$       0.63

Non-GAAP adjustments:

Add: GAAP income tax provision

11,063

13,575

17,729

14,117

Add: Total non-GAAP adjustments affecting income from operations

32,592

37,644

64,500

94,712

Non-GAAP income before provision for income taxes

79,013

77,685

148,726

139,618

Assumed non-GAAP income tax provision(3)

19,358

19,033

36,438

34,207

Non-GAAP net income

$     59,655

$     58,652

$   112,288

$   105,411

Shares used in computing non-GAAP diluted earnings per share

44,884,337

48,248,057

45,605,260

48,786,793

Non-GAAP diluted earnings per share

$       1.33

$       1.22

$       2.46

$       2.16

(1) GCC workforce transition costs represent severance and other costs incurred in connection with the transition of certain roles to our Global Capability Center in Hyderabad, India.

(2) Includes charges of $24.3 million incurred during the six months ended June 30, 2025 related to the release from our lease for office space in Washington, DC.

(3) We use a non-GAAP effective tax rate of 24.5% when calculating non-GAAP net income and non-GAAP diluted earnings per share. We base this rate on our estimated annual GAAP income tax rate, adjusted for items excluded from GAAP income when calculating non-GAAP income and for significant nonrecurring tax adjustments. We review this non-GAAP tax rate annually to determine whether it remains appropriate for evaluating our financial performance. In conducting this review, we consider our GAAP annual effective tax rate, changes in tax legislation, non-GAAP adjustments, and shifts in the geographic mix of revenues and expenses. We also evaluate other factors that we deem significant. Because the tax treatment of non-GAAP adjustments differs from GAAP and because of our methodology for estimating the annual tax rate, the non-GAAP tax rate may differ from the GAAP tax rate and from our actual tax liabilities.

Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)

(dollars in thousands)

Three months ended
June 30,

Six months ended
June 30,

2026

2025

2026

2025

GAAP revenue

$   290,597

$     282,030

$   571,737

$     551,966

GAAP revenue growth

3.0 %

3.6 %

Less: Non-GAAP revenue from divested businesses(1)

—

—

—

—

Non-GAAP organic revenue(2)

$   290,597

$     282,030

$   571,737

$     551,966

Non-GAAP organic revenue growth

3.0 %

3.6 %

Non-GAAP organic revenue(2)

$   290,597

$     282,030

$   571,737

$     551,966

Foreign currency impact on non-GAAP organic revenue(3)

(690)

—

(2,930)

—

Non-GAAP organic revenue on constant currency basis(3)

$   289,907

$     282,030

$   568,807

$     551,966

Non-GAAP organic revenue growth on constant currency basis

2.8 %

3.1 %

GAAP recurring revenue

$   285,291

$     276,279

$   561,776

$     539,604

GAAP recurring revenue growth

3.3 %

4.1 %

Less: Non-GAAP recurring revenue from divested businesses(1)

—

—

—

—

Non-GAAP organic recurring revenue(2)

$   285,291

$     276,279

$   561,776

$     539,604

Non-GAAP organic recurring revenue growth

3.3 %

4.1 %

Non-GAAP organic recurring revenue(2)

$   285,291

$     276,279

$   561,776

$     539,604

Foreign currency impact on non-GAAP organic recurring revenue(3)

(670)

—

(2,868)

—

Non-GAAP organic recurring revenue on constant currency basis(3)

$   284,621

$     276,279

$   558,908

$     539,604

Non-GAAP organic recurring revenue growth on constant currency basis

3.0 %

3.6 %

(1) Non-GAAP revenue from divested businesses excludes revenue associated with divested businesses in the prior period. The exclusion of the prior period revenue is to present the results of the divested business with the results of the combined company for the same period of time in both the prior and current periods.

(2) Non-GAAP organic revenue and non-GAAP organic recurring revenue for the prior year periods presented herein may not agree to non-GAAP organic revenue and non-GAAP organic recurring revenue presented in the respective prior period quarterly financial information solely due to the manner in which non-GAAP organic revenue growth and non-GAAP organic recurring revenue growth are calculated.

