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Backblaze (NASDAQ: BLZE) signs $335M AI deal and lifts 2026 guidance

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Backblaze, Inc. reported Q2 2026 results with revenue of $42.7 million, up 18% year over year. B2 Cloud Storage revenue rose to $26.6 million, up 34%, while Computer Backup revenue was $16.1 million, down 2%. Gross margin held at 63%, and adjusted gross margin was 80%. The company posted a GAAP net loss of $5.1 million, or $0.08 per share, improved from a $7.1 million loss, while adjusted EBITDA doubled to $12.8 million (30% margin). Non-GAAP net income was $5.0 million, or $0.08 per share.

Annual recurring revenue reached $177.3 million, up 21%, with B2 ARR up 39% to $113.3 million. Remaining performance obligations climbed to $396 million, driven by a 5+ year, $335 million strategic CoreWeave agreement supporting AI workloads and several large AI-related wins. Cash, cash equivalents and marketable securities totaled $49.9 million, and adjusted free cash flow for the first half was $1.4 million, turning positive.

For Q3 2026, the company expects revenue of $44.4–$44.8 million and adjusted EBITDA margin of 27–29%. Full-year 2026 revenue guidance was raised to $172.0–$174.0 million, with adjusted EBITDA margin guidance increased to 27–29%.

Positive

  • 18% top-line growth to $42.7 million in Q2 2026, led by B2 Cloud Storage revenue of $26.6 million growing 34% year over year and driving ARR up 21% to $177.3 million.
  • $335 million CoreWeave agreement over 5+ years and RPO of $396 million (up $319.5 million quarter over quarter) materially increase contracted revenue visibility, especially for AI-related workloads.
  • Profitability metrics improved: adjusted EBITDA rose to $12.8 million (30% margin) from $6.6 million (18% margin), non-GAAP net income reached $5.0 million, and adjusted free cash flow turned positive $1.4 million for the first half of 2026.
  • Raised 2026 outlook: full-year revenue guidance increased to $172.0–$174.0 million from $161.5–$163.5 million, and adjusted EBITDA margin guidance lifted to 27–29% from 23–25%.

Negative

  • GAAP losses continue: Q2 2026 net loss was $5.1 million (–$0.08 per share), and accumulated deficit stood at $232.8 million, indicating dependence on non-GAAP adjustments to show profitability.

Filing Explained

The CoreWeave deal includes warrants for potential shares, creating dilution capacity for existing holders without showing completed issuance.

The Form 8-K, which reports specified material events, furnishes Backblaze’s second-quarter results and discloses a signed five-plus-year CoreWeave agreement whose warrant component creates potential dilution capacity for existing common holders, rather than documenting completed issuance.

The warrant structure covers $22 million of stated value and shares at a $7.60 exercise price; vesting is tied to contract performance and duration.

As of June 30, 2026, Backblaze reported 62,374,253 Class A shares issued and 61,803,439 outstanding, against 113,000,000 authorized shares.

The disclosed vesting schedule is the key resolution path: managed-storage warrants have installments over five years and expire on June 16, 2032, while other warrants expire on June 16, 2035.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Revenue $42.7 million Quarter ended June 30, 2026; 18% year-over-year growth
B2 Cloud Storage Revenue $26.6 million Q2 2026 B2 revenue; 34% year-over-year growth
Q2 2026 Net Loss $5.1 million GAAP net loss in Q2 2026 vs $7.1 million in Q2 2025
Adjusted EBITDA $12.8 million Q2 2026 adjusted EBITDA; 30% of revenue, up from $6.6 million
Annual Recurring Revenue $177.3 million ARR as of June 30, 2026; 21% year-over-year increase
CoreWeave Agreement Value $335 million 5+ year strategic AI storage agreement including ~$22 million of warrants
Remaining Performance Obligations $396 million RPO at Q2 2026, up $319.5 million quarter over quarter
Cash and Investments $49.9 million Cash, cash equivalents and marketable securities as of June 30, 2026
Annual recurring revenue (ARR) financial
"Annual recurring revenue (ARR) was $177.3 million, an increase of 21% YoY."
Annual Recurring Revenue (ARR) is the predictable amount of money a company expects to earn in a year from its ongoing services or subscriptions. It helps businesses understand their steady income stream, much like knowing how much rent they can count on each year, which is important for planning and growth.
Net revenue retention rate (NRR) financial
"Net revenue retention rate (NRR) was 103% compared to 106% in Q2 2025."
Adjusted EBITDA financial
"Adjusted EBITDA was $12.8 million, or 30% of revenue, compared to $6.6 million."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
RPO financial
"RPO reached $396 million, up $319.5 million quarter over quarter."
Remaining Performance Obligations (RPO) is the total value of contracted revenue not yet delivered or recognized. It includes deferred revenue and backlog from signed contracts. RPO shows investors how much future revenue is already locked in.
Adjusted free cash flow financial
"Adjusted free cash flow during the six months ended June 30, 2026 was $1.4 million."
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
neoclouds market
"Neoclouds need a complete storage stack."
Revenue $42.7 million up 18% year-over-year from $36.298 million in Q2 2025
B2 Cloud Storage revenue $26.6 million up 34% year-over-year
GAAP net loss $(5.1) million improved from $(7.1) million in Q2 2025
Adjusted EBITDA $12.8 million (30% margin) up from $6.6 million (18% margin) in Q2 2025
Annual recurring revenue (ARR) $177.3 million up 21% year-over-year
2026 revenue guidance $172.0–$174.0 million raised from $161.5–$163.5 million
2026 adjusted EBITDA margin guidance 27–29% raised from 23–25%
Guidance

