Backblaze (BLZE) AI Stock Analysis

• Market Cap: $349.17M
• Dividend Yield: N/A
• Average Volume (3M): 558.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: 15.73%
• EPS Growth: 40.14%
• Country: US
• Employees: 346
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.03
• Shares Outstanding: 56,500,000
• 10 Day Avg. Volume: 689,835
• 30 Day Avg. Volume: 558,604
• PEG Ratio: 0.16
• Price to Book (P/B): 3.38
• Price to Sales (P/S): 2.05
• P/FCF Ratio: 24.28
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $9.60
• Price Target Upside: 65.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $6.00 ▲(3.45% Upside)

Backblaze's overall stock score reflects its strong revenue growth and improved financial discipline, as highlighted in the earnings call. However, significant challenges remain, including ongoing profitability issues, bearish technical indicators, and a negative P/E ratio. These factors weigh heavily on the stock's attractiveness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Strategic Partnerships

Partnerships with AI startups enhance Backblaze's market position and expand its customer base, driving future growth.

Improved Financial Performance

Improved EBITDA margins reflect better cost management and financial discipline, enhancing profitability prospects.

Negative Factors

Profitability Challenges

Ongoing profitability issues could limit reinvestment capabilities and affect long-term business sustainability.

Customer Variability

High customer variability poses risks to revenue stability and predictability, potentially impacting financial forecasts.

Flat Growth in Key Segment

Stagnant growth in a core segment may indicate market saturation or competitive pressures, affecting overall growth potential.

Backblaze Business Overview & Revenue Model

Company Description

Backblaze, Inc. is a cloud storage and data backup company based in California, specializing in providing affordable and reliable solutions for individuals and businesses. Founded in 2007, Backblaze offers products such as personal cloud backup, business cloud storage, and the Backblaze B2 Cloud Storage service, catering to the needs of users seeking secure data management and protection. The company's innovative approach to data storage utilizes a cost-effective model that appeals to a broad range of customers, from casual users to enterprises.

How the Company Makes Money

Backblaze generates revenue primarily through its subscription-based services. The company offers various plans for its personal backup solution, which provides unlimited backup for a flat fee, appealing to individual users. For businesses, Backblaze offers its B2 Cloud Storage service, which charges customers based on the amount of data stored and the bandwidth used for data retrieval. This pay-as-you-go model allows businesses to scale their storage needs effectively. Additionally, Backblaze has formed strategic partnerships with other technology companies to enhance its service offerings, further contributing to its revenue streams by expanding its customer base and providing integrated solutions.

Backblaze Financial Statement Overview

Summary

Backblaze shows consistent revenue growth and improvements in cash flow generation, but struggles with profitability, as indicated by negative net profit margins and EBIT margins. The debt-to-equity ratio has improved, but negative returns on equity highlight ongoing profitability issues.

Income Statement

Backblaze shows a consistent revenue growth trend, with a TTM revenue growth rate of 3.79%. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins over the periods. The gross profit margin has improved slightly in the TTM, but the net profit margin remains negative, reflecting ongoing challenges in managing costs relative to revenue.

Balance Sheet

The company's debt-to-equity ratio has improved slightly in the TTM, indicating better leverage management compared to previous years. However, the return on equity remains negative, highlighting ongoing profitability issues. The equity ratio is relatively stable, but the negative ROE suggests that the company is not generating sufficient returns on shareholder investments.

Cash Flow

Backblaze has shown improvement in free cash flow growth in the TTM, with a notable increase of 32.26%. The operating cash flow to net income ratio is positive, indicating some efficiency in converting earnings to cash flow. However, the free cash flow to net income ratio suggests that the company is still facing challenges in translating net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	137.29M	127.63M	102.02M	85.16M	67.48M	53.78M
Gross Profit	78.60M	69.34M	49.86M	43.86M	34.34M	27.98M
EBITDA	-20.63M	-16.54M	-31.02M	-24.54M	-1.61M	9.22M
Net Income	-43.55M	-48.53M	-59.71M	-51.70M	-21.70M	-6.62M
Balance Sheet
Total Assets	186.04M	168.56M	131.69M	150.91M	163.58M	54.47M
Cash, Cash Equivalents and Short-Term Investments	50.54M	54.91M	29.30M	65.42M	104.84M	6.08M
Total Debt	61.60M	46.34M	46.85M	44.87M	33.25M	31.48M
Total Liabilities	106.40M	90.94M	86.75M	82.36M	68.09M	61.31M
Stockholders Equity	79.64M	77.62M	44.94M	68.56M	95.49M	-6.84M
Cash Flow
Free Cash Flow	8.40M	10.79M	-27.58M	-29.76M	-7.69M	7.84M
Operating Cash Flow	15.35M	12.51M	-7.35M	-13.78M	3.52M	12.82M
Investing Cash Flow	-15.88M	-6.13M	21.66M	-73.85M	-11.19M	-4.97M
Financing Cash Flow	18.76M	22.77M	-8.84M	-6.21M	106.61M	-8.75M

Backblaze Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLZE, the sentiment is Negative. The current price of 5.8 is below the 20-day moving average (MA) of 9.46, below the 50-day MA of 9.49, and below the 200-day MA of 6.67, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 21.87 is Positive, neither overbought nor oversold. The STOCH value of 2.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BLZE.