(3) To determine non-GAAP organic revenue growth and non-GAAP organic recurring revenue growth on a constant currency basis, revenues from entities reporting in foreign currencies were translated to U.S. Dollars using the comparable prior period’s quarterly weighted average foreign currency exchange rates. The primary foreign currencies creating the impact are the Australian Dollar, British Pound, Canadian Dollar and Euro.

Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)

(dollars in thousands)

Three months ended
June 30,

Six months ended
June 30,

2026

2025

2026

2025

GAAP net income

$    35,358

$      26,466

$    66,497

$      30,789

Non-GAAP adjustments:

Add: Interest, net

15,652

16,443

30,009

31,733

Add: GAAP income tax provision

11,063

13,575

17,729

14,117

Add: Depreciation

2,845

2,667

5,051

5,642

Add: Amortization of intangibles from business combinations

5,990

7,586

12,845

15,172

Add: Amortization of software development costs(1)

12,804

12,304

25,225

24,176

Subtotal

48,354

52,575

90,859

90,840

Non-GAAP EBITDA

$    83,712

$      79,041

$   157,356

$     121,629

Non-GAAP EBITDA margin(2)

28.8 %

27.5 %

Non-GAAP adjustments:

Add: Stock-based compensation expense

$    22,706

$      27,252

$    46,586

$      49,422

Add: Employee severance

—

2,147

—

2,147

Add: GCC workforce transition costs(3)

1,974

—

3,000

—

Add: Acquisition and disposition-related costs(3)

866

264

1,013

25,396

Add: Security Incident-related costs

—

395

—

2,575

Add: Impairment of capitalized software development costs

1,056

—

1,056

—

Subtotal

26,602

30,058

51,655

79,540

Non-GAAP adjusted EBITDA

$   110,314

$     109,099

$   209,011

$     201,169

Non-GAAP adjusted EBITDA margin(4)

38.0 %

36.6 %

Rule of 40(5)

41.0 %

40.2 %

Non-GAAP adjusted EBITDA

$   110,314

$     109,099

$   209,011

$     201,169

Foreign currency impact on Non-GAAP adjusted EBITDA(6)

(162)

(1,096)

(1,191)

(891)

Non-GAAP adjusted EBITDA on constant currency basis(6)

$   110,152

$     108,003

$   207,820

$     200,278

Non-GAAP adjusted EBITDA margin on constant currency basis

38.0 %

36.5 %

Rule of 40 on constant currency basis(7)

40.8 %

39.6 %

(1) Includes amortization expense related to software development costs, and amortization expense from capitalized cloud computing implementation costs.

(2) Measured by GAAP revenue divided by non-GAAP EBITDA.

(3) See additional details in the reconciliation of GAAP to Non-GAAP operating income above.

(4) Measured by non-GAAP organic revenue divided by non-GAAP adjusted EBITDA.

(5) Measured by non-GAAP organic revenue growth plus non-GAAP adjusted EBITDA margin. See Non-GAAP organic revenue growth table above.

(6) To determine non-GAAP adjusted EBITDA on a constant currency basis, non-GAAP adjusted EBITDA from entities reporting in foreign currencies were translated to U.S. Dollars using the comparable prior period’s quarterly weighted average foreign currency exchange rates. The primary foreign currencies creating the impact are the Australian Dollar, British Pound, Canadian Dollar and Euro.

(7) Measured by non-GAAP organic revenue growth on constant currency basis plus non-GAAP adjusted EBITDA margin on constant currency basis.

(dollars in thousands)

Six months ended
June 30,

2026

2025

GAAP net cash provided by operating activities

$   142,513

$     68,329

GAAP operating cash flow margin

24.9 %

12.4 %

Non-GAAP adjustments:

Less: purchase of property and equipment

(4,117)

(1,311)

Less: capitalized software development costs

(26,127)

(27,787)

Non-GAAP free cash flow

$   112,269

$     39,231

Non-GAAP free cash flow margin

19.6 %

7.1 %

 

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SOURCE Blackbaud

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Harlem Children’s Zone Acquires FinTech Platform, Goalsetter, to Accelerate Universal Economic Mobility

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Acquisition combines HCZ’s proven model with Goalsetter’s innovative financial education technology to expand access and impact at scale

NEW YORK, Oct. 22, 2026 /PRNewswire/ — Today, Harlem Children’s Zone (HCZ), one of the nation’s leading anti-poverty organizations, announced the acquisition of Goalsetter, a financial technology platform that delivers best-in-class, engaging, technology-enabled learning experiences for people seeking to enhance their financial know-how, capabilities, and confidence.   

