Backblaze Announces Third Quarter 2026 Financial Results
Backblaze, Inc. (BLZE) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Backblaze Announces Third Quarter 2026 Financial Results 47% Revenue Growth in B2 Cloud Storage, 26% Revenue Growth Overall in Q3 2026 San Francisco, CA (November 2, 2026)— Backblaze, Inc. (Nasdaq: BLZE), the high-performance capacity storage layer for AI, today anno
How this was made
The 30-second read
Why it matters
The earnings release provides new quantitative data and an upgraded outlook, which can drive short‑term price movement.
Market read
The earnings beat and raised outlook are likely to attract buying interest, especially from AI‑focused investors.
What to watch
Potential competitive pressure from larger cloud providers and the need for continued capital expenditures.
47% Revenue Growth in B2 Cloud Storage, 26% Revenue Growth Overall in Q3 2026
Revenue grew 26% year over year, B2 Cloud Storage revenue grew 47%, gross margin expanded to 64%, adjusted EBITDA margin reached 33%, and full-year revenue and adjusted EBITDA margin outlook were raised.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30 (in thousands)GAAP | $46.65M | – | 26% |
| Gross profit, three months ended September 30 (in thousands)GAAP | $29.84M | – | – |
| Gross margin, three months ended September 30GAAP | 64 % | – | – |
| Loss from operations, three months ended September 30 (in thousands)GAAP | −$1.41M | – | – |
| Research and development expense, three months ended September 30 (in thousands)GAAP | 11.35M | – | – |
| Sales and marketing expense, three months ended September 30 (in thousands)GAAP | 10.74M | – | – |
| General and administrative expense, three months ended September 30 (in thousands)GAAP | 9.16M | – | – |
| Total operating expenses, three months ended September 30 (in thousands)GAAP | 31.25M | – | – |
| Net loss and comprehensive loss, three months ended September 30 (in thousands)GAAP | −$2.36M | – | – |
| Net loss per share, basic and diluted, three months ended September 30GAAP | $ (0.04) | – | – |
| Adjusted gross profit, three months ended September 30 (in thousands)non-GAAP | $37.82M | – | – |
| Adjusted gross margin, three months ended September 30non-GAAP | 81 % | – | – |
| Adjusted EBITDA, three months ended September 30 (in thousands)non-GAAP | $15.25M | – | – |
| Adjusted EBITDA margin, three months ended September 30non-GAAP | 33 % | – | – |
| Non-GAAP net income, three months ended September 30 (in thousands)non-GAAP | $6.67M | – | – |
| Non-GAAP net income per share - diluted, three months ended September 30non-GAAP | $ 0.09 | – | – |
| Revenue, nine months ended September 30 (in thousands)GAAP | $128.0M | – | – |
| Gross profit, nine months ended September 30 (in thousands)GAAP | $80.20M | – | – |
| Gross margin, nine months ended September 30GAAP | 63 % | – | – |
| Loss from operations, nine months ended September 30 (in thousands)GAAP | −$10.94M | – | – |
| Net loss and comprehensive loss, nine months ended September 30 (in thousands)GAAP | −$13.6M | – | – |
| Net loss per share, basic and diluted, nine months ended September 30GAAP | $ (0.22) | – | – |
| Adjusted EBITDA, nine months ended September 30 (in thousands)non-GAAP | $38.19M | – | – |
| Adjusted EBITDA margin, nine months ended September 30non-GAAP | 30 % | – | – |
| Non-GAAP net income, nine months ended September 30 (in thousands)non-GAAP | $14.37M | – | – |
| Non-GAAP net income per share - diluted, nine months ended September 30non-GAAP | $ 0.22 | – | – |
| Net cash provided by operating activities, nine months ended September 30 (in thousands)GAAP | $22.79M | – | – |
| Adjusted Free Cash Flow, nine months ended September 30 (in thousands)non-GAAP | $1.92M | – | – |
| Adjusted Free Cash Flow Margin, nine months ended September 30non-GAAP | 1 % | – | – |
| Annual recurring revenueother | $190.7M | – | 29% |
| Net revenue retention rateother | 105% | – | – |
| Gross customer retention rateother | 91% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| B2 Cloud StorageBroad-based momentum across the customer base; record net new B2 self-serve customer additions; four large agreements across AI and core workloads. | $30.5M | – | 47% |
| Computer BackupNot disclosed. | $16.2M | – | a decrease of 2% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
fourth quarter of 2026 and full-year 2026 outlook
- RevenueFor the fourth quarter of 2026, revenue between $49.8 million and $50.2 million. For full-year 2026, revenue between $177.8 million and $178.2 million, raised from $172.0 million to $174.0 million.
