Backblaze (NASDAQ:BLZE) Announces Earnings Results, Beats Estimates By $0.06 EPS

Backblaze (NASDAQ:BLZE) issued its quarterly earnings results on Monday. The company reported $0.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.02 by $0.06, FiscalAI reports. Backblaze had a negative return on equity of 16.98% and a negative net margin of 13.07%.The company had revenue of $42.71 million for the quarter, compared to the consensus estimate of $39.94 million.

Here are the key takeaways from Backblaze’s conference call:

• Q2 results exceeded expectations: Revenue rose 18% year over year to $42.7 million, while adjusted EBITDA nearly doubled to $13 million and margin expanded to 30%. Management raised full-year revenue guidance to $172 million–$174 million and adjusted EBITDA margin guidance to 27%–29%.
• CoreWeave signed a $335 million, multi-year agreement spanning more than five years, Backblaze’s largest contract to date. The deal added roughly $313 million of net RPO and is expected to support B2 growth of more than 40% in 2027, although commitments ramp over time.
• B2 Cloud growth accelerated to 34% year over year, with ARR reaching $113 million and net revenue retention at 113%. A May price increase contributed about eight percentage points to growth without producing the anticipated churn, while customers generating more than $50,000 in ARR increased 57% to 235.
• Backblaze is expanding its AI strategy through B2 Overdrive, developer tools, and a managed-storage model that operates on customer-owned hardware. Management said managed storage could become a higher-margin, capital-light offering, but it remains early and is expected to apply mainly to larger, sophisticated customers.
• Higher infrastructure investment will pressure near-term cash generation: 2026 capital expenditures are expected to reach 55%–65% of revenue, and the company anticipates being adjusted free-cash-flow neutral for the full year despite using capital leases. Computer Backup revenue also declined 2% year over year and is expected to remain a single-digit declining business.

Backblaze Stock Up 26.9%

NASDAQ BLZE opened at $19.79 on Wednesday. The business has a fifty day moving average price of $12.05 and a 200 day moving average price of $7.23. Backblaze has a one year low of $3.26 and a one year high of $23.99. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.05 and a current ratio of 1.05. The company has a market cap of $1.19 billion, a P/E ratio of -50.74 and a beta of 1.56.

Institutional Investors Weigh In On Backblaze

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. AQR Capital Management LLC acquired a new stake in shares of Backblaze in the first quarter valued at about $426,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Backblaze by 17.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 27,094 shares of the company’s stock worth $131,000 after acquiring an additional 4,060 shares during the last quarter. Millennium Management LLC boosted its position in Backblaze by 32.5% during the first quarter. Millennium Management LLC now owns 825,422 shares of the company’s stock worth $3,987,000 after acquiring an additional 202,609 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in Backblaze by 27.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 261,610 shares of the company’s stock valued at $1,264,000 after acquiring an additional 55,720 shares in the last quarter. Finally, Geode Capital Management LLC grew its stake in Backblaze by 13.5% during the 2nd quarter. Geode Capital Management LLC now owns 1,168,558 shares of the company’s stock valued at $6,428,000 after acquiring an additional 139,429 shares in the last quarter. Institutional investors and hedge funds own 54.03% of the company’s stock.

Backblaze News Summary

Here are the key news stories impacting Backblaze this week:

• Positive Sentiment: Backblaze reported second-quarter adjusted EPS of $0.08, exceeding the $0.02 analyst consensus, while revenue rose 18% year over year to $42.71 million versus expectations of $39.94 million. B2 Cloud Storage revenue grew 34%, highlighting accelerating demand from AI and data-intensive workloads. Backblaze Announces Second Quarter 2026 Financial Results
• Positive Sentiment: The company raised its full-year 2026 revenue outlook to $172 million-$174 million, above the $162.3 million consensus, and guided third-quarter revenue to $44.4 million-$44.8 million versus expectations of $41.2 million. Backblaze also said it expects B2 revenue growth of more than 40% in 2027. Backblaze projects B2 revenue growth of over 40 percent in 2027
• Positive Sentiment: Management highlighted customer wins, increased spending from existing customers, and a $335 million strategic agreement with CoreWeave. These developments reinforce the view that AI workloads are driving demand for Backblaze’s scalable storage platform. Why Backblaze Stock Jumped Today
• Positive Sentiment: Several analysts raised their price targets: Oppenheimer to $25 with an “outperform” rating, B. Riley to $24 with a “buy” rating, Needham to $23 with a “buy” rating, and Citizens JMP to $21 with a “market outperform” rating. The upgrades signal improving confidence in Backblaze’s growth outlook.
• Positive Sentiment: Call-option activity surged, with investors purchasing 4,948 calls—approximately 252% above typical volume—indicating increased speculative bullish interest.
• Neutral Sentiment: Backblaze’s planned presentation at the Ai4 2026 conference may improve visibility among AI-industry customers, although it is unlikely to immediately affect financial results. Backblaze to Present at Ai4 2026
• Negative Sentiment: Despite the earnings beat, Backblaze remains unprofitable, with a negative net margin and negative return on equity. Continued execution and conversion of AI-related demand into sustainable profits remain key risks.

Analyst Upgrades and Downgrades

BLZE has been the subject of several research analyst reports. Weiss Ratings downgraded Backblaze from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, May 15th. William Blair raised shares of Backblaze from an “underperform” rating to a “market perform” rating in a research note on Tuesday, June 23rd. Lake Street Capital reissued a “buy” rating and issued a $21.00 price target on shares of Backblaze in a report on Tuesday. Citigroup restated a “market outperform” rating on shares of Backblaze in a research report on Thursday, July 23rd. Finally, Craig Hallum raised shares of Backblaze from a “hold” rating to a “buy” rating and increased their price objective for the company from $6.50 to $16.00 in a report on Tuesday, June 23rd. Eight analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $19.71.

Backblaze Company Profile

Backblaze, Inc, a storage cloud platform, provides businesses and consumers cloud services to store, use, and protect data in the United States and internationally. The company offers cloud services through a web-scale software infrastructure built on commodity hardware. It also provides Backblaze B2 Cloud Storage, which enables customers to store data, developers to build applications, and partners to expand their use cases. This service is offered as a consumption-based Infrastructure-as-a-Service (IaaS) and serves use cases, such as public, hybrid, and multi-cloud data storage; application development and DevOps; content delivery and edge computing; security and ransomware protection; media management; backup, archive, and tape replacement; repository for analytics, artificial intelligence and machine learning; and Internet of Things.