What changed in this filing

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Item 1. Financial Statements

2026-07-29 compared with 2026-04-29 · 134 added, 97 removed, 479 unchanged (33% of the section changed)

2 unchanged sentences

Condensed Consolidated Balance Sheets

(dollars in thousands, except per share amounts) March 31,

(dollars in thousands, except per share amounts) June 30,

2026 December 31,

2 unchanged sentences

Restricted cash 846,620 720,061

Accounts receivable, net of allowance of $ 5,924 and $ 5,876 at March 31, 2026 and December 31, 2025, respectively

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

134,888 80,517

26 unchanged sentences

Common stock, $ 0.001 par value;

180,000,000 shares authorized, 74,015,631 and 72,312,354 shares issued at March 31, 2026 and December 31, 2025, respectively;

46,297,968 and 46,705,325 shares outstanding at March 31, 2026 and December 31, 2025, respectively

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

Additional paid-in capital 1,438,227 1,391,641

Treasury stock, at cost;

27,717,663 and 25,607,029 shares at March 31, 2026 and December 31, 2025, respectively

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

( 1,452,356 ) ( 1,316,224 )

4 unchanged sentences

The accompanying notes are an integral part of these condensed consolidated financial statements.

First Quarter 2026 Form 10-Q

Second Quarter 2026 Form 10-Q

Blackbaud, Inc.

1 unchanged sentence

(dollars in thousands, except per share amounts) Three months ended

June 30, Six months ended

2026 2025 2026 2025

Revenue $ 290,597 $ 282,030 $ 571,737 $ 551,966

25 unchanged sentences

The accompanying notes are an integral part of these condensed consolidated financial statements.

First Quarter 2026 Form 10-Q

Second Quarter 2026 Form 10-Q

Blackbaud, Inc.

Condensed Consolidated Statements of Cash Flows

(dollars in thousands) Three months ended

(dollars in thousands) Six months ended

Cash flows from operating activities

18 unchanged sentences

Cash used in disposition of business — ( 12,235 )

Other investing activities ( 8,675 ) —

Net cash used in investing activities ( 38,919 ) ( 41,333 )

6 unchanged sentences

Purchase of treasury stock, including excise tax payments ( 111,637 ) ( 103,205 )

Net cash used in financing activities ( 342,768 ) ( 330,032 )

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 decrease in cash, cash equivalents and restricted cash ( 306,208 ) ( 352,869 )

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

1 unchanged sentence

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

(dollars in thousands) March 31,

(dollars in thousands) June 30,

2026 December 31,

3 unchanged sentences

The accompanying notes are an integral part of these condensed consolidated financial statements.

First Quarter 2026 Form 10-Q

Second Quarter 2026 Form 10-Q

Blackbaud, Inc.

15 unchanged sentences

Balance at March 31, 2026 74,015,631 $ 74 ( 27,717,663 ) $ ( 1,423,843 ) $ 1,415,521 $ ( 3,850 ) $ 46,652 $ 34,554

Net income — — — — — — 35,358 35,358

Purchase of treasury shares under stock repurchase program, inclusive of excise tax — — ( 797,795 ) ( 28,306 ) — — — ( 28,306 )

Vesting of restricted stock units 4,341 — — — — — — —

Shares withheld to satisfy tax withholdings — — ( 6,271 ) ( 207 ) — — — ( 207 )

Stock-based compensation — — — — 22,706 — — 22,706

Restricted stock grants 33,954 — — — — — — —

Restricted stock cancellations ( 18,489 ) — — — — — — —

Other comprehensive income — — — — — 2,925 — 2,925

Balance at June 30, 2026 74,035,437 $ 74 ( 28,521,729 ) $ ( 1,452,356 ) $ 1,438,227 $ ( 925 ) $ 82,010 $ 67,030

Second Quarter 2026 Form 10-Q

Blackbaud, Inc.