- NoteFor the fourth quarter of 2026, adjusted EBITDA margin between 32% and 34%.
- NoteFor the fourth quarter of 2026, basic weighted average shares outstanding of 63.6 million to 63.8 million shares.
- NoteFor full-year 2026, adjusted EBITDA margin range of 30% to 31%, raised from 27% to 29%.
Capital returns
- Purchase of treasury stock $ (1,375) for the nine months ended September 30, 2026.
What drove it
- B2 Cloud Storage ARR was $126.8 million, an increase of 53% YoY.
- Computer Backup ARR was $63.9 million, a decrease of 2% YoY.
- The number of customers contributing more than $50,000 each in ARR grew 57% year over year to 254.
- Net new B2 self-serve customer additions reached a record, quadrupling year over year.
- Backblaze signed four large agreements, including a $4 million AI builder expansion. Three supported AI workloads and the fourth supported a core workload.
- Backblaze established a collaboration with WEKA and introduced the Backblaze B2 MCP Server.
Concerns
- Computer Backup revenue decreased 2% YoY and Computer Backup ARR decreased 2% YoY.
- Net revenue retention rate was 105% compared to 107% in Q3 2025.
- B2 Cloud Storage NRR was 115% compared to 116% in Q3 2025, while Computer Backup NRR was 94% compared to 96% in Q3 2025.
- The company reported a GAAP net loss of $ (2,364) for the three months ended September 30, 2026.
- Long-term debt, net was 194,485 as of September 30, 2026 following the convertible senior notes offering.
What to watch
- Delivery of fourth-quarter revenue between $49.8 million and $50.2 million and adjusted EBITDA margin between 32% and 34%.
- Whether B2 Cloud Storage growth and B2 Cloud Storage ARR growth continue to be supported by AI and core-workload agreements.
- Net revenue retention rates, particularly the B2 Cloud Storage NRR of 115% and Computer Backup NRR of 94%.
- Use of convertible senior note proceeds for capital expenditures supporting contracted growth and for general corporate purposes.
- Capital expenditures and principal payments on finance leases and lease financing obligations relative to adjusted free cash flow.
Balance sheet and cash flow
- Cash, cash equivalents, and marketable securities totaled $230.2 million as of September 30, 2026.
- Cash and cash equivalents were $ 189,018 as of September 30, 2026, compared to $ 29,182 as of December 31, 2025.
- Marketable securities were 41,223 as of September 30, 2026, compared to 22,199 as of December 31, 2025.
- Long-term debt, net was 194,485 as of September 30, 2026, compared to — as of December 31, 2025.
- Proceeds from issuance of convertible senior notes were 201,250 for the nine months ended September 30, 2026.
- Payment for capped calls related to convertible senior notes was (17,529) for the nine months ended September 30, 2026.
- Capital expenditures were (12,262) for the nine months ended September 30, 2026, compared to (10,319) for the same period in 2025.
- Principal payments on finance leases and lease financing obligations were (13,030) for the nine months ended September 30, 2026, compared to (13,898) for the same period in 2025.
