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Backblaze
(NASDAQ:BLZE)
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Rating:64Neutral
Price Target:
$17.00
▲(11.26% Upside)
Action:Downgraded
Date:08/24/26
BLZE scores in the mid-range primarily due to improving fundamentals supported by strong positive free cash flow and a highly constructive earnings update with raised revenue and EBITDA guidance. Offsetting this are continued net losses and rising leverage, plus only mixed technical signals and limited valuation support due to a negative P/E and no dividend yield.
Positive Factors
B2 growth and customer expansion
Strong B2 growth, retention above 100%, and increasing large-customer adoption support recurring expansion. These indicators suggest the storage platform is gaining durable relevance with developers, enterprises, and AI-focused customers.
Negative Factors
Persistent net losses
Backblaze has improved gross margin and EBITDA, but continuing net and EBIT losses show that full profitability has not been established. Ongoing investment and infrastructure costs could delay durable earnings conversion.
Read all positive and negative factors
Positive Factors
Negative Factors
B2 growth and customer expansion
Strong B2 growth, retention above 100%, and increasing large-customer adoption support recurring expansion. These indicators suggest the storage platform is gaining durable relevance with developers, enterprises, and AI-focused customers.
Read all positive factors
Backblaze (BLZE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$945.83M
Dividend YieldN/A
Average Volume (3M)4.18M
Price to Earnings (P/E)―
Beta (1Y)2.15
Revenue Growth13.85%
EPS Growth61.09%
CountryUS
Employees320
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.34
Shares Outstanding61,900,000
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 Ratio23.21
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 Upside49.43% 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 | 10.13M | 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 | 20.60M | 11.29M | 10.79M | -27.58M | -29.76M | -7.67M |
| Operating Cash Flow | 28.84M | 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 | -16.13M | -14.80M | 22.77M | -8.84M | -6.21M | 106.61M |
Backblaze Risk Analysis
Backblaze disclosed 58 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $7.56B | 19.12 | -23.53% | ― | -0.05% | 9.77% | |
70 Outperform | $40.79M | 44.46 | 9.31% | ― | 14.88% | ― | |
70 Outperform | $2.77B | 39.54 | 15.70% | ― | 24.95% | ― | |
69 Neutral | $13.24B | 45.63 | 54.71% | ― | 21.41% | 83.31% | |
64 Neutral | $945.83M | -44.06 | -24.09% | ― | 13.85% | 61.09% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
49 Neutral | $388.95M | -1.10 | -16.48% | ― | -70.49% | 33.05% |
* Technology Sector Average
BLZE
Backblaze
14.98
6.78
82.68%
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Backblaze Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Backblaze Upsizes Convertible Notes to Bolster Growth Financing
Positive
Aug 24, 2026
On August 24, 2026, Backblaze issued $201.25 million of 0.00% convertible senior notes due 2031 in a Rule 144A private offering, after upsizing the deal from $150 million and including full exercise of the purchasers’ option. The zero-coupon...
Business Operations and StrategyPrivate Placements and Financing
Backblaze Boosts Liquidity with Convertible Notes and Credit Expansion
Positive
Aug 19, 2026
On August 18, 2026, Backblaze announced plans to raise $150 million through a private offering of convertible senior notes due 2031, with an option for initial purchasers to buy an additional $22.5 million, targeting qualified institutional buyers...
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.