Blackbaud announced strong financial results for its second quarter ended June 30, 2025, with total revenue of $281.4 million. While this represented a 2.1% decrease year-over-year due to the EVERFI divestiture, organic revenue grew by a robust 6.8% year-over-year, and 6.3% for the six months ended June 30, 2025, on a constant currency basis.
The company achieved a record-setting Rule of 45 in Q2 2025, marking its highest quarterly performance in company history, reflecting significant improvements in growth and profitability. Non-GAAP gross margin reached 63.4%, a nearly 300 basis point improvement from the prior year, and income from operations increased by $14.6 million.
Blackbaud raised its full-year 2025 financial guidance across all key metrics. The company now projects revenue between $1.120 billion and $1.130 billion, with organic growth at the midpoint of approximately 5% on a constant currency basis. Adjusted EBITDA margin is anticipated to be between 35.4% and 36.2%, and non-GAAP EPS is expected in the range of $4.30 to $4.50. Adjusted free cash flow guidance was also increased to $190 million to $200 million, demonstrating confidence in its operational execution and financial model.
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