Condensed Consolidated Statements of Stockholders' Equity (continued)

(dollars in thousands) Common stock Treasury stock Additional

14 unchanged sentences

Balance at March 31, 2025 72,258,301 $ 72 ( 23,742,986 ) $ ( 1,198,721 ) $ 1,319,562 $ ( 8,302 ) $ ( 95,134 ) $ 17,477

Net income — — — — — — 26,466 26,466

Purchase of treasury shares under stock repurchase program, inclusive of excise tax — — — ( 19 ) — — — ( 19 )

Vesting of restricted stock units 4,951 — — — — — — —

Shares withheld to satisfy tax withholdings — — ( 13,939 ) ( 868 ) — — — ( 868 )

Stock-based compensation — — — — 27,672 — — 27,672

Restricted stock grants 23,307 — — — — — — —

Restricted stock cancellations ( 22,991 ) — — — — — — —

Other comprehensive income — — — — — 2,010 — 2,010

Balance at June 30, 2025 72,263,568 $ 72 ( 23,756,925 ) $ ( 1,199,608 ) $ 1,347,234 $ ( 6,292 ) $ ( 68,668 ) $ 72,738

The accompanying notes are an integral part of these condensed consolidated financial statements.

First Quarter 2026 Form 10-Q

Second Quarter 2026 Form 10-Q

Blackbaud, Inc.

8 unchanged sentences

The condensed consolidated balance sheet at December 31, 2025 has been derived from the audited consolidated financial statements at that date.

Operating results and cash flows for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2026, or any other future period.

Operating results and cash flows for the three and/or six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2026, or any other future period.

Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations for interim reporting of the SEC.

11 unchanged sentences

Changes in the facts or circumstances underlying these estimates could result in material changes and actual results could materially differ from these estimates.

First Quarter 2026 Form 10-Q

Second Quarter 2026 Form 10-Q

Blackbaud, Inc.

16 unchanged sentences

Three months ended

Six months ended

(dollars in thousands, except per share amounts) 2026

5 unchanged sentences

Anti-dilutive shares excluded from calculations of diluted earnings per share

First Quarter 2026 Form 10-Q

Second Quarter 2026 Form 10-Q

Blackbaud, Inc.

13 unchanged sentences

(Level 3) Total

Fair value as of March 31, 2026

Fair value as of June 30, 2026

Financial assets:

2 unchanged sentences

Total financial assets

Fair value as of March 31, 2026

Fair value as of June 30, 2026

Financial liabilities:

Interest rate swaps

Foreign currency forward contracts

Total financial liabilities

12 unchanged sentences

See Note 7 to these unaudited, condensed consolidated financial statements for additional information about our derivative instruments.

First Quarter 2026 Form 10-Q

Second Quarter 2026 Form 10-Q

Blackbaud, Inc.

2 unchanged sentences

Accordingly, our interest rate swaps and foreign currency forward contracts are classified within Level 2 of the fair value hierarchy.

We believe the carrying amounts of our cash and cash equivalents, restricted cash, accounts receivable, trade accounts payable, accrued expenses and other current liabilities and due to customers approximate their fair values at March 31, 2026 and December 31, 2025, due to the immediate or short-term maturity of these instruments.

We believe the carrying amount of our debt approximates its fair value at March 31, 2026 and December 31, 2025, as the debt bears interest rates that approximate market value.

We believe the carrying amounts of our cash and cash equivalents, restricted cash, accounts receivable, trade accounts payable, accrued expenses and other current liabilities and due to customers approximate their fair values at June 30, 2026 and December 31, 2025, due to the immediate or short-term maturity of these instruments.

We believe the carrying amount of our debt approximates its fair value at June 30, 2026 and December 31, 2025, as the debt bears interest rates that approximate market value.

As SOFR rates are observable at commonly quoted intervals, our debt under the 2024 Credit Facilities (as defined below) is classified within Level 2 of the fair value hierarchy.

The fair value of our fixed rate debt does not exceed the carrying amount.