The acquisition marks a significant step in HCZ’s Wealth Builds–Universal Economic Mobility (WB-UEM) strategy, a national framework designed to help children and families build long-term economic security through cradle-to-career supports, financial education and experiences, and direct access to capital via a Child Capital Stack of asset boosts.

“We know that economic mobility is a two-generation challenge,” says Harlem Children’s Zone CEO Kwame Owusu-Kesse. “With this acquisition, we are solving for a critical component of Universal Economic Mobility by melding a proven financial education platform and HCZ’s decades of experience providing people with the knowledge and tools to build strong futures for themselves and their families. This is more than an investment in financial education. It is an investment in critical national infrastructure for economic mobility.”

Harlem Children’s Zone has decades of experience driving outcomes at scale, beginning as a one-block pilot, expanding to over 100 blocks in Central Harlem, and now working with over 70 communities across the United States. HCZ seeks to use its learnings, decades of experience driving outcomes at scale, and renowned best practices to provide pathways to economic mobility for all of America’s children and families.

“Goalsetter was built on the belief that everyone should have access to the financial knowledge and tools that can shape their future and livelihood,” said Tanya Van Court, Chief FinTech Officer at Harlem Children’s Zone and Founder of Goalsetter. “Joining Harlem Children’s Zone gives us an extraordinary opportunity to build on that work. Together, we can continue enhancing the platform, expand access for learners of all ages and walks of life, and demonstrate what is possible when mission, innovation, and technology come together to serve the most people.”

Goalsetter creates opportunities to deliver high-quality, developmentally appropriate and culturally relevant financial education with extensive reach,  including to low-income and rural communities that have historically had limited access to these resources. Its current offerings include Goalsetter Classroom, which provides standards-aligned financial education curriculum for middle and high school students, and MoneyLingo, a mobile-first financial education experience for college-aged students and adults in the workforce, covering practical topics such as saving, investing, credit, debt, and financial decision-making.                                                         

“This acquisition sends an important signal to the field,” said Owusu-Kesse. “Social impact organizations should not have to choose between mission and scale. By bringing a proven technology platform into HCZ, we’re demonstrating how non-profit organizations can be centers of business excellence, using vehicles of innovation, AI, and technology to create efficient and effective pathways to scale and impact. This acquisition strengthens our in-house capacity to build, innovate, and continuously improve outcomes.”

The organization plans to build upon Goalsetter’s existing offerings by exploring financial education products for younger learners and creating opportunities to establish a continuous financial learning journey from early childhood through adulthood.

“This is ultimately about extending opportunity to all,” added Owusu-Kesse. “By connecting financial education, technology, family engagement, and access to assets, we can help create more accessible pathways to economic mobility.”

Services to current Goalsetter clients will be unaffected by this acquisition.

View original content:https://www.prnewswire.com/news-releases/harlem-childrens-zone-acquires-fintech-platform-goalsetter-to-accelerate-universal-economic-mobility-302917320.html

SOURCE Harlem Children’s Zone

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Common Ground in the Battlegrounds? Surveys Reveal Widespread Bipartisan Agreement in 11 Competitive States and 28 Congressional Districts, as Well as Nationally

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Bipartisan Majorities Say If Congress Were to Listen to the People More, They Would More Likely Find Common Ground

COLLEGE PARK, Md., Oct. 22, 2026 /PRNewswire/ — The Program for Public Consultation (PPC) conducted extensive surveys in competitive states and congressional districts, as well as nationally, revealing a remarkable level of bipartisan common ground.

Majorities of both Democrats and Republicans agreed on: 

106 policies nationally 82 policies in all states and districts surveyed101 policies in at least two-thirds of all the states and districts surveyed

Over 40,000 Americans were surveyed in two waves with representative samples of 600-2,016 in each of the 11 competitive states surveyed, and 400-592 in each of the 28 competitive congressional districts surveyed, and 1,200-2,509 nationwide.