For Q3 2026, the company expects revenue of $44.4–$44.8 million and adjusted EBITDA margin of 27–29%, and for full-year 2026 it raised revenue guidance to $172.0–$174.0 million with adjusted EBITDA margin of 27–29%.

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FAQ

What were Backblaze (BLZE) Q2 2026 revenue and year-over-year growth?
Backblaze generated Q2 2026 revenue of $42.7 million, an 18% year-over-year increase. Revenue was $36.298 million in Q2 2025. Gross margin stayed at 63%, while adjusted gross margin reached 80%, reflecting strong operating leverage as the business scaled.

How did B2 Cloud Storage perform for Backblaze (BLZE) in Q2 2026?
B2 Cloud Storage revenue was $26.6 million, up 34% year over year. B2 ARR reached $113.3 million, growing 39% year over year. B2 net revenue retention was 113%, and B2 gross customer retention remained high at 89% in both Q2 2026 and Q2 2025.

What is the CoreWeave strategic agreement highlighted by Backblaze (BLZE)?
Backblaze signed a 5+ year, $335 million strategic agreement with CoreWeave to provide multi-exabyte B2 storage for AI workloads. The deal includes warrants valued at about $22 million, helping lift remaining performance obligations to $396 million and strengthening long-term revenue visibility.

Did Backblaze (BLZE) achieve profitability on a non-GAAP basis in Q2 2026?
Yes. While GAAP net loss was $5.1 million, Backblaze reported non-GAAP net income of $5.0 million and adjusted EBITDA of $12.8 million, a 30% margin. Adjusted gross margin was 80%, and adjusted free cash flow for the first half totaled $1.4 million.

What guidance did Backblaze (BLZE) provide for Q3 and full-year 2026?
For Q3 2026, Backblaze expects revenue of $44.4–$44.8 million and adjusted EBITDA margin of 27–29%. For full-year 2026, it raised revenue guidance to $172.0–$174.0 million and increased adjusted EBITDA margin guidance to 27–29% from a prior 23–25% range.

How strong is Backblaze (BLZE) AI and upmarket customer momentum?
AI-related demand is significant: the company signed a $335 million CoreWeave deal and a seven-figure ARR B2 Overdrive win with a frontier AI model developer. ARR from customers generating $50,000+ ARR grew 67% year over year, with their count up 57%.
0001462056FALSE00014620562026-08-032026-08-03

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

August 3, 2026
Date of Report (date of earliest event reported)

Backblaze, Inc.
(Exact name of registrant as specified in its charter)

Delaware
001-41026
20-8893125
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
2261 Market Street STE 81006, San Francisco, California
94114
(Address of Principal Executive Offices)
(Zip Code)
(650) 352-3738
Registrant's telephone number, including area code

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A Common Stock, par value $0.0001 per share
BLZE
The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐


Item 2.02 Results of Operations and Financial Condition.

On August 3, 2026, the Company issued a press release announcing its financial results for the quarter ended June 30, 2026. A copy of the press release and supplemental earnings presentation is attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated herein by reference.