We did not transfer any assets or liabilities among the levels within the fair value hierarchy during the three months ended March 31, 2026.

We did not transfer any assets or liabilities among the levels within the fair value hierarchy during the six months ended June 30, 2026.

Non-recurring fair value measurements

5 unchanged sentences

For goodwill impairment testing, we estimate fair value using market-based methods including the use of market capitalization and consideration of a control premium.

There were no significant non-recurring fair value adjustments during the three months ended March 31, 2026.

There were no significant non-recurring fair value adjustments during the six months ended June 30, 2026.

Consolidated Financial Statement Details

Restricted cash

(dollars in thousands) March 31,

(dollars in thousands) June 30,

2026 December 31,

2 unchanged sentences

Total restricted cash

First Quarter 2026 Form 10-Q

Second Quarter 2026 Form 10-Q

Blackbaud, Inc.

1 unchanged sentence

Prepaid expenses and other assets

(dollars in thousands) March 31,

(dollars in thousands) June 30,

2026 December 31,

2 unchanged sentences

Taxes, prepaid and receivable

Investments in equity securities (4)

Implementation costs for cloud computing arrangements, net (5)(6)

1 unchanged sentence

Operating lease right-of-use assets

Prepaid insurance

Investment in equity securities (6)

Derivative instruments

Prepaid insurance

Total prepaid expenses and other assets

1 unchanged sentence

Prepaid expenses and other current assets

(1) Amortization expense from costs of obtaining contracts was $ 5.2 million and $ 5.0 million for the three months ended March 31, 2026 and 2025, respectively.

(2) The current portion of costs of obtaining contracts as of March 31, 2026 and December 31, 2025 was $ 18.6 million and $ 18.5 million, respectively.

(3) The current portion of prepaid software maintenance and subscriptions as of March 31, 2026 and December 31, 2025 was $ 41.2 million and $ 30.4 million, respectively.

(1) Amortization expense from costs of obtaining contracts was $ 5.2 million and $ 10.4 million for the three and six months ended June 30, 2026, respectively, and $ 5.1 million and $ 10.1 million for the three and six months ended June 30, 2025, respectively.

(2) The current portion of costs of obtaining contracts as of June 30, 2026 and December 31, 2025 was $ 18.4 million and $ 18.5 million, respectively.

(3) The current portion of prepaid software maintenance and subscriptions as of June 30, 2026 and December 31, 2025 was $ 34.4 million and $ 30.4 million, respectively.

(4) Represents strategic investments that did not result in Blackbaud having significant influence over the investees.

(5) These costs primarily relate to the multi-year implementations of our global enterprise resource planning, customer relationship management systems and other cloud-based systems.

(5) Amortization expense from capitalized cloud computing implementation costs was insignificant for the three months ended March 31, 2026 and 2025.

Accumulated amortization for these costs was $ 12.7 million and $ 14.0 million as of March 31, 2026 and December 31, 2025, respectively.

(6) Represents a strategic investment that did not result in Blackbaud having significant influence over the investee.

First Quarter 2026 Form 10-Q

(6) Amortization expense from capitalized cloud computing implementation costs was insignificant for the three months ended June 30, 2026 and 2025, and $ 1.8 million and $ 1.6 million for the six months ended June 30, 2026 and 2025, respectively.

Accumulated amortization for these costs was $ 13.6 million and $ 14.0 million as of June 30, 2026 and December 31, 2025, respectively.

Second Quarter 2026 Form 10-Q

Blackbaud, Inc.

1 unchanged sentence

Accrued expenses and other liabilities

(dollars in thousands) March 31,

(dollars in thousands) June 30,

2026 December 31,

Taxes payable

Customer credit balances

Operating lease liabilities

Customer credit balances

Unrecognized tax benefit

Accrued commissions and salaries

Accrued health care costs

Unrecognized tax benefit

Accrued vacation costs

Accrued transaction-based costs related to payments services

Derivative instruments

5 unchanged sentences

Three months ended

Six months ended

(dollars in thousands) 2026

6 unchanged sentences

effective interest rate at

(dollars in thousands) March 31,

(dollars in thousands) June 30,

2026 December 31,

2025 March 31,

2025 June 30,

2026 December 31,

7 unchanged sentences

In April 2024, we entered into a five-year $ 1.5 billion senior credit facility (the "2024 Credit Facilities").

