Backblaze: Fiscal 2Q2026 Financial Results

Backblaze, Inc., a storage platform powering AI and data-intensive workloads, announced results for its second quarter ended June 30, 2026.“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,” said Gleb Budman, co-founder and CEO, 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.”

Second Quarter 2026 Financial Highlights:

• Revenue of $42.7 million, an increase of 18% YoY
  • B2 Cloud Storage revenue was $26.6 million, an increase of 34% YoY
  • Computer Backup revenue was $16.1 million, a decrease of 2% YoY
• Gross profit of $26.8 million, or 63% of revenue, compared to $23.0 million, or 63% of revenue, in Q2 2025
• Adjusted gross profit of $34.3 million, or 80% of revenue, compared to $28.8 million, or 79% of revenue, in Q2 2025
• Net loss was $5.1 million compared to a net loss of $7.1 million in Q2 2025
• Net loss per share was $0.08 compared to a net loss per share of $0.13 in Q2 2025
• Adjusted EBITDA was $12.8 million, or 30% of revenue, compared to $6.6 million, or 18% of revenue, in Q2 2025
• Non-GAAP net income of $5.0 million compared to non-GAAP net income of $0.8 million in Q2 2025
• Non-GAAP net income per share of $0.08 compared to a non-GAAP net income per share of $0.01 in Q2 2025
• 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
• Cash, cash equivalents, and marketable securities totaled $49.9 million as of June 30, 2026

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Second Quarter 2026 Operational Highlights:

• Annual recurring revenue (ARR) was $177.3 million, an increase of 21% YoY
  • B2 Cloud Storage ARR was $113.3 million, an increase of 39% YoY
  • Computer Backup ARR was $64.0 million, relatively flat YoY
• Net revenue retention rate (NRR) 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
• Gross customer retention rate was 91% in Q2 2026 compared to 90% in Q2 2025
  • B2 Cloud Storage gross customer retention rate was 89% in both Q2 2026 and Q2 2025
  • Computer Backup gross customer retention rate was 91% compared to 90% in Q2 2025

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Recent Business Highlights:

• Signed a 5+ year, $335 million strategic agreement with CoreWeave: The landmark agreement includes warrants valued at approximately $22 million, aligning the companies’ long-term interests and validating Backblaze as a strategic storage tier provider for AI workloads at massive scale
• Expanded momentum with larger customers: ARR from customers generating $50,000+ in ARR grew 67% year over year, and the number of these customers increased 57% year over year, reflecting continued success scaling with larger accounts
• Won largest B2 Overdrive deal to date with a frontier AI model: Signed a seven-figure ARR B2 Overdrive deal with a leading AI model developer, demonstrating demand for high-performance, cost-effective storage for AI workloads
• Strengthened long-term revenue visibility: RPO reached $396 million, up $319.5 million quarter over quarter, led by the CoreWeave agreement and demand from AI-native companies
• Expanded the B2 developer ecosystem: Shipped new SDKs and AI agent tools and launched Backblaze’s Generative Media Hackathon, increasing awareness of B2 as a storage platform for AI applications

Financial Outlook:
Based on information available as of the date of this press release.

For the third quarter of 2026, we expect:

• Revenue between $44.4 million and $44.8 million
• Adjusted EBITDA margin between 27% and 29%
• Basic weighted average shares outstanding of 62.3 million to 62.5 million shares

For full-year 2026, we have raised our outlook:

• Revenue between $172.0 million and $174.0 million, raised from $161.5 million to $163.5 million
• Adjusted EBITDA margin range of 27% to 29%, raised from 23% to 25%