This information is intended to be furnished under Item 2.02 and Item 9.01 of Form 8-K, “Results of Operations and Financial Condition” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.
Description
99.1
Press release issued by Backblaze, Inc., dated August 3, 2026
99.2
Supplemental earnings presentation, dated August 3, 2026
104
Cover Page Interactive Data File (formatted as Inline XBRL)




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:
August 3, 2026
Backblaze, Inc.
By:
/s/ Marc Suidan
Marc Suidan, Chief Financial Officer

Exhibit 99.1
Backblaze Announces Second Quarter 2026 Financial Results

34% Revenue Growth in B2 Cloud Storage, 18% Revenue Growth Overall in Q2 2026

San Francisco, CA (August 3, 2026)—Backblaze, Inc. (Nasdaq: BLZE), the storage platform powering AI and data-intensive workloads, today announced results for its second quarter ended June 30, 2026.

“Q2 was an amazing quarter for Backblaze. We exceeded the high end of our revenue and Adjusted EBITDA guidance, with B2 growth accelerating to 34% year over year,” said Gleb Budman, co-founder and CEO of Backblaze. “We also signed a $335 million strategic agreement with CoreWeave offering the strongest validation yet of our critical role in the AI infrastructure stack. AI workloads need a capacity storage layer that can scale to exabytes, while delivering performance at attractive economics. That is where Backblaze is built to win.”

Second Quarter 2026 Financial Highlights:(1)

•Revenue of $42.7 million, an increase of 18% year-over-year (YoY).
•B2 Cloud Storage revenue was $26.6 million, an increase of 34% YoY.
•Computer Backup revenue was $16.1 million, a decrease of 2% YoY.
•Gross profit of $26.8 million, or 63% of revenue, compared to $23.0 million, or 63% of revenue, in Q2 2025.
•Adjusted gross profit of $34.3 million, or 80% of revenue, compared to $28.8 million, or 79% of revenue, in Q2 2025.
•Net loss was $5.1 million compared to a net loss of $7.1 million in Q2 2025.
•Net loss per share was $0.08 compared to a net loss per share of $0.13 in Q2 2025.
•Adjusted EBITDA was $12.8 million, or 30% of revenue, compared to $6.6 million, or 18% of revenue, in Q2 2025.
•Non-GAAP net income of $5.0 million compared to non-GAAP net income of $0.8 million in Q2 2025.
•Non-GAAP net income per share of $0.08 compared to a non-GAAP net income per share of $0.01 in Q2 2025.
•Cash flow from operations during the six months ended June 30, 2026 was $13.8 million, compared to $8.5 million for the same period in 2025.
•Adjusted free cash flow during the six months ended June 30, 2026 was $1.4 million, compared to $(6.0) million for the same period in 2025.
•Cash, cash equivalents, and marketable securities totaled $49.9 million as of June 30, 2026.
________________
(1) Some amounts may not sum due to rounding.
1

Second Quarter 2026 Operational Highlights:

•Annual recurring revenue (ARR) was $177.3 million, an increase of 21% YoY.
◦B2 Cloud Storage ARR was $113.3 million, an increase of 39% YoY.
◦Computer Backup ARR was $64.0 million, relatively flat YoY.
•Net revenue retention rate (NRR) was 103% compared to 106% in Q2 2025.
◦B2 Cloud Storage NRR was 113% compared to 114% in Q2 2025.
◦Computer Backup NRR was 94% compared to 99% in Q2 2025.
•Gross customer retention rate was 91% in Q2 2026 compared to 90% in Q2 2025.
◦B2 Cloud Storage gross customer retention rate was 89% in both Q2 2026 and Q2 2025.
◦Computer Backup gross customer retention rate was 91% compared to 90% in Q2 2025.

Recent Business Highlights:

•Signed a 5+ year, $335 million strategic agreement with CoreWeave: The landmark agreement includes warrants valued at approximately $22 million, aligning the companies’ long-term interests and validating Backblaze as a strategic storage tier provider for AI workloads at massive scale.
•Expanded momentum with larger customers: ARR from customers generating $50,000+ in ARR grew 67% year over year, and the number of these customers increased 57% year over year, reflecting continued success scaling with larger accounts.
•Won largest B2 Overdrive deal to date with a frontier AI model: Signed a seven-figure ARR B2 Overdrive deal with a leading AI model developer, demonstrating demand for high-performance, cost-effective storage for AI workloads.
•Strengthened long-term revenue visibility: RPO reached $396 million, up $319.5 million quarter over quarter, led by the CoreWeave agreement and demand from AI-native companies.
•Expanded the B2 developer ecosystem: Shipped new SDKs and AI agent tools and launched Backblaze’s Generative Media Hackathon, increasing awareness of B2 as a storage platform for AI applications.

