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

Backblaze (NASDAQ:BLZE) posted its quarterly earnings results on Monday. The company reported $0.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.06, FiscalAI reports. Backblaze had a negative net margin of 14.97% and a negative return on equity of 20.54%. The company had revenue of $42.71 million for the quarter, compared to analyst estimates 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 Price Performance

Shares of NASDAQ BLZE opened at $15.59 on Tuesday. The firm has a market capitalization of $936.96 million, a P/E ratio of -39.97 and a beta of 1.56. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.28. The stock’s 50-day simple moving average is $11.81 and its two-hundred day simple moving average is $7.13. Backblaze has a twelve month low of $3.26 and a twelve month high of $18.25.

Analysts Set New Price Targets

BLZE has been the topic of a number of analyst reports. Citizens Jmp boosted their price objective on Backblaze from $14.00 to $16.00 and gave the company a “market outperform” rating in a research note on Thursday, July 23rd. B. Riley Financial lifted their target price on Backblaze from $7.00 to $16.00 and gave the company a “buy” rating in a report on Wednesday, June 24th. Craig Hallum upgraded shares of Backblaze from a “hold” rating to a “buy” rating and raised their price objective for the company from $6.50 to $16.00 in a research report on Tuesday, June 23rd. Citigroup reaffirmed a “market outperform” rating on shares of Backblaze in a research note on Thursday, July 23rd. Finally, Wall Street Zen lowered shares of Backblaze from a “buy” rating to a “hold” rating in a report on Saturday, June 27th. Eight research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Backblaze currently has a consensus rating of “Moderate Buy” and an average target price of $13.21.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. lifted its position in Backblaze by 5.2% during the third quarter. Vanguard Group Inc. now owns 2,693,508 shares of the company’s stock valued at $24,996,000 after purchasing an additional 134,034 shares during the last quarter. Wasatch Advisors LP purchased a new position in Backblaze in the third quarter worth $17,021,000. Pillsbury Lake Capital LLC bought a new position in Backblaze in the fourth quarter valued at $8,058,000. Geode Capital Management LLC lifted its stake in Backblaze by 4.2% during the fourth quarter. Geode Capital Management LLC now owns 1,341,863 shares of the company’s stock worth $6,255,000 after purchasing an additional 53,583 shares during the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. boosted its holdings in shares of Backblaze by 20.1% in the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 953,914 shares of the company’s stock worth $8,852,000 after purchasing an additional 159,324 shares in the last quarter. Hedge funds and other institutional investors own 54.03% of the company’s stock.

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.