Backblaze (BLZE)
NASDAQ:BLZE
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Backblaze
(NASDAQ:BLZE)
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Rating:64Neutral
Price Target:
$5.00
▲(21.95% Upside)
Action:ReiteratedDate:05/05/26
The score is driven primarily by improving fundamentals (notably the cash flow turnaround) and a constructive earnings call with raised guidance and strong B2/AI momentum. Technicals are supportive but somewhat stretched, while valuation is held back by continued net losses and the lack of dividend support.
Positive Factors
Sustained cash-generation turnaround
Backblaze shifted from cash burn to meaningful cash generation, producing operating cash flow of $23.5M and FCF of $18.9M in 2025. Durable positive cash flow increases funding optionality for growth, reduces reliance on equity raises, and supports lease-based capacity funding and modest buybacks if sustained.
Negative Factors
Ongoing net losses and incomplete profitability
Despite improving margins and positive cash flow, the company remains unprofitable on a GAAP basis with a sizable negative net margin. Persisting net losses can erode equity over time, limit strategic flexibility, and mean earnings volatility if revenue or cost trends reverse.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained cash-generation turnaround
Backblaze shifted from cash burn to meaningful cash generation, producing operating cash flow of $23.5M and FCF of $18.9M in 2025. Durable positive cash flow increases funding optionality for growth, reduces reliance on equity raises, and supports lease-based capacity funding and modest buybacks if sustained.
Read all positive factors
Backblaze (BLZE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$278.86M
Dividend YieldN/A
Average Volume (3M)606.17K
Price to Earnings (P/E)―
Beta (1Y)1.68
Revenue Growth14.27%
EPS Growth58.66%
CountryUS
Employees346
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.46
Shares Outstanding60,100,000
10 Day Avg. Volume535,693
30 Day Avg. Volume606,167
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 Cap1.72
Enterprise Value/Revenue3.29
Enterprise Value/Gross Profit5.41
Enterprise Value/Ebitda125.34
Forecast
1Y Price Target
$8.40Price Target Upside104.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.02
Revenue Forecast (FY)$157.52M
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: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
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
4.10
Price Trends
3.80
Positive
4.29
Negative
6.02
Negative
Market Momentum
0.01
Negative
65.16
Neutral
95.71
Negative
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 4.1 is above the 20-day moving average (MA) of 3.61, above the 50-day MA of 3.80, and below the 200-day MA of 6.02, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 65.16 is Neutral, neither overbought nor oversold. The STOCH value of 95.71 is Negative, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $11.14B | 42.89 | -214.15% | ― | 15.48% | 208.22% | |
66 Neutral | $2.27B | 47.75 | 7.96% | ― | 26.93% | ― | |
64 Neutral | $278.86M | -8.32 | -27.17% | ― | 14.27% | 58.66% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $5.99B | 16.01 | -35.62% | ― | -1.07% | 33.07% | |
57 Neutral | $41.77M | 22.16 | 0.58% | ― | 18.76% | ― | |
48 Neutral | $273.84M | -0.40 | -139.50% | ― | -32.55% | 31.06% |
* Technology Sector Average
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Backblaze
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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.