Backblaze: Fiscal 3Q25 Financial Results

Backblaze, Inc., a high-performance cloud storage platform for the AI era, announced results for its third quarter ended September 30, 2025.“I am pleased with our third quarter financial results exceeding the high end of our revenue and Adjusted EBITDA guidance and expanding gross margin by ~700 bps YoY to 62%. We remain on track to be free-cash-flow positive in Q4. B2 Cloud Storage grew 28% YoY and we won another seven-figure expansion with an existing customer, reinforcing the value of our price-performance and open platform,” said Gleb Budman, CEO, Backblaze. “As customers build AI and data-intensive workflows, they need high performance, predictable costs, and S3-compatibility without lock-in, a combination that sets Backblaze apart.”

Third Quarter 2025 Financial Highlights:

• Revenue of $37.2 million, an increase of 14% YoY
  • B2 Cloud Storage revenue was $20.7 million, an increase of 28% YoY
  • Computer Backup revenue was $16.5 million, flat YoY
• Gross profit of $23.1 million, or 62% of revenue, compared to $17.8 million, or 55% of revenue, in Q3 2024
• Adjusted gross profit of $29.4 million, or 79% of revenue, compared to $25.5 million or 78% of revenue in Q3 2024
• Net loss was $3.8 million compared to a net loss of $12.8 million in Q3 2024
• Net loss per share was $0.07 compared to a net loss per share of $0.29 in Q3 2024
• Adjusted EBITDA was $8.4 million, or 23% of revenue, compared to $3.7 million or 12% of revenue in Q3 2024
• Non-GAAP net income of $1.9 million compared to non-GAAP net loss of $4.1 million in Q3 2024
• Non-GAAP net income per share of $0.03 compared to a non-GAAP net loss per share of $0.10 in Q3 2024
• Cash flow from operations during the nine months ended September 30, 2025 was $14.2 million, compared to $10.3 million during the nine months ended September 30, 2024
• Adjusted free cash flow during the nine months ended September 30, 2025 was $(9.5) million, compared to $(15.6) million in the nine months ended September 30, 2024
• Cash, cash equivalents, and marketable securities totaled $50.3 million as of September 30, 2025

Third Quarter 2025 Operational Highlights:

• Annual recurring revenue (ARR) was $147.2 million, an increase of 13% YoY
  • B2 Cloud Storage ARR was $81.8 million, an increase of 26% YoY
  • Computer Backup ARR was $65.4 million, flat YoY
• Net revenue retention rate (NRR) was 106% compared to 118% in Q3 2024
  • B2 Cloud Storage NRR was 110% compared to 128% in Q3 2024
  • Computer Backup NRR was 101% compared to 109% in Q3 2024
• Gross customer retention rate was 91% in Q3 2025 compared to 90% in Q3 2024
  • B2 Cloud Storage gross customer retention rate was 89% in both Q3 2025 and Q3 2024
  • Computer Backup gross customer retention rate was 90% in both Q3 2025 and Q3 2024

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Recent Business Highlights:

• Signed a 7-figure TCV Expansion Deal: A high growth AI-powered video surveillance customer significantly expanded its B2 Cloud Storage footprint, showcasing the value customers see and expansion opportunity in our customer base
• Record Non-GAAP Net Income and Adjusted EBITDA Margin: Achieved new highs in profitability, marking key milestones on our path to Free Cash Flow generation and continued financial discipline
• Recipient of Cloud Computing Security Excellence Award: Validating Backblaze’s commitment to supporting customers in an era of escalating cyber threats with Backblaze B2 Object Lock
• Announced Executive & Director Stock Ownership Policy: Strengthening the leadership equity ownership requirements to further align with shareholders’ interest to drive long-term success

Financial Outlook:

Based on information available as of the date of this press release,

For the fourth quarter of 2025, we expect:

• Revenue between $37.3 million to $37.9 million
• Adjusted EBITDA margin between 20% to 22%
• Basic weighted average shares outstanding of 58.0 million to 58.2 million shares

For full-year 2025, we expect:

• Revenue between $145.4 million to $146.0 million, narrowed from $145.0 million to $147.0 million
• Adjusted EBITDA margin range of 18%-20%, raised from 17%-19%
• For YoY growth in our B2 business, refer to table below