Nearly all policy questions were based on congressional legislation or executive branch proposals. 

Fourteen policy topics were covered: Artificial Intelligence, Housing, Healthcare, Low-Income Assistance, Families and Children, Social Security, Immigration, Abortion and Birth Control, Energy and Environment, Federal Taxes, Campaign Finance, Government Reform, Criminal Justice and America’s Role in the World. For every topic, most policies had bipartisan agreement across every battleground surveyed.

The policy questions used in these national and battleground surveys were chosen because they elicited bipartisan support in previous in-depth national surveys conducted by PPC, in which respondents received briefings on the topic and evaluated pro and con arguments for the proposed policy.

Steven Kull, director of PPC, comments, “What is striking here is that these surveys revealed widespread bipartisan agreement on over a dozen key issues that Congress has failed to resolve, from costs of healthcare, to risks of artificial intelligence, to Social Security’s impending insolvency, and many more. Clearly, there is far more common ground among the American people than there is in Congress.”

Americans Think Public Opinion Should Have More Influence
Respondents were also asked about the role of public opinion in policymaking. Across the battlegrounds, on average, respondents estimated that federally elected officials make the same decisions that the majority of Americans would make just 35% of the time.

Large majorities believe polarization in government comes not from the American people but from elected officials, and that more influence for the people would help break the logjam in Congress (Democrats 62 to 88%, Republicans 66 to 89%).

Perhaps most germane, overwhelming majorities of Democrats and Republicans in the battlegrounds believe that if members of Congress were more influenced by the people, they would be more likely to find common ground (Democrats 82 to 97%, Republicans 80 to 95%), and better serve the common good (Democrats 77 to 94%, Republicans 79 to 94%).

Steven Kull adds, “On the basis of this study, it does appear that the public is correct that if the people had more influence, Congress would be more likely to find common ground, and thus  function better.”

Americans also say that public opinion should play a substantial role in news reporting about policy. Over two-thirds say news reports on policy matters should include public opinion data most of the time or always when reliable information is available (Democrats 71 to 88%, Republicans 67 to 89%). Similarly, when Congress is about to vote on a law, large numbers say it is very or extremely important for news outlets to report whether a majority of Americans favor or oppose it (Democrats 65 to 84%, Republicans 60 to 85%).

MORE INFORMATION

Battlegrounds Common Ground SheetIndividual State and District Results, Questionnaires and MethodologiesNational Questionnaire with Toplines, Crosstabs and Methodology

About the Surveys
The state and district surveys used for this analysis were fielded July 21 – August 17, 2026, to a total of 19,949 adults, and May 27 – July 1, 2026, to 19,564 adults. They included 600-2016 in each of the 11 states, and 400-592 in each of the 28 congressional districts. Response rates ranged from 7.1 to 9.0%. Confidence intervals range from +/- 2.9 to 8.1%, and maximum weights range from 1.9 to 10.0.

The national surveys were fielded February 11-26, 2026, with 2,509 adults, and March 11-19, 2026, with 1,200 adults. The response rates were 7.6% and 8.3%, respectively. The confidence interval is +/- 2.9% for both surveys, and the maximum weights are 2.5 and 1.9.

The sample was obtained from multiple online opt-in panels, including Cint, Dynata and Prodege. Sample collection and quality control were managed by QuantifyAI under the direction of the Program for Public Consultation. The surveys were offered in both English and Spanish.

The samples were pre-stratified and weighted by age, race, ethnicity, gender, education, household income, marital status, and home ownership to match the general adult population. The national sample was further weighted by Census region. The distribution of partisan affiliation was within expectations, based on voter registration data for non-leaners and/or Cook’s Partisan Voting Index for leaners, or weighted to reflect those benchmarks.

About the Common Ground in the Battlegrounds? Survey Series
This effort aims to identify bipartisan common ground in competitive states and districts across the nation. The project seeks to educate the public, policymakers and candidates about the findings; and provide journalists with independent, nonpartisan research that brings the public into the conversation about public policy.

In addition to PPC, project partners include the Civic Innovation Center at the University of Maryland (CivIC) and Voice of the People (VOP), a national nonpartisan organization seeking to give the public a greater voice in government. None of these entities advocate for policy positions or endorse candidates.

