Exploring Blackbaud, Inc. (BLKB) Investor Profile: Who’s Buying and Why?

You're looking at Blackbaud, Inc. (BLKB) and trying to reconcile the mixed signals from the Q3 2025 earnings report-specifically, the GAAP total revenue of $281.1 million, which was slightly down due to the EVERFI divestiture, but also the impressive organic growth. So, what's the smart money doing right now? The truth is, institutional investors, the ones who look past a single quarter's revenue dip, own a staggering amount of this company, controlling roughly 97.77% of the outstanding shares. Clearlake Capital Group, L.P. holds the largest stake at over 20.45% (or 9.75 million shares), with The Vanguard Group, Inc. and BlackRock, Inc. also among the top holders, collectively owning millions of shares, and they're defintely not selling off. They're buying into the operational efficiency, highlighted by the Q3 non-GAAP adjusted EBITDA of $99.7 million and the full-year non-GAAP adjusted free cash flow guidance being raised to between $195 million and $205 million. That cash flow is the whole story. This focus on profitability and cash generation is why Blackbaud, Inc. is hitting a strong Rule of 40 score of 40.6%, which is a key metric for software-as-a-service (SaaS) companies showing a healthy balance between growth and profit.

Who Invests in Blackbaud, Inc. (BLKB) and Why?

You're looking at Blackbaud, Inc. (BLKB) and trying to figure out who's buying and what their endgame is. The direct takeaway is that Blackbaud, Inc. is overwhelmingly an institutional play, with nearly all its shares held by large funds who are betting on the company's dominant market position and its transition to a high-margin, cash-generating business model, not a quick growth burst.

The ownership structure is defintely top-heavy. As of late 2025, institutional investors hold a commanding 97.77% of the shares outstanding, a figure that tells you this is not a stock driven by retail investor sentiment. This high concentration means the stock's movement is largely dictated by the strategic decisions of a few major players. Retail investors, in contrast, hold a minimal, almost negligible stake. The remaining ownership is held by insiders, at approximately 4.48%, which is a healthy sign of management and board alignment with shareholder interests, though one major holder, Clearlake Capital Group, L.P., is classified as both an institutional holder and an insider, holding a significant 20.39% of the company.

• Institutional Investors: Mutual funds, pension funds, and asset managers like BlackRock, Inc. and Vanguard Group Inc. are the core owners.
• Hedge Funds/Private Equity: Firms like Clearlake Capital Group, L.P. often take large, influential stakes, driving operational changes and capital allocation strategy.
• Retail Investors: A very small percentage, often following the lead of the major institutions.

The Core Investment Motivations: Market Dominance and Cash Flow

Investors are drawn to Blackbaud, Inc. for three primary reasons: its entrenched market position, its strong free cash flow generation, and the promise of margin expansion. The company is the clear leader in providing cloud software for the 'social good' community-nonprofits, foundations, and educational institutions-serving over 40,000 customers globally. This creates a sticky, mission-critical revenue base that is incredibly resilient, even during economic slowdowns. That's a good moat.

The financial targets for the 2025 fiscal year clearly show the focus is on profitable growth and cash return. Management projects total revenue in the range of $1.120 billion to $1.130 billion, with organic growth at the midpoint around 5%. More importantly, they are guiding for non-GAAP diluted earnings per share (EPS) between $4.30 and $4.50, an approximately 11% year-over-year growth rate. This profitability is backed by adjusted free cash flow guidance raised to a strong $195 million to $205 million for 2025.

Here's the quick math on profitability and cash generation:

What this estimate hides is the company's lack of a dividend; Blackbaud, Inc. does not pay one, keeping its payout ratio at 0.00%. This is a conscious capital allocation choice, signaling that the company believes reinvesting that cash into the business or using it for share repurchases will generate a higher return for shareholders over time. If you want a dividend, this isn't your stock.

