Blackbaud Inc 10-K for FY2025

Blackbaud Inc (BLKB)

10-K 2026-02-18 For: 2025-12-31

Added on April 09, 2026

About this 10-K

Blackbaud Inc filed this 10-K on February 18, 2026, covering the fiscal year ended December 31, 2025 (FY2025).

Headline figures

Fiscal year ended December 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.13B; down 2.3% from $1.15B a year earlier
Net income: $114.97M; compared with a net loss of $299.52M a year earlier
Diluted EPS: $2.37; compared with -$5.92 a year earlier

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Delaware			11-2617163
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)



Securities Registered Pursuant to Section 12(b) of the Act:
Title of Each Class	Trading Symbol(s)	Name of Each Exchange on which Registered
Common Stock, $0.001 Par Value	BLKB	Nasdaq Global Select Market
Securities Registered Pursuant to Section 12(g) of the Act: None


CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS		2

PART I.		3
Item 1.	Business	3
Item 1A.	Risk factors	18
Item 1B.	Unresolved staff comments	32
Item 1C.	Cybersecurity	32
Item 2.	Properties	35
Item 3.	Legal proceedings	35
Item 4.	Mine safety disclosures	35

PART II.		36
Item 5.	Market for registrant's common equity, related stockholder matters and issuer purchases of equity securities	36
Item 6.	[Reserved]	37
Item 7.	Management's discussion and analysis of financial condition and results of operations	38
Item 7A.	Quantitative and qualitative disclosures about market risk	63
Item 8.	Financial statements and supplementary data	64
Item 9.	Changes in and disagreements with accountants on accounting and financial disclosure	107
Item 9A.	Controls and procedures	107
Item 9B.	Other information	108
Item 9C.	Disclosure regarding foreign jurisdictions that prevent inspections	108

PART III.		109
Item 10.	Directors, executive officers and corporate governance	109
Item 11.	Executive compensation	109
Item 12.	Security ownership of certain beneficial owners and management and related stockholder matters	109
Item 13.	Certain relationships and related transactions, and director independence	109
Item 14.	Principal accountant fees and services	109

PART IV.		110
Item 15.	Exhibits and financial statement schedules	110
Item 16.	Form 10-K Summary	113

SIGNATURES		114


December 31,	2020	2021	2022	2023	2024	2025
Blackbaud, Inc.	$100.00	$137.21	$102.26	$150.63	$128.42	$110.01
Nasdaq Composite Index	100.00	122.18	82.43	119.22	154.48	187.14
Nasdaq Computer Index	100.00	127.00	82.52	135.30	180.76	232.70


Period	Total number of shares purchased(1)	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Approximate dollar value of shares that may yet be purchased under the plans or programs (in thousands)(2)
Beginning balance, October 1, 2025					$	514,399
October 1, 2025 through October 31, 2025	250,738	$	64.15	249,464	498,394
November 1, 2025 through November 30, 2025	458,121	58.50		455,939	471,724
December 1, 2025 through December 31, 2025	660,648	62.34		659,891	960,569
Total	1,369,507	$	61.39	1,365,294	$	960,569


☑			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the fiscal year ended December 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from to .


Total revenue ($M)						Income (loss) from operations ($M)
YoY Growth (%)						YoY Growth (%)


			-						Decrease in contractual recurring revenue of $52.7 million, primarily related to our sale of EVERFI which represented $82.6 million; partially offset by growth of $29.8 million due to the positive impact of our pricing initiatives and new subscription sales of our cloud solutions.
			-						Decrease in one-time consulting revenue of $4.2 million primarily due to our sale of EVERFI Limited in March 2024 and, to a lesser extent, fewer sales of implementation services.
			+						Increase in transactional recurring revenue of $30.6 million primarily due to increases in volume for our Blackbaud Integrated Payments and Blackbaud Tuition Management and, to a lesser extent, positive results related to pricing initiatives; also contributing to the increase in transactional recurring revenue during the year ended December 31, 2025 was an increase related to fluctuations in foreign currency exchange rates of $2.8 million.


			+						Pre-tax loss on disposition of EVERFI, during the year ended December 31, 2024, of $405.4 million, including noncash impairment charges of $390.2 million, which did not reoccur during 2025. See Note 4 to our consolidated financial statements in this report for additional details.
			+						Decrease in compensation costs other than stock-based compensation of $42.0 million primarily due to our sale of EVERFI
			+						Decrease in amortization of intangible assets from business combinations of $30.6 million largely due to the previously disclosed impairment charge related to our EVERFI asset group in December 2024, which primarily included finite-lived intangible assets
			+						Decrease in Security Incident-related expenses of $10.6 million largely related to decreases in loss contingency accruals. See Note 11 to our consolidated financial statements in this report for our discussion of the Security Incident.
			+						Decrease in third-party contractor costs of $10.6 million primarily due to our sale of EVERFI, partially offset by increased spending for AI features embedded in our solutions
			+						Decrease in advertising costs of $4.4 million primarily due to our sale of EVERFI
			+						Decrease in stock-based compensation expense of $12.1 million primarily due to a decrease in the grant date fair value of equity award grants, and to a lesser extent, our sale of EVERFI; partially offset by an increase primarily due to estimated overall Company performance against 2025 goals
			+						Decrease in rent expense of $3.9 million primarily related to our release from our lease for office space in Washington, DC in February 2025
			-						Decrease in total revenue, as described above


			-						Increase in acquisition and disposition-related costs within general and administrative expenses of $19.8 million primarily related to our release from our lease for office space in Washington, DC in February 2025
			-						Decrease of $7.5 million in software development costs that were required to be capitalized under generally accepted accounting principles ("GAAP"), primarily due to our sale of EVERFI
			-						Increase in transaction-based costs of $5.4 million related to the increase in the volume of transactions for which we process payments and, to a lesser extent, increases in vendor rates
			-						Increase in third-party software costs of $3.3 million primarily related to investments in our internal cybersecurity program


			-						Decrease in amortization of intangible assets from business combinations of $29.3 million largely due to the previously disclosed impairment charge related to our EVERFI asset group in December 2024, which primarily included finite-lived intangible assets
			-						Decrease in compensation costs of $21.4 million primarily due to our sale of EVERFI
			-						Decrease in allocated overhead costs of $6.3 million primarily related to the decreased headcount from our sale of EVERFI
			-						Decrease in third-party contractor costs of $4.5 million related to our sale of EVERFI and decreased use of outside contractors
			+						Increase in transaction-based costs of $5.2 million related to the increase in the volume of transactions for which we process payments and, to a lesser extent, increases in vendor rates


			-						Decrease in compensation costs of $11.7 million primarily related to our sale of EVERFI
			-						Decrease in advertising costs of $4.4 million primarily related to our sale of EVERFI
			-						Decrease in commissions expense of $1.7 million primarily due to our sale of EVERFI


			-						Decrease in compensation costs of $13.9 million primarily related to our sale of EVERFI
			-						Decrease in third-party contractor costs of $7.3 million primarily related to our sale of EVERFI, partially offset by increased spending for AI features embedded in our solutions
			-						Decrease in allocated overhead costs of $3.1 million primarily related to our sale of EVERFI and decreased headcount
			+						Decrease in software development costs of $8.3 million that were required to be capitalized under GAAP, primarily related to our sale of EVERFI


			+						Increase in acquisition and disposition-related costs of $19.8 million primarily related to our release from our lease for office space in Washington, DC in February 2025
			+						Decrease in total costs allocated from general and administrative expense of $11.4 million primarily related to a reductions in IT support and facilities costs, and the decreased headcount from our sale of EVERFI. Depreciation, facilities and IT support (including cybersecurity) costs are pooled and recorded to general and administrative expense and allocated to other lines of our statements of comprehensive income based on headcount.
			+						Increase in third-party software costs of $3.6 million primarily related to investments in our internal cybersecurity program
			-						Decrease in Security Incident-related expenses of $10.6 million largely related to decreases in loss contingency accruals. See Note 11 to our consolidated financial statements in this report for our discussion of the Security Incident.
			-						Decrease in stock-based compensation costs of $5.4 million primarily due to a decrease in the grant date fair value of equity award grants, and to a lesser extent, our sale of EVERFI; partially offset by an increase primarily due to estimated overall Company performance against 2025 goals
			-						Decrease in rent expense of $3.5 million primarily related to our release from our lease for office space in Washington, DC in February 2025
			-						Decrease in corporate costs of $2.3 million primarily related to a decrease in insurance premiums
			-						Decrease in compensation costs other than stock-based compensation of $1.6 million primarily due to our sale of EVERFI


Interest expense ($M)
Percentages indicate expenses as a percentage of total revenue


Description of Business


Market Overview


Strategy


Solutions and Services


Other income, net ($M)
Percentages indicate other income, net as a percentage of total revenue


(dollars in millions)	December 31, 2025		December 31, 2024		Change
Deferred revenue(1)	371.8		360.6		3.1	%
Less: Long-term portion	2.8		2.0		37.9	%
Current portion(1)	$	369.0	$	358.5	2.9	%


Income tax provision (benefit) ($M)
Percentages indicate effective income tax rates


	Years ended December 31,
(dollars in millions, except per share amounts)	2025			2024
GAAP Revenue	$	1,128.4		$	1,154.6

GAAP gross profit	$	663.3		$	631.4
GAAP gross margin	58.8		%	54.7		%
Non-GAAP adjustments:
Add: Stock-based compensation expense	11.5			14.1
Add: Amortization of intangibles from business combinations	27.6			57.0
Add: Employee severance	0.3			—

Subtotal(1)	39.4			71.0
Non-GAAP gross profit(1)	$	702.7		$	702.5
Non-GAAP gross margin	62.3		%	60.8		%

GAAP income (loss) from operations	$	190.8		$	(271.4)
GAAP operating margin	16.9		%	(23.5)		%
Non-GAAP adjustments:
Add: Stock-based compensation expense	92.9			105.0
Add: Amortization of intangibles from business combinations	29.9			60.5
Add: Employee severance	1.9			—
Add: Acquisition and disposition-related costs(2)	25.9			6.1

Add: Security Incident-related costs(3)	3.1			13.7
Add: EVERFI impairment and disposition charges	—			405.4
Subtotal(1)	153.7			590.6
Non-GAAP income from operations(1)	$	344.4		$	319.2
Non-GAAP operating margin	30.5		%	27.6		%

GAAP income (loss) before provision (benefit) for income taxes	$	131.8		$	(312.5)
GAAP net income (loss)	$	115.0		$	(299.5)
Shares used in computing GAAP diluted earnings (loss) per share	48,469,961			50,560,538
GAAP diluted earnings (loss) per share	$	2.37		$	(5.92)
Non-GAAP adjustments:
Add: GAAP income tax provision (benefit)	16.8			(12.9)
Add: Total non-GAAP adjustments affecting income from operations	153.7			590.6

Non-GAAP income before provision for income taxes(1)	285.5			278.2
Assumed non-GAAP income tax provision(4)	69.9			68.2
Non-GAAP net income(1)	$	215.5		$	210.0

Shares used in computing Non-GAAP diluted earnings per share	48,469,961			51,750,308
Non-GAAP diluted earnings per share	$	4.45		$	4.06


Financial Covenant	Requirement	Ratio as of December 31, 2025
Net Leverage Ratio(1)	≤ 3.75 to 1.00	2.52 to 1.00
Interest Coverage Ratio	≥ 2.50 to 1.00	6.27 to 1.00


	Payments due by period
(in millions)	Less than 1 year		More than 1 year		Total(1)
Recorded contractual obligations:
Debt	$	22.7	$	1,087.8	$	1,110.4
Operating leases	1.9		5.1		7.0
Interest payments on debt	1.0		2.3		3.4
Unrecorded contractual obligations:
Purchase obligations	94.4		69.7		164.0
Interest payments on debt	58.1		148.1		206.2
Total contractual obligations(1)	$	178.0	$	1,313.0	$	1,491.1


Revenue Recognition
Description	Judgments and Uncertainties	Effect if Actual Results Differ From Assumptions
See Note 2 to our consolidated financial statements in this report for a complete discussion of our revenue recognition policies. Revenues are recognized when control of our services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We determine revenue recognition through the following steps: (1) Identification of the contract, or contracts, with a customer; (2) Identification of the performance obligations in the contract; (3) Determination of the transaction price; (4) Allocation of the transaction price to the performance obligations in the contract; and (5) Recognition of revenue when, or as, we satisfy a performance obligation. We have not made any material changes in the accounting methodology we use to recognize revenue during the year ended December 31, 2025.	Our revenue recognition accounting methodology may contain uncertainties because it could require us to make significant estimates and assumptions, and to apply judgment for certain customer contracts. For example, for certain arrangements that have multiple performance obligations, we may need to exercise judgment and use estimates in order to (1) determine whether performance obligations are distinct and should be accounted for separately; (2) determine the standalone selling price of each performance obligation; (3) allocate the transaction price among the various performance obligations on a relative standalone selling price basis; and (4) determine whether revenue for each performance obligation should be recognized at a point in time or over time.	If we were to change any of these judgments or estimates, it could cause a material increase or decrease in the amount of revenue or deferred revenue that we report in a particular period.


Business Combinations
Description	Judgments and Uncertainties	Effect if Actual Results Differ From Assumptions
We allocate the purchase price of an acquired business to its identifiable assets acquired and liabilities assumed at the acquisition date based upon their estimated fair values. The excess of the purchase price over the amount allocated to the identifiable assets acquired and liabilities assumed, if any, is recorded as goodwill. We use available information to estimate fair values. We typically engage outside appraisal firms to assist in the fair value determination of long-lived and identifiable intangible assets, and any other significant assets or liabilities. We adjust the preliminary purchase price allocation, as necessary, up to one year after the acquisition closing date as we obtain new information about facts and circumstances that existed as of the closing date. We have not made any material changes in the accounting methodology we use for business combinations during the year ended December 31, 2025.	Our purchase price allocation methodology contains uncertainties because it requires us to make significant estimates and assumptions, and to apply judgment to estimate the fair value of assets acquired and liabilities assumed, especially with respect to long-lived and intangible assets. Management estimates the fair value of assets acquired and liabilities assumed based on quoted market prices, the carrying value of the acquired assets and widely accepted valuation techniques, including discounted cash flows, market multiple analyses and replacement cost. We apply significant judgment in estimating the fair value of intangible assets acquired, which involves the use of significant assumptions. Significant assumptions used in the valuation of customer relationships include future revenue and operating expenses, customer attrition rates, contributory asset charges, tax amortization benefit, and discount rates. Significant assumptions used in the valuation of certain developed technology assets include future revenue, proprietary technology obsolescence curve, royalty rate, and discount rate. Significant assumptions used in the valuation of marketing assets include assumptions about the period of time the brand will continue to be valuable, royalty rate, and discount rate. Significant assumptions used in the valuation of content intangible assets include cost-based assumptions. Our estimates of fair value are based upon assumptions we believe to be reasonable, but which are inherently uncertain and unpredictable, and unanticipated events and changes in circumstances may occur.	If actual results are materially different than the assumptions we used to determine fair value of the assets acquired and liabilities assumed through a business combination as well as the estimated useful lives of the acquired intangible assets, it is possible that adjustments to the carrying values of such assets and liabilities will have a material impact on our financial position and results of operations. See Note 3 to our consolidated financial statements in this report for information regarding our business acquisitions.


Income Taxes
Description	Judgments and Uncertainties	Effect if Actual Results Differ From Assumptions
We make estimates and judgments in accounting for income taxes. Our income tax returns, like those of most companies, are periodically audited by domestic and foreign tax authorities. We measure and recognize uncertain tax positions. To recognize uncertain tax positions, we must first determine if it is more likely than not that the position will be sustained upon audit. We must then measure the benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. We make estimates in determining tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial reporting purposes. We record valuation allowances to reduce our deferred tax assets to the amount expected to be realized. We have not made any material changes in the accounting methodology we use to assess income tax during the year ended December 31, 2025.	The calculation of our income tax provision requires estimates due to transactions, credits and calculations where the ultimate tax determination is uncertain. Uncertainties arise as a consequence of the actual source of taxable income between domestic and foreign locations, the outcome of tax audits and the ultimate utilization of tax credits. Our effective income tax rate is also affected by changes in the geographic distribution of our earnings or losses, changes in tax law in jurisdictions where we conduct business, changes in tax laws and policies in jurisdictions where we conduct business, tax effects of nondeductible or nontaxable items and changes in valuation allowances. Significant judgment is required in the identification and measurement of uncertain tax positions. Our liability for unrecognized tax benefits contains uncertainties because management is required to make assumptions and to apply judgment to estimate the exposures associated with our various filing positions. In assessing the adequacy of a recorded valuation allowance significant judgment is required. We consider all positive and negative evidence and a variety of factors including the scheduled reversal of deferred tax liabilities, historical and projected future taxable income, and prudent and feasible tax planning strategies.	Although we believe that the judgments and estimates discussed herein are reasonable, actual results could differ, and we may be exposed to losses or gains that could be material. To the extent actual results differ from estimated amounts recorded, such differences will impact the income tax provision in the period in which the determination is made. If we determine there is less than a 50% likelihood that we will be able to use a deferred tax asset in the future in excess of its net carrying value, then an adjustment to the deferred tax asset valuation allowance is made to increase income tax expense, thereby reducing net income in the period such determination was made.


Long-lived Assets and Intangible Assets Other Than Goodwill
Description	Judgments and Uncertainties	Effect if Actual Results Differ From Assumptions
We review our long-lived assets and intangible assets other than goodwill for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. If such events or changes in circumstances occur, we use the undiscounted cash flow method to determine whether our long-lived and intangible assets other than goodwill are impaired. To the extent that the carrying value of the asset or asset group exceeds the undiscounted cash flows over the estimated remaining life of the asset, we measure the impairment using discounted cash flows. We have not made any material changes in the accounting methodology we use to assess impairment loss during the year ended December 31, 2025.	In estimating future cash flows, assets are grouped at the lowest level for which there is identifiable cash flows that are largely independent of cash flows from other asset groups. When measuring impairment of an asset or asset group using discounted cash flows, we make assumptions and apply judgment in estimating future cash flows and asset or asset group fair values, including annual revenue growth rates, a terminal year growth rate and selecting a discount rate that reflects the risk inherent in future cash flows.	During 2025, there were no significant non-recurring fair value adjustments to our long-lived assets, intangible assets, goodwill or operating lease ROU assets. We do not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions we use to assess impairment losses. However, if actual results are not consistent with our estimates or assumptions, we may be exposed to an impairment charge that could materially adversely impact our consolidated financial position and results of operations.


			Page No.
Reports of Independent Registered Public Accounting Firms (PCAOB ID 42)			65
Consolidated Balance Sheets			68
Consolidated Statements of Comprehensive Income (Loss)			69
Consolidated Statements of Cash Flows			70
Consolidated Statements of Stockholders’ Equity			71
Notes to Consolidated Financial Statements			72


			Revenue Recognition - Payment Processing Services
Description of the Matter			The Company recorded transactional recurring revenues of $384 million for the year ended December 31, 2025. Included in transactional recurring revenues are revenues related to payment processing services. As discussed in Note 2 to the consolidated financial statements, the Company recognizes revenue for payment processing services over time based on the amount billable to the customer, since it has the right to invoice the customer in an amount that directly corresponds with the value to the customer for the Company’s performance to date. The processing of transactions and recording of revenues for these services involves a significant volume of transactions that are highly automated and are based on contractual terms with the customer and the Company’s third-party vendors.

			Auditing the revenues for these payment processing services is complex because the processes are highly automated and involve multiple information technology ("IT") systems with a significant volume of transactions and related underlying data. Further, auditing the revenues for these payment processing services required the involvement of data professionals to assist in validating the integrity of the underlying data and recalculating the revenues recorded during the period.



How We Addressed the Matter in Our Audit			We obtained an understanding, evaluated the design, and tested the operating effectiveness of the Company’s controls over its payment processing services. We identified the relevant systems used in these payment processing services, including relevant third-party service organization systems, and evaluated the IT general controls over each of these systems. We also tested the relevant automated controls and other business processes controls.

			To test revenue recognized for payment processing services, our procedures included, among others, the involvement of data professionals to recalculate the revenue recognized. For a selection of payment processing transactions, we also agreed the amount of revenues recognized for processing fees retained by the Company to source documents and tested the mathematical accuracy of the recorded revenue. We also evaluated if the transactions were processed, and funds received, including sending confirmations directly to financial institutions.