At March 31, 2026, we were in compliance with our debt covenants under the 2024 Credit Facilities.

First Quarter 2026 Form 10-Q

At June 30, 2026, we were in compliance with our debt covenants under the 2024 Credit Facilities.

Second Quarter 2026 Form 10-Q

Blackbaud, Inc.

4 unchanged sentences

The Real Estate Loans require periodic principal payments and the balance of the Real Estate Loans are due upon maturity in April 2038.

At March 31, 2026, we were in compliance with our debt covenants under the Real Estate Loans.

At June 30, 2026, we were in compliance with our debt covenants under the Real Estate Loans.

From time to time, we enter into third-party financing agreements for purchases of software and related services for our internal use.

1 unchanged sentence

Interest associated with the notes is imputed at the rate we would incur for amounts borrowed under our then-existing credit facility at the inception of the notes.

The following table summarizes our currently effective supplier financing agreements as of March 31, 2026:

The following table summarizes our currently effective supplier financing agreements as of June 30, 2026:

(dollars in thousands) Term

4 unchanged sentences

(1) Represent noncash investing and financing transactions during the periods indicated as we purchased software and services by assuming directly related liabilities.

The changes in supplier financing obligations during the three months ended March 31, 2026, consisted of the following:

The changes in supplier financing obligations during the six months ended June 30, 2026, consisted of the following:

(dollars in thousands) Total

Balance at December 31, 2025

Balance at March 31, 2026

Balance at June 30, 2026

Derivative Instruments

4 unchanged sentences

master agreements with our counterparties.

As of March 31, 2026 and December 31, 2025, we have presented the fair value of our derivative instruments at the gross amounts in the unaudited, condensed consolidated balance sheets as the gross fair values of our derivative instruments equaled their net fair values.

As of June 30, 2026 and December 31, 2025, we have presented the fair value of our derivative instruments at the gross amounts in the unaudited, condensed consolidated balance sheets as the gross fair values of our derivative instruments equaled their net fair values.

Cash flow hedges

2 unchanged sentences

Our entry into the 2024 Credit Agreement in April 2024 did not affect our interest rate swap agreements, including their designation as cash flow hedges, as the 2024 Credit Agreement has substantially the same critical terms as the 2020 Credit Agreement.

In February 2026, we entered into an additional forward-starting interest rate swap agreement with a notional value of $ 100.0 million with effective dates beginning in August 2026 through February 2029 (the "February 2026 Swap Agreement").

We designated the February 2026 Swap Agreement as a cash flow hedge at the inception of the contract.

As of March 31, 2026 and December 31, 2025, the aggregate notional values of the interest rate swaps were $ 800.0 million and $ 700.0 million, respectively.

As of June 30, 2026 and December 31, 2025, the aggregate notional values of the interest rate swaps were $ 800.0 million and $ 700.0 million, respectively.

All of the contracts have maturities on or before February 2029.

First Quarter 2026 Form 10-Q

Second Quarter 2026 Form 10-Q

Blackbaud, Inc.

2 unchanged sentences

We designated each of these foreign currency forward contracts as cash flow hedges at the inception of the contracts.

As of March 31, 2026 and December 31, 2025, the aggregate notional values of the foreign currency forward contracts designated as cash flow hedges that we held to buy USD in exchange for Canadian Dollars were $ 34.3 million CAD and $ 32.9 million CAD, respectively.

As of June 30, 2026 and December 31, 2025, the aggregate notional values of the foreign currency forward contracts designated as cash flow hedges that we held to buy USD in exchange for Canadian Dollars were $ 34.3 million CAD and $ 32.9 million CAD, respectively.

