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Valuation Assessment of Blackbaud Inc (BLKB) On April 24, 2026, Blackbaud Inc (BLKB) shares rose 3.6%, closing at $37.49. The stock has experienced significant

Company Launches Its First Agent For Good™ Agentic AI Solution for the Social Impact Sector 

, /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the leader in AI for social impact, today announced financial results for its first quarter ended March 31, 2026.

"We're off to a strong start in 2026, and our execution continues to reinforce Blackbaud's clear leadership in the social impact software market," said Mike Gianoni, president, CEO and vice chairman of the board of directors, Blackbaud. "With more than 70 new AI capabilities embedded across our products, we have now taken the next step and launched the first of many planned new agentic AI solutions, the Development Agent. Early demand has been exceptional, customer interest is high, and momentum is building. This strong first quarter reinforces our confidence in our AI-powered roadmap and positions Blackbaud well for 2026 and beyond as we pursue our aspirational goals."

First Quarter 2026 Results Compared to First Quarter 2025 Results:

GAAP total revenue was $281.1 million, up 4.2% and non-GAAP organic revenue increased 4.2%. GAAP recurring revenue was $276.5 million, up 5.0% and represented 98.3% of total revenue. Non-GAAP organic recurring revenue increased 5.0%. GAAP income from operations was $51.4 million, with GAAP operating margin of 18.3%, an increase of 1,100 basis points. Non-GAAP income from operations was $83.4 million, with non-GAAP operating margin of 29.6%, an increase of 120 basis points. GAAP net income was $31.1 million, with GAAP diluted earnings per share of $0.67, up $0.58 per share. Non-GAAP net income was $52.6 million, with non-GAAP diluted earnings per share of $1.14, up $0.19 per share. Non-GAAP adjusted EBITDA was $98.7 million, up $6.6 million, with non-GAAP adjusted EBITDA margin of 35.1%, an increase of 100 basis points. Rule of 40 score was 39.3%. GAAP net cash provided by operating activities was $51.5 million, an increase of $50.1 million, with GAAP operating cash flow margin of 18.3%, an increase of 1,780 basis points. Non-GAAP free cash flow was $37.0 million, an increase of $49.3 million, with non-GAAP free cash flow margin of 13.2%, an increase of 1,770 basis points. "We began 2026 with disciplined execution against our operating plan, while continuing to invest in innovation to support both performance today and the opportunities ahead," said Chad Anderson, executive vice president and CFO, Blackbaud. "The quarter reflects the strength of our financial model—driving growth, expanding margins, improving EPS, and generating strong free cash flow. We continued our purposeful capital allocation strategy, repurchasing approximately 4.5% of our shares outstanding at the end of 2025 inclusive of net share settlement of employee stock compensation, while maintaining financial flexibility. This combination of execution, reinvestment, and disciplined capital deployment underpins our ability to deliver long‑term value."

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 launched its first Agent for Good™, the Development Agent, which is the first-ever expert agent to be embedded in a dedicated social impact platform and is designed to help personalize donor engagement and grow giving at scale. The Development Agent is available to Raiser's Edge NXT® customers in the U.S., with availability internationally and in other products to follow. Blackbaud highlighted customer outcomes that underline the real-world impact of its solutions and showcase the differentiated power of Blackbaud's specialized domain expertise. Chief Data and AI Officer Carrie Cobb shared how Blackbaud is approaching responsible AI, through engagement, shared learning, and cross‑sector leadership. As the presenting sponsor of the Association of Fundraising Professionals (AFP) ICON conference, Blackbaud shared how it is ushering the sector into a new era of social impact, equipping fundraisers with purpose-built, responsible AI tools that help them navigate increasing complexity, meet donor expectations, and accelerate their outcomes. At its annual Corporate Social Impact Summit, Blackbaud convened hundreds of corporate and social good leaders for thought‑provoking sessions from industry experts and an exclusive preview of upcoming innovation across the YourCause® from Blackbaud® platform, including advancements in AI capabilities, faster donation processing, and social impact reporting. The company announced open registration for bbcon, its annual technology conference, taking place in Columbus, Ohio, Sept. 29–Oct. 1 this year, with global events following in London and Sydney.  Visit www.blackbaud.com/newsroom for more information about Blackbaud's recent highlights.

Financial Outlook

Blackbaud today reaffirmed its 2026 full year financial guidance:

GAAP revenue of $1.173 billion to $1.179 billion Non-GAAP adjusted EBITDA of $430 million to $438 million Non-GAAP diluted earnings per share of $5.15 to $5.25 Non-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 million Diluted weighted average shares outstanding for the year are expected to be approximately 45.0 million to 46.0 million Capital 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 March 31, 2026, Blackbaud had approximately $878 million remaining under its common stock repurchase program that was expanded, replenished and reauthorized in December 2025. Based on our current plans, we expect total repurchases during 2026 to represent between 5.0% and 10.0% of our outstanding common stock as of December 31, 2025.

Conference Call Details

What:     

Blackbaud's 2026 First Quarter Conference Call

When:   

April 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
[email protected]

Media Contact
[email protected]

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)

March 31,
2026

December 31,
2025

Assets

Current assets:

Cash and cash equivalents

$       34,096

$       38,914

Restricted cash

418,671

720,061

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

75,691

80,517

Customer funds receivable

7,605

1,308

Prepaid expenses and other current assets

106,158

89,290

Total current assets

642,221

930,090

Property and equipment, net

85,053

85,076

Software development costs, net

156,628

155,842

Goodwill

1,055,777

1,056,815

Intangible assets, net

99,279

106,654

Other assets

70,340

56,205

Total assets

$    2,109,298

$    2,390,682

Liabilities and stockholders' equity

Current liabilities:

Trade accounts payable

$       46,884

$       27,344

Accrued expenses and other current liabilities

37,515

43,272

Due to customers

425,124

719,833

Debt, current portion

23,160

22,660

Deferred revenue, current portion

333,996

368,986

Total current liabilities

866,679

1,182,095

Debt, net of current portion

1,163,182

1,087,037

Deferred tax liability

27,333

21,981

Deferred revenue, net of current portion

6,054

2,778

Other liabilities

11,496

11,737

Total liabilities

2,074,744

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, 74,015,631 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

74

72

Additional paid-in capital

1,415,521

1,391,641

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

(1,423,843)

(1,316,224)

Accumulated other comprehensive loss

(3,850)

(5,948)

Retained earnings

46,652

15,513

Total stockholders' equity

34,554

85,054

Total liabilities and stockholders' equity

$    2,109,298

$    2,390,682

Blackbaud, Inc.

Consolidated Statements of Comprehensive Income

(Unaudited)

(dollars in thousands, except per share amounts)

Three months ended
March 31,

2026

2025

Revenue

$     281,140

$     269,936

Cost of revenue

114,581

114,815

Gross profit

166,559

155,121

Operating expenses

Sales, marketing and customer success

47,349

44,644

Research and development

36,916

33,559

General and administrative

30,261

56,679

Amortization of intangible assets

588

534

Total operating expenses

115,114

135,416

Income from operations

51,445

19,705

Interest expense

(16,036)

(16,945)

Other income, net

2,396

2,105

Income before provision for income taxes

37,805

4,865

Income tax provision

6,666

542

Net income

$      31,139

$        4,323

Earnings per share

Basic

$         0.68

$         0.09

Diluted

$         0.67

$         0.09

Common shares and equivalents outstanding

Basic weighted average shares

45,562,304

48,429,061

Diluted weighted average shares

46,351,379

49,445,079

Other comprehensive income (loss)

Foreign currency translation adjustment

$       (1,480)

$        3,259

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

3,578

(6,692)

Total other comprehensive income (loss)

2,098

(3,433)

Comprehensive income

$      33,237

$          890

Blackbaud, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

Three months ended
March 31,

(dollars in thousands)

2026

2025

Cash flows from operating activities

Net income

$       31,139

$         4,323

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

Depreciation and amortization

20,551

21,647

Net provision for credit losses and sales returns

1,128

788

Stock-based compensation expense

23,880

22,170

Deferred taxes

4,257

(221)

Amortization of deferred financing costs and discount

486

699

Other non-cash adjustments

—

(5,384)

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

Accounts receivable

3,613

4,770

Prepaid expenses and other assets

(18,048)

(5,192)

Trade accounts payable

19,258

(4,651)

Accrued expenses and other liabilities

(3,186)

(8,134)

Deferred revenue

(31,619)

(29,427)

Net cash provided by operating activities

51,459

1,388

Cash flows from investing activities

Purchase of property and equipment

(1,668)

(688)

Capitalized software development costs

(12,798)

(12,970)

Cash used in disposition of business

—

(12,235)

Net cash used in investing activities

(14,466)

(25,893)

Cash flows from financing activities

Proceeds from issuance of debt

139,900

216,200

Payments on debt

(74,968)

(85,523)

Employee taxes paid for withheld shares upon equity award settlement

(25,112)

(37,948)

Change in due to customers

(294,090)

(320,248)

Change in customer funds receivable

(6,395)

(2,483)

Purchase of treasury stock, including excise tax payments

(82,103)

(100,030)

Net cash used in financing activities

(342,768)

(330,032)

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

(433)

1,668

Net decrease in cash, cash equivalents and restricted cash

(306,208)

(352,869)

Cash, cash equivalents and restricted cash, beginning of period

758,975

809,512

Cash, cash equivalents and restricted cash, end of period

$      452,767

$      456,643

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)

March 31,
2026

December 31,
2025

Cash and cash equivalents

$       34,096

$       38,914

Restricted cash

418,671

720,061

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

$      452,767

$      758,975

Blackbaud, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited)

(dollars in thousands, except per share amounts)

Three months ended
March 31,

2026

2025

GAAP Revenue

$    281,140

$    269,936

GAAP gross profit

$    166,559

$    155,121

GAAP gross margin

59.2 %

57.5 %

Non-GAAP adjustments:

Add: Stock-based compensation expense

3,087

2,698

Add: Amortization of intangibles from business combinations

6,267

7,052

Add: GCC workforce transition costs(1)

275

—

Subtotal

9,629

9,750

Non-GAAP gross profit

$    176,188

$    164,871

Non-GAAP gross margin

62.7 %

61.1 %

GAAP income from operations

$     51,445

$     19,705

GAAP operating margin

18.3 %

7.3 %

Non-GAAP adjustments:

Add: Stock-based compensation expense

23,880

22,170

Add: Amortization of intangibles from business combinations

6,855

7,586

Add: GCC workforce transition costs(1)

1,026

—

Add: Acquisition and disposition-related costs(2)

147

25,132

Add: Security Incident-related costs

—

2,180

Subtotal

31,908

57,068

Non-GAAP income from operations

$     83,353

$     76,773

Non-GAAP operating margin

29.6 %

28.4 %

GAAP income before provision for income taxes

$     37,805

$      4,865

GAAP net income

$     31,139

$      4,323

Shares used in computing GAAP diluted earnings per share

46,351,379

49,445,079

GAAP diluted earnings per share

$       0.67

$       0.09

Non-GAAP adjustments:

Add: GAAP income tax provision

6,666

542

Add: Total non-GAAP adjustments affecting income from operations                         

31,908

57,068

Non-GAAP income before provision for income taxes

69,713

61,933

Assumed non-GAAP income tax provision(3)

17,080

15,174

Non-GAAP net income

$     52,633

$     46,759

Shares used in computing non-GAAP diluted earnings per share

46,351,379

49,445,079

Non-GAAP diluted earnings per share

$       1.14

$       0.95

(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 three months ended March 31, 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
March 31,

2026

2025

GAAP revenue

$   281,140

$     269,936

GAAP revenue growth

4.2 %

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

—

—

Non-GAAP organic revenue(2)

$   281,140

$     269,936

Non-GAAP organic revenue growth

4.2 %

Non-GAAP organic revenue(2)

$   281,140

$     269,936

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

(2,240)

—

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

$   278,900

$     269,936

Non-GAAP organic revenue growth on constant currency basis

3.3 %

GAAP recurring revenue

$   276,485

$     263,325

GAAP recurring revenue growth

5.0 %

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

—

—

Non-GAAP organic recurring revenue(2)

$   276,485

$     263,325

Non-GAAP organic recurring revenue growth

5.0 %

Non-GAAP organic recurring revenue(2)

$   276,485

$     263,325

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

(2,198)

—

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

$   274,287

$     263,325

Non-GAAP organic recurring revenue growth on constant currency basis          

4.2 %

(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
March 31,

2026

2025

GAAP net income

$    31,139

$        4,323

Non-GAAP adjustments:

Add: Interest, net

14,357

15,290

Add: GAAP income tax provision

6,666

542

Add: Depreciation

2,206

2,975

Add: Amortization of intangibles from business combinations

6,855

7,586

Add: Amortization of software development costs(1)

12,421

11,872

Subtotal

42,505

38,265

Non-GAAP EBITDA

$    73,644

$      42,588

Non-GAAP EBITDA margin(2)

26.2 %

Non-GAAP adjustments:

Add: Stock-based compensation expense

$    23,880

$      22,170

Add: GCC workforce transition costs(3)

1,026

—

Add: Acquisition and disposition-related costs(3)

147

25,132

Add: Security Incident-related costs

—

2,180

Subtotal

25,053

49,482

Non-GAAP adjusted EBITDA

$    98,697

$      92,070

Non-GAAP adjusted EBITDA margin(4)

35.1 %

Rule of 40(5)

39.3 %

Non-GAAP adjusted EBITDA

$    98,697

$      92,070

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

(1,029)

205

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

$    97,668

$      92,275

Non-GAAP adjusted EBITDA margin on constant currency basis                         

35.0 %

Rule of 40 on constant currency basis(7)

38.3 %

(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)

Three months ended
March 31,

2026

2025

GAAP net cash provided by operating activities          

$     51,459

$      1,388

GAAP operating cash flow margin

18.3 %

0.5 %

Non-GAAP adjustments:

Less: purchase of property and equipment

(1,668)

(688)

Less: capitalized software development costs

(12,798)

(12,970)

Non-GAAP free cash flow

$     36,993

$    (12,270)

Non-GAAP free cash flow margin

13.2 %

(4.5) %

SOURCE Blackbaud

Blackbaud, Inc. (BLKB) Q1 2026 Earnings Call Transcript

Partnership Will Enable Higher Education Customers to Pair Student First's Future-Ready Student Information System with Blackbaud's Leading Financial Management and Fundraising Solutions to Unify Back-Office Operations and Power Student Success

, /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the world's leading provider of AI-powered solutions for social impact, today announced a strategic investment in Student First, the provider of the most modern, AI-enabled student information system (SIS) designed to simplify administrative workflows and enhance the student experience for higher education institutions.

With this investment, Blackbaud and Student First will deliver a best-in-class Connected Campus experience that reduces complexity and campus silos, unifying enrollment, financial aid, scholarships, advancement and finance into a single operating model. Blackbaud customers will be able to leverage Student First's flexible, student-centric SIS, which will natively integrate with Blackbaud's industry-leading solutions for financial management, fundraising, award management and payments to advance student success.

"By joining forces with Student First, we're enabling college and university teams to connect the financial side of their operations to the student information side," said Mark Davis, vice president, education products, Blackbaud. "This kind of data flow creates a connected campus experience that ties student lifecycle activity to the dollars that fund it—linking student and donor activity through advancement, awards, and the general ledger—so institutions can operate smarter, strengthen stewardship, and have the visibility needed to align resources to fuel student success."

"Student First was developed as a unified, cloud-native SIS for higher education, and this partnership with Blackbaud is a natural extension of that platform strength," said David Meek, CEO, Student First. "Together, we help institutions operate smarter in a challenging financial environment by strengthening stewardship, compliance, and long-term sustainability. Joint customers get a comprehensive technology suite built on industry-leading systems, and students get a single, seamless experience."

Key Benefits of the Partnership:

Student First brings a modern, AI-enabled, student-centric SIS, while Blackbaud delivers leadership in purpose-built fund accounting, fundraising, award management, and payments and billing solutions. The partnership connects student enrollment, tuition and donor activity directly to the general ledger, giving institutions a single view that provides greater visibility, accountability and confidence in financial decision-making. Blackbaud's Intelligence for Good® AI capabilities will bolster Student First's student-centric SIS to drive intelligent action across institutions. Institutions gain choice without compromise—modernizing their SIS while leveraging Blackbaud's trusted financial and advancement ecosystem. The two companies will collaborate on product direction and go-to-market strategy to expand and enhance how they serve higher education institutions. This connected campus model replicates the success Blackbaud has already achieved with its Total School Solution approach for independent K–12 schools, offering a complete suite of integrated products purpose built for the unique needs of education institutions.

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.

About Student First
Student First is an AI-enabled, cloud-native Student Information System designed specifically for the full spectrum of higher education, from career colleges and community colleges to four-year institutions and online programs. Student First delivers a unified platform spanning recruiting and admissions, advising, academic operations, financial aid, student billing, and more. Institutions move beyond the limitations of legacy systems with a solution that simplifies operations, improves data accuracy, and surfaces actionable insight across every function. The result is less administrative burden, smarter decision-making, and a seamless experience for students at every stage of their journey. For more information visit www.studentfirst.com.

Media Inquiries
[email protected]

Forward-looking Statements
Except for historical information, all of the statements, expectations and assumptions contained in this news release are forward-looking statements that involve a number of risks and uncertainties, including statements regarding expected benefits of products and product features. 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: general economic risks; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; management of integration of acquired companies and other risks associated with acquisitions; risks associated with successful implementation of multiple integrated software products; the ability to attract and retain key personnel; risks associated with management of growth; lengthy sales and implementation cycles; technological changes that make our products and services less competitive; 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. All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.

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Blackbaud's Latest Product Innovations Reflect Company's Defensible Market Position; Anchored in Data, Context, and Trust PR Ne

Blackbaud, Inc. (BLKB) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript

Appearance to Include a Fireside Chat and an Exclusive Live Performance

, /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the world's leading provider of AI-powered solutions for social impact, today announced that Leslie Odom, Jr., award-winning artist, actor and New York Times bestselling author, will join the mainstage as a keynote speaker at bbcon 2026, Blackbaud's annual tech conference. bbcon will take place Sept. 29 through Oct. 1, 2026, with Odom headlining the closing mainstage session on Oct. 1.

Leslie Odom, Jr. will join the mainstage as a keynote speaker at bbcon 2026, Blackbaud’s annual tech conference. Widely recognized for his breakout role as Aaron Burr in Broadway's "Hamilton," Odom brings a voice on creativity, resilience and leadership, drawing from a career spanning Broadway, film, television, music and literature. At bbcon, Odom will take part in a fireside chat on navigating challenges, fostering creativity and delivering excellence, followed by a live performance designed to leave attendees inspired and energized.

"We're thrilled to welcome Leslie Odom, Jr. to bbcon 2026," said Todd Lant, chief customer officer, Blackbaud. "Our audience at bbcon spends every day on the frontlines of changing the world. We want them to leave inspired, refreshed and celebrated—and there's no one better to do that than Leslie. He's a singularly captivating voice. The way he connects storytelling, leadership and purpose is sure to resonate with our community, and we know attendees will be captivated by his exclusive live performance."

Odom is a Tony and Grammy Award winner, a three-time Emmy nominee and a two-time Academy Award-nominated songwriter and actor whose work challenges and uplifts audiences. In addition to "Hamilton," his performances include "One Night in Miami"— which earned recognition for both his performance and musical contribution—"Glass Onion: A Knives Out Mystery," and the Broadway revival "Purlie Victorious: A Non-Confederate Romp Through the Cotton Patch." Odom is currently starring in the new Apple TV+ series, "Imperfect Women."

Beyond the stage and screen, Odom is a New York Times bestselling author and recording artist, with six full-length albums and a 2025 live release, "An Offering: Live at Speakeasy Studios." Through his books, albums and speaking, he encourages audiences to pursue excellence, embrace resilience and commit to continuous growth—values that resonate with bbcon attendees working to drive innovation and impact in their communities.

This year's bbcon event will welcome thousands of social impact and education professionals, learners and leaders seeking to build skills, connect with peers and advance their missions. Attendees can expect inspiring mainstage moments, practical breakout sessions, and meaningful insights from Blackbaud leaders on the future of technology and responsible AI for the sector.

For more information about bbcon 2026 and to register, visit bbconference.com.

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.

Media Inquiries
[email protected]

Forward-looking Statements
Except for historical information, all of the statements, expectations and assumptions contained in this news release are forward-looking statements that involve a number of risks and uncertainties, including statements regarding expected benefits of products and product features. 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: general economic risks; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; management of integration of acquired companies and other risks associated with acquisitions; risks associated with successful implementation of multiple integrated software products; the ability to attract and retain key personnel; risks associated with management of growth; lengthy sales and implementation cycles; technological changes that make our products and services less competitive; 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. All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.

SOURCE Blackbaud

Blackbaud NASDAQ: BLKB executives emphasized the company’s nonprofit software focus, artificial intelligence initiatives, payments opportunity and capital return strategy during a discussion hosted by Baird Senior Research Analyst Rob Oliver.

Oliver described Blackbaud as a vertical software leader in the nonprofit market and said Baird had recently upgraded the stock, calling it “incredibly inexpensive” from the firm’s view. The discussion featured Chad Anderson, Blackbaud’s chief financial officer, and Jeff Klein, director of corporate strategy and development.

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Executives Highlight Nonprofit Software Footprint Anderson described Blackbaud as a cloud software company serving a range of nonprofit-related markets, including foundations, community foundations, and foundations tied to universities and hospital systems. He said the company has operated in the sector for 45 years, building domain expertise around nonprofit operations and workflows.

At its core, Anderson said Blackbaud provides fundraising software and a financial solution designed for fund-related nonprofit accounting. He also pointed to embedded analytics, payments and deep workflow capabilities.

Anderson said Blackbaud grows revenue “roughly in mid-single digits” and that its revenue base is about two-thirds subscription, typically tied to fundraising and financial management solutions. The remaining roughly one-third comes from payments and other usage or consumption models.

AI Strategy Centers on Analytics, Generative AI and Agents Klein said many of Blackbaud’s products function as mission-critical systems of record for donor management, customer relationship management, financial management, general ledger accounting and payment processing. He said the company’s tools are “critical to running the operations of the business” for many customers.

Klein described three waves of AI within Blackbaud’s platform. The first was the company’s analytics business, which he said has long included capabilities such as donor prospecting and intelligent gift recommendations. The second wave involved generative AI embedded into existing solutions at no additional cost, including Blackbaud AI Chat, which allows users to ask natural-language questions and generate donor outreach content.

The third wave is the company’s “Agents for Good” strategy, which Klein said is designed as a catalog of agentic AI solutions. The first product, a fundraising development agent, is intended to serve as an autonomous virtual teammate that fundraises for an organization. Klein said it entered an early adopter program in the fourth quarter of last year and the first quarter of this year and became generally available in late March. He said early traction has been good.

Asked whether the nonprofit sector’s historically slower technology adoption gives Blackbaud time to embed AI into its platform, Klein said many customers do not have large technology teams and look to vendors such as Blackbaud to bring new technologies and use cases to them.

Management Says Funding Pressure Has Not Changed Attrition Trends Oliver asked about the buying environment in light of cuts affecting charities and nonprofits, including changes tied to USAID and local funding. Anderson said the nonprofit sector is large, significant and resilient, noting that it is roughly the third-largest employer in the U.S. and that annual U.S. donations to nonprofits are around $600 billion and growing.

Anderson said some organizations are affected by changes in government funding, but large nonprofits often have multiple revenue streams. If some government-related funding disappears, he said, those organizations can become more reliant on Blackbaud’s fundraising solutions. He added that not all nonprofit verticals are affected in the same way.

“While some of our clients have been under pressure, we haven’t seen a notable change in client attrition to speak of,” Anderson said.

Contracts, Cross-Sell and Payments Remain Key Growth Levers Anderson said Blackbaud began planning a move toward standard three-year contracts five or six years ago, paused during COVID and rolled out the program in 2023. The contracts include embedded price escalators. He said gross dollar retention has remained stable at around 92%, and the company is now entering the next renewal wave after completing the initial three-year cycle.

Klein said cross-selling remains an important part of Blackbaud’s land-and-expand model. About half of the company’s sales force is focused on new logos, while the other half is focused on cross-selling portfolio products. He said Blackbaud has roughly 18 products and is adding separately priced AI products, including the agentic AI offering.

Payments also remain a major part of the business. Klein said transactional revenue is a little over one-third of total revenue and has historically grown slightly faster than core software, in the mid- to high-single-digit range. He cited new logos, payment enablement within the existing base, pricing levers such as take-rate optimization, donor-cover models and donation or tuition volume growth as drivers.

Capital Allocation Focuses on Buybacks On competition, Klein said Blackbaud operates in a fragmented market and is the only provider in its space with a broad suite spanning financial management, fundraising, digital marketing, school operations and ticketing for arts and cultural customers. He said larger horizontal providers such as Salesforce and Microsoft Dynamics appear in some deals, but their products are not purpose-built for nonprofits and often require outside customization.

Klein also said Blackbaud sees a data advantage based on the volume, variety, velocity and governance of its data, particularly as AI becomes more important.

Anderson said capital allocation has prioritized share repurchases over the past few years. He said Blackbaud has reduced its overall share count by 14% over a couple of years and has publicly stated an intent to dedicate at least 50% of free cash flow to repurchases annually, with a goal of reducing shares by 5% to 10%.

Anderson said the company also aims to manage leverage in the “low twos” and views tuck-in acquisitions as a third capital allocation priority. He said free cash flow has increased at roughly a 25% compound annual growth rate since 2020 and reiterated targets for mid-single-digit revenue growth, 6% to 8% EBITDA growth and 13%-plus EPS growth, with AI described as a potential tailwind not factored into current guidance.

About Blackbaud NASDAQ: BLKBBlackbaud, Inc is a leading provider of cloud software, services and data intelligence solutions designed specifically for the social good community. The company's main offerings include fundraising and relationship management platforms, financial management systems, grant and award management tools, and advanced analytics. Its flagship products—such as Raiser's Edge NXT, Blackbaud Financial Edge NXT and Blackbaud NetCommunity—help nonprofit organizations, educational institutions, healthcare providers and foundations streamline donor engagement, optimize financial operations and measure program impact.

Founded in 1981 and headquartered in Charleston, South Carolina, Blackbaud has grown from a small technology startup into a global specialist in nonprofit software.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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New data highlights sustained employee commitment to social impact, including growth in global volunteering engagement and continued momentum in corporate grantmaking

, /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the world's leading provider of AI-powered solutions for social impact, today released its 14th Annual YourCause CSR Industry Review, which highlights that employee participation in social impact programs remained strong throughout 2025, even against a backdrop of ongoing economic pressures and shifts in how people work.  

Each year, the YourCause CSR Industry Review—which draws on aggregated, anonymized data from a subset of the YourCause Global Good Network—delivers an in‑depth analysis of employee giving, volunteering, and corporate philanthropy trends across hundreds of companies and millions of employees worldwide.

Key findings from the 2026 YourCause CSR Industry Review include:

Volunteering participation increased year-over-year, with more employees engaging globally, while a dip in average volunteer hours per participant suggests growing demand for shorter, more flexible opportunities. Employee giving participation remained stable, with the gap between average and median donation amounts holding consistent, as opposed to last year's widening donor gap. Corporate grantmaking continued to scale at a significant level, with a 44% increase in the average grant size, and a 23% higher median sum of grants per client. Small‑to‑mid‑sized companies continued to lead in engagement, reinforcing the role of culture, proximity and program design in driving participation. Global participation accelerated, with volunteering engagement rising across every region, including notable growth outside North America. Engagement rates, average donation values, and company match participation are increasing among newly hired employees, reflecting a growing focus on early program activation and CSR involvement in employee onboarding. The average donation value tied to Dollars for Doers also increased 21% from last year, highlighting how companies are strengthening the link between volunteering and giving through enhanced incentives and rewards. "As companies navigate evolving expectations around work, flexibility and purpose, one thing is clear in this year's data: employee engagement isn't fading—it's thriving," said Andrew Troup, impact officer at YourCause from Blackbaud. "Employees continue to show up in powerful ways for the causes they care about—giving generously, volunteering their time, and doing both at meaningful scale. The organizations unlocking the strongest results are the ones removing friction, making participation relevant, and fully embedding impact into the culture of everyday work."

The report also highlights how program design choices—such as integrated giving and volunteering programs, targeted pledge campaigns, employee resource groups and visible moments of activation—are directly linked to higher engagement and deeper impact. Companies leveraging these approaches consistently outperformed peers with more limited or fragmented programs.

Now with over a decade of experience in social impact research, the YourCause CSR Industry Review continues to serve as a benchmarking resource for CSR, ESG and people leaders seeking to understand how employee expectations and participation are evolving—and how technology and strategy can help organizations respond with confidence.

The full 2026 YourCause CSR Industry Review is available for download at yourcause.com.

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.

Media Inquiries
[email protected]

Forward-looking Statements
Except for historical information, all of the statements, expectations and assumptions contained in this news release are forward-looking statements that involve a number of risks and uncertainties, including statements regarding expected benefits of products and product features. 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: general economic risks; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; management of integration of acquired companies and other risks associated with acquisitions; risks associated with successful implementation of multiple integrated software products; the ability to attract and retain key personnel; risks associated with management of growth; lengthy sales and implementation cycles; technological changes that make our products and services less competitive; 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. All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.

SOURCE Blackbaud

For the quarter ended March 2026, Huntington Bancshares (HBAN - Free Report) reported revenue of $2.59 billion, up 34% over the same period last year. EPS came in at $0.37, compared to $0.34 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $2.59 billion, representing a surprise of -0.04%. The company delivered an EPS surprise of +2.78%, with the consensus EPS estimate being $0.36.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Huntington Bancshares performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Interest Margin (FTE): 3.2% versus 3.3% estimated by five analysts on average.Average Balance - Total earning assets: $238.97 billion compared to the $239.55 billion average estimate based on five analysts.Efficiency Ratio: 67.2% versus the five-analyst average estimate of 63%.Net charge-offs / Average total loans and leases: 0.3% versus 0.3% estimated by five analysts on average.Regulatory Tier 1 risk-based capital ratio: 11.6% versus the two-analyst average estimate of 11.5%.Total nonperforming assets: $1.36 billion versus the two-analyst average estimate of $1.07 billion.Tier 1 Leverage Ratio: 9.5% versus 9.3% estimated by two analysts on average.Net interest income - FTE: $1.91 billion compared to the $1.93 billion average estimate based on five analysts.Total Non-Interest Income: $682 million versus $651.88 million estimated by five analysts on average.Mortgage banking income: $32 million versus $40.17 million estimated by four analysts on average.Customer deposit and loan fees: $110 million compared to the $114.97 million average estimate based on four analysts.Payments and cash management revenue: $187 million versus the four-analyst average estimate of $173.88 million.View all Key Company Metrics for Huntington Bancshares here>>>

Shares of Huntington Bancshares have returned +8.2% over the past month versus the Zacks S&P 500 composite's +9.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

, /PRNewswire/ -- Huntington Bancshares Incorporated announced that the Board of Directors ("Board") declared a quarterly cash dividend on the company's common stock (Nasdaq: HBAN) of $0.155 per common share, unchanged from the prior quarter. The common stock cash dividend is payable July 1, 2026, to shareholders of record on June 17, 2026.

The Board also declared quarterly cash dividends on the following six series of its preferred stock payable July 15, 2026, to their respective shareholders of record on July 1, 2026:

A quarterly cash dividend on its Floating Rate Series B Non-Cumulative Perpetual Preferred Stock (CUSIP#: 446150500) of $16.58677465 per share (equivalent to $0.4146694 per depositary receipt share). A quarterly cash dividend on its 5.625% Series F Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock (CUSIP#: 446150AT1) of $1,406.25 per share (equivalent to $14.0625 per depositary share). A quarterly cash dividend on its 4.450% Series G Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock (CUSIP#: 446150AV6) of $1,112.50 per share (equivalent to $11.1250 per depositary share). A quarterly cash dividend on its 4.5% Series H Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock (Nasdaq: HBANP) of $11.25 per share (equivalent to $0.28125 per depositary share). A quarterly cash dividend on its 6.875% Series J Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock (Nasdaq: HBANL) of $17.19 per share (equivalent to $0.42975 per depositary share). A quarterly cash dividend on its 6.25% Series K Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock (CUSIP#: 446150BG8) of $1,562.50 per share (equivalent to $15.625 per depositary share). Lastly, the Board declared a quarterly cash dividend on the company's 5.50% Series L Non-Cumulative Perpetual Preferred Stock (Nasdaq: HBANZ) of $343.75 per share (equivalent to $0.34375 per depositary share) payable August 20, 2026, to shareholders of record on August 5, 2026.

About Huntington

Huntington Bancshares Incorporated is a $285 billion asset regional bank holding company headquartered in Columbus, Ohio. Founded in 1866, The Huntington National Bank and its affiliates provide consumers, small and middle-market businesses, corporations, municipalities, and other organizations with a comprehensive suite of banking, payments, wealth management, and risk management products and services. Huntington operates over 1,400 branches in 21 states, with certain businesses operating in extended geographies. Visit Huntington.com for more information

SOURCE Huntington Bancshares Incorporated

Huntington Bancshares (NASDAQ:HBAN) executives highlighted what CEO Steve Steinour called an “outstanding” first quarter of 2026, pointing to solid organic growth, record capital markets performance, and progress integrating recent partnerships and acquisitions. Management also updated its 2026 outlook, trimming certain net interest assumptions while lifting expectations for fee revenue growth and tightening expense guidance.

Management: Economic conditions steady, but consumer trends mixed Steinour opened the call by describing a “dynamic global environment,” noting geopolitical developments as a source of uncertainty, while characterizing conditions in Huntington’s footprint as “remaining consistent with prior quarters.” He said the bank continues to see “broad-based strength across commercial end markets” and is “not seeing any signs of a material shift in underlying demand.”

On the consumer side, Steinour said trends are “a bit more mixed,” with middle- and upper-income consumers continuing to spend, while lower-income households face pressure from cumulative inflation effects. Despite uncertainty, he said the bank’s outlook for the year is unchanged, adding that second-quarter pipelines are healthy and customer activity remains steady.

Quarterly results: EPS growth, margin expansion, and record capital markets revenue CFO Zach Wasserman reported earnings per common share of $0.25 for the quarter. On an adjusted basis, excluding acquisition-related expenses and other notable items, EPS was $0.37, up 9% year-over-year. Adjusted pre-provision net revenue increased 36%, which Wasserman attributed to strong underlying performance across the franchise and contributions from recent partnerships.

Net interest income increased $301 million, or 18.7% sequentially, and was up 33% year-over-year. Net interest margin was 3.24%, up 9 basis points from the prior quarter. Wasserman said the margin increase was driven by lower funding costs, reduced hedge drag, and purchase accounting, partially offset by lower free-funds benefit and higher Fed cash balances.

Fee income was a major focus for management. Wasserman said fee revenue exceeded the bank’s plan and reflected strong customer activity trends. On an adjusted basis, excluding acquisition and divestiture activity this year and last, fee income grew 18% year-over-year. He cited:

Payments revenue up 21% year-over-year; on an organic basis excluding acquisitions, payments grew about 10%, driven primarily by commercial payments. Wealth management revenue up 19% year-over-year, supported by household acquisition and positive assets under management net inflows. Capital markets delivering its strongest revenue quarter on record, with revenue excluding the impact of acquisitions up nearly 60% year-over-year, supported by loan syndications, advisory, debt capital markets, fixed income sales and trading, and rate hedging. Loan and deposit fees up 28% year-over-year, driven by loan commitment fees; excluding acquisitions, growth was about 18%. On expenses, Wasserman said that on a normalized basis—excluding one-time costs and the impact of absorbing Cadence’s expense base as well as Janney and TM Capital—operating expenses rose $20 million sequentially, reflecting what he described as continued cost discipline. He also discussed an “enterprise-wide AI program” focused on technology, process transformation, customer-facing use cases, colleague productivity and training, and data/platform capabilities, which he said is “already contributing to productivity and efficiency.”

Loans, deposits, and liquidity: Organic growth plus a liquidity build Excluding the addition of Cadence on an end-of-period basis, loan balances increased 1.5%, or $2.2 billion, driven by strength in core markets and commercial verticals. Wasserman cited contributions from corporate specialty banking verticals including financial institutions, tech and telecom, and industrials, as well as asset finance and middle market banking.

On deposits, excluding Cadence, core deposits increased $3.8 billion, or 2.3% quarter-over-quarter, as the bank maintained “disciplined pricing” and focused on relationship-led deposit gathering, according to Wasserman.

Steinour emphasized balance sheet strength and said Huntington decided to “temporarily build additional liquidity,” adding cash to the balance sheet. Management said available contingent liquidity was about 173% of uninsured deposits; 69% of total deposits are insured; and the bank’s unmodified liquidity coverage ratio was 118%.

In response to analyst questions, Wasserman said the additional Fed cash balances were not included in the prior plan and were intended to keep Huntington in a position of strength. Steinour added that “the Middle East issues are what drove us to that decision.”

Integration progress, capital return, and updated outlook Steinour said partner integrations are “on track,” noting the Veritex conversion was completed in the first quarter and that the bank remains on track for the Cadence conversion in June. He said Huntington has onboarded “over 6,000 new colleagues and 1.5 million new customers,” and management pointed to early revenue synergy benefits in capital markets and payments, as well as increased card usage and new consumer account openings.

On capital, Wasserman said Huntington increased its 2026 share repurchase plan to $550 million and reported more than $250 million in repurchases year-to-date, including $150 million in the first quarter and more than $100 million in the second quarter to date, representing about 15 million shares retired. The board also approved a new $3 billion share repurchase authorization replacing the prior program.

Huntington reiterated its longer-term profitability goals and raised its return-on-tangible-common-equity target to 18%–19%, which Steinour said is driven by expected synergies from partnerships, growth in higher-return fee services, and continued capital return. Wasserman said the bank remains on track for its 2027 EPS projection of $1.90 to $1.93 and ROTCE of 18%–19%.

For 2026, management adjusted certain components of guidance. Wasserman said net interest income is now expected to be at the low end of the bank’s guided range, reflecting loan growth expected to be closer to the midpoint of the range rather than the high end, modestly less improvement in deposit costs than previously assumed, and the impact of holding incremental Fed cash that reduces reported NIM. He said the bank now expects 2026 net interest margin to “trend into the high 320s” versus a prior expectation in the “mid 330s,” with 5 basis points attributed to the higher cash balances and about 2–3 basis points attributed to asset optimization and deposit costs.

To offset pressure on net interest assumptions, Huntington raised its expectations for fee revenue growth by 4 percentage points to 31%–33% and tightened its 2026 expense growth range to the lower half of 32.5%–33.5%. Wasserman said these changes would likely result in full-year operating leverage of about 400–450 basis points and reiterated an expectation for a fourth-quarter efficiency ratio in the mid- to low-54% range.

On credit, Wasserman said net charge-offs were 26 basis points and criticized assets were 4.3%, with non-performing assets at 72 basis points. Chief Credit Officer Brendan Lawlor said the bank remains vigilant and continues to be measured in commercial real estate exposure, “particularly on the construction side,” which he said the bank expects to reduce organically over the next two-plus years.

During Q&A, Wasserman said the bank’s preliminary assessment of the revised standardized approach for Basel III endgame suggested a 7.5%–8% reduction in risk-weighted assets, which he said would equate to about 80 basis points of reported CET1 benefit, though he emphasized more steps are needed before finalization and implementation clarity.

Steinour closed by emphasizing organic growth momentum, integration progress, and the bank’s line of sight to its 2027 targets, calling fourth quarter 2026 a point when the run-rate benefits of synergies should be more visible in results.

About Huntington Bancshares (NASDAQ:HBAN) Huntington Bancshares Incorporated (NASDAQ: HBAN) is a bank holding company headquartered in Columbus, Ohio, that provides a broad range of banking and financial services through its principal subsidiary, Huntington National Bank. The company’s operations are centered on retail and commercial banking, and it serves individual consumers, small and middle-market businesses, and institutional customers.

Huntington’s product offerings include traditional deposit and lending products, consumer and commercial loans, mortgage origination and servicing, auto financing, and business banking solutions.

Further Reading Five stocks we like better than Huntington Bancshares

Huntington Bancshares delivered strong Q1 2026 results, driven by recent acquisitions and robust organic growth in loans and deposits. HBAN reported adjusted EPS of $0.37, beating consensus, with revenue up 34% year-over-year to $2.59 billion. Net interest margin expanded to 3.24%, and asset quality remained stable despite integration costs and economic headwinds.

Huntington Bancshares trades at a notable discount to peer banks, largely reflecting integration/M&A risks as well as competitive pressures in Southeastern banking markets. Recent negative guidance revisions and concerns over organic growth have weighed on sentiment, despite respectable Q1 operating results driven by fee income outperformance. HBAN's long-term thesis hinges on successful M&A integration, fee-based revenue growth, and service-driven above-peer loan growth, supporting a fair value above $19.50.

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Highlights

Issuers that tied cards to payroll, subscriptions and daily spending showed stronger customer lifetime value performance.

Embedded onboarding and digital wallet issuance shortened the gap between approval and first use, helping build longer-lasting relationships.

High-performing issuers concentrated on deepening existing relationships rather than relying primarily on customer acquisition.

The competition among card issuers is no longer centered only on rewards rates or promotional offers. Increasingly, it is about whether an issuer can become embedded deeply enough in a customer’s daily financial activity that the relationship becomes difficult to displace.

That is one of the clearest conclusions from “The Issuer’s Customer Lifetime Value Report,” from PYMNTS Intelligence and Visa, which found that the share of issuers generating high customer lifetime value declined to 17% in 2025 from 21% a year earlier, despite heavier spending across digital capabilities, artificial intelligence and embedded finance programs.

The report defines customer lifetime value as the total revenue a cardholder generates over the life of the relationship after accounting for acquisition, rewards and servicing costs. The findings were based on a survey of 500 executives in payment leadership roles at U.S. bank and nonbank card issuers.

The issuers that maintained stronger customer value metrics were generally the ones that approached the relationship with a longer horizon and a more deliberate strategy.

That proactive posture appeared most clearly in how those issuers handled onboarding, embedded features and customer engagement.

Moving Beyond Convenience The research also pointed to embedded financial features as a differentiator between stronger and weaker performers.

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Among high-value issuers, 22% offered embedded payroll or gig-worker card issuance programs, compared with 12% to 13% among lower-value peers. Payroll-linked cards create a more durable relationship because they connect the card directly to income flows and routine spending behavior.

In practical terms, that means the card is not simply a payment credential. It becomes part of how customers receive income, pay bills and manage everyday finances.

The report described this as competition for “default status,” meaning the card already tied to subscriptions, already stored in digital wallets and already linked to a paycheck. Once those connections are established, customers are less likely to shift spending elsewhere.

Eighty-two percent of high-value issuers pursued both acquisition and cross-selling strategies simultaneously, compared with lower-value issuers that were twice as likely to focus primarily on acquisition alone.

The distinction matters because acquisition without deeper engagement can produce portfolios that generate initial activity but weaker long-term retention.

Relationship Tools The report also found that issuers view AI and embedded analytics as relationship management tools.

Sixty-two percent of issuers said they plan to adopt or expand AI-powered real-time transaction categorization and enrichment over the next 12 months, making it the most widely cited AI capability in the study. Other frequently cited priorities included customer service automation, marketing segmentation and personalized rewards recommendations.

The broader implication in the report is that embedded features and AI tools matter most when they reinforce trust and continuity in the customer relationship. Faster onboarding, payroll-linked cards, transaction insights and real-time alerts all serve different functions operationally. Yet they share a common purpose: keeping the issuer connected to the customer’s daily financial life over a longer period of time.

Card issuers are using embedded onboarding, payroll-linked cards and AI-driven personalization to extend customer relationships beyond the initial transaction. PYMNTS Intelligence data indicates that issuers generating stronger customer lifetime value are focusing less on pure acquisition. The newer, tech-driven capabilities can help issuers maintain visibility into customer behavior while reducing reliance on one-time promotional campaigns.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.

, /PRNewswire/ -- Huntington Bancshares Incorporated (Nasdaq: HBAN) will participate in the 2026 Morgan Stanley US Financials Conference on Tuesday, June 9, 2026. Zach Wasserman, chief financial officer, and Brant Standridge, president of Consumer and Regional Banking, are scheduled to present to analysts and investors at 7:30 AM (Eastern Time). They will discuss business trends, financial performance, and strategic initiatives. The presentation will include forward-looking statements.

Webcast Information

Interested investors may access the live audio webcast in the investor relations section of Huntington's website (www.huntington-ir.com). A replay of the webcast will be archived on the website.

About Huntington

Huntington Bancshares Incorporated is a $285 billion asset regional bank holding company headquartered in Columbus, Ohio. Founded in 1866, The Huntington National Bank and its affiliates provide consumers, small and middle-market businesses, corporations, municipalities, and other organizations with a comprehensive suite of banking, payments, wealth management, and risk management products and services. Huntington operates over 1,400 branches in 21 states, with certain businesses operating in extended geographies. Visit Huntington.com for more information.

SOURCE Huntington Bancshares Incorporated

For years, payment infrastructure was treated as plumbing: necessary and expensive. But increasingly, financial institutions are approaching it differently, weighing payment architecture as part of liquidity planning, operational continuity and client acquisition.

That context provides the backdrop for Huntington Bank joining CHIPS, The Clearing House’s high-value payments network.

Richard Dzina, senior vice president of core product management at The Clearing House, told PYMNTS that the move reflects more than an expansion of network participation and may signal how institutions are reassessing wholesale payment capabilities after several years spent absorbing industry-wide modernization work.

Why High-Value Payments Are Becoming a Strategy Decision “There was a bit of a hiatus with respect to new participants joining CHIPS during the industry migration to ISO 20022,” Dzina said. “That is now starting to get realized, and I would suggest Huntington is in the leading wave of an emerging trend with respect to more adds to the CHIPS network.”

His explanation centered on two themes: resiliency and liquidity.

Infrastructure, Liquidity and Resiliency Dzina countered the idea that financial institutions should think about CHIPS and Fedwire as competing choices.

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“It’s appropriate to think of conceptually the U.S. high-value market, Fedwire Funds and CHIPS as compliments to each other,” he said.

One benefit is continuity. If one operator experiences disruption, the other remains available to support critical wholesale payment activity.

He connected that directly to growing industry concern about resilience planning.

That interest arrives as commercial clients increasingly expect reliability to extend beyond uptime. Treasury teams want confidence that high-value transactions continue to move even under stressed operating conditions.

“One can conceptualize CHIPS as the liquidity savings engine for the U.S. financial system,” Dzina said.

Liquidity Savings Become More Than an Efficiency Story Dzina drew a distinction between gross settlement and liquidity-saving mechanisms.

“CHIPS relies upon a very sophisticated liquidity savings mechanism, an algorithm that has been honed and refined over 50 years, that continually matches, offsets, nets activity across the network such that only the net transfers settle with finality intraday, not the gross,” he said.

Dzina said CHIPS settles more than $2 trillion in value daily while requiring approximately $70 billion in funding support, creating roughly 26-to-1 liquidity efficiency. He linked that advantage to the present environment of elevated rates, quantitative tightening and heightened competition for reserves.

He also tied liquidity management directly to resiliency.

“The median settlement on CHIPS is about 8 a.m.,” he said. “The median settlement of activity on Fedwire is about 1 p.m.”

Earlier settlement allows institutions and their customers to recycle liquidity earlier and lowers exposure if a participant or network disruption occurs later in the operating cycle.

Network Participation and New Markets Dzina also discussed the advantages.

“It is not merely a win for the new participant,” he said. “It’s also very advantageous for the network at large. The more volume and value you throw at the network, the better the algorithm performs because there’s more opportunities for matches and offset.”

The network effect becomes relevant as banks pursue larger commercial opportunities and more sophisticated payment requirements.

“A competitive dynamic is starting to emerge among our participants with respect to a race of who can deliver more enhanced services, enhanced analytics, building upon the enriched ISO format,” Dzina said.

Richer data structures may allow institutions to differentiate through information and service design rather than speed alone.

Dzina also pointed to extended operating hours as the next significant development.

Expanded availability would strengthen access to off-hours and cross-border use cases, improve reach into markets including the Middle East, and create opportunities tied to global supply chains and new settlement patterns, he said.

“We very much want to be a first mover with extended operating hours, just as we were a first mover with ISO,” he said.

Ultimately, Dzina framed the issue in terms of system economics.

“The volume and value committed to the network supports the efficiency of the U.S. payment system and equally supports the dollar as a global reserve and settlement currency,” he told PYMNTS.

On June 04, 2026, Huntington Bancshares Inc (HBAN) shares rose 3.8% today, bringing the current price to $16.53. The stock is trading within its 52-week range,

Key Takeaways Huntington expects up to $500M in cost savings and revenue synergies from Texas deals by 2026.HBAN has achieved Veritex cost-saving targets and sees a path to $365M in Cadence savings.Huntington projects $500M in revenue synergies by 2028 and reaffirmed the 2027 earnings targets. Huntington Bancshares Incorporated’s (HBAN - Free Report) strategic expansion in Texas is gaining momentum, supported by targeted acquisitions, geographic diversification and deeper penetration into high-growth markets.

The bank began reinforcing its Texas strategy in March 2024, when it announced plans to expand its commercial banking operations in the state, following its earlier footprint extension in the Dallas-Fort Worth area. The strategy accelerated in October 2025 with the acquisition of Veritex Holdings, which expanded Huntington’s presence in Dallas-Fort Worth and Houston. In February 2026, the company strengthened its position by completing its merger with Cadence Bank, significantly increasing its scale across Texas and the broader southern United States. 

At the Morgan Stanley financial services conference held yesterday, Huntington’s management highlighted the strong early returns from its Texas expansion strategy. The company pointed to meaningful earnings upside from recent acquisitions, cost-saving opportunities and integration efforts.

Management expects to generate up to $500 million in combined cost savings and revenue synergies by the end of 2026, driven primarily by the Veritex and Cadence transactions. These acquisitions have strengthened Huntington’s presence in attractive Texas markets, including Dallas-Fort Worth and Houston, while also expanding its reach across the South.

Management emphasized that the Texas strategy is not merely about adding scale. The focus is also on improving profitability through operating efficiencies, customer growth and cross-selling opportunities. The upcoming Cadence systems conversion will reach a milestone, as it will bring acquired customers and employees onto Huntington’s common operating platform. This is expected to accelerate integration benefits and support stronger customer engagement.

Huntington has already achieved $70 million in cost savings targeted from the Veritex transaction. The company also sees a clear path to realizing $365 million in expense savings from the Cadence deal. These synergies are expected to contribute meaningfully to earnings growth over the next two years. Huntington expects to generate $500 million in revenue synergies from the two Texas deals by the end of 2028, including $50-$75 million in 2026.

Management also reaffirmed its longer-term financial targets, including projected earnings per share of $1.90-$1.93 in 2027 and a return on tangible common equity of 18-19%. This would mark a solid improvement from 2025, when Huntington reported earnings of $1.39 per share and a return on tangible common equity of 15.7%.

Other Banks Expanding in Texas MarketHuntington is not the only regional bank strengthening its Texas presence. In January 2026, Prosperity Bancshares, Inc. (PB - Free Report) completed its previously announced acquisition of American Bank Holding Corporation and its wholly owned subsidiary, American Bank.

With American Bank’s 18 full-service branches and two loan production offices across South and Central Texas, the acquisition significantly enhances Prosperity’s competitive position in several high-growth Texas markets.

Fifth Third Bancorp (FITB - Free Report) is also expanding aggressively in Texas. In February 2026, Fifth Third acquired Comerica, a transaction that broadened its reach across key markets in the Southeast, Texas and California, while reinforcing its leadership position in the Midwest.

Fifth Third’s management is now integrating the platform on an accelerated timeline and remains on track to achieve $360 million in net cost savings in 2026 and an $850-million annual run rate by the fourth quarter of 2026.

HBAN’s Price Performance & Zacks RankOver the six months, shares of Huntington have declined 6% compared with the industry’s fall of 4.1%.

Image Source: Zacks Investment Research

HBAN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stride (LRN) offers alternative K-12 and career-focused online education, targeting enrollment growth as its main revenue driver. LRN's competitive edge is scale, but customer satisfaction issues and enrollment legitimacy risks threaten long-term sustainability. Flat 2026 revenue growth guidance (5%) and a fair value estimate of $87 align with the current $84 stock price.

Key Takeaways LRN has jumped 38.7% in 2026, outperforming a declining S&P 500 over the same period.INNV surged 34.5% after a Zacks Recommendation upgrade to Outperform in early February.PEP gained 13% in 12 weeks, supported by its inclusion in the ECAP portfolio. Last Friday, all three Wall Street benchmark stock indexes registered a week of gains. The tech-focused Nasdaq, the S&P 500 and the Dow Jones Industrial Average gained 4.4%, 3.4% and 3%, respectively.

The rebound was supported by easing concerns around inflation and interest rates, as investors took comfort from steady messaging by Jerome Powell and expectations that the Fed would avoid aggressive tightening. Cooling bond yields and stable economic data, including resilient jobs and consumer spending trends, improved risk appetite and encouraged investors to move back into equities after recent weakness.

At the same time, the ongoing Iran war played a complex role. While the conflict drove sharp spikes in oil prices due to disruptions in the Strait of Hormuz, markets partly rebounded as investors assessed that the economic impact, though serious, may remain contained in the near term. Tech stocks led gains, with dip-buying and optimism around corporate outlooks lifting sentiment, even as geopolitical risks and energy-driven inflation concerns lingered in the background.

Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market. 

As usual, Zacks Research guided investors over the past three months with its time-tested methodologies. Given the prevailing market uncertainty, you may want to look at our feats to prepare better for your next action.

Here are some of our key achievements:

Century Aluminum and Teradyne Surge Following Zacks Rank UpgradeShares of Century Aluminum Company (CENX - Free Report) have gained 23.9% (versus the S&P 500’s 4.9% decrease) since it was upgraded to a Zacks Rank #1 (Strong Buy) on February 4.

Another stock, Teradyne, Inc. (TER - Free Report) , which was also upgraded to a Zacks Rank #1 on February 4, has returned 9.4% since then.

An equal-weight portfolio of Zacks Rank # 1 (Strong Buy) stocks outperformed the equal-weight S&P 500 index by 7.7 percentage points in the year-to-date 2026 period (through March 3rd, 2026); The Zacks Rank #1 stocks returned +6.57% through March 3rd, while the equal-weight S&P 500 index lost -1.14% of its value.

In 2025, this hypothetical equal-weight portfolio returned +17.81% vs. +10.85% for the index, while performance comparison was +22.4% vs. +13.7% in 2024. Over the preceding 10-year period (2016 through 2025), this portfolio of qual-weight Zacks Rank #1 stocks outperformed the equal-weight S&P 500 index by more than 7 percentage points (+18.55% vs. +11.65%).

You can see the complete list of today’s Zacks Rank #1 stocks here >>>

Check Century Aluminum’s historical EPS and Sales here>>>

Check Teradyne’s historical EPS and Sales here>>>

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Zacks Recommendation Upgrades InnovAge and Teekay TankersShares of InnovAge Holding Corp. (INNV - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) have surged 34.5% and 18.2% (versus the S&P 500’s 4.9% fall), respectively, since their Zacks Recommendation was upgraded to Outperform on February 4.

While the Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon, the Zacks Recommendation aims to predict performance over the next 6 to 12 months. However, just like the Zacks Rank, the foundation for the Zacks Recommendation is trends in earnings estimate revisions.

The Zacks Recommendation classifies stocks into three groups — Outperform, Neutral and Underperform. While these recommendations are determined quantitatively, our analysts have the flexibility to override them for the 1100+ stocks they closely follow based on their better judgment of factors such as valuation, industry conditions and management effectiveness than the quantitative model.

To access our research reports with Zacks Recommendations for the 1100+ stocks we cover, click here>>>

Zacks Focus List Stocks Celanese, Quanta Services Shoot UpShares of Celanese Corporation (CE - Free Report) , which belongs to the Zacks Focus List, have gained 44% over the past 12 weeks. The stock was added to the Focus List on December 5, 2016. Another Focus-List holding, Quanta Services, Inc. (PWR - Free Report) , which was added to the portfolio on December 23, 2021, has returned 27.9% over the past 12 weeks. The S&P 500 has declined 5.2% over this period. 

The 50-stock Focus List portfolio returned +6.65% in 2026 (through February 28th) vs. +0.68% for the S&P 500 index and +7.06% for the equal-weight version of the index.

The portfolio returned +22.1% in 2025 vs. +17.9% for the S&P 500 index and +11.4% for the equal-weight version of the index.

The Zacks Focus List portfolio returned +18.41% in 2024 vs. +25.04% for the S&P 500 index and +13% for the equal-weight S&P 500 index. The portfolio had returned +29.54% in 2023 vs. +26.28% for the S&P 500 index and +13.61% for the equal-weight S&P 500 index. In 2022, the portfolio returned -15.2% vs. the S&P 500 index’s -17.96%.

Through February 28th, 2026, the portfolio’s rolling returns on a one-year, three-year, five-year, ten-year, and since 2004 have been +29.35% (vs. +17% for the S&P 500 index), +23.13% (vs. +21.81%), +14.15% (vs. +14.19%), +16.79% (vs. +15.50%) and +12.38% vs. (+10.66%), respectively.

Unlock all of our powerful research, tools and analysis, including the Focus List, Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. Gain full access now >>

Zacks ECAP Stocks PepsiCo & Walmart Gain SignificantlyPepsiCo, Inc. (PEP - Free Report) , a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 13% over the past 12 weeks. Walmart Inc. (WMT - Free Report) followed PepsiCo with 10% returns.

The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned -2.3% in the fourth quarter of 2025 vs. the S&P 500 index’s +2.7% gain (SPY ETF). For 2025 as a whole, the portfolio returned -1.67% vs. +17.9% gain for the S&P 500 index.

For the year 2024, the portfolio returned +16.26% vs. +24.89% for the S&P 500 index (SPY ETF). In 2023, the portfolio returned +12.17% vs. +26.28% for the S&P 500 index. The portfolio returned -4.7% in 2022 vs. the S&P 500 index’s -17.96%.

With little to no turnover and annual rebalance periodicity, ECAP seeks to minimize capital loss by holding shares of companies whose earnings streams exhibit a proven 20+ year track record of surviving recessionary periods with minimal impact on aggregate earnings growth relative to the overall S&P 500.

The ECAP and many other model portfolios are available as part of Zacks Advisor Tools, a cloud-based solution to access Zacks award-winning stock, mutual fund and ETF research. Click here to schedule a demo.

Zacks ECDP Stocks Hershey’s and Coca-Cola Outperform PeersThe Hershey Company (HSY - Free Report) , which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 15% over the past 12 weeks. Another ECDP stock, The Coca-Cola Company (KO - Free Report) , has climbed 13.1% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance.

Check Hershey’s dividend history here>>>

Check Coca-Cola’s dividend history here>>>

With an extremely low beta and a history of minimum earnings variability over the last 20+ years, this 25-stock portfolio helps significantly mitigate risk.

The Zacks Earnings Certain Dividend Portfolio (ECDP) returned -2.1% in 2025 Q4 vs. the S&P 500 index’s +2.7% gain and the Dividend Aristocrats ETF’s (NOBL) +1.6% return. For 2025, the portfolio returned -0.6% vs. +6.8% gain for the Dividend Aristocrat ETF.

For the full year 2024, the portfolio returned +6.95% vs. +24.89% for the S&P 500 index and +6.72% for NOBL.

The portfolio returned -0.9% in 2023 vs. +26.28% for the S&P 500 index and +8.11% for NOBL. The portfolio returned -2.3% in 2022 vs. -17.96% for the S&P 500 index and -8.34% for NOBL.

Click here to access this portfolio on Zacks Advisor Tools.  

Zacks Top 10 Stock Stride Delivers Solid ReturnsStride, Inc. (LRN - Free Report) , from the Zacks Top 10 Stocks for 2025, has jumped 38.7% since January 5, 2026, against the S&P 500 Index’s 4% decrease.

The Top 10 portfolio retuned +10.5% in 2026 (through February 28th) vs. +0.5% for the S&P 500 index and +6.3% for the equal-weight version of the index.

The Top 10 portfolio returned +22.6% in 2025 vs. +17.9% for the S&P 500 index and +11.4% for the equal-weight version of the index.

The Top 10 portfolio returned +62.98% in 2024, vs. +25.04% for the S&P 500 index and +13% for the equal-weight version of the index. The portfolio had returned +25.15% in 2023 vs. +26.28% for the S&P 500 index.

Through the end of February 2026, the Top 10 portfolio has produced a cumulative return of +2,761.6% since 2012 vs. +564.8% for the S&P 500 index and +435% for the equal-weight version of the index. The portfolio has produced an average annual return of +26.4% in the period 2012 through February 28th, 2026 vs. +13% for the S&P 500 index and +11% for the equal-weight version of the index.

RESTON, Va., April 14, 2026 (GLOBE NEWSWIRE) -- Stride Inc. (NYSE: LRN) announced today it plans to discuss its third quarter fiscal year 2026 financial results during a conference call scheduled for Tuesday, April 28, 2026 at 5:00 p.m. eastern time (ET).

A live webcast of the call will be available at investors.stridelearning.com/events-and-presentations. To participate in the live call, investors and analysts should dial (800) 715-9871 (domestic) or +1 (646) 307-1963 (international) and provide the conference ID number 8901384. Please access the website at least 15 minutes prior to the start of the call.

A replay of the call will be posted at investors.stridelearning.com/events-and-presentations as soon as it is available.

About Stride Inc.

Stride Inc. (NYSE: LRN) is redefining lifelong learning with innovative, high-quality education solutions. Serving learners in primary, secondary, and postsecondary settings, Stride provides a wide range of services including K-12 education, career learning, professional skills training, and talent development. Stride reaches learners in all 50 states and over 100 countries. Learn more at stridelearning.com.

Investor Contact
Investor Relations
Stride, Inc.
[email protected]

RESTON, Va., April 28, 2026 (GLOBE NEWSWIRE) -- Stride, Inc. (NYSE: LRN), one of the nation’s most successful technology-based education companies, today announced its results for the third quarter of fiscal year 2026 ended March 31, 2026.

Third Quarter Fiscal 2026 Highlights Compared to 2025

Revenue of $629.9 million, compared with $613.4 millionIncome from operations of $129.1 million, compared with $130.8 millionNet income of $88.5 million, compared with $99.3 millionDiluted net income per share of $1.93, compared with $2.02Adjusted operating income of $140.4 million, compared with $141.7 million (1)Adjusted EBITDA of $171.3 million, compared with $168.3 million (1)Adjusted earnings per share of $2.30, compared with $2.33 (1)
Third Quarter Fiscal 2026 Summary Financial Metrics

 Three Months Ended March 31, Change 2026/2025 2026 2025 $ % (In thousands, except percentages and per share data)Revenues$629,873 $613,376 $16,497 2.7%           Income from operations 129,080  130,786  (1,706) (1.3%)Adjusted operating income (1) 140,424  141,744  (1,320) (0.9%)           Net income 88,527  99,346  (10,819) (10.9%)Net income per share, diluted 1.93  2.02  (0.09) (4.5%)Adjusted earnings per share (1) 2.30  2.33  (0.03) (1.3%)           EBITDA (1) 161,676  159,727  1,949 1.2%Adjusted EBITDA (1) 171,250  168,275  2,975 1.8% (1)  To supplement our financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), we also present non-GAAP financial measures including adjusted operating income (loss), EBITDA, adjusted EBITDA, and adjusted earnings per share. Management believes that these additional measures provide useful information to investors relating to our financial performance. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below.

Nine Month Fiscal 2026 Highlights Compared to 2025

Revenue of $1,882.0 million, compared with $1,751.7 millionIncome from operations of $344.9 million, compared with $303.2 millionNet income of $256.8 million, compared with $236.6 millionDiluted net income per share of $5.39, compared with $4.95Adjusted operating income of $380.6 million, compared with $335.7 million (1)Adjusted EBITDA of $467.8 million, compared with $412.6 million (1)Adjusted earnings per share of $6.22, compared with $5.83 (1)
Nine Month Fiscal 2026 Summary Financial Metrics

 Nine Months Ended March 31, Change 2026/2025 2026 2025 $ % (In thousands, except percentages and per share data)Revenues$1,882,017 $1,751,670 $130,347 7.4%           Income from operations 344,915  303,229  41,686 13.7%Adjusted operating income (1) 380,559  335,673  44,886 13.4%           Net income 256,804  236,621  20,183 8.5%Net income per share, diluted 5.39  4.95  0.44 8.9%Adjusted earnings per share (1) 6.22  5.83  0.39 6.7%           EBITDA (1) 437,698  387,699  49,999 12.9%Adjusted EBITDA (1) 467,761  412,621  55,140 13.4% Revenue Data

 Three Months Ended      Nine Months Ended      March 31, Change 2026 / 2025 March 31, Change 2026 / 2025 2026 2025 $ % 2026  2025 $ % (In thousands, except percentages)                      General Education$357,463 $370,821 $(13,358) (3.6%) $1,061,976 $1,054,542 $7,434  0.7%Career Learning                     Middle - High School 259,520  223,868  35,652  15.9%  776,610  635,832  140,778  22.1%Adult 12,890  18,687  (5,797) (31.0%)  43,431  61,296  (17,865) (29.1%)Total Career Learning 272,410  242,555  29,855  12.3%  820,041  697,128  122,913  17.6%Total Revenues$629,873 $613,376 $16,497  2.7% $1,882,017 $1,751,670 $130,347  7.4%                       Enrollment and Revenue Per Enrollment Data

Third quarter enrollments were 244.5K, up 1.8% compared to 240.2K enrollments in the third quarter of fiscal year 2025. Of the total enrollments, 110.1K were Career Learning enrollments, up 11.6% compared to 98.7K Career Learning enrollments in the third quarter of fiscal 2025.

Enrollments only include those students in full service public or private programs where Stride provides a combination of curriculum, technology, and instructional and support services, inclusive of administrative support and may include enrollments for which Stride receives no public funding or revenue. Stride does not report enrollments for our Adult Learning business.

Revenue per enrollment for the third quarter was $2,485, up 2.9% compared to $2,415 in the third quarter of fiscal year 2025. General Education revenue per enrollment was $2,590, up 2.9% compared to the third quarter of fiscal year 2025, and Career Learning revenue per enrollment was $2,356, up 3.8%, compared to the third quarter of fiscal year 2025.

Cash Flow and Capital Allocation

As of March 31, 2026, the Company’s cash and cash equivalents and marketable securities totaled $856.0 million, compared with $1,011.4 million reported at June 30, 2025.

Capital expenditures for the three months ended March 31, 2026 were $18.5 million, compared to $15.8 million in the three months ended March 31, 2025, and were comprised of $0.5 million of property and equipment, $12.8 million of capitalized software development and $5.2 million of capitalized curriculum development.

Fiscal Year 2026 Outlook

The Company is narrowing its revenue, adjusted income, and capital expenditures forecast for the full fiscal year 2026:

Revenue in the range of $2.490 billion to $2.520 billion.Capital expenditures in the range of $75 million to $80 million. Note that capital expenditures include the purchase of property and equipment, and capitalized software and curriculum development costs as defined on our Statement of Cash Flows.Effective tax rate of 24% to 25%.Adjusted operating income in the range of $490 million to $500 million. (1) (1) In addition to providing an outlook for revenue and capital expenditures, adjusted operating income is provided as a supplemental non-GAAP financial measure as management believes that it provides useful information to our investors. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is provided below. Please also see Special Note on Forward-Looking Statements below.

Conference Call

The Company will discuss its third quarter of fiscal year 2026 financial results during a conference call scheduled for Tuesday, April 28, 2026 at 5:00 p.m. eastern time (ET).

A live webcast of the call will be available at investors.stridelearning.com/events-and-presentations. To participate in the live call, investors and analysts should dial (800) 715-9871 (domestic) or +1 (646) 307-1963 (international) and provide the conference ID number 8901384. Please access the website at least 15 minutes prior to the start of the call.

A replay of the call will be posted at investors.stridelearning.com/events-and-presentations.

About Stride Inc.

Stride Inc. (NYSE: LRN) is redefining lifelong learning with innovative, high-quality education solutions. Serving learners in primary, secondary, and postsecondary settings, Stride provides a wide range of services including K-12 education, career learning, professional skills training, and talent development. Stride reaches learners in all 50 states and over 100 countries. Learn more at stridelearning.com.

Special Note on Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements, including FY 2026 outlook. We have tried, whenever possible, to identify these forward-looking statements using words such as “outlook,” “forecasts,” “anticipates,” “believes,” “estimates,” “continues,” “likely,” “may,” “opportunity,” “potential,” “projects,” “will,” “will be,” “expects,” “plans,” “intends,” “should,” “would” and similar expressions to identify forward-looking statements, whether in the negative or the affirmative. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from those expressed in, or implied by, such statements. These risks, uncertainties, factors and contingencies include, but are not limited to: reduction of per pupil funding amounts at the schools we serve; inability to achieve a sufficient level of new enrollments to sustain our business model or meet guidance; limitations of the enrollment data we present, which may not fully capture trends in the performance of our business; failure to enter into new school contracts or renew existing contracts, in part or in their entirety; failure of the schools we serve, our vendors, or us to comply with our contracts, or federal, state and local laws and regulations, resulting in a loss of funding, an obligation to repay funds previously received, contractual remedies, or actions or proceedings against us; governmental investigations that could result in fines, penalties, settlements, or injunctive relief; declines or variations in academic performance outcomes of the students and schools we serve, including due to the evolution of curriculum standards, testing programs and state accountability metrics; harm to our reputation resulting from poor performance or misconduct by operators or us in any school in our industry and/or in any school which we operate; legal and regulatory challenges from opponents of virtual public education or for-profit education companies; changes in national and local economic and business conditions and other factors, such as natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments; discrepancies in interpretation of legislation by regulatory agencies that may lead to payment or funding disputes; termination of our contracts, or a reduction or termination in the scope of services, with schools; failure to develop the Career Learning business; entry of new competitors with superior technologies (including artificial intelligence) and lower prices; unsuccessful integration of mergers, acquisitions and joint ventures; failure to further develop, maintain and enhance our technology, products, services and brands; inadequate recruiting, training and retention of effective teachers and employees; infringement of our intellectual property; disruptions to our Internet-based learning and delivery systems, including, but not limited to, our data storage systems and third-party cloud systems and facilities, resulting from cybersecurity attacks; misuse or unauthorized disclosure of student and personal data; failure to prevent or mitigate a cybersecurity incident that affects our systems; problems in the implementation of new IT systems and technology; failure by us or third parties to maintain and support information technology systems, including addressing quality issues and timely delivering new products and enhancements; risks related to artificial intelligence; and other risks and uncertainties associated with our business described in the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended June 30, 2025 and any subsequently filed Quarterly Reports on Form 10-Q or the Company’s other filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this press release is as of today’s date, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

Financial Statements

The financial statements set forth below are not the complete set of Stride, Inc.’s financial statements for the three and nine months ended March 31, 2026 and are presented below without footnotes. Readers are encouraged to obtain and carefully review Stride Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026, including all financial statements contained therein and the footnotes thereto, filed with the SEC, which may be retrieved from the SEC’s website at www.sec.gov or from Stride Inc.’s Investor Relations website at investors.stridelearning.com.

STRIDE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
     Three Months Ended Nine Months Ended March 31, March 31, 2026
 2025
 2026
 2025
 (In thousands except share and per share data)Revenues$629,873  $613,376  $1,882,017  $1,751,670 Instructional costs and services 398,308   364,086   1,148,699   1,046,670 Gross margin 231,565   249,290   733,318   705,000 Selling, general, and administrative expenses 102,485   118,504   388,403   401,771 Income from operations 129,080   130,786   344,915   303,229 Interest expense, net (3,001)  (2,787)  (8,889)  (7,810)Other income (expense), net (5,338)  7,360   811   23,469 Income before income taxes and loss from equity method investments 120,741   135,359   336,837   318,888 Income tax expense (31,545)  (35,450)  (79,934)  (80,088)Loss from equity method investments (669)  (563)  (99)  (2,179)Net income attributable to common stockholders$88,527  $99,346  $256,804  $236,621 Net income attributable to common stockholders per share:           Basic$2.09  $2.31  $5.98  $5.50 Diluted$1.93  $2.02  $5.39  $4.95 Weighted average shares used in computing per share amounts:           Basic 42,330,276   43,092,682   42,925,740   42,992,727 Diluted 45,835,843   49,181,728   47,607,602   47,798,923  STRIDE, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS     March 31, June 30, 2026
 2025
   (audited)ASSETS(In thousands except share and per share data)      Current assets     Cash and cash equivalents$614,047  $782,497 Accounts receivable, net of allowance of $33,132 and $31,124 854,874   559,646 Inventories, net 21,501   37,570 Prepaid expenses 64,573   35,579 Marketable securities 191,793   202,769 Other current assets 12,002   14,673 Total current assets 1,758,790   1,632,734 Property and equipment, net 103,281   78,582 Capitalized software, net 82,653   75,314 Capitalized curriculum development costs, net 62,444   58,584 Intangible assets, net 12,646   18,227 Goodwill 246,676   246,676 Deferred tax asset —   26,377 Deposits and other assets 180,446   157,465 Total assets$2,446,936  $2,293,959 LIABILITIES AND STOCKHOLDERS' EQUITY     Current liabilities     Accounts payable$45,090  $43,962 Accrued liabilities 96,775   103,276 Accrued compensation and benefits 60,449   74,939 Deferred revenue 19,118   26,995 Current portion of finance lease liability 58,499   42,316 Current portion of operating lease liability 3,239   11,391 Total current liabilities 283,170   302,879 Long-term finance lease liability 59,297   44,567 Long-term operating lease liability 8,807   35,164 Long-term debt 417,579   416,322 Deferred tax liability 17,503   — Other long-term liabilities 18,655   15,408 Total liabilities 805,011   814,340 Commitments and contingencies     Stockholders’ equity     Preferred stock, par value $0.0001; 10,000,000 shares authorized; zero shares issued or outstanding —   — Common stock, par value $0.0001; 100,000,000 shares authorized; 49,133,813 and 48,852,419 shares issued; and 42,526,280 and 43,517,676 shares outstanding, respectively 4   4 Additional paid-in capital 729,851   735,711 Accumulated other comprehensive loss (59)  (67)Retained earnings 1,103,257   846,453 Treasury stock of 6,607,533 and 5,334,743 shares at cost, respectively (191,128)  (102,482)Total stockholders’ equity 1,641,925   1,479,619 Total liabilities and stockholders' equity$2,446,936  $2,293,959  STRIDE, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
   Nine Months Ended March 31, 2026
 2025
 (In thousands)Cash flows from operating activities     Net income$256,804  $236,621 Adjustments to reconcile net income to net cash provided by operating activities:     Depreciation and amortization expense 92,783   84,470 Stock-based compensation expense 30,063   24,922 Deferred income taxes 45,622   5,655 Provision for credit losses 10,689   13,357 Amortization of fees on debt 1,257   1,238 Noncash operating lease expense 4,541   9,230 Other 11,877   1,712 Changes in assets and liabilities:     Accounts receivable (305,903)  (240,429)Inventories, prepaid expenses, deposits and other current and long-term assets 11,606   (3,643)Accounts payable 1,249   (528)Accrued liabilities (8,768)  8,463 Accrued compensation and benefits (14,275)  4,149 Operating lease liability (15,950)  (9,583)Deferred revenue and other liabilities (4,632)  (1,142)Net cash provided by operating activities 116,963   134,492 Cash flows from investing activities     Purchase of property and equipment (587)  (1,350)Capitalized software development costs (37,471)  (28,605)Capitalized curriculum development costs (18,156)  (15,451)Other acquisitions, loans and investments, net of distributions (54,342)  (1,681)Proceeds from the maturity of marketable securities 213,886   221,530 Purchases of marketable securities (222,643)  (227,786)Net cash used in investing activities (119,313)  (53,343)Cash flows from financing activities     Repayments on finance lease obligations (41,277)  (29,957)Purchase of treasury stock (88,645)  - Repurchase of restricted stock for income tax withholding (36,178)  (20,672)Net cash used in financing activities (166,100)  (50,629)Net change in cash, cash equivalents and restricted cash (168,450)  30,520 Cash, cash equivalents and restricted cash, beginning of period 782,497   500,614 Cash, cash equivalents and restricted cash, end of period$614,047  $531,134       Reconciliation of cash, cash equivalents and restricted cash to balance sheet as of March 31st:     Cash and cash equivalents$614,047  $528,547 Other current assets (restricted cash) —   476 Deposits and other assets (restricted cash) —   2,111 Total cash, cash equivalents and restricted cash$614,047  $531,134  Non-GAAP Financial Measures

To supplement our financial statements presented in accordance with GAAP, we have presented adjusted operating income (loss), EBITDA, adjusted EBITDA, and adjusted earnings per share, which are not presented in accordance with GAAP.

Adjusted operating income (loss) is defined as income (loss) from operations as adjusted for amortization of intangible assets, stock-based compensation, and other one-time charges or gains.EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization.Adjusted EBITDA is defined as income (loss) from operations as adjusted for depreciation and amortization, stock-based compensation, and other one-time charges or gains.Adjusted earnings per share (adjusted EPS) is defined as net income (loss) attributable to common stockholders as adjusted for the amortization of intangible assets, stock-based compensation, and other one-time charges or gains net of tax impact divided by the diluted weighted average number of common shares outstanding less the shares expected to be received for the capped call transaction related to Stride’s convertible senior notes. Adjusted operating income (loss), adjusted EBITDA, and adjusted EPS exclude stock-based compensation, which consists of expenses for restricted stock, restricted stock units, and performance stock units.

Management believes that the presentation of these non-GAAP financial measures provides useful information to investors relating to our financial performance. Adjusted operating income (loss), adjusted EBITDA and adjusted EPS remove stock-based compensation, which is a non-cash charge that varies based on market volatility and the terms and conditions of the awards. EBITDA and adjusted EBITDA remove depreciation and amortization, which can vary depending upon accounting methods and the book value of assets. Adjusted operating income (loss), adjusted EBITDA and adjusted earnings per share remove one-time charges or gains which are not related to core operating activities and are not indicative of our ongoing operating performance. Additionally, adjusted EPS includes the impact from shares expected to be received by the Company to offset potential dilution from the convertible senior notes. EBITDA and adjusted EBITDA provide a measure of corporate performance exclusive of capital structure and the method by which assets were acquired.

Management uses these non-GAAP financial measures:

as additional measures of operating performance because they assist in comparing the Company’s performance on a consistent basis; andin presentations to the members of the Company’s Board of Directors to enable the Board to review the same measures used by management to compare the Company’s current operating results with corresponding prior periods. Other companies may define these non-GAAP financial measures differently and, as a result, these non-GAAP financial measures may not be directly comparable to similar non-GAAP financial measures used by other companies. Although these non-GAAP financial measures are used to assess the performance of the business, the use of non-GAAP financial measures is limited as they include and/or do not include certain items included and/or not included in the most directly comparable GAAP financial measure.

These non-GAAP financial measures should be considered in addition to, and not as a substitute for, revenues, income (loss) from operations, net income (loss) and diluted net income (loss) per share or other related financial information prepared in accordance with GAAP. Adjusted EBITDA is not intended to be a measure of liquidity. You are cautioned not to place undue reliance on these non-GAAP financial measures.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below.

Third Quarter Fiscal Year 2026

Reconciliation of Income from Operations to Adjusted Operating Income

 Three Months Ended Nine Months Ended March 31, March 31, 2026
 2025
 2026
 2025
 (In thousands)Income from operations$129,080 $130,786 $344,915 $303,229Amortization of intangible assets 1,770  2,410  5,581  7,522Stock-based compensation expense 9,574  8,548  30,063  24,922Adjusted operating income$140,424 $141,744 $380,559 $335,673         Reconciliation of Net Income to EBITDA and Adjusted EBITDA

 Three Months Ended
March 31, Nine Months Ended
March 31, 2026
 2025
 2026
 2025
 (In thousands)Net income$88,527 $99,346  $256,804  $236,621 Interest expense, net 3,001  2,787   8,889   7,810 Other (income) expense, net 5,338  (7,360)  (811)  (23,469)Income tax expense 31,545  35,450   79,934   80,088 Loss from equity method investments 669  563   99   2,179 Depreciation and amortization 32,596  28,941   92,783   84,470 EBITDA 161,676  159,727   437,698   387,699 Stock-based compensation expense 9,574  8,548   30,063   24,922 Adjusted EBITDA$171,250 $168,275  $467,761  $412,621                 Reconciliation of Net Income Attributable to Common Shareholders and Diluted Net Income Per Share to Adjusted Earnings Per Share

 Three Months Ended Nine Months Ended March 31, March 31,  2026   2025   2026   2025  (In thousands)Net income attributable to common stockholders$88,527  $99,346  $256,804  $236,621 Amortization of intangible assets 1,770   2,410   5,581   7,522 Stock-based compensation expense 9,574   8,548   30,063   24,922 Income tax effect from adjustments above (942)  (617)  (11,749)  (6,132)Adjusted net income attributable to common stockholders$98,929  $109,687  $280,699  $262,933         Share computation:       Weighted average common shares — diluted 45,835,843   49,181,728   47,607,602   47,798,923 Effect of capped call transactions (2,764,425)  (2,092,035)  (2,481,111)  (2,669,924)Adjusted weighted average common shares — diluted 43,071,418   47,089,693   45,126,491   45,128,999 Adjusted earnings per share$2.30  $2.33  $6.22  $5.83          Three Months Ended Nine Months Ended March 31, March 31,  2026   2025   2026   2025  (per share)Diluted net income per share$1.93  $2.02  $5.39  $4.95 Amortization of intangible assets 0.04   0.05   0.12   0.16 Stock-based compensation expense 0.21   0.17   0.64   0.52 Income tax effect from adjustments above (0.02)  (0.01)  (0.25)  (0.13)Effect of capped call transactions 0.14   0.10   0.32   0.33 Adjusted earnings per share$2.30  $2.33  $6.22  $5.83          Fiscal Year 2026 Outlook

Reconciliation of Income from Operations to Adjusted Operating Income (unaudited)

 Year Ended
June 30, 2026 Low High    Income from operations$443.0 $450.0Stock-based compensation expense 40.0  42.0Amortization of intangible assets 7.0  8.0Adjusted operating income$490.0 $500.0    

Stride, Inc. (LRN) Q3 2026 Earnings Call Transcript

A well-received quarterly earnings report was the catalyst behind Stride (LRN +1.20%) stock's leap into positive territory on Wednesday. Shares of the educational services company rose by nearly 3%, contrasting well with the slight decline of the benchmark S&P 500 index.

Earning from learning Stride released its fiscal third-quarter 2026 results after market close on Tuesday. These revealed that the company's revenue was $629.9 million for the period, bettering the same quarter of 2025 by almost 3%.

Image source: Getty Images.

Going in the opposite direction was attributable net income not under generally accepted accounting principles (GAAP). This sank by nearly 10% year-over-year but was still well in the black, at slightly below $99 million ($2.30 per share).

That crucial line item also came in well above the consensus analyst estimate of $1.92 per share on a non-GAAP (adjusted) basis. On the top line, Stride edged past the average pundit projection of $629.7 million.

The company divides its business into two broad categories, general education and career learning. Of the two, only the latter posted growth -- its revenue rose by 12%, thanks mainly to a 16% increase in the considerable middle-high school segment (to nearly $260 million). General education, meanwhile, slid by almost 4% to $357.5 million.

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Striding into the future Stride also narrowed its existing guidance for the entirety of the current fiscal year. It's now anticipating annual revenue of $2.49 billion to $2.52 billion, with adjusted operating income landing at $490 million to $500 million. It did not provide net income guidance. The average analyst estimate for revenue is slightly more than $2.52 billion.

It looks to me like management has identified a sweet spot in the middle-high school career-learning niche and is moving accordingly. While I like a proactive and opportunistic C-suite team, however, I'd be concerned about the slump in general education, which remains the company's largest revenue stream.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Stride. The Motley Fool has a disclosure policy.