Backblaze (BLZE) AI Stock Analysis

• Market Cap: $403.41M
• Dividend Yield: N/A
• Average Volume (3M): 394.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: 19.08%
• EPS Growth: 28.99%
• Country: US
• Employees: 346
• Sector: Technology
• Sector Strength: 98
• Industry: Software - Infrastructure
• EPS (TTM): 0.01
• Shares Outstanding: 56,500,000
• 10 Day Avg. Volume: 526,174
• 30 Day Avg. Volume: 394,456
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 2.40
• Enterprise Value/Gross Profit: 4.36
• Enterprise Value/Ebitda: -14.21
• 1Y Price Target: $9.58
• Price Target Upside: 34.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 67 Neutral
• Price Target: $7.00 ▼(-1.96% Downside)

Backblaze's strong revenue growth and positive earnings call sentiment are significant strengths, contributing positively to the overall score. However, persistent profitability challenges and valuation concerns weigh down the score. The technical analysis indicates positive momentum, but caution is advised due to potential overbought conditions.

Positive Factors

Go-to-Market Execution

The stock is up about 20% midday, with investors likely responding to sharper go-to-market execution, rising GenAI tailwinds, and improving profitability.

Revenue Growth

Backblaze reported healthy second-quarter results above the Street while raising full-year revenue guidance by $1 million at the midpoint.

Negative Factors

Accounting Concerns

The analyst disagrees with the allegations of accounting malpractice at Backblaze and sees the share pullback as a buying opportunity.

Share Dilution

The recent secondary offering added 7.2M shares to the share count, leading to a lower $11 price target due to dilution.

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 through a subscription-based model, primarily from its cloud storage and backup services. The company's key revenue streams include Personal Backup, Business Backup, and B2 Cloud Storage. Personal and Business Backup services are offered on a subscription basis, allowing users to pay monthly or yearly for unlimited data backup. B2 Cloud Storage provides scalable, on-demand storage solutions priced based on usage, with fees based on the amount of data stored and the bandwidth consumed. Additionally, Backblaze partners with various software and technology companies to integrate its storage solutions, thereby expanding its customer base and driving revenue growth. Factors such as competitive pricing, ease of use, and high reliability contribute to Backblaze's ability to attract and retain customers, supporting its revenue model.

Backblaze Financial Statement Overview

Summary

Backblaze exhibits strong revenue growth and improved cash flow generation. However, persistent net losses and negative profit margins suggest challenges in achieving profitability. The balance sheet shows moderate leverage but highlights the need for improved equity financing. Continued focus on cost management and profitability will be crucial for long-term sustainability.

Income Statement

Backblaze has demonstrated consistent revenue growth with a notable increase from $85.16 million in 2022 to $132.27 million TTM (Trailing-Twelve-Months). However, the company remains unprofitable, with a negative net profit margin of -35.4% TTM. The EBIT and EBITDA margins are also negative, indicating operational challenges. The gross profit margin is strong at 55%, showing efficient cost management in revenue generation.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.62, suggesting a balanced use of debt. However, the company has a low equity ratio of 45.7%, indicating a significant portion of assets is financed through liabilities. The return on equity remains negative due to ongoing losses, posing concerns for the company's ability to generate shareholder value.

Cash Flow

Operating cash flow is positive at $14.03 million TTM, and free cash flow has improved to $6.35 million, highlighting better cash management. However, the free cash flow to net income ratio is not meaningful due to persistent net losses. The company shows potential to generate cash despite profitability issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	127.63M	102.02M	85.16M	67.48M	53.78M
Gross Profit	69.34M	49.86M	43.86M	34.34M	27.98M
EBITDA	-16.54M	-31.02M	-24.54M	-1.61M	9.22M
Net Income	-48.53M	-59.71M	-51.70M	-21.70M	-6.62M
Balance Sheet
Total Assets	168.56M	131.69M	150.91M	163.58M	54.47M
Cash, Cash Equivalents and Short-Term Investments	54.91M	29.30M	65.42M	104.84M	6.08M
Total Debt	46.34M	46.85M	44.87M	33.25M	31.48M
Total Liabilities	90.94M	86.75M	82.36M	68.09M	61.31M
Stockholders Equity	77.62M	44.94M	68.56M	95.49M	-6.84M
Cash Flow
Free Cash Flow	10.79M	-27.58M	-29.76M	-7.69M	7.84M
Operating Cash Flow	12.51M	-7.35M	-13.78M	3.52M	12.82M
Investing Cash Flow	-6.13M	21.66M	-73.85M	-11.19M	-4.97M
Financing Cash Flow	22.77M	-8.84M	-6.21M	106.61M	-8.75M

Backblaze Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 7.14 is above the 20-day moving average (MA) of 5.43, above the 50-day MA of 5.43, and above the 200-day MA of 5.89, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 79.25 is Negative, neither overbought nor oversold. The STOCH value of 91.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLZE.

Backblaze Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWI	68 Neutral	$3.20B	28.86	7.87%	―	5.03%	―
BLZE	67 Neutral	$403.41M	―	-69.83%	―	19.08%	28.99%
DBX	66 Neutral	$7.57B	16.46	-60.11%	―	-0.04%	-5.07%
AVPT	61 Neutral	$3.04B	―	-2.60%	―	24.41%	40.20%
TENB	60 Neutral	$3.54B	―	-12.60%	―	11.41%	33.76%
KPLT	58 Neutral	$56.66M	―	86.76%	―	9.71%	-1.97%
Sector *	50 Neutral	C$3.51B	2.16	-5.03%	7.62%	12.24%	-7.27%

Backblaze Corporate Events

Backblaze Announces $10 Million Stock Repurchase Program

On August 7, 2025, Backblaze announced a stock repurchase program, allowing the company to buy back up to $10 million of its Class A common stock over the next 12 months, enhancing financial flexibility. In its second quarter of 2025, Backblaze reported a 16% overall revenue growth, with a notable 29% increase in B2 Cloud Storage revenue, and introduced new cybersecurity features and AI-powered solutions, positioning itself as a leading independent cloud storage provider.

The most recent analyst rating on (BLZE) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Backblaze stock, see the BLZE Stock Forecast page.

Backblaze Secures $20 Million Credit Facility

On June 4, 2025, Backblaze, Inc. entered into a credit agreement with Citizens Bank, N.A., securing a $20 million senior secured revolving credit facility. This agreement, which includes various financial covenants and pledges, is intended to support the company’s working capital and general corporate purposes, potentially impacting its operational flexibility and financial strategy.

The most recent analyst rating on (BLZE) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Backblaze stock, see the BLZE Stock Forecast page.

Backblaze Holds 2025 Annual Stockholders Meeting

On May 27, 2025, Backblaze, Inc. held its 2025 Annual Meeting of Stockholders via webcast, where stockholders voted on two proposals. The first proposal involved the election of Class I directors, Barbara Nelson and Earl E. Fry, who were elected to serve until the 2028 annual meeting. The second proposal ratified Deloitte & Touche LLP as the independent public accounting firm for the fiscal year ending December 31, 2025. These decisions reflect the company’s ongoing governance and financial oversight strategies.

The most recent analyst rating on (BLZE) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Backblaze stock, see the BLZE Stock Forecast page.