All of the contracts have maturities of 12 months or less.

2 unchanged sentences

We designated each of these foreign currency forward contracts as net investment hedges at the inception of the contracts.

As of March 31, 2026 and December 31, 2025, the aggregate notional values of the foreign currency forward contracts designated as net investment hedges to reduce the volatility of the U.S.

As of June 30, 2026 and December 31, 2025, the aggregate notional values of the foreign currency forward contracts designated as net investment hedges to reduce the volatility of the U.S.

dollar value of a portion of our GBP-denominated investments was £ 12.1 million and £ 12.0 million, respectively.

1 unchanged sentence

Asset derivatives Liability derivatives

(dollars in thousands) Balance sheet location March 31,

(dollars in thousands) Balance sheet location June 30,

2026 December 31,

2025 Balance sheet location March 31,

2025 Balance sheet location June 30,

2026 December 31,

13 unchanged sentences

Total derivative instruments designated as hedging instruments

First Quarter 2026 Form 10-Q

Second Quarter 2026 Form 10-Q

Blackbaud, Inc.

10 unchanged sentences

other comprehensive loss into income

(dollars in thousands) March 31,

(dollars in thousands) June 30,

2026 Three months ended

March 31, 2026

June 30, 2026

Six months ended

June 30, 2026

Cash Flow Hedges

5 unchanged sentences

2025 Three months ended

March 31, 2025

June 30, 2025

Six months ended

June 30, 2025

Cash Flow Hedges

8 unchanged sentences

For net investment hedges, changes in the fair value measurements of the derivative instruments and the related income tax expense or benefit are reflected as adjustments to translation adjustment, a component of accumulated other comprehensive income (loss), and recognized in earnings only when the hedged GBP investment is liquidated.

The estimated accumulated other comprehensive income as of March 31, 2026 that is expected to be reclassified into earnings within the next twelve months is $ 1.6 million.

There were no ineffective portions of our interest rate swap or foreign currency forward derivatives during the three months ended March 31, 2026 and 2025.

The estimated accumulated other comprehensive income as of June 30, 2026 that is expected to be reclassified into earnings within the next twelve months is $ 3.6 million.

There were no ineffective portions of our interest rate swap or foreign currency forward derivatives during the six months ended June 30, 2026 and 2025.

See Note 10 to these unaudited, condensed consolidated financial statements for a summary of the changes in accumulated other comprehensive income (loss) by component.

We classify cash flows related to derivative instruments as operating activities in the unaudited, condensed consolidated statements of cash flows.

Second Quarter 2026 Form 10-Q

Blackbaud, Inc.

Notes to Condensed Consolidated Financial Statements

Commitments and Contingencies

We have operating leases for corporate offices and subleased offices.

As of March 31, 2026, we did not have any operating leases that had not yet commenced.

Lease costs for the three months ended March 31, 2026 and 2025 were insignificant.

As of June 30, 2026, we did not have any operating leases that had not yet commenced.

Lease costs for the three and six months ended June 30, 2026 and 2025 were insignificant.

As a result, we have not presented a tabular summary of the components of lease costs for the period.

2 unchanged sentences

See Note 5 to these unaudited, condensed consolidated financial statements for additional information.

First Quarter 2026 Form 10-Q

Blackbaud, Inc.

Notes to Condensed Consolidated Financial Statements

Other commitments

4 unchanged sentences

In certain cases, these arrangements require a minimum annual purchase commitment by us.

As of March 31, 2026, the remaining aggregate minimum purchase commitment under these arrangements was approximately $ 142.3 million through 2030.

As of June 30, 2026, the remaining aggregate minimum purchase commitment under these arrangements was approximately $ 84.5 million through 2031.

We have a multi-year arrangement for third-party technology and related services, financed through a third-party installment arrangement, that requires fixed payments through April 2030.