(dollars in thousands, except per share amounts)	December 31, 2025		December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	38,914	$	67,628
Restricted cash	720,061		741,884
Accounts receivable, net of allowance of $5,876 and $5,228 at December 31, 2025 and December 31, 2024, respectively	80,517		83,539
Customer funds receivable	1,308		1,970
Prepaid expenses and other current assets	89,290		81,572
Total current assets	930,090		976,593
Property and equipment, net	85,076		91,926
Operating lease right-of-use assets	4,630		26,554
Software development costs, net	155,842		148,319
Goodwill	1,056,815		1,052,506
Intangible assets, net	106,654		132,881
Other assets	51,575		67,221
Total assets	$	2,390,682	$	2,496,000
Liabilities and stockholders’ equity
Current liabilities:
Trade accounts payable	$	27,344	$	50,810
Accrued expenses and other current liabilities	43,272		76,484
Due to customers	719,833		742,340
Debt, current portion	22,660		23,875
Deferred revenue, current portion	368,986		358,546
Total current liabilities	1,182,095		1,252,055
Debt, net of current portion	1,087,037		1,051,110
Deferred tax liability	21,981		24,999
Deferred revenue, net of current portion	2,778		2,015
Operating lease liabilities, net of current portion	4,605		34,186
Other liabilities	7,132		4,796
Total liabilities	2,305,628		2,369,161
Commitments and contingencies (see Note 11)
Stockholders’ equity:
Preferred stock; 20,000,000 shares authorized; none outstanding	—		—
Common stock, $0.001 par value; 180,000,000 shares authorized; 72,312,354 and 70,943,373 shares issued at December 31, 2025 and December 31, 2024, respectively; 46,705,325 and 49,245,588 shares outstanding at December 31, 2025 and December 31, 2024, respectively	72		71
Additional paid-in capital	1,391,641		1,291,442
Treasury stock, at cost; 25,607,029 and 21,697,785 shares at December 31, 2025 and December 31, 2024, respectively	(1,316,224)		(1,060,348)
Accumulated other comprehensive loss	(5,948)		(4,869)
Retained earnings (accumulated deficit)	15,513		(99,457)
Total stockholders’ equity	85,054		126,839
Total liabilities and stockholders’ equity	$	2,390,682	$	2,496,000

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


	Years ended December 31,
(dollars in thousands)	2025		2024		2023
Cash flows from operating activities
Net income (loss)	$	114,970	$	(299,524)	$	3,018
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	86,215		121,665		109,487
Net provision for credit losses and sales returns	4,382		4,932		4,500
Stock-based compensation expense	92,910		104,968		127,762
Deferred taxes	(181)		(69,530)		(24,368)
Amortization of deferred financing costs and discount	2,480		2,538		1,775
Loss on disposition of businesses	—		16,847		—
EVERFI impairment charges	—		390,204		—
Other non-cash adjustments	(5,177)		2,462		5,023
Changes in operating assets and liabilities, net of acquisition and disposal of businesses:
Accounts receivable	(938)		4,729		(3,237)
Prepaid expenses and other assets	(4,487)		3,193		16,713
Trade accounts payable	(23,535)		28,336		(18,576)
Accrued expenses and other liabilities	(10,826)		(12,990)		(29,672)
Deferred revenue	9,737		(1,861)		7,209
Net cash provided by operating activities	265,550		295,969		199,634
Cash flows from investing activities
Purchase of property and equipment	(7,767)		(7,443)		(4,685)
Capitalized software development costs	(54,236)		(59,757)		(59,443)
Purchase of net assets of acquired companies, net of cash and restricted cash acquired	(700)		—		(13)
Cash used in disposition of business	(12,235)		(1,179)		—


Other investing activities	—		(5,029)		(250)
Net cash used in investing activities	(74,938)		(73,408)		(64,391)
Cash flows from financing activities
Proceeds from issuance of debt	404,500		1,441,400		293,200
Payments on debt	(369,784)		(1,144,709)		(374,595)
Debt issuance costs	—		(6,458)		—

Employee taxes paid for withheld shares upon equity award settlement	(40,403)		(56,828)		(35,867)

Change in due to customers	(25,557)		46,957		(6,812)
Change in customer funds receivable	997		(1,679)		(60)
Purchase of treasury stock, including excise tax payments	(217,152)		(418,034)		(18,831)
Net cash used in financing activities	(247,399)		(139,351)		(142,965)
Effect of exchange rate on cash, cash equivalents and restricted cash	6,250		(1,955)		2,048
Net (decrease) increase in cash, cash equivalents and restricted cash	(50,537)		81,255		(5,674)
Cash, cash equivalents and restricted cash, beginning of year	809,512		728,257		733,931
Cash, cash equivalents and restricted cash, end of year	$	758,975	$	809,512	$	728,257

Supplemental disclosure of cash flow information
Cash paid for interest	$	(65,603)	$	(51,881)	$	(38,052)
Cash paid for taxes, net of refunds	(28,141)		(60,668)		(35,619)
Non-cash investing and financing activities:
Purchase of software and services by assuming directly related liabilities	—		(2,073)		(2,491)
Purchase of equipment and other assets included in accounts payable	(798)		(31)		(837)