Financial Outlook:

Based on information available as of the date of this press release,

For the third quarter of 2026, we expect:
•Revenue between $44.4 million and $44.8 million.
•Adjusted EBITDA margin between 27% and 29%.
•Basic weighted average shares outstanding of 62.3 million to 62.5 million shares.

For full-year 2026, we have raised our outlook:
•Revenue between $172.0 million and $174.0 million, raised from $161.5 million to $163.5 million.
•Adjusted EBITDA margin range of 27% to 29%, raised from 23% to 25%.

2

Conference Call Information:

Backblaze will host a conference call today, August 3, 2026, at 2:00 p.m. PT (5:00 p.m. ET) to review its financial results.

Attend the webcast here: https://events.q4inc.com/attendee/704175018

An archive of the webcast will be available shortly after its completion on the Investor Relations section of the Backblaze website at https://ir.backblaze.com.

Register to listen by phone here: https://events.q4inc.com/analyst/704175018?pwd=29EpzfWI
Phone registrants will receive dial-in information via email.


About Backblaze

Backblaze (NASDAQ: BLZE) is the object storage layer powering AI infrastructure and data-intensive workloads at scale. Built over two decades, the company has leveraged hardware, software, and operational innovation into a platform that delivers the performance and economics the AI era demands—without lock-in. Today, more than 500,000 customers trust Backblaze to move and store the data powering their businesses, reaching hundreds of millions of end users across 175 countries. For more information, visit www.backblaze.com.

Cautionary Note Regarding Forward-looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve risks and uncertainties. These forward-looking statements are frequently identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” or other similar terms or expressions that relate to our future performance, expectations, strategy, plans or intentions, and include statements in the section titled “Financial Outlook.”

Our actual results could differ materially from those stated in or implied by the forward-looking statements in this press release due to a number of factors, including but not limited to: the impact of our go-to-market transformation and ability to attract and retain customers, including increasingly larger customers; the continued growth of data stored by our customers; continued growth of AI related business; rapidly evolving technological developments in the market, including advancement in AI; realizing the anticipated benefits relating to cost savings initiatives and the re-investment of savings in additional sales capacity; market competition, including competitors that may have greater size, offerings and resources; effectively managing growth and scaling of our platform; ability to offer new features and other offerings on a timely basis, including new enterprise features, B2 Overdrive offering and geographic expansion in Canada or other jurisdictions, and achieve desired market adoption; disruption in our service or loss of availability of customers’ data; cyberattacks; ability to continue to scale the business; the impact of pricing and other product offering changes, including the May 1, 2026 pay-as-you-go storage pricing increase; material defects or errors in our software, such as problems with our internal systems, network, or data, including actual or perceived breaches or failures; supply chain disruption; ability to maintain existing relationships with partners and to enter into new partnerships; hiring and retention of key employees; the impact of changes to global trade and tariff policies, on us or our vendors, partners and customers; war or hostilities, and other significant world or regional events on our business and the business of our customers, vendors, supply chain and partners; litigation and other disputes; availability of additional capital; and general market, political, economic, and business conditions. Further information on these and additional risks, uncertainties, assumptions, and other factors that could cause actual results or outcomes to differ materially from those included in or implied by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in our Quarterly Reports on Form 10-Q and other filings and reports we make with the SEC from time to time.

3

The forward-looking statements made in this release reflect our views as of the date of this press release. We undertake no obligation to update any forward-looking statements in this press release, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

To supplement the financial measures, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we provide investors with non-GAAP financial measures including (i) adjusted gross profit (and margin), (ii) adjusted EBITDA and adjusted EBITDA margin, (iii) non-GAAP net income (loss) and non-GAAP net income (loss) per share, (iv) adjusted free cash flow and adjusted free cash flow margin, and (v) other Non-GAAP measures. These non-GAAP financial measures are not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. We present these non-GAAP measures because management believes they are a useful measure of our performance and provide an additional basis for assessing our operating results. Please see the appendix attached to this press release for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses and other factors in the future. For example, stock-based compensation expense-related charges are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict with reasonable accuracy and subject to constant change.