13 unchanged sentences

All associated costs due to third-party service providers and consultants, including legal fees, are expensed as incurred.

We have determined as of March 31, 2026, that no provision for liability nor disclosure is required related to any pending or anticipated legal proceeding or claim against us because (a) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim;

We have determined as of June 30, 2026, that no provision for liability nor disclosure is required related to any pending or anticipated legal proceeding or claim against us because (a) there is not a reasonable possibility that a loss exceeding amounts already recognized (if any) may be incurred with respect to such claim;

(b) a reasonably possible loss or range of loss cannot be estimated;

3 unchanged sentences

It is possible that our consolidated financial position, results of operations or cash flows could be materially negatively affected in any particular period by an unfavorable resolution of one or more of such legal proceedings.

Second Quarter 2026 Form 10-Q

Blackbaud, Inc.

Notes to Condensed Consolidated Financial Statements

Our income tax provision and effective income tax rates, including the effects of period-specific events, were:

Three months ended

Six months ended

(dollars in thousands) 2026

1 unchanged sentence

Effective income tax rate

The increase in our effective income tax rate for the three months ended March 31, 2026 when compared to the same period in 2025 was primarily due to an increase in pre-tax book income.

First Quarter 2026 Form 10-Q

Blackbaud, Inc.

Notes to Condensed Consolidated Financial Statements

The decreases in our effective income tax rate for the three and six months ended June 30, 2026 when compared to the same periods in 2025 were primarily due to a reduction in our valuation allowance recognized in 2026, reflected in our annual effective tax rate, resulting from the effect of OBBBA on the realizability of our deferred tax assets we expect to realize.

This benefit was partially offset by the U.S.

tax on certain foreign earnings under the net controlled foreign corporations ("CFC") tested income ("NCTI") regime, state income taxes, the limitation on deductible executive compensation under Section 162(m) and net discrete expense associated with our unrecognized tax benefits.

Although our effective tax rate decreased in both periods, our income tax provision decreased for the three months ended June 30, 2026, and increased for the six months ended June 30, 2026, in each case reflecting the change in pre-tax book income between periods, together with the effect of the valuation allowance reduction described above.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law.

The legislation makes permanent certain provisions of the 2017 Tax Cuts and Jobs Act, including 100% bonus depreciation and restoring immediate expensing of research and development expenditures for activities performed within the United States.

The legislation makes permanent certain provisions of the 2017 Tax Cuts and Jobs Act, and also modifies the U.S.

taxation of foreign earnings along with changes to the calculation of foreign tax credits.

Under ASC 740, we recognized the impact of the first phase of the law in the third quarter of 2025 and continue to recognize its impacts in 2026.

The impacts of OBBBA on our deferred tax assets continue to result in a net downward adjustment of the valuation allowance.

We currently expect a material impact from future phases in fiscal years 2026 and 2027, but not beyond.

We continue to maintain a valuation allowance against a portion of our deferred tax assets.

A significant item of objective negative evidence remains our cumulative loss measured over the most recent three-year period, which precludes us from placing weight on projections of future taxable income in assessing the realizability of the remaining deferred tax assets.

The reduction recognized in 2026 described above arises from sources of taxable income that do not depend on those projections.

The timing and amount of any discrete release remain uncertain and depend on the level of profitability we actually achieve and our reassessment of all available evidence each reporting period.

Stockholders' Equity

6 unchanged sentences

On December 1, 2025, our Board of Directors reauthorized, expanded and replenished our stock repurchase program by expanding the total capacity under the program to $ 1.0 billion available for repurchases.

During the three months ended March 31, 2026, we repurchased an aggregate of 1,601,057 shares for $ 82.1 million.

The remaining amount available to purchase stock under the approved stock repurchase program was $ 878.5 million as of March 31, 2026.

Second Quarter 2026 Form 10-Q

Blackbaud, Inc.

Notes to Condensed Consolidated Financial Statements

During the three months ended June 30, 2026, we repurchased an aggregate of 797,795 shares for $ 28.0 million.