Analysis
Backblaze reported third-quarter revenue of $46.7 million, up 26% year over year. B2 Cloud Storage was the principal growth engine, with revenue of $30.5 million, up 47% YoY, while Computer Backup revenue of $16.2 million decreased 2% YoY. The operational data points in the release support the B2 growth narrative: B2 Cloud Storage ARR was $126.8 million, up 53% YoY, record net new B2 self-serve customer additions quadrupled year over year, and customers contributing more than $50,000 each in ARR increased 57% to 254.
Profitability improved substantially. GAAP gross profit was $29.8 million and GAAP gross margin was 64%, compared with $23.1 million and 62% in Q3 2025. The GAAP net loss narrowed to $2.4 million from $3.8 million, while adjusted EBITDA rose to $15.2 million from $8.4 million and adjusted EBITDA margin expanded to 33% from 23%. Non-GAAP net income was $6.7 million, compared with $1.9 million, and non-GAAP diluted earnings per share were $0.09, compared with $0.03.
For the nine months ended September 30, 2026, revenue was $128.0 million and adjusted EBITDA was $38.2 million, with adjusted EBITDA margin of 30%. Net cash provided by operating activities was $22.8 million, compared with $14.2 million in the prior-year period. Adjusted free cash flow was positive at $1.9 million, compared with $(9.5) million. Capital expenditures were $(12.3) million and principal payments on finance leases and lease financing obligations were $(13.0) million during the nine-month period.
The balance sheet changed materially after the company completed a $201 million convertible notes offering. Cash, cash equivalents, and marketable securities totaled $230.2 million at September 30, 2026, while long-term debt, net was 194,485. The company stated that it expects to use note proceeds for capital expenditures supporting contracted growth and for general corporate purposes. Treasury-stock purchases were $ (1,375) during the nine months ended September 30, 2026.
Management raised its full-year 2026 outlook to revenue between $177.8 million and $178.2 million from $172.0 million to $174.0 million, and raised the adjusted EBITDA margin range to 30% to 31% from 27% to 29%. Fourth-quarter guidance calls for revenue between $49.8 million and $50.2 million and adjusted EBITDA margin between 32% and 34%. The key reported offsets are the 2% decline in Computer Backup revenue and lower total, B2 Cloud Storage, and Computer Backup net revenue retention rates versus Q3 2025.
Management, verbatim
Q3 2026 was another strong quarter, with B2 revenue growth accelerating to 47% year over year, up from 28% a year ago, reflecting broad-based momentum across our customer base.
Gleb Budman, co-founder and CEO of Backblaze
As AI customers scale, we are solidifying Backblaze’s role as the capacity tier for AI infrastructure companies and AI builders.
Gleb Budman, co-founder and CEO of Backblaze
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported quarterly financial and operational metrics
- Quarterly cash flow from operations for the three months ended September 30, 2026
- Quarterly adjusted free cash flow for the three months ended September 30, 2026
- GAAP operating-margin figures
- Fourth-quarter 2026 gross margin, operating expenses, and tax-rate guidance
- Full-year 2026 basic weighted average shares outstanding guidance
- Dividend information
- Prior-release outlook section for formal actual-versus-prior-guidance comparison
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Backblaze filed a Form 8‑K reporting its Q3 2026 financial results and updated guidance for the quarter and full year.
Ticker impact
Backblaze disclosed Q3 2026 results with 26% revenue growth, a net loss improvement and raised full-year 2026 outlook.
likely upward pressure as investors price in the raised outlook and improved profitability.
The earnings beat and raised guidance provide fresh, material information that can move the stock immediately.
Market effects
Strengthens the AI‑infrastructure storage niche, supporting peers in cloud and data‑center services.
Positive for US tech sector, especially AI‑related storage providers.
Limited to investors focused on AI data‑storage and cloud infrastructure.
Counterpoint
The raised guidance may already be priced in; focus on cash burn and modest profit margins.
Key entities
- companyBackblaze, Inc.
Provider of high‑performance capacity storage for AI workloads.