Investment Strategies: The Value-Growth Hybrid Play

The strategies employed by these large investors reflect the company's mixed financial picture-a market leader with strong cash flow but a high debt-to-equity ratio of 12.92 and recent negative GAAP earnings. This creates a classic value-growth hybrid scenario.

Many institutional investors are taking a long-term holding view, treating the stock as a value play in the software sector. The stock has been trading near its two-year low, and analysts see a significant potential upside of about 27.56% to an average target price of $76.00. This suggests a belief that the company's operational improvements and margin expansion will eventually be reflected in a higher valuation.

The company's commitment to returning capital is another key strategy driver. The expanded stock repurchase program, targeting a repurchase of 5.2% to 7% of common stock for 2025, is a clear signal to value investors. This action reduces the share count, boosting earnings per share and signaling management's belief that the stock is undervalued. This is a concrete action that changes the decision for investors focused on total shareholder return.

For a deeper dive into the company's underlying financial health, you should check out Breaking Down Blackbaud, Inc. (BLKB) Financial Health: Key Insights for Investors. Your next step, if you're considering a position, is to model the impact of that share repurchase program on the projected 2026 EPS range.

Institutional Ownership and Major Shareholders of Blackbaud, Inc. (BLKB)

If you're looking at Blackbaud, Inc. (BLKB), the first thing to understand is that it is an institutionally-owned stock. This isn't a retail-driven story; it's a game played by the major funds, so their movements are what defintely drive the price and the company's long-term strategy.

As of the most recent filings (Q3 2025), institutional investors-think massive mutual funds, pension funds, and hedge funds-control a staggering 98.75% of the company's outstanding shares. That level of concentration means you need to pay very close attention to who is buying and selling, and why. The sheer weight of their capital dictates the stock's near-term volatility and its strategic direction, from capital allocation to product focus.

Top Institutional Investors: Who Holds the Keys?

The top shareholders in Blackbaud, Inc. are a mix of passive index giants and active capital groups. The largest single shareholder is Clearlake Capital Group LP, a private equity firm, which is a critical point. When a private equity player holds the top spot, it signals a strong focus on operational efficiency and maximizing shareholder return, often through strategic moves like divestitures or aggressive cost management.

Here is a quick snapshot of the largest institutional stakes, based on the latest 2025 fiscal year data:

The presence of BlackRock, Inc. and Vanguard Group Inc, which primarily manage passive index funds, means a large portion of the stock is held by investors who are unlikely to sell unless the company is removed from a major index. But Clearlake Capital Group LP's 20.39% stake gives them significant leverage over the board and management team. That's a powerful block of shares.

Recent Shifts in Ownership: Buybacks and Net Selling

Looking at the recent flow of money, the picture is nuanced. While the total number of institutional owners is high-around 617 total institutions-the net activity from company insiders over the last twelve months has been 'Net Selling.' This means executives and directors have been shedding more shares than they've been acquiring, which can sometimes be a yellow flag for sentiment, but it's not the whole story.

• Institutional long shares increased by 1.22% in the most recent quarter.
• Blackbaud, Inc. executed a stock repurchase program, buying back over 5% of its common stock this year.
• The company's focus on adjusted free cash flow, which hit a robust $139.2 million in Q3 2025, fuels these buybacks.

The company itself is essentially a major buyer, using its strong free cash flow to reduce the share count. This is a classic move to boost earnings per share (EPS), a key metric for institutional investors. For more on the company's financial model, you can review Blackbaud, Inc. (BLKB): History, Ownership, Mission, How It Works & Makes Money.

The Institutional Impact on Strategy and Price

The large institutional base has a direct and measurable impact on Blackbaud, Inc.'s strategy. These investors demand a clear path to both growth and profitability, which is why the company's recent Q3 2025 earnings call highlighted two things: a non-GAAP organic revenue growth of 5.2% and a significant focus on Artificial Intelligence (AI) innovation.

Here's the quick math on their focus: In Q3 2025, the company reported a Non-GAAP Earnings Per Share (EPS) of $1.10, beating the analyst estimate. But, revenue came in at $281.14 million, missing the consensus estimate by about $3.78 million. The market's reaction was immediate: the stock dropped approximately 1.4% in pre-market trading. This tells you exactly what matters to the big players: while they appreciate the EPS beat from cost control, they prioritize top-line revenue growth momentum. They want to see the new AI investments translate into bigger sales, not just better margins.

The strong free cash flow, projected to be around $240.4 million for the year, is the silver lining that keeps many institutions invested, despite a negative GAAP EPS of -4.89. That cash flow gives management the flexibility to invest in growth and return capital to shareholders via buybacks, which is the kind of capital discipline that institutional investors reward. Their influence is the reason Blackbaud, Inc. is so laser-focused on a balanced financial model.

Key Investors and Their Impact on Blackbaud, Inc. (BLKB)

You're looking at Blackbaud, Inc. (BLKB) and trying to figure out who holds the reins and why they're sticking around. The direct takeaway is that Blackbaud, Inc.'s investor profile is dominated by a few massive institutional players and one highly influential private equity firm, Clearlake Capital Group, L.P., whose large stake dictates a more active, hands-on approach to strategic decisions.

Institutional ownership is nearly total, sitting at approximately 97.77% of the company's shares outstanding as of 2025, according to GuruFocus data. This means that the stock's movement is defintely driven by the collective decisions of large funds, not retail investors. The top three institutional holders alone control a significant portion of the float.

The Big Three: Clearlake, Vanguard, and BlackRock

The investor landscape for Blackbaud, Inc. is top-heavy, with the largest holders being a mix of passive index giants and an active private equity player. Clearlake Capital Group, L.P. is the most notable, acting more like a strategic partner than a traditional passive fund due to the sheer size of its position and its history of influence.

Here's the quick math on the largest institutional stakes, based on the most recent 2025 filings:

You can see right away that Clearlake Capital Group, L.P. is the anchor investor. Their stake is so large they are often classified as an insider, which gives them a powerful voice in the boardroom-a classic example of 'investor influence' translating into direct management input.

Investor Influence: Driving Capital Allocation

The influence of these major investors, especially Clearlake Capital Group, L.P., is most visible in Blackbaud, Inc.'s capital allocation strategy. Large institutional holders consistently push for efficiency and shareholder return, and management is responding with a strong focus on stock repurchases and margin expansion.

The company's commitment to returning capital is a direct action to increase shareholder value, and it's a clear signal to the market. For the 2025 fiscal year, management increased its stock repurchase target to a range of 5.2% to 7.0% of common stock outstanding. This commitment is substantial; year-to-date through Q3 2025, Blackbaud, Inc. had already repurchased nearly 2 million shares, which is a powerful way to shrink the share count and boost earnings per share (EPS).

• Clearlake's stake provides a strategic, long-term focus on operational improvements and M&A.
• Passive giants like BlackRock, Inc. and The Vanguard Group, Inc. ensure a stable, long-term base for the stock.
• The collective institutional demand drives the company's focus on non-GAAP adjusted EBITDA margin, which is projected to be between 35.4% and 36.2% for the full year 2025.

Recent Moves and the Insider Signal

While the institutional base is stable, recent moves show a mixed picture, which is typical for a software company navigating a complex market. On one hand, the company is projecting strong 2025 results, with full-year revenue guidance between $1.120 billion and $1.130 billion and non-GAAP diluted EPS expected in the range of $4.30 to $4.50.

But you also need to watch insider activity, which can be a subtle signal of confidence (or lack thereof). In November 2025, CEO Michael Gianoni netted approximately $901,810 from a stock sale. While this was a small fraction of his total holding, a consistent pattern of insider selling-with zero insider purchases over the last year-suggests that while the company is performing well, key executives are taking some chips off the table. This is a common but important data point to factor into your own valuation models, especially when considering the company's Mission Statement, Vision, & Core Values of Blackbaud, Inc. (BLKB).

Also notable is the large selling activity from some hedge funds in late 2024, such as HAWK RIDGE CAPITAL MANAGEMENT LP removing their entire 817,936-share position. This kind of liquidation can create short-term stock pressure, even if the underlying fundamentals-like the increased 2025 free cash flow guidance of $195 million to $205 million-remain strong. The company is generating cash, but some active funds are still rotating out.

Market Impact and Investor Sentiment

You're looking at Blackbaud, Inc. (BLKB) and trying to gauge the temperature of its major shareholders-a smart move, because their conviction often maps the near-term risk. The current investor sentiment is defintely mixed, leaning toward a cautious 'Hold' consensus among Wall Street analysts as of November 2025. The market is weighing the company's strong position in the social good sector against some challenging financial metrics.

The stock is currently trading around the $59.60 mark, which is near the lower end of its 52-week range of $59.04 to $87.47. This price action reflects a significant decline of about 33.79% over the past year, which is a tough pill to swallow for long-term holders. Still, this low price point is exactly what creates opportunity; one valuation model suggests the stock is trading at a 19.8% discount to its intrinsic value. That's a classic setup for a potential rebound if the company executes its turnaround plan.

• Near-term sentiment is strong, but mid-to-long-term is weak.
• The average analyst price target is between $73.00 and $76.00.
• This implies a potential upside of up to 27.52%.

Who's Buying and Why: The Major Shareholders

The ownership structure of Blackbaud is heavily institutional, which is typical for a mature software-as-a-service (SaaS) company. Institutional investors hold approximately 79.84% to 90.60% of the shares, meaning professional money managers are the primary drivers of the stock's volume and price action. Clearlake Capital Group, L.P. is the single largest holder, which is a critical factor to watch, given their history of activist investing and operational changes. You can learn more about this dynamic in the Blackbaud, Inc. (BLKB): History, Ownership, Mission, How It Works & Makes Money post.

Here's the quick math on the top institutional holders based on Q2/Q3 2025 filings:

The presence of Clearlake Capital Group, a private equity firm, as the largest shareholder is a clear signal that they see significant operational and financial upside, likely through margin expansion and strategic refinement. This isn't a passive investment; it suggests a continued push for efficiency and growth, which is a positive catalyst for the stock.

Market Reaction and Insider Signals

Recent market reactions have been sensitive to the company's strategic moves. For example, the launch of new cloud-based solutions and the AI suite, 'Agents for Good,' at bbcon 2025 caused the stock to jump 5.4% in the week leading up to late October 2025. This shows that the market is ready to reward tangible progress in product innovation, especially around high-growth areas like Artificial Intelligence (AI).

What this estimate hides, though, is the insider activity. Insiders, who own a small 2.1% of the company, have been net sellers over the last year, with no purchases reported. While President Michael Gianoni's recent sale of shares worth about $902k was only a small portion of his holding, a pattern of selling without corresponding buying can dampen conviction among other investors. You want to see management putting their own money in the game, so this is a soft negative.

Analyst Perspectives on the Turnaround

Analysts are generally looking past the current negative financial metrics, focusing instead on the future profitability curve. The company's negative revenue growth of -1.90% and negative Earnings Per Share (EPS) of -4.90 are concerning, but the forward-looking story is much better. The consensus narrative is betting on a major turnaround, forecasting that earnings will climb at a rapid 50.95% annual rate over the next three years.

This optimism is grounded in two concrete factors: a robust free cash flow (FCF) of $219.6 million and the projected margin expansion. The FCF provides a significant buffer for strategic investments, like the AI initiatives, and the expected shift in profit margins from a negative -24.5% to a positive 11.4% within three years is a powerful lever for future earnings. That's the core of the bull case: the company is a cash-flow machine that is now focused on translating that into pure profit.