During the six months ended June 30, 2026, we repurchased an aggregate of 2,398,852 shares for $ 110.1 million.

The remaining amount available to purchase stock under the approved stock repurchase program was $ 850.4 million as of June 30, 2026.

Changes in accumulated other comprehensive loss by component

1 unchanged sentence

Three months ended

Six months ended

(in thousands) 2026

2 unchanged sentences

Gains and losses on cash flow hedges:

Accumulated other comprehensive (loss) income balance, beginning of period

Accumulated other comprehensive income (loss) balance, beginning of period

Other comprehensive income (loss) before reclassifications, net of tax effects of $( 1,156 ), $ — , $( 1,805 ) and $ 2,763

Amounts reclassified from accumulated other comprehensive (loss) income

Tax benefit included in provision for income taxes

Total amounts reclassified from accumulated other comprehensive (loss) income

Amounts reclassified from accumulated other comprehensive income (loss)

Tax expense (benefit) included in provision for income taxes

Total amounts reclassified from accumulated other comprehensive income (loss)

Net current-period other comprehensive income (loss)

Accumulated other comprehensive income balance, end of period

Accumulated other comprehensive income (loss) balance, end of period

Foreign currency translation adjustment:

3 unchanged sentences

Accumulated other comprehensive loss, end of period

First Quarter 2026 Form 10-Q

Blackbaud, Inc.

Notes to Condensed Consolidated Financial Statements

Segment Information

7 unchanged sentences

Transaction price allocated to the remaining performance obligations

As of March 31, 2026, approximately $ 1.4 billion of revenue under contract is expected to be recognized from remaining performance obligations.

As of June 30, 2026, approximately $ 1.6 billion of revenue under contract is expected to be recognized from remaining performance obligations.

We expect to recognize revenue on approximately 45 % of these remaining performance obligations over the next 12 months, with the remainder recognized thereafter.

Second Quarter 2026 Form 10-Q

Blackbaud, Inc.

Notes to Condensed Consolidated Financial Statements

We applied the practical expedient in ASC 606-10-50-14 and have excluded the value of unsatisfied performance obligations for which we recognize revenue at the amount to which we have the right to invoice for services performed (transactional revenue).

1 unchanged sentence

Our closing balances of deferred revenue were as follows:

(in thousands) March 31,

(in thousands) June 30,

2026 December 31,

Total deferred revenue

The decrease in deferred revenue during the three months ended March 31, 2026 was primarily due to a seasonal decrease in customer contract billings.

The increase in deferred revenue during the six months ended June 30, 2026 was primarily due to a seasonal increase in customer contract billings.

Historically, due to the timing of customer budget cycles, we have an increase in billings and customer contract renewals at or near the beginning of our third quarter.

Generally, our lowest balance of deferred revenue during the year is at the end of our first quarter.

The amount of revenue recognized during the three months ended March 31, 2026 that was included in the deferred reven ue balance at the beginning of the period was approximately $ 161 million.

The amount of revenue recognized during the three months ended March 31, 2026 from performance obligations satisfied in prior periods was insignificant .

The amount of revenue recognized during the six months ended June 30, 2026 that was included in the deferred reven ue balance at the beginning of the period was approximately $ 277 million.

The amount of revenue recognized during the six months ended June 30, 2026 from performance obligations satisfied in prior periods was insignificant .

Disaggregation of revenue

3 unchanged sentences

Three months ended

Six months ended

(dollars in thousands) 2026

3 unchanged sentences

Total revenue

First Quarter 2026 Form 10-Q

Blackbaud, Inc.

Notes to Condensed Consolidated Financial Statements

The following table presents our revenue by type:

Three months ended

Six months ended

(dollars in thousands) 2026

4 unchanged sentences

Total revenue

First Quarter 2026 Form 10-Q

Second Quarter 2026 Form 10-Q

Blackbaud, Inc.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements