Blackbaud’s board of directors approved a new $1 billion stock repurchase program on December 1, 2025, and the company announced the expansion on December 2, 2025. The move increases the program’s available capital from the previous $800 million to $1 billion, giving management greater flexibility to return value to shareholders while preserving liquidity for growth initiatives.
Blackbaud has already repurchased 2,707,953 shares for $174.5 million during 2025, a transaction that represents 6.7 % of the company’s outstanding common stock as of December 31, 2024. The repurchase activity is part of a broader strategy to reduce equity dilution and support the share price, and it reflects management’s confidence that the current valuation is attractive.
With the expanded program, Blackbaud has raised its 2025 repurchase target to 7.0 %–8.5 % of shares, up from the prior 5.2 %–7.0 % range. The higher target signals a stronger commitment to shareholder returns and a belief that the company’s cash flow generation will comfortably support the increased buy‑back pace.
The expansion follows a series of incremental buy‑back authorizations: a $500 million program in January 2024, an increase to $800 million in July 2024, and now the $1 billion replenishment. This pattern demonstrates a deliberate, step‑wise approach to capital allocation, aligning buy‑back activity with cash‑flow performance and strategic priorities.
Blackbaud’s recent Q3 2025 earnings, which beat consensus estimates with an EPS of $1.10 versus $1.07 expected, provide a solid financial backdrop for the buy‑back expansion. The earnings beat was driven by disciplined cost management and a favorable mix of high‑margin cloud and AI‑enabled services, offsetting modest revenue growth in legacy segments.
Management highlighted the company’s AI strategy as a key growth engine. CEO Mike Gianoni noted that the partnership with Anthropic to integrate Claude for Nonprofits will enhance Blackbaud’s fundraising platform, positioning the firm to capture a larger share of the growing AI‑powered nonprofit technology market.
The company’s divestiture of EVERFI in December 2024, while not directly cited as a catalyst for the buy‑back expansion, has streamlined Blackbaud’s portfolio and freed cash that can now be deployed toward shareholder returns and AI investments.
Analysts and market participants reacted positively to the announcement, citing the expanded buy‑back program and the Anthropic partnership as the primary drivers of investor enthusiasm. The combination of a robust capital‑allocation plan and a forward‑looking AI strategy signals confidence in Blackbaud’s long‑term competitive position.
Blackbaud’s board action and announcement reinforce the company’s commitment to delivering consistent mid‑single‑digit organic revenue growth and double‑digit non‑GAAP EPS growth, while maintaining a strong balance sheet and a healthy free‑cash‑flow profile.
The expanded buy‑back program, coupled with the AI partnership, positions Blackbaud to capitalize on its core strengths in the nonprofit and education sectors while pursuing new growth opportunities in AI‑enabled fundraising solutions.
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