Blackbaud Inc. is the dominant specialized cloud software provider for the social-impact economy, offering mission-critical donor management, fundraising, fund accounting, tuition administration, payments, ticketing, and grant-management tools. Its vertical focus creates substantial switching costs because customers embed donor records, financial histories, payment processing, and compliance workflows into the platform. **Revenue visibility is unusually strong: recurring revenue was 98.3% of Q1 2026 sales, supported by 92% gross dollar retention and increasingly longer contracts.** Q1 revenue rose 4.2% year over year to $281.14 million, while non-GAAP diluted EPS increased 20.0% to $1.14 and non-GAAP adjusted EBITDA margin reached 35.1%. FY26 guidance calls for $1,176 million of revenue, $434 million of adjusted EBITDA, $5.20 of non-GAAP EPS, and $285 million of free cash flow at the midpoint. The stock fell to $29.24 after concerns over a 40% larger renewal cohort, temporary Q2 EBITDA pressure from AI investment, and execution risk around India offshoring. At 4.7x forward FCF and over a 21% FCF yield, valuation is depressed. Near-term catalysts include Q2 results, renewal execution, AI monetization, margin benefits from offshoring, and continued buybacks.