(dollars in thousands)	Common stock			Treasury stock			Additional paid-in capital		Accumulated other comprehensive (loss) income		Retained earnings (accumulated deficit)		Total stockholders' equity
	Shares	Amount		Shares	Amount
Balance at December 31, 2022	67,814,044	$	68	(14,745,230)	$	(537,287)	$	1,075,264	$	8,938	$	197,049	$	744,032
Net income	—	—		—	—		—		—		3,018		3,018
Retirements of common stock(1)	(143)	—		—	—		(14)		—		—		(14)
Purchase of treasury shares under stock repurchase program	—	—		(221,836)	(18,831)		—		—		—		(18,831)
Vesting of restricted stock units	1,007,921	—		—	—		—		—		—		—
Shares withheld to satisfy tax withholdings	—	—		(595,798)	(35,439)		—		—		—		(35,439)
Stock-based compensation	—	—		—	—		127,762		—		—		127,762
Restricted stock grants	473,341	1		—	—		—		—		—		1
Restricted stock cancellations	(106,859)	—		—	—		—		—		—		—
Other comprehensive loss	—	—		—	—		—		(10,626)		—		(10,626)
Balance at December 31, 2023	69,188,304	$	69	(15,562,864)	$	(591,557)	$	1,203,012	$	(1,688)	$	200,067	$	809,903
Net loss	—	—		—	—		—		—		(299,524)		(299,524)
Purchase of treasury shares under stock repurchase program, inclusive of excise tax	—	—		(5,362,439)	(411,963)		(9,246)		—		—		(421,209)
Vesting of restricted stock units	1,410,169	—		—	—		—		—		—		—
Shares withheld to satisfy tax withholdings	—	—		(772,482)	(56,828)		—		—		—		(56,828)
Stock-based compensation	—	—		—	—		97,676		—		—		97,676
Restricted stock grants	422,685	2		—	—		—		—		—		2
Restricted stock cancellations	(77,785)	—		—	—		—		—		—		—
Other comprehensive loss	—	—		—	—		—		(3,181)		—		(3,181)
Balance at December 31, 2024	70,943,373	$	71	(21,697,785)	$	(1,060,348)	$	1,291,442	$	(4,869)	$	(99,457)	$	126,839
Net income	—	—		—	—		—		—		114,970		114,970
Purchase of treasury shares under stock repurchase program, inclusive of excise tax	—	—		(3,337,844)	(215,473)		—		—		—		(215,473)
Vesting of restricted stock units	1,047,828	—		—	—		—		—		—		—
Shares withheld to satisfy tax withholdings	—	—		(571,400)	(40,403)		—		—		—		(40,403)
Stock-based compensation	—	—		—	—		100,199		—		—		100,199
Restricted stock grants	373,318	1		—	—		—		—		—		1
Restricted stock cancellations	(52,165)	—		—	—		—		—		—		—
Other comprehensive loss	—	—		—	—		—		(1,079)		—		(1,079)
Balance at December 31, 2025	72,312,354	$	72	(25,607,029)	$	(1,316,224)	$	1,391,641	$	(5,948)	$	15,513	$	85,054


	Basis of amortization	Amortization period (in years)
Customer relationships	Curve of Economic Benefit(1)	10-17
Marketing assets	Curve of Economic Benefit(1)	15
Developed technology	Straight-line and Curve of Economic Benefit(1)	2-14


Years ended December 31, (in thousands)	Balance at beginning of year		Provision/ adjustment		Write-offs charged against allowance		Recoveries collected		Balance at end of year
2025	$	4,488	$	4,195	$	(4,315)	$	581	$	4,949
2024	6,096		3,010		(4,833)		215		4,488
2023	6,022		2,012		(2,539)		601		6,096


Years ended December 31, (in thousands)	Balance at beginning of year		Provision		Utilization of allowance		Balance at end of year
2025	$	740	$	4,678	$	(4,491)	$	927
2024	811		2,966		(3,037)		740
2023	1,296		2,488		(2,973)		811


Years ending December 31, (dollars in thousands)	Amortization expense
2026	$	24,841
2027	21,403
2028	15,753
2029	14,335
2030	10,587
Total	$	86,919