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Backblaze
(NASDAQ:BLZE)
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Rating:67Neutral
Price Target:
$19.00
▲(363.41% Upside)
Action:Reiterated
Date:07/03/26
The score is driven primarily by improving financial quality (margin expansion, narrowing losses, positive EBITDA and recent positive operating/free cash flow) and a bullish technical trend. Raised guidance and strong B2/AI momentum from the earnings call further support the outlook, while the overall score is held back by ongoing net losses (negative P/E) and very overbought technical conditions that elevate pullback risk.
Positive Factors
B2 Cloud Storage Momentum
B2’s strong usage-driven growth and ARR expansion signal durable demand for object storage from developers and AI customers. Higher ARR and 110% in‑quarter net revenue retention imply sticky, recurring revenue that supports scalable unit economics and long-term revenue visibility.
Negative Factors
Ongoing Net Losses and Negative ROE
Despite operational progress, the company remains unprofitable on a net basis and posts negative ROE. Persistent net losses limit retained earnings, constrain return generation for shareholders, and leave the business exposed if revenue growth or margins slip before sustained profitability is achieved.
Read all positive and negative factors
Positive Factors
Negative Factors
B2 Cloud Storage Momentum
B2’s strong usage-driven growth and ARR expansion signal durable demand for object storage from developers and AI customers. Higher ARR and 110% in‑quarter net revenue retention imply sticky, recurring revenue that supports scalable unit economics and long-term revenue visibility.
Read all positive factors
Backblaze (BLZE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.07B
Dividend YieldN/A
Average Volume (3M)3.94M
Price to Earnings (P/E)―
Beta (1Y)1.73
Revenue Growth13.32%
EPS Growth61.29%
CountryUS
Employees346
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.39
Shares Outstanding60,000,000
10 Day Avg. Volume4,310,957
30 Day Avg. Volume3,935,487
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 Cap0.50
Enterprise Value/Revenue3.55
Enterprise Value/Gross Profit5.72
Enterprise Value/Ebitda84.72
Forecast
1Y Price Target
$13.25Price Target Upside223.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.11
Revenue Forecast (FY)$162.35M
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:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call presented a strong operational quarter with multiple tangible signs of momentum: revenue and adjusted EBITDA beats, accelerating B2 growth (24% YoY), expanded ARR, improved gross margin, sizable upmarket deals, pronounced AI customer traction (AI customers +76% YoY and >1/3 of new bookings), and raised full‑year guidance. Offsetting pressures include a declining Computer Backup business, near‑term negative adjusted free cash flow driven by timing and accelerated CapEx, methodology changes that add short‑term metric volatility, and supply‑chain/cost inflation headwinds. On balance, positive execution and upgraded guidance outweigh the manageable near‑term and execution risks.Positive Updates
Revenue Beat and Growth
Revenue of $38.7 million in Q1 2026, up 12% year‑over‑year and above the high end of guidance ($38.0M).
Negative Updates
Computer Backup Decline
Computer Backup is a declining business; management is modeling roughly a 5% year‑over‑year decline for Computer Backup and its NRR is below 100% for that segment.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Beat and Growth
Revenue of $38.7 million in Q1 2026, up 12% year‑over‑year and above the high end of guidance ($38.0M).
Read all positive updates
Company Guidance
Management guided Q2 revenue of $39.8–$40.2 million, with B2 growth now expected nearer 20% year‑over‑year (vs. prior 12% expectation) and Q2 adjusted EBITDA margin of 21–23% (a modest sequential step‑down from Q1’s 26% margin due to timing of investments); the May 1 B2 pricing/packaging change provides a partial‑quarter benefit and is expected to be accretive to revenue and margins. For full‑year 2026 they raised revenue guidance to $161.5–$163.5 million (≈$5M lift from the prior midpoint of $157.5M) and bumped full‑year adjusted EBITDA margin to 23–25% (up 400 bps from 19–21%); adjusted free cash flow is expected to be positive for the year (Q1 was -$1.8M) with improvement weighted to H2. They noted ARR of $158M, RPO up $6M sequentially, CapEx being pulled forward (targeted around the mid‑30s % of revenue), >$100M leasing capacity (~50% used), plan to fund growth via operating cash flow and leases (no equity raise expected), and that guidance excludes deals >$500k, outsized variable usage, and incremental GTM upside.Backblaze Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
55
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 149.89M | 145.84M | 127.63M | 102.02M | 85.16M | 67.48M |
| Gross Profit | 93.07M | 88.79M | 69.34M | 49.86M | 43.86M | 34.34M |
| EBITDA | 6.28M | 3.83M | -16.54M | -31.01M | -27.00M | -1.61M |
| Net Income | -22.43M | -25.61M | -48.53M | -59.71M | -51.40M | -21.70M |
Balance Sheet | ||||||
| Total Assets | 192.67M | 191.83M | 168.56M | 131.69M | 152.46M | 163.58M |
| Cash, Cash Equivalents and Short-Term Investments | 45.48M | 51.38M | 54.91M | 29.30M | 65.42M | 104.84M |
| Total Debt | 62.35M | 61.58M | 46.34M | 45.96M | 45.49M | 33.25M |
| Total Liabilities | 108.02M | 108.61M | 90.94M | 86.75M | 83.71M | 68.09M |
| Stockholders Equity | 84.64M | 83.22M | 77.62M | 44.94M | 68.75M | 95.49M |
Cash Flow | ||||||
| Free Cash Flow | 13.50M | 18.85M | 10.79M | -27.58M | -29.76M | -7.67M |
| Operating Cash Flow | 22.52M | 23.54M | 12.51M | -7.35M | -13.78M | 3.52M |
| Investing Cash Flow | -18.92M | -25.34M | -6.13M | 21.66M | -73.85M | -11.19M |
| Financing Cash Flow | -17.93M | -14.80M | 22.77M | -8.84M | -6.21M | 106.61M |
Backblaze Technical Analysis
Positive
4.10
Price Trends
9.41
Positive
6.61
Positive
6.49
Positive
Market Momentum
2.49
Negative
82.20
Negative
92.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLZE, the sentiment is Positive. The current price of 4.1 is below the 20-day moving average (MA) of 12.70, below the 50-day MA of 9.41, and below the 200-day MA of 6.49, indicating a bullish trend. The MACD of 2.49 indicates Negative momentum. The RSI at 82.20 is Negative, neither overbought nor oversold. The STOCH value of 92.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLZE.
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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.69B | 56.81 | 10.20% | ― | 27.12% | ― | |
73 Outperform | $6.62B | 15.74 | -28.45% | ― | -0.62% | 20.48% | |
71 Outperform | $14.70B | 50.71 | 154.32% | ― | 17.61% | 119.62% | |
67 Neutral | $1.07B | -45.17 | -27.17% | ― | 13.32% | 61.29% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $25.55M | 47.47 | 0.58% | ― | 13.23% | ― | |
50 Neutral | $373.41M | -0.72 | -116.83% | ― | -58.96% | -44.30% |
* Technology Sector Average
BLZE
Backblaze
17.60
12.44
241.09%
DBX
Dropbox
29.19
2.10
7.75%
JG
Aurora Mobile
4.41
-7.43
-62.75%
AVPT
AvePoint
12.44
-6.02
-32.61%
BKKT
Bakkt Holdings, Inc. Class A
8.41
-10.05
-54.44%
DOCN
DigitalOcean Holdings
130.49
102.01
358.18%
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.