Adjusted Gross Profit and Margin

We believe adjusted gross profit (and margin), when taken together with our GAAP financial results, provides a meaningful assessment of our performance and is useful to us for evaluating our ongoing operations and for internal planning and forecasting purposes.

We define adjusted gross profit as gross profit, excluding stock-based compensation expense, depreciation and amortization and restructuring charges within cost of revenue. We define adjusted gross margin as a percentage of adjusted gross profit to revenue. We exclude stock-based compensation, which is a non-cash item, and restructuring charges because we do not consider these items as indicative of our core operating performance. We exclude depreciation expense of our property and equipment and amortization expense of capitalized internal-use software because these may not reflect current or future cash spending levels to support our business. We believe adjusted gross profit (and margin) provides consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations.

Adjusted EBITDA and Adjusted EBITDA Margin

We define Adjusted EBITDA as net loss adjusted to exclude depreciation and amortization, stock-based compensation, interest expense, investment income, income tax provision, realized and unrealized gains and losses on foreign currency transactions, impairment of long-lived assets, restructuring charges, legal settlement costs, and other non-recurring charges. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenues for the period. We use Adjusted EBITDA and Adjusted EBITDA Margin to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that Adjusted EBITDA and Adjusted EBITDA Margin, when taken together with our GAAP financial results, provide meaningful supplemental information regarding our operating performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. We consider Adjusted EBITDA and Adjusted EBITDA Margin to be important measures because they help illustrate underlying trends in our business and our historical operating performance on a more consistent basis.

4

Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) Per Share

We define non-GAAP net income (loss) as net income (loss) adjusted to exclude stock-based compensation, realized and unrealized gains and losses on foreign currency transactions, impairment of long-lived assets, restructuring charges, legal settlement costs, and other items we deem non-recurring. Non-GAAP net income (loss) per share is defined as non-GAAP net income (loss) divided by basic and diluted weighted average common shares outstanding. We believe that non-GAAP net income (loss) and non-GAAP net income (loss) per share, when taken together with our GAAP financial results, provide meaningful supplemental information regarding our operating performance by excluding certain items that may not be indicative of our business, results of operations, or outlook.

Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin

We believe that Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin are useful metrics for assessing liquidity that provide information to management and investors about the cash generated from our core operations that can be reinvested in the business. However, these measures should not replace cash flows from operations as a liquidity benchmark. One limitation of these metrics is that they do not reflect our future contractual commitments, nor do they capture the overall changes in our cash balance during a specific period. Nonetheless, we believe that Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin are key metrics providing insight on our financial trajectory that helps us make informed decisions as we work towards sustainable positive cash flow.

We define adjusted free cash flow as net cash provided by operating activities less purchases of property and equipment, capitalized internal-use software costs, principal payments on finance leases and lease financing obligations, as reflected in our consolidated statements of cash flows, and excluding payments on restructuring charges, legal settlement payments, and payments on other non-recurring charges. Adjusted free cash flow margin is calculated as adjusted free cash flow divided by revenue.
Other Non-GAAP Measures
Adjusted Cost of Revenue and Adjusted Operating Expenses

Adjusted research and development, adjusted sales and marketing, and adjusted general and administrative (collectively, “adjusted operating expenses”) and adjusted cost of revenue are non-GAAP financial measures that we define as each respective GAAP expense category excluding stock-based compensation expense, depreciation and amortization, restructuring costs, and other non-recurring charges. These measures provide management with greater transparency into the underlying trends in our business by facilitating period-to-period comparisons of our ongoing cost structure, excluding the impact of certain non-cash or non-recurring items that may not be indicative of our operating performance. These measures are intended to assist in forecasting and budgeting by providing greater visibility into our normalized expense base.

Key Business Metrics:

Annual Recurring Revenue (ARR)

We define ARR as the annualized value of all Backblaze B2 and Computer Backup arrangements as of the end of a period. Given the renewable nature of our business, we view ARR as an important indicator of our financial performance and operating results, and we believe it is a useful metric for internal planning and analysis. For subscription-based arrangements, ARR is calculated by multiplying the monthly revenue for the last month of a period by 12. For consumption-based arrangements, ARR is calculated by multiplying average daily revenue for the last month of a period by 365. Total Company ARR represents the annualized value of all B2 Cloud Storage consumption- and subscription-based arrangements and Computer Backup subscription-based arrangements as of the end of a period.

