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Backblaze (BLZE) AI Stock Analysis
Backblaze
(NASDAQ:BLZE)
Improving operating performance and a strongly positive earnings outlook are the main strengths. These are offset by weak technical momentum, negative earnings-based valuation, continued losses, and financing and CapEx risks.
Backblaze (BLZE) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $469.82M
- Dividend Yield
- ―
- Average Volume (3M)
- 2.45M
- Price to Earnings (P/E)
- -22.3
- Beta (1Y)
- 2.31
- Revenue Growth
- 13.85%
- EPS Growth
- 61.09%
- Country
- US
- Employees
- 320
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Software - Infrastructure
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 high...
How the Company Makes Money
Backblaze makes money primarily through subscription-based cloud storage and backup services sold on recurring billing plans. Its main revenue streams are: (1) B2 Cloud Storage (object storage): customers pay based on usage (such as the amount of dat...
Backblaze Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Revenue and gross margins have improved, losses have narrowed, and free cash flow has turned positive. However, growth has slowed, net margins remain negative, debt has increased, and returns on equity remain negative.
Income Statement
62PositiveBalance Sheet
55NeutralCash Flow
68Positive| 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 | 10.36M | 3.93M | -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 Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLZE, the sentiment is Negative. The current price of 7.11 is below the 20-day moving average (MA) of 10.42, below the 50-day MA of 12.46, and below the 200-day MA of 9.20, indicating a bearish trend. The MACD of -1.36 indicates Positive momentum. The RSI at 27.30 is Positive, neither overbought nor oversold. The STOCH value of 36.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BLZE.
Backblaze Risk Analysis
Backblaze disclosed 58 risk factors in its most recent earnings report. Backblaze reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
3 New RisksBackblaze Peers Comparison
Overall Rating
DOCN74Outperform
AVPT69Neutral
DBX68Neutral
JG67Neutral- BLZE60Neutral
BKKT47Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| DOCN | 74Outperform | $10.54B | 35.58 | 54.71% | ― | 21.41% | 83.31% |
| AVPT | 69Neutral | $3.62B | 51.15 | 15.70% | ― | 24.95% | ― |
| DBX | 68Neutral | $7.88B | 19.92 | -23.53% | ― | -0.05% | 9.77% |
| JG | 67Neutral | $39.23M | 44.28 | 9.31% | ― | 14.88% | ― |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| BLZE | 60Neutral | $469.82M | -22.32 | -24.09% | ― | 13.85% | 61.09% |
| BKKT | 47Neutral | $209.12M | -0.62 | -16.48% | ― | -70.49% | 33.05% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| BLZE | Backblaze, Inc. | 7.59 | -2.82 | -27.09% | |
| DBX | Dropbox | 36.25 | 6.55 | 22.05% | |
| JG | Aurora Mobile | 6.54 | -0.63 | -8.79% | |
| AVPT | Avepoint, Inc. | 17.09 | 3.03 | 21.55% | |
| BKKT | Bakkt Holdings, Inc. Class A | 4.64 | -22.24 | -82.74% | |
| DOCN | Digitalocean Holdings, Inc. | 89.65 | 48.22 | 116.39% |
Backblaze Corporate Events
Backblaze Upsizes Convertible Notes to Bolster Growth Financing
PositiveOn 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, s...
Backblaze Boosts Liquidity with Convertible Notes and Credit Expansion
PositiveOn 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 un...
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.
Date of analysis: Oct 15, 2026