Backblaze (BLZE)
NASDAQ:BLZE
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Backblaze
(NASDAQ:BLZE)
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Rating:56Neutral
Price Target:
$3.50
▼(-2.23% Downside)
Action:ReiteratedDate:02/25/26
The score is driven primarily by improving financial fundamentals—especially the sharp turnaround to positive operating and free cash flow—plus constructive but cautious guidance and backlog strength from the latest earnings call. These positives are moderated by persistent GAAP losses and rising debt, while the technical setup remains weak with the stock in a clear downtrend below key moving averages.
Positive Factors
Sustained Cash Generation
Backblaze’s shift to positive operating cash flow and materially improved free cash flow demonstrates durable cash-generation capacity. This strengthens funding for growth, funds CapEx and leases, and reduces reliance on external financing if the company can sustain FCF through normal revenue cyclicality.
Negative Factors
Persistent GAAP Losses
Despite improving unit economics, Backblaze remains GAAP unprofitable with a negative net margin. Continued net losses can erode equity and constrain strategic optionality if improving cash flow proves cyclical, so sustained progress to profitability is required for long-term financial resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Cash Generation
Backblaze’s shift to positive operating cash flow and materially improved free cash flow demonstrates durable cash-generation capacity. This strengthens funding for growth, funds CapEx and leases, and reduces reliance on external financing if the company can sustain FCF through normal revenue cyclicality.
Read all positive factors
Backblaze (BLZE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$210.95M
Dividend YieldN/A
Average Volume (3M)664.52K
Price to Earnings (P/E)―
Beta (1Y)1.53
Revenue Growth15.73%
EPS Growth40.14%
CountryUS
Employees346
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.06
Shares Outstanding60,100,000
10 Day Avg. Volume445,513
30 Day Avg. Volume664,525
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 Cap1.27
Enterprise Value/Revenue1.84
Enterprise Value/Gross Profit3.02
Enterprise Value/Ebitda69.88
Forecast
1Y Price Target
$6.90Price Target Upside92.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.01
Revenue Forecast (FY)$157.50M
Backblaze Business Overview & Revenue Model
Company Description
Backblaze, Inc., a storage cloud platform, provides businesses and consumers cloud services to store, use, and protect data in the United States and internationally. The company offers cloud services through a web-scale software infrastructure bui...
How the Company Makes Money
Backblaze primarily makes money by selling subscription-based cloud storage and data protection services. Its main revenue stream is Backblaze B2 Cloud Storage, where customers are billed based on usage (e.g., the amount of data stored and related...
Backblaze Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call highlighted major operational and financial milestones: first adjusted free cash flow positive quarter, doubled adjusted EBITDA margin, strong B2 growth (26% FY) and notable upmarket traction including a >$15M TCV neocloud deal and the launch of B2 Neo. Management also detailed a disciplined, derisked guidance approach and plans to invest in AI-focused product and GTM initiatives. Offsetting these positives are near-term headwinds: guidance removes upside from swing deals, NRR showed sequential variability driven by a large usage customer, computer backup is expected to decline ~5% in 2026, and gross margins will face pressure from higher data center costs and accelerated CapEx. Overall, the company portrays durable long-term opportunity and improved capital efficiency while acknowledging short-term lumpiness and margin pressure.Positive Updates
Q4 Revenue and Profitability Milestones
Total revenue in Q4 was $37.8M (in line with guidance). Adjusted EBITDA margin reached 28% (doubled year-over-year) and adjusted free cash flow was positive $4M (11% margin), marking the company's first adjusted free cash flow profitability as a public company.
Negative Updates
Quarterly B2 Growth Miss and Guidance Derisking
Q4 B2 growth was modestly below the previously outlined range; management has derisked 2026 guidance by excluding large swing deals and modeling customers with minimum contractual commitments only, reducing upside in the official outlook.
Read all updates
Q4-2025 Updates
Positive
Negative
Q4 Revenue and Profitability Milestones
Total revenue in Q4 was $37.8M (in line with guidance). Adjusted EBITDA margin reached 28% (doubled year-over-year) and adjusted free cash flow was positive $4M (11% margin), marking the company's first adjusted free cash flow profitability as a public company.
Read all positive updates
Company Guidance
Backblaze guided to Q1 2026 revenue of $37.6–$38.0M with adjusted EBITDA margins of 18–20%, and full‑year 2026 revenue of $156.5–$158.5M with full‑year adjusted EBITDA margins of 19–21%, while expecting adjusted free cash flow to be roughly neutral for the year (noting normal quarterly variability) after reporting Q4 adjusted free cash flow of $4M (11% margin) and a Q4 adjusted EBITDA margin of 28%. Management said it derisked the outlook by excluding large swing deals and anchoring assumptions to contractual minimums, expects B2 revenue of approximately 20% for the year (with Q2–Q3 B2 YoY growth of 12–19% given a difficult comp), noted RPO up 60% YoY to $66M and $51M in cash and marketable securities, and plans to fund growth through operating cash flow and capital leases without raising additional capital.Backblaze Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
56
Neutral
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 145.84M | 127.63M | 102.02M | 85.16M | 67.48M |
| Gross Profit | 88.79M | 69.34M | 49.86M | 43.86M | 34.34M |
| EBITDA | 3.83M | -16.54M | -31.01M | -27.00M | -1.61M |
| Net Income | -25.61M | -48.53M | -59.71M | -51.40M | -21.70M |
Balance Sheet | |||||
| Total Assets | 191.83M | 168.56M | 131.69M | 152.46M | 163.58M |
| Cash, Cash Equivalents and Short-Term Investments | 51.38M | 54.91M | 29.30M | 65.42M | 104.84M |
| Total Debt | 81.75M | 46.34M | 45.96M | 45.49M | 33.25M |
| Total Liabilities | 108.61M | 90.94M | 86.75M | 83.71M | 68.09M |
| Stockholders Equity | 83.22M | 77.62M | 44.94M | 68.75M | 95.49M |
Cash Flow | |||||
| Free Cash Flow | 18.85M | 10.79M | -27.58M | -29.76M | -7.67M |
| Operating Cash Flow | 23.54M | 12.51M | -7.35M | -13.78M | 3.52M |
| Investing Cash Flow | -25.34M | -6.13M | 21.66M | -73.85M | -11.19M |
| Financing Cash Flow | -14.80M | 22.77M | -8.84M | -6.21M | 106.61M |
Backblaze Technical Analysis
Neutral
3.58
Price Trends
3.82
Negative
4.30
Negative
6.04
Negative
Market Momentum
-0.09
Negative
46.54
Neutral
39.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLZE, the sentiment is Neutral. The current price of 3.58 is above the 20-day moving average (MA) of 3.56, below the 50-day MA of 3.82, and below the 200-day MA of 6.04, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 46.54 is Neutral, neither overbought nor oversold. The STOCH value of 39.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $2.05B | 82.10 | 7.96% | ― | 24.71% | 99.52% | |
65 Neutral | $8.18B | 42.89 | -214.15% | ― | 14.20% | 204.86% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $5.42B | 14.67 | -35.62% | ― | -0.44% | 2.47% | |
57 Neutral | $38.81M | 22.16 | 0.58% | ― | 20.68% | 84.51% | |
56 Neutral | $210.95M | -10.23 | -31.67% | ― | 15.73% | 40.14% | |
47 Neutral | $266.50M | -0.40 | -139.50% | ― | 101.97% | 58.61% |
* Technology Sector Average
BLZE
Backblaze
3.58
-1.07
-23.01%
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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.