Backblaze (BLZE) AI Stock Analysis

• Market Cap: $278.11M
• Dividend Yield: N/A
• Average Volume (3M): 894.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• 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: 57,700,000
• 10 Day Avg. Volume: 984,954
• 30 Day Avg. Volume: 894,122
• 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: 1.95
• Enterprise Value/Revenue: 3.83
• Enterprise Value/Gross Profit: 6.47
• Enterprise Value/Ebitda: -120.18
• 1Y Price Target: $9.50
• Price Target Upside: 97.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.01
• Revenue Forecast (FY): $145.68M

• Rating: 50 Neutral
• Price Target: $5.00 ▲(3.73% Upside)

Backblaze's overall stock score reflects consistent revenue growth and improved cash flow, but ongoing profitability challenges and bearish technical indicators weigh heavily. The company's strategic restructuring and strong earnings call performance provide some positive outlook, but significant improvements in profitability and market sentiment are needed for a higher score.

Positive Factors

Revenue Growth

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

Gross Margin Improvement

Improving gross margins suggest enhanced cost efficiency and pricing power, which can lead to better profitability over time.

Strategic Restructuring

The restructuring plan aims to boost operational efficiency and sales effectiveness, potentially leading to improved financial performance.

Negative Factors

Profitability Challenges

Ongoing profitability issues can hinder reinvestment and growth, posing a risk to long-term financial health and shareholder value.

High Operating Expenses

Elevated operating costs can erode profit margins, necessitating cost management improvements to enhance financial sustainability.

Debt Levels

Rising debt levels increase financial risk and interest obligations, potentially limiting flexibility for strategic investments.

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 built on commodity hardware. It also provides Backblaze B2 Cloud Storage, which enables customers to store data, developers to build applications, and partners to expand their use cases. This service is offered as a consumption-based Infrastructure-as-a-Service (IaaS) and serves use cases, such as backups, multi-cloud, application development, and ransomware protection. In addition, the company offers Backblaze Computer Backup that automatically backs up data from laptops and desktops for businesses and individuals, which provides a subscription-based Software-as-a-Service and serves use cases, including computer backup, ransomware protection, theft and loss protection, and remote access. It serves the public cloud IaaS storage and Data-Protection-as-a-Service markets. The company was incorporated in 2007 and is headquartered in San Mateo, California.

How the Company Makes Money

Backblaze generates revenue primarily through its subscription-based services. Its Personal Backup service operates on a monthly or annual subscription model, allowing users to back up their data for a fixed fee. The B2 Cloud Storage platform is priced based on the amount of data stored and the bandwidth used, providing a flexible payment structure that scales with customer needs. Additionally, Backblaze benefits from partnerships with various technology companies and resellers, which help to expand its customer base and enhance its service offerings. The company's focus on competitive pricing and customer satisfaction has also contributed significantly to customer retention and growth.

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	141.86M	127.63M	102.02M	85.16M	67.48M	53.78M
Gross Profit	83.87M	69.34M	49.86M	43.86M	34.34M	27.98M
EBITDA	-4.51M	-16.54M	-31.01M	-27.00M	-1.61M	9.22M
Net Income	-34.58M	-48.53M	-59.71M	-51.40M	-21.70M	-6.62M
Balance Sheet
Total Assets	191.53M	168.56M	131.69M	152.46M	163.58M	54.47M
Cash, Cash Equivalents and Short-Term Investments	50.27M	54.91M	29.30M	65.42M	104.84M	6.08M
Total Debt	64.14M	46.34M	45.96M	45.49M	33.25M	31.48M
Total Liabilities	108.70M	90.94M	86.75M	83.71M	68.09M	61.31M
Stockholders Equity	82.83M	77.62M	44.94M	68.75M	95.49M	-6.84M
Cash Flow
Free Cash Flow	9.10M	10.79M	-27.58M	-29.76M	-7.67M	7.84M
Operating Cash Flow	16.42M	12.51M	-7.35M	-13.78M	3.52M	12.82M
Investing Cash Flow	-16.47M	-6.13M	21.66M	-73.85M	-11.19M	-4.97M
Financing Cash Flow	21.50M	22.77M	-8.84M	-6.21M	106.61M	-8.75M

Backblaze Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 4.82 is above the 20-day moving average (MA) of 4.72, below the 50-day MA of 6.75, and below the 200-day MA of 6.40, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 39.02 is Neutral, neither overbought nor oversold. The STOCH value of 27.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BLZE.

Backblaze Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOCN	73 Outperform	$4.35B	19.28	―	―	14.20%	204.86%
AVPT	65 Neutral	$3.01B	―	0.58%	―	24.71%	99.52%
DBX	62 Neutral	$7.18B	16.26	―	―	-0.44%	2.47%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JG	58 Neutral	$40.52M	-80.65	-5.30%	―	20.68%	84.51%
BLZE	50 Neutral	$278.11M	-7.25	-55.03%	―	15.73%	40.14%
BKKT	48 Neutral	$329.61M	―	-48.63%	―	101.97%	58.61%

Backblaze Corporate Events

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.