Want to see BLZE full AI Analyst Report?
Top Page
Backblaze
(NASDAQ:BLZE)
Select Model
Select Model
Rating:70Outperform
Price Target:
$17.00
▲(46.43% Upside)
Action:Reiterated
Date:08/04/26
BLZE scores well due to improving financial quality driven by strong and growing free cash flow, plus clearly bullish technical trends. The score is further supported by a strong earnings update with raised revenue and EBITDA-margin guidance and accelerating B2 momentum, but is held back by continued net losses (negative P/E) and execution risk from elevated CapEx and rising leverage needs.
Positive Factors
B2 Cloud Momentum & Upmarket Traction
Sustained B2 ARR growth and rising large-account counts indicate durable product-market fit in cloud object storage. Higher-ticket customers and strong NRR support predictable, expanding recurring revenue, enabling scalable gross-margin economics and long-term upmarket expansion into AI workloads.
Negative Factors
Heavy Near-Term CapEx Intensity
Planned CapEx at more than half of revenue materially increases cash intensity and could suppress adjusted free-cash-flow in the near term. Sustaining growth while funding infrastructure risks stretching liquidity or forcing additional lease/debt financing, affecting financial flexibility for 12–24 months.
Read all positive and negative factors
Positive Factors
Negative Factors
B2 Cloud Momentum & Upmarket Traction
Sustained B2 ARR growth and rising large-account counts indicate durable product-market fit in cloud object storage. Higher-ticket customers and strong NRR support predictable, expanding recurring revenue, enabling scalable gross-margin economics and long-term upmarket expansion into AI workloads.
Read all positive factors
Backblaze (BLZE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$823.20M
Dividend YieldN/A
Average Volume (3M)4.18M
Price to Earnings (P/E)―
Beta (1Y)1.88
Revenue Growth13.32%
EPS Growth61.29%
CountryUS
Employees320
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.34
Shares Outstanding60,000,000
10 Day Avg. Volume2,011,894
30 Day Avg. Volume4,182,156
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)3.15
Price to Sales (P/S)1.80
P/FCF Ratio13.90
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$22.83Price Target Upside96.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)0.11
Revenue Forecast (FY)$162.33M
Backblaze Business Overview & Revenue Model
Company Description
Backblaze, Inc. functions as a cloud storage provider, delivering comprehensive online services for businesses and individual consumers to securely store, manage, and access their data globally. The company's cloud solutions are underpinned by a h...
How the Company Makes Money
Backblaze makes money primarily through subscription-based and usage-based fees for its cloud storage and backup services. Its revenue model is largely recurring, generated from customers who pay monthly or annual charges for ongoing service acces...
Backblaze Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presented a strong set of operational and financial beats driven by accelerating B2 growth, a significant multi-year CoreWeave contract, margin expansion, improved cash flow metrics, and raised full-year guidance — all signaling clear momentum in the company’s AI-focused strategy and upmarket progress. Headwinds are present: near-term heavy CapEx (55%–65% of revenue guidance for 2026), higher hardware costs and near-term depreciation pressure, modest declines in the computer backup business, the $22M warrant contra, and some concentration/ramp timing risk around the CoreWeave agreement. Overall, highlights (revenue/EBITDA beats, accelerated B2/ARR growth, large contract and raised guidance) materially outweigh the lowlights, though investors should monitor CapEx intensity and margin timing risks.Positive Updates
Revenue Beat and Strong YoY Growth
Q2 revenue of $42.7M, 18% year-over-year growth, and $2.5M above the high end of guidance.
Negative Updates
Computer Backup (CBU) Revenue Pressure
Computer backup revenue declined ~2% year-over-year; management expects CBU to remain a single-digit declining business due to market headwinds.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Beat and Strong YoY Growth
Q2 revenue of $42.7M, 18% year-over-year growth, and $2.5M above the high end of guidance.
Read all positive updates
Company Guidance
Backblaze raised its outlook, guiding Q3 revenue of $44.4M–$44.8M and full‑year 2026 revenue of $172M–$174M (up >$10M from the prior $161.5M–$163.5M) with adjusted EBITDA margin of 27%–29% (Q3: 27%–29%; full year raised from 23%–25%). The upgrade reflects Q2 beats (Q2 revenue $42.7M, adjusted EBITDA margin 30%), B2 momentum (B2 growth 34% YoY, B2 ARR $113M, +$20M sequential with $9M from the May price increase, NRR 113%, 235 customers >$50k ARR, up 57% YoY) and contracted demand (RPO +$320M this quarter, including ~$313M from the $335M CoreWeave agreement net of $22M in warrant value). Guidance excludes usage above contracted minimums and potential deals >$500k; the company plans to accelerate CapEx (55%–65% of revenue in 2026), expects to be adjusted free‑cash‑flow neutral for the year, views 2027 B2 growth as >40% (directional), and finished Q2 with $50M cash and >$150M of available lease lines.Backblaze Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
55
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 156.30M | 145.84M | 127.63M | 102.02M | 85.16M | 67.48M |
| Gross Profit | 96.86M | 88.79M | 69.34M | 49.86M | 43.86M | 34.34M |
| EBITDA | 2.85M | 3.83M | -16.54M | -31.01M | -27.00M | -1.61M |
| Net Income | -20.43M | -25.61M | -48.53M | -59.71M | -51.40M | -21.70M |
Balance Sheet | ||||||
| Total Assets | 223.84M | 191.83M | 168.56M | 131.69M | 152.46M | 163.58M |
| Cash, Cash Equivalents and Short-Term Investments | 49.88M | 51.38M | 54.91M | 29.30M | 65.42M | 104.84M |
| Total Debt | 82.44M | 61.58M | 46.34M | 45.96M | 45.49M | 33.25M |
| Total Liabilities | 135.30M | 108.61M | 90.94M | 86.75M | 83.71M | 68.09M |
| Stockholders Equity | 88.54M | 83.22M | 77.62M | 44.94M | 68.75M | 95.49M |
Cash Flow | ||||||
| Free Cash Flow | 24.54M | 18.85M | 10.79M | -27.58M | -29.76M | -7.67M |
| Operating Cash Flow | 29.40M | 23.54M | 12.51M | -7.35M | -13.78M | 3.52M |
| Investing Cash Flow | -12.47M | -25.34M | -6.13M | 21.66M | -73.85M | -11.19M |
| Financing Cash Flow | -16.68M | -14.80M | 22.77M | -8.84M | -6.21M | 106.61M |
Backblaze Risk Analysis
Backblaze disclosed 55 risk factors in its most recent earnings report. Backblaze reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Backblaze Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.76B | 59.96 | 10.20% | ― | 27.12% | ― | |
73 Outperform | $7.33B | 17.60 | -28.45% | ― | -0.62% | 20.48% | |
70 Outperform | $823.20M | -35.18 | -24.09% | ― | 13.32% | 61.29% | |
69 Neutral | $13.74B | 45.37 | 154.32% | ― | 17.61% | 119.62% | |
64 Neutral | $33.59M | 57.58 | 6.09% | ― | 13.23% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | $319.87M | -0.62 | -116.83% | ― | -58.96% | -44.30% |
* Technology Sector Average
BLZE
Backblaze
19.79
14.44
269.91%
DBX
Dropbox
34.51
8.38
32.07%
JG
Aurora Mobile
4.91
-5.04
-50.66%
AVPT
AvePoint
13.50
-4.08
-23.21%
BKKT
Bakkt Holdings, Inc. Class A
7.56
-1.97
-20.67%
DOCN
DigitalOcean Holdings
128.89
94.08
270.27%
Backblaze Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Backblaze Expands Capital Lease Capacity to Support Growth
Positive
Jul 2, 2026
On June 30, 2026, Backblaze, Inc. amended a negative covenant in its existing credit agreement with Citizens Bank, N.A., specifically related to the company’s ability to engage in capitalized lease transactions. The change expands the permit...
Business Operations and StrategyPrivate Placements and Financing
Backblaze Announces Strategic Multi-Exabyte CoreWeave Partnership
Positive
Jun 23, 2026
On June 16, 2026, Backblaze entered into a multi-exabyte Master Strategic Agreement with CoreWeave under which it will supply B2 Cloud Storage capacity from its own data centers and managed storage solutions within CoreWeave’s facilities. Th...
Executive/Board ChangesShareholder Meetings
Backblaze Holds 2026 Annual Stockholder Meeting, Elects Director
Neutral
May 27, 2026
On May 26, 2026, Backblaze, Inc. held its 2026 Annual Meeting of Stockholders via live webcast, with more than 69% of eligible voting power represented, ensuring a valid quorum. At the meeting, stockholders elected Jocelyn Carter-Miller as a Class...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.