States surveyed: Alaska; Georgia; Iowa; Maine; Michigan; Minnesota; Montana; Nebraska; New Hampshire; North Carolina; Ohio; and Texas.

Congressional Districts surveyed: Arizona’s 1st and 6th; Colorado’s 8th; Iowa’s 1st, 2nd, 3rd and 4th; Maine’s 2nd; Michigan’s 4th, 7th, 8th and 10th; Montana’s 1st; Nebraska’s 2nd; Nevada’s 3rd; New Jersey’s 7th and 9th; New Mexico’s 2nd; New York’s 3rd, 4th, 17th and 19th; Oregon’s 5th; Pennsylvania’s 1st, 7th, 8th and 10th; and Washington’s 3rd.

The survey series excluded several competitive districts because they were in states that had recently been redistricted and thus had no Census data yet to use for demographic benchmarks.

Program for Public Consultation
The Program for Public Consultation (PPC), affiliated with the University of Maryland’s School of Public Policy, seeks to improve democratic governance by consulting the public and bringing the people’s views into the public discourse. It conducts surveys with representative samples on policies proposed by elected officials and shares its findings with government officials, the media, other academics, and the general public.

Civic Innovation Center
The Civic Innovation Center (CivIC) at the University of Maryland’s School of Public Policy works to strengthen the foundations of civic health. It contributes to important debates about civic education, civic engagement, and needed democratic reforms in the state of Maryland and nationwide, in partnership with other BIG 10 universities. It works to build the connective tissue that brings together students, scholars and practitioners to help elevate the UMD community’s contribution to our wider democracy.

Voice of the People
Voice of the People (VOP) is a nonpartisan organization working to re-anchor our democracy in its founding principles by giving ‘We the People’ a greater and more effective voice in government. It champions innovative methods and technology that enable the American people to play a role in the policymaking process and provide policymakers with a more accurate understanding of the views of their constituents.

Contact: Jonathan Casaverde, jonathan.casaverde@wardcirclestrategies.com,(786) 469-9422

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SOURCE Program for Public Consultation

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FDA grants 510(k) clearance for BoneEnhance, the first machine learning layer on RIVANNA’s Accuro XV platform

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Anatomy segmentation and three-dimensional skeletal visualization arrive with this clearance; an injury detection module for clinical decision support is in development on the platform roadmap

CHARLOTTESVILLE, Va., Oct. 22, 2026 /PRNewswire/ — RIVANNA®, developer of AI-enabled clinical decision-support solutions, today announced that the U.S. Food and Drug Administration (FDA) has granted 510(k) clearance for BoneEnhance®, a machine learning software module for the Accuro® XV diagnostic ultrasound system. The module segments bone and surrounding tissues and supports visualization of skeletal anatomy in three dimensions during image review.

The clearance moves the platform from acquisition toward interpretation. Accuro XV was cleared in April 2026 for B-mode imaging in musculoskeletal conventional and superficial applications. Its conformable three-dimensional probe automates large field-of-view image acquisition after initial patient positioning. BoneEnhance is the first machine learning software module cleared for the platform.

BoneEnhance identifies bone and surrounding tissues

Each automated acquisition creates a volumetric dataset for review. BoneEnhance identifies bone and surrounding tissues within that volume, then highlights them with color-coded overlays on the two-dimensional B-mode image. The original anatomical data remain unaltered and visible beneath the overlays. A three-dimensional indicator beside the image shows the scan orientation and the location of the displayed slice within the volume.

A platform milestone

The sequence is deliberate: decision support begins at acquisition. Accuro XV acquires the image; BoneEnhance identifies and labels the anatomy within it. Behind the integrated workflow stands a worldwide intellectual-property portfolio of more than 100 issued and pending patents across more than 20 patent families.

“We founded RIVANNA to solve a problem that cuts across care settings: decision-critical information sits outside the point-of-care workflow,” said Will Mauldin, PhD, Co-founder and CEO of RIVANNA. “BoneEnhance is where the stack begins to close that gap for musculoskeletal care: automated volumetric acquisition, now paired with cleared software-assisted review. This clearance is the foundation: the first machine learning layer, anchoring the decision-support capabilities now in development.”

