Greenhouse Funds Dumps 803,000 Blackbaud Shares Worth $51.6 Million
Key Points
Sold 802,904 shares of Blackbaud; estimated trade size was $51.63 million based on quarterly average pricing.
Quarter-end position value declined by $51.63 million, reflecting both sale and price movement.
Transaction equaled 1.87% of Greenhouse Funds LLLP's 13F reportable assets under management.
Fund no longer holds Blackbaud shares after the trade; position value is now $0.
The Blackbaud stake had represented 1.89% of the fund's AUM in the prior quarter.
On February 17, 2026, Greenhouse Funds LLLP disclosed in a Securities and Exchange Commission (SEC) filing that it sold its entire stake in Blackbaud (NASDAQ:BLKB).
What happened
According to a filing with the Securities and Exchange Commission dated February 17, 2026, Greenhouse Funds LLLP sold its entire position in Blackbaud during the fourth quarter of 2025. The firm disposed of 802,904 shares, with the estimated transaction value put at $51.63 million based on the average price during the quarter.
What else to know
- The fund sold out of Blackbaud, reducing its holding to zero; the position now accounts for n/a of 13F assets under management.
- Top five holdings after the filing:
- NYSE:VYX: $187.18 million (6.8% of AUM)
- NYSE:BILL: $160.02 million (5.8% of AUM)
- NASDAQ:SRAD: $157.39 million (5.7% of AUM)
- NASDAQ:GSAT: $135.80 million (4.9% of AUM)
- NYSE:NCLH: $118.27 million (4.3% of AUM)
- As of February 13, 2026, shares of Blackbaud were priced at $49.08, with a one-year return of (39.2%) and an alpha of (51.04) percentage points versus the S&P 500.
- The position was previously 1.89% of the fund's AUM as of the prior quarter.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.13 billion |
| Net income (TTM) | $114.97 million |
| Price (as of market close 2/13/26) | $49.08 |
| One-year price change | (39.25%) |
Company snapshot
- Offers cloud-based software solutions for fundraising, relationship management, financial management, grantmaking, and engagement, serving sectors such as education, healthcare, faith-based organizations, arts, and nonprofits.
- Generates revenue primarily through subscription-based licensing and related services, with a focus on direct sales of proprietary platforms and value-added payment processing solutions.
- Targets higher education institutions, K–12 schools, healthcare organizations, faith communities, arts and cultural organizations, foundations, and corporate social responsibility programs as core customers.
Blackbaud, Inc. is a leading provider of cloud software for the social good sector, supporting organizations in fundraising, financial management, and program administration. The company leverages a broad suite of proprietary solutions to address complex operational needs across education, healthcare, and nonprofit markets. Its scale, sector specialization, and integrated platform offerings position it as a strategic technology partner for mission-driven institutions.
What this transaction means for investors
Greenhouse Funds’ sale of its entire Blackbaud position appears to follow a trend of selling SaaS stocks. This subsector has become particularly vulnerable as AI engines have replicated the software platform of numerous SaaS companies at a fraction of the cost.
The concern may extend to Blackbaud as the stock’s price nosedived at the beginning of 2025, at about the time Greenhouse had first bought shares in this stock. The company had also suffered through an impairment charge around that time as it took a huge write down and divested its purchase of EVERFI.
It had since traded in a range for the rest of 2025, possibly prompting the fund to close this position.
Blackbaud’s stock price has fallen further in 2026, which may validate the timing of the fund’s sale of this stock. Nonetheless, amid heavy industry uncertainty related to software stocks, focusing on other investments is arguably an understandable decision.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bill Holdings and Sportradar Group Ag. The Motley Fool recommends Blackbaud and recommends the following options: short May 2026 $22.50 calls on Sportradar Group Ag. The Motley Fool has a disclosure policy.