Backblaze Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOCN	73 Outperform	$4.31B	20.08	―	―	14.20%	204.86%
DBX	65 Neutral	$7.50B	17.47	―	―	-0.44%	2.47%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AVPT	61 Neutral	$3.03B	―	-2.60%	―	24.41%	40.20%
JG	57 Neutral	$39.02M	―	-9.11%	―	18.99%	77.96%
BLZE	47 Neutral	$349.17M	―	-55.03%	―	15.73%	40.14%
BKKT	41 Neutral	$498.74M	-4.92	-70.04%	―	111.83%	73.52%

Backblaze Corporate Events

Backblaze Reports Strong Q3 2025 Revenue Growth

Backblaze, Inc. is a high-performance cloud storage platform specializing in AI-driven data management solutions, offering services that support over 500,000 customers globally. In its third-quarter 2025 earnings report, Backblaze announced a 14% year-over-year revenue growth, with significant contributions from its B2 Cloud Storage segment, which saw a 28% increase. The company reported a gross profit margin expansion to 62% and a reduction in net loss to $3.8 million from $12.8 million in the previous year. Key financial highlights include a revenue of $37.2 million, a net loss per share of $0.07, and an adjusted EBITDA of $8.4 million. The company’s annual recurring revenue reached $147.2 million, with B2 Cloud Storage accounting for $81.8 million. Looking ahead, Backblaze remains optimistic about achieving free-cash-flow positivity in the fourth quarter and continues to focus on enhancing its cloud storage offerings to meet the growing demands of AI and data-intensive workflows.

Backblaze, Inc. Q3 Earnings Call Insights

Backblaze, Inc. recently held its earnings call, revealing a mixed sentiment. The company celebrated strong revenue growth and industry accolades, particularly in the AI sector. However, it faced challenges with B2 growth not meeting ambitious targets, customer variability, and stagnant growth in the Computer Backup segment. Despite these hurdles, the financial performance showed notable year-over-year improvements, but the company must address these challenges to sustain its growth momentum.

Backblaze Initiates Restructuring Plan to Boost Efficiency

In November 2025, Backblaze initiated a restructuring plan to improve efficiency and enhance its sales and marketing performance, expecting to incur charges of $4.4 million to $6.0 million. For the third quarter of 2025, Backblaze reported a 28% revenue growth in B2 Cloud Storage and a 14% overall revenue growth, with a gross margin expansion to 62%. The company achieved record non-GAAP net income and adjusted EBITDA margin, marking significant milestones towards free cash flow generation.

The most recent analyst rating on (BLZE) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on Backblaze stock, see the BLZE Stock Forecast page.

Backblaze Earnings Call: Strong Growth Amid Challenges

Backblaze, Inc. recently held its earnings call, revealing a generally positive sentiment with strong financial performance and growth, particularly in the B2 Cloud Storage segment and the AI market. The successful launch of B2 Overdrive and go-to-market transformation efforts were highlighted as notable achievements, despite some challenges such as the decline in Computer Backup revenue and net revenue retention (NRR). Overall, the positives significantly outweighed the negatives, painting an optimistic picture for the company’s future.

Navigating the AI Minefield: Backblaze, Inc.’s Struggle with Operational and Legal Risks

Backblaze, Inc. faces significant risks associated with its use of artificial intelligence technologies to boost internal productivity and efficiency. The implementation of AI introduces operational, legal, reputational, and competitive challenges, as AI models can produce flawed outputs that may impact decision-making and customer trust. Reliance on third-party providers for AI tools further exposes the company to data security risks and potential noncompliance with privacy laws. Additionally, the evolving landscape of AI regulation and intellectual property issues could impose further compliance burdens and impact Backblaze’s operations adversely.

Backblaze Reports Strong Q2 2025 Financial Performance

Backblaze, Inc., a cloud storage innovator, offers high-performance and secure cloud object storage solutions for various applications, including AI workflows and data protection, distinguishing itself as a modern alternative to traditional cloud providers. In its second quarter of 2025, Backblaze reported a 16% year-over-year revenue growth, reaching $36.3 million, with its B2 Cloud Storage segment experiencing a remarkable 29% increase. The company also reduced its net loss to $7.1 million from $10.3 million in the previous year, showcasing improved financial health.

Backblaze Announces $10 Million Stock Repurchase Program

On August 7, 2025, Backblaze announced a stock repurchase program, allowing the company to buy back up to $10 million of its Class A common stock over the next 12 months, enhancing financial flexibility. In its second quarter of 2025, Backblaze reported a 16% overall revenue growth, with a notable 29% increase in B2 Cloud Storage revenue, and introduced new cybersecurity features and AI-powered solutions, positioning itself as a leading independent cloud storage provider.

The most recent analyst rating on (BLZE) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Backblaze stock, see the BLZE Stock Forecast page.