Independently validated within a nationwide eight-site study

BoneEnhance was trained and validated within RIVANNA’s nationwide eight-site clinical study. Three sites contributed the training data; the other five provided the independent test set of 233 volumetric datasets, comprising 69,900 images from 173 subjects. None of the test data were used for training or tuning. Three board-certified radiologists established the reference labels, and per-volume label prediction accuracy, a measure of anatomical labeling, ranged from 95.1% to 100.0%.

Separate from the validation supporting this clearance, the platform’s automated acquisition carries peer-reviewed evidence: in a published study of 205 patients in the Journal of Emergency Medicine (DOI: 10.1016/j.jemermed.2025.11.011), operators with one hour of hands-on training acquired wrist and ankle images rated adequate for diagnostic interpretation in more than 90% of scans, with image quality comparable to physician-acquired scans.

“This clearance reflects the strength of the team RIVANNA has built across AI development, clinical affairs, and regulatory execution, and the commitment of the clinical sites that partnered with us to generate the evidence,” said Delphine Le Roux, PhD, PMP, Senior Director, Market Access and Strategic Partnerships at RIVANNA. “None of it happens without BARDA’s sustained support, which allowed us to do this the right way: rigorous, multi-site, and independent. The infrastructure, partnerships, and regulatory playbook we established for BoneEnhance are designed to carry forward. That execution engine is what positions us to pursue the next clearance with confidence.”

The next layer in development

The platform’s progression continues with an investigational musculoskeletal injury detection module. Where BoneEnhance labels the anatomy, the new module is being developed to assist clinicians in evaluating potential extremity fractures within acquired ultrasound images. The nationwide clinical study that trained and validated BoneEnhance, now expanded from eight to ten sites, is building the datasets used to train the module. Because the sites and data infrastructure were established once and are reused for each new module, every subsequent module builds on the program’s federal investment.

Federal funding acknowledgment

This project has been supported in whole or in part with federal funds from the U.S. Department of Health and Human Services; the Administration for Strategic Preparedness and Response (ASPR); Biomedical Advanced Research and Development Authority (BARDA), under contract number 75A50121C00035.

About Accuro XV

Accuro XV is a portable, small-footprint point-of-care volumetric ultrasound imaging system for musculoskeletal imaging. Its conformable three-dimensional probe automates large field-of-view B-mode image acquisition without ionizing radiation. BoneEnhance is a cleared machine learning software module available during review of Accuro XV volumetric image acquisitions. It segments bone and surrounding tissues and supports visualization of skeletal anatomy in three dimensions.

An investigational computer-aided musculoskeletal injury detection module is in development for Accuro XV. It is designed to assist clinicians in detecting extremity fractures from volumetric ultrasound and annotating soft-tissue signs associated with injury, and to support triage decisions, including referral for additional radiographic imaging.

Accuro XV is designed to provide a fracture-care layer at the point of triage, helping to streamline emergency department workflows, expedite evaluation of low-severity extremity injuries, and reduce reliance on X-ray referrals. The platform is designed to support just-in-time training to promote consistent use across clinical experience levels, advancing a shared mission to transform musculoskeletal injury care while supporting broader emergency preparedness objectives.

About RIVANNA

RIVANNA is a medical technology company developing clinical decision-support solutions powered by proprietary clinical datasets, AI models, and purpose-built imaging hardware. The company’s platform is designed to automate complex anatomical analysis at the point of care, support faster and more confident clinical decisions, reduce variability, and expand access to advanced capabilities. Its initial applications address interventional guidance and trauma triage, beginning with neuraxial procedures and musculoskeletal injury assessment. RIVANNA has established an FDA-cleared product portfolio and maintains a worldwide intellectual-property portfolio of more than 100 issued and pending patents. RIVANNA is headquartered in Charlottesville, Virginia, and operates an FDA-registered, ISO 13485:2016-certified manufacturing facility.

RIVANNA, Accuro, BoneEnhance, and the Rivanna Medical family of marks are registered and unregistered trademarks of Rivanna Medical, Inc. in the United States and other jurisdictions.

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SOURCE RIVANNA

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