Backblaze (NASDAQ:BLZE) Posts Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Backblaze (NASDAQ:BLZE) released its quarterly earnings results on Monday. The company reported $0.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.05 by $0.04, FiscalAI reports. Backblaze had a negative return on equity of 16.73% and a negative net margin of 13.07%. The business had revenue of $46.65 million during the quarter, compared to the consensus estimate of $44.59 million.

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

• Q3 exceeded expectations, with revenue up 26% year over year to $47 million, adjusted EBITDA margin expanding to 33%, and full-year revenue guidance raised to $177.8–$178.2 million. Full-year adjusted EBITDA margin guidance also increased to 30%–31%.
• B2 Cloud Storage growth accelerated to 47% year over year, with B2 ARR reaching $127 million and net revenue retention improving to 115%. Growth was broad-based across self-serve, sales-led, and larger customers, although the May price increase contributed approximately 12 percentage points to B2 growth.
• CoreWeave and another large neocloud customer have begun ramping under multi-year minimum commitments, with the larger neocloud starting ahead of schedule. Management expects the neocloud agreements to contribute more meaningfully in the first half of 2027, with CoreWeave reaching its committed run rate by July 2027.
• AI-builder momentum strengthened, with the pipeline of new AI builders doubling sequentially in Q3 and four agreements exceeding $500,000 in ARR. Three existing AI customers more than doubled their original commitments within a year, supporting management’s confidence in 40%-plus B2 growth in 2027.
• Backblaze is accelerating capacity investment to support contracted demand, with fourth-quarter PP&E spending expected to reach $65 million–$83 million and capital expenditures projected at 55%–65% of revenue for the full year. Depreciation from capacity added ahead of customer ramps is expected to reduce GAAP gross margin by 3–6 percentage points over the next four to five quarters, while Computer Backup revenue is still expected to decline at a low-single-digit rate in Q4.

Backblaze Trading Down 2.5%

NASDAQ BLZE opened at $7.40 on Tuesday. The stock has a market cap of $458.06 million, a price-to-earnings ratio of -21.76 and a beta of 1.56. Backblaze has a twelve month low of $3.26 and a twelve month high of $23.99. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.00 and a current ratio of 1.00. The firm’s 50 day moving average price is $12.30 and its two-hundred day moving average price is $9.21.

Insider Buying and Selling at Backblaze

In related news, CFO Marc Suidan sold 2,110 shares of the firm’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $15.82, for a total value of $33,380.20. Following the completion of the transaction, the chief financial officer directly owned 349,518 shares of the company’s stock, valued at $5,529,374.76. This trade represents a 0.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gleb Budman sold 12,855 shares of the company’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $15.82, for a total value of $203,366.10. Following the completion of the sale, the chief executive officer owned 2,192,103 shares in the company, valued at $34,679,069.46. This trade represents a 0.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 4.20% of the stock is currently owned by company insiders.

Backblaze News Summary

Here are the key news stories impacting Backblaze this week:

• Positive Sentiment: Q3 results topped estimates: Backblaze reported adjusted earnings of $0.09 per share, above the $0.04-$0.05 analyst consensus, while revenue reached $46.65 million versus expectations of approximately $44.6 million. Earnings also improved from $0.03 per share in the year-ago quarter. Backblaze Announces Third Quarter 2026 Financial Results
• Positive Sentiment: Strong B2 momentum: CEO Gleb Budman said B2 revenue growth accelerated to 47% year over year from 28% a year earlier. The company also added a record number of net new B2 self-serve customers, indicating broad-based demand for its cloud storage platform. Backblaze Q3 2026 Earnings Call Transcript
• Positive Sentiment: Revenue guidance exceeded expectations: Backblaze projected fourth-quarter 2026 revenue of $49.8 million to $50.2 million, above the $47.0 million consensus estimate. Full-year 2026 revenue guidance of $177.8 million to $178.2 million also surpassed the $173.0 million consensus. Management additionally targeted a 32%-34% adjusted EBITDA margin for the fourth quarter. Backblaze Q4 Revenue and EBITDA Guidance
• Negative Sentiment: Profitability remains a concern: Despite the adjusted earnings beat, Backblaze continues to report a negative net margin and negative return on equity. Investors may also focus on whether the company can sustain its accelerated growth while converting that momentum into consistent GAAP profitability.

Wall Street Analysts Forecast Growth

BLZE has been the topic of several recent research reports. Citizens Jmp upped their price objective on Backblaze from $16.00 to $21.00 and gave the company a “market outperform” rating in a research report on Tuesday, August 4th. Lake Street Capital reiterated a “buy” rating and issued a $21.00 price target on shares of Backblaze in a report on Tuesday, August 4th. B. Riley Financial increased their price objective on shares of Backblaze from $16.00 to $24.00 and gave the stock a “buy” rating in a research report on Tuesday, August 4th. Oppenheimer boosted their price target on Backblaze from $15.00 to $25.00 and gave the stock an “outperform” rating in a research report on Tuesday, August 4th. Finally, Needham & Company LLC lowered their price objective on Backblaze from $23.00 to $15.00 and set a “buy” rating for the company in a research note on Tuesday. Eight investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Backblaze presently has an average rating of “Moderate Buy” and an average target price of $18.57.

Backblaze Company Profile

Backblaze, Inc provides cloud storage and data backup services for businesses, developers and individual users. The company’s offerings are designed to help customers protect, store, manage and access data without maintaining their own extensive storage infrastructure.

Its primary products include Backblaze Computer Backup, a subscription service that automatically backs up data from computers, and Backblaze B2 Cloud Storage, an object-storage platform used for applications such as backup, archiving, content storage and media workflows.