5

Beginning in the first quarter of 2026, to improve comparability between periods, we revised our methodology for calculating ARR for our consumption-based arrangements to use a daily revenue rate during the last month of the period rather than a monthly rate. Prior period ARR amounts presented have been recast to conform to the current period presentation.

Net Revenue Retention Rate (NRR)
To calculate NRR for a specific quarter, we determine the revenue recognized in that quarter from customers who generated revenue during the last month of the same quarter of the previous year. This revenue is then divided by the revenue generated from those same customers in the prior year quarter.
Beginning in the first quarter of 2026, we are presenting NRR using a single-quarter calculation, comparing current quarter revenue to the corresponding prior year quarter, rather than an average of quarterly rates over the prior four quarters, in order to provide a more current measure of customer retention. Prior period NRR amounts have been recast to conform to the current period presentation.

Gross Customer Retention Rate
We use gross customer retention rate to measure our ability to retain our customers. Our gross customer retention rate reflects only customer losses and does not reflect the expansion or contraction of revenue we earn from our existing customers. We believe our high gross customer retention rates demonstrate that we provide a vital service to our customers, as the vast majority of our customers tend to continue to use our platform from one period to the next. To calculate our gross customer retention rate, we take the trailing four-quarter average of our quarterly gross customer retention rates. We calculate the quarterly gross customer retention rates by dividing (i) the number of accounts that generated revenue in the last month of the current quarter that also generated recurring revenue during the last month of the corresponding quarter in the prior year, by (ii) the number of accounts that generated recurring revenue during the last month of the corresponding quarter in the prior year.


Investors Contact
Mimi Kong
ir@backblaze.com
 
Press Contact
Renatta Siewert
press@backblaze.com

6

BACKBLAZE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)

June 30,
December 31,
2026
2025
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
32,428 
$
29,182 
Marketable securities
17,454 
22,199 
Accounts receivable, net
5,266 
3,482 
Prepaid expenses
4,415 
4,195 
Other current assets
9,141 
6,630 
Total current assets
68,704 
65,688 
Property and equipment, net
70,065 
57,310 
Operating lease right-of-use assets, net
32,772 
22,713 
Capitalized internal-use software, net
42,238 
40,825 
Other assets
10,061 
5,290 
Total assets
$
223,840 
$
191,826 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable, accrued expenses and other current liabilities
$
16,960 
$
10,994 
Finance lease liabilities and lease financing obligations, current
16,625 
14,873 
Operating lease liabilities, current
4,782 
5,253 
Deferred revenue, current
30,428 
30,498 
Total current liabilities
68,795 
61,618 
Finance lease liabilities and lease financing obligations, non-current
30,088 
21,292 
Operating lease liabilities, non-current
30,942 
20,166 
Deferred revenue and other liabilities, non-current
5,477 
5,529 
Total liabilities
135,302 
108,605 
Commitments and contingencies
Stockholders’ Equity
Class A common stock, $0.0001 par value; 113,000,000 shares authorized as of June 30, 2026 and December 31, 2025; 62,374,253 shares issued and 61,803,439 shares outstanding as of June 30, 2026 and 58,962,339 shares issued and 58,705,790 outstanding as of December 31, 2025.
6 
6 
Treasury stock, at cost; 570,814 and 256,549 shares as of June 30, 2026 and December 31, 2025, respectively
(3,358)
(1,983)
Additional paid-in capital
324,723 
306,795 
Accumulated deficit
(232,833)
(221,597)
Total stockholders’ equity
88,538 
83,221 
Total liabilities and stockholders’ equity
$
223,840 
$
191,826 
7

BACKBLAZE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share data)

Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
(unaudited)
Revenue
$
42,713 
$
36,298 
$
81,379 
$
70,911 
Cost of revenue
15,879 
13,257 
31,016 
28,614 
Gross profit
26,834 
23,041 
50,363 
42,297 
Operating expenses:
Research and development
11,002 
11,878 
22,288 
23,733 
Sales and marketing
10,215 
10,172 
20,499 
19,435 
General and administrative(1)
9,791 
7,231 
17,103 
14,140 
Total operating expenses
31,008 
29,281 
59,890 
57,308 
Loss from operations
(4,174)
(6,240)
(9,527)
(15,011)
Investment income
381 
500 
785 
1,033 
Interest expense
(1,263)
(880)
(2,472)
(1,733)
Other income (expense), net
7 
(477)
46 
(626)
Loss before provision for income taxes
(5,049)
(7,097)
(11,168)
(16,337)
Income tax provision
40 
— 
68 
84 
Net loss and comprehensive loss
$
(5,089)
$
(7,097)
$
(11,236)
$
(16,421)
Net loss per share, basic and diluted
$
(0.08)
$
(0.13)
$
(0.19)
$
(0.30)
Weighted average common shares outstanding, basic and diluted
60,793,955 
55,627,214 
60,046,229 
54,835,639 
________________
(1) To conform to the current period’s presentation, foreign exchange loss of $0.5 million and $0.6 million for the three and six months ended June 30, 2025 that were previously included in “General and administrative” operating expenses are now included within “Other income (expense), net”. This reclassification had no impact on total net loss and comprehensive loss.
8

BACKBLAZE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Six Months Ended June 30,
2026
2025
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss
$
(11,236)
$
(16,421)
Adjustments to reconcile net loss to net cash provided by operating activities:
Noncash lease expense on operating leases
3,023 
1,964 
Depreciation and amortization
13,757 
13,238 
Impairment loss on right-of-use assets
— 
59 
Stock-based compensation
16,057 
14,663 
Loss (gain) on disposal of property and equipment
6 
(248)
Other, net
5 
407 
Changes in operating assets and liabilities:
Accounts receivable
(1,784)
(1,409)
Prepaid expenses and other current assets
(2,443)
(1,368)
Other assets
(4,362)
(827)
Accounts payable, accrued expenses and other current liabilities
4,016 
441 
Deferred revenue and other liabilities, non-current
(539)
88 
Operating lease liabilities
(2,713)
(2,099)
Net cash provided by operating activities
13,787 
8,488 
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of marketable securities
(7,957)
(28,132)
Maturities of marketable securities
12,727 
18,884 
Proceeds from disposal of property and equipment
23 
30 
Purchases of property and equipment
(1,453)
(1,287)
Capitalized internal-use software costs
(5,162)
(4,184)
Net cash used in investing activities
(1,822)
(14,689)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on finance leases and lease financing obligations
(8,501)
(9,277)
Payment of offering costs
(89)
(20)
Payment of debt issuance costs
(118)
(554)
Purchase of treasury stock
(1,375)
— 
Proceeds from exercises of stock options
2,843 
1,894 
Taxes paid for net share settlement of equity awards
(2,550)
(819)
Proceeds from ESPP
1,071 
1,388 
Net cash used in financing activities
(8,719)
(7,388)
Net increase (decrease) in cash and cash equivalents
3,246 
(13,589)
Cash and cash equivalents, at beginning of period
29,182 
45,776 
Cash and cash equivalents, at end of period
$
32,428 
$
32,187 
9

BACKBLAZE, INC.
RECONCILIATION OF GAAP TO NON-GAAP DATA
(in thousands, except percentages)




Adjusted Gross Profit and Adjusted Gross Margin
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
(dollars in thousands)
Gross profit
$
26,834 
$
23,041 
$
50,363 
$
42,297 
Adjustments:
Stock-based compensation
531 
432 
989 
852 
Depreciation and amortization(1)
6,799 
5,384 
13,312 
13,028 
Restructuring charges
135 
(13)
372 
(13)
Adjusted gross profit
$
34,299 
$
28,844 
$
65,036 
$
56,164 
Gross margin
63 
%
63 
%
62 
%
60 
%
Adjusted gross margin
80 
%
79 
%
80 
%
79 
%
________________
(1) $0.1 million and $0.3 million of amortization expense recorded to cost of revenue for the three and six months ended June 30, 2026, respectively, are classified as restructuring charges in the table above.

Adjusted EBITDA and Adjusted EBITDA Margin
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
(dollars in thousands)
Net loss and comprehensive loss
$
(5,089)
$
(7,097)
$
(11,236)
$
(16,421)
Adjustments:
Depreciation and amortization(1)
6,892 
5,474 
13,485 
13,238 
Stock-based compensation(2)
8,759 
7,304 
15,471 
14,663 
Interest expense and investment income, net
882 
380 
1,687 
700 
Income tax provision
40 
— 
68 
84 
Foreign exchange (gain) loss
(7)
477 
(46)
626 
Litigation settlement costs
— 
138 
— 
138 
Restructuring charges
1,321 
(66)
3,512 
(66)
Adjusted EBITDA
$
12,798 
$
6,610 
$
22,941 
$
12,962 
Net loss and comprehensive loss margin
(12
%)
(20
%)
(14
%)
(23
%)
Adjusted EBITDA margin
30
%
18
%
28
%
18
%
________________
(1) $0.1 million and $0.3 million of amortization expense for the three and six months ended June 30, 2026, respectively, are classified as restructuring charges in the table above.
(2) $0.4 million and $0.6 million of stock-based compensation expense for the three and six months ended June 30, 2026, respectively, are classified as restructuring charges in the table above.


