second quarter 2026
Filed Aug 3, 202634% Revenue Growth in B2 Cloud Storage, 18% Revenue Growth Overall in Q2 2026
Revenue grew 18% year over year, B2 Cloud Storage revenue grew 34%, and Adjusted EBITDA increased to $12.8 million, or 30% of revenue. The company raised its full-year 2026 revenue and Adjusted EBITDA margin outlook, while signing a 5+ year, $335 million strategic agreement with CoreWeave.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $42.7 million | – | 18% |
| Gross profitGAAP | $26.8 million | – | – |
| Gross marginGAAP | 63% of revenue | – | – |
| Adjusted gross profitnon-GAAP | $34.3 million | – | – |
| Adjusted gross marginnon-GAAP | 80% of revenue | – | – |
| Net lossGAAP | $5.1 million | – | – |
| Net loss per shareGAAP | $0.08 | – | – |
| Adjusted EBITDAnon-GAAP | $12.8 million | – | – |
| Adjusted EBITDA marginnon-GAAP | 30% of revenue | – | – |
| Non-GAAP net incomenon-GAAP | $5.0 million | – | – |
| Non-GAAP net income per sharenon-GAAP | $0.08 | – | – |
| Cash flow from operations during the six months ended June 30, 2026other | $13.8 million | – | – |
| Adjusted free cash flow during the six months ended June 30, 2026non-GAAP | $1.4 million | – | – |
| Cash, cash equivalents, and marketable securitiesother | $49.9 million | – | – |
| Annual recurring revenue (ARR)other | $177.3 million | – | 21% |
| B2 Cloud Storage ARRother | $113.3 million | – | 39% |
| Computer Backup ARRother | $64.0 million | – | relatively flat YoY |
| Net revenue retention rate (NRR)other | 103% | – | – |
| B2 Cloud Storage NRRother | 113% | – | – |
| Computer Backup NRRother | 94% | – | – |
| Gross customer retention rateother | 91% | – | – |
| B2 Cloud Storage gross customer retention rateother | 89% | – | – |
| Computer Backup gross customer retention rateother | 91% | – | – |
| ARR from customers generating $50,000+ in ARRother | 67% year over year | – | 67% year over year |
| Number of customers generating $50,000+ in ARRother | 57% year over year | – | 57% year over year |
| Remaining performance obligations (RPO)other | $396 million | up $319.5 million quarter over quarter | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| B2 Cloud StorageB2 growth accelerated to 34% year over year. The company cited AI workloads and larger customer expansion, including the CoreWeave agreement and a seven-figure ARR B2 Overdrive deal with a leading AI model developer. | $26.6 million | – | 34% |
| Computer BackupComputer Backup revenue decreased 2% YoY, while Computer Backup ARR was relatively flat YoY. | $16.1 million | – | (2%) |
third quarter of 2026 and full-year 2026 outlook
- RevenueFor the third quarter of 2026, revenue between $44.4 million and $44.8 million. For full-year 2026, revenue between $172.0 million and $174.0 million.
- NoteFor the third quarter of 2026, Adjusted EBITDA margin between 27% and 29%.
- NoteFor the third quarter of 2026, basic weighted average shares outstanding of 62.3 million to 62.5 million shares.
- NoteFor full-year 2026, Adjusted EBITDA margin range of 27% to 29%, raised from 23% to 25%.
- NoteFor full-year 2026, revenue between $172.0 million and $174.0 million, raised from $161.5 million to $163.5 million.
What drove it
- Signed a 5+ year, $335 million strategic agreement with CoreWeave.
- The CoreWeave agreement includes warrants valued at approximately $22 million.
- Signed a seven-figure ARR B2 Overdrive deal with a leading AI model developer.
- ARR from customers generating $50,000+ in ARR grew 67% year over year, and the number of these customers increased 57% year over year.
- Shipped new SDKs and AI agent tools and launched Backblaze’s Generative Media Hackathon.
- The company cited the May 1, 2026 pay-as-you-go storage pricing increase among factors that could affect results.
Concerns
- Computer Backup revenue decreased 2% YoY.
- Net revenue retention rate was 103% compared to 106% in Q2 2025.
- B2 Cloud Storage NRR was 113% compared to 114% in Q2 2025.
- Computer Backup NRR was 94% compared to 99% in Q2 2025.
- The company identified risks related to attracting and retaining customers, scaling the platform, competition, service disruption, cyberattacks, supply chain disruption, and availability of additional capital.
What to watch
- Execution and revenue contribution from the 5+ year, $335 million CoreWeave strategic agreement.
- B2 Cloud Storage growth, which was 34% YoY in Q2 2026, and B2 Cloud Storage ARR growth, which was 39% YoY.
- Retention trends, including B2 Cloud Storage NRR of 113% and Computer Backup NRR of 94%.
- Delivery against third-quarter 2026 revenue guidance of $44.4 million to $44.8 million and Adjusted EBITDA margin guidance of 27% to 29%.
- Progress against raised full-year 2026 revenue guidance of $172.0 million to $174.0 million and Adjusted EBITDA margin guidance of 27% to 29%.
Balance sheet and cash flow
- Cash, cash equivalents, and marketable securities totaled $49.9 million as of June 30, 2026.
- Cash flow from operations during the six months ended June 30, 2026 was $13.8 million, compared to $8.5 million for the same period in 2025.
- Adjusted free cash flow during the six months ended June 30, 2026 was $1.4 million, compared to $(6.0) million for the same period in 2025.
Analysis
Backblaze reported $42.7 million of revenue, up 18% YoY, with B2 Cloud Storage revenue of $26.6 million growing 34% YoY. Computer Backup revenue was $16.1 million, down 2% YoY. The reported growth profile was led by B2, while the legacy Computer Backup business remained a drag on consolidated growth.
Profitability improved materially on the reported measures. GAAP gross profit was $26.8 million, or 63% of revenue, matching the prior-year gross margin, while adjusted gross profit was $34.3 million, or 80% of revenue, compared with 79% of revenue in Q2 2025. Adjusted EBITDA was $12.8 million, or 30% of revenue, compared with $6.6 million, or 18% of revenue. GAAP net loss narrowed to $5.1 million from $7.1 million, and non-GAAP net income increased to $5.0 million from $0.8 million.
Operational data points to growing exposure to larger and AI-oriented accounts. ARR reached $177.3 million, up 21% YoY, and B2 Cloud Storage ARR reached $113.3 million, up 39% YoY. ARR from customers generating $50,000+ in ARR grew 67% year over year, while the number of those customers increased 57% year over year. The company also reported RPO of $396 million, up $319.5 million quarter over quarter, led by the CoreWeave agreement and demand from AI-native companies.
The CoreWeave agreement is the most significant disclosed commercial development. Backblaze signed a 5+ year, $335 million strategic agreement that includes warrants valued at approximately $22 million. Management also disclosed its largest B2 Overdrive deal to date, a seven-figure ARR agreement with a leading AI model developer. These developments support the company’s stated strategy to serve AI and data-intensive workloads at scale.
Retention bears monitoring despite the growth acceleration. Overall NRR was 103% versus 106% in Q2 2025, B2 Cloud Storage NRR was 113% versus 114%, and Computer Backup NRR was 94% versus 99%. Gross customer retention improved to 91% from 90%, with Computer Backup gross customer retention rising to 91% from 90% and B2 Cloud Storage gross customer retention unchanged at 89%.
The company raised full-year 2026 revenue guidance to $172.0 million to $174.0 million from $161.5 million to $163.5 million and raised its Adjusted EBITDA margin range to 27% to 29% from 23% to 25%. Third-quarter revenue guidance is $44.4 million to $44.8 million, with Adjusted EBITDA margin guidance of 27% to 29%. Cash, cash equivalents, and marketable securities totaled $49.9 million at June 30, 2026, while cash flow from operations for the six months ended June 30, 2026 was $13.8 million and adjusted free cash flow was $1.4 million.
Management, verbatim
Q2 was an amazing quarter for Backblaze. We exceeded the high end of our revenue and Adjusted EBITDA guidance, with B2 growth accelerating to 34% year over year.
Gleb Budman, co-founder and CEO of Backblaze
We also signed a $335 million strategic agreement with CoreWeave offering the strongest validation yet of our critical role in the AI infrastructure stack. AI workloads need a capacity storage layer that can scale to exabytes, while delivering performance at attractive economics. That is where Backblaze is built to win.
Gleb Budman, co-founder and CEO of Backblaze
Not in the filing
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- Capital returns, including share repurchases and dividends, were not provided in the supplied filing text.
- Quarterly cash flow from operations and quarterly adjusted free cash flow were not provided in the supplied filing text.
- Revenue, gross profit, operating income, net income, EPS, and segment prior-quarter comparisons were not provided in the supplied filing text.
- A full reconciliation appendix for non-GAAP measures was not included in the supplied filing text.
- Forward guidance for gross margin, operating expenses, and tax rate was not provided in the supplied filing text.
- Prior-period outlook was not provided; therefore, no comparison of actual results with prior guidance is included.
AlphaAI 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.