10

Other Non-GAAP Measures
Adjusted Cost of Revenue and Adjusted Operating Expenses
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
(dollars in thousands)
Revenue
$
42,713 
$
36,298 
$
81,379 
$
70,911 
Adjustments:
Adjusted cost of revenue:
Cost of revenue
15,879 
13,257 
31,016 
28,614 
Less: Depreciation and amortization(1)
(6,799)
(5,384)
(13,312)
(13,028)
Less: Stock-based compensation
(531)
(432)
(989)
(852)
Less: Restructuring charges
(135)
13 
(372)
13 
Adjusted cost of revenue
8,414 
7,454 
16,343 
14,747 
Adjusted gross margin
80 
%
79 
%
80 
%
79 
%
Adjusted Operating Expenses:
Research and development
11,002 
11,878 
22,288 
23,733 
Less: Depreciation and amortization
(46)
(41)
(86)
(99)
Less: Stock-based compensation
(3,426)
(3,272)
(6,307)
(6,739)
Less: Restructuring charges
(12)
34 
(167)
34 
Adjusted research and development
7,518 
8,599 
15,728 
16,929 
Sales and marketing
10,215 
10,172 
20,499 
19,435 
Less: Depreciation and amortization
(28)
(30)
(52)
(70)
Less: Stock-based compensation(2)
(2,051)
(1,881)
(3,628)
(3,678)
Less: Restructuring charges
(355)
64 
(1,756)
64 
Adjusted sales and marketing
7,781 
8,325 
15,063 
15,751 
General and administrative
9,791 
7,231 
17,103 
14,140 
Less: Depreciation and amortization
(19)
(19)
(35)
(41)
Less: Stock-based compensation(2)
(2,751)
(1,719)
(4,547)
(3,394)
Less: Restructuring charges
(819)
(45)
(1,217)
(45)
Less: Litigation settlement costs
— 
(138)
— 
(138)
Adjusted general and administrative
6,202 
5,310 
11,304 
10,522 
Total Adjusted Operating Expenses
$
21,501 
$
22,234 
$
42,095 
$
43,202 
Adjusted EBITDA
$
12,798 
$
6,610 
$
22,941 
$
12,962 
________________
(1) $0.1 million and $0.3 million of amortization expense for the three and six months ended June 30, 2026, respectively, are classified as restructuring charges in the table above.
(2) $0.4 million of stock-based compensation incurred during the three months ended June 30, 2026 is classified as restructuring charges in the table above, including an immaterial amount related to sales and marketing costs and $0.4 million related to general and administrative costs. $0.6 million of stock-based compensation incurred during the six months ended June 30, 2026 is classified as restructuring charges in the table above, including $0.1 million related to sales and marketing costs, and $0.5 million related to general and administrative costs.
11

Non-GAAP Net Income (Loss)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
(in thousands, except share and per share data)
Net loss and comprehensive loss
$
(5,089)
$
(7,097)
$
(11,236)
$
(16,421)
Adjustments:
Stock-based compensation(1)
8,759 
7,304 
15,471 
14,663 
Foreign exchange (gain) loss
(7)
477 
(46)
626 
Litigation settlement costs
— 
138 
— 
138 
Restructuring charges
1,321 
(66)
3,512 
(66)
Non-GAAP net income (loss)
$
4,984 
$
756 
$
7,701 
$
(1,060)
Non-GAAP net income (loss) per share - diluted
$
0.08 
$
0.01 
$
0.12 
$
(0.02)
Shares used in Non-GAAP net income (loss) per share calculations:
GAAP weighted-average shares used to compute net loss per share - basic and diluted
60,793,955 
55,627,214 
60,046,229 
54,835,639 
Add: Dilutive ordinary share equivalents
3,995,349 
1,599,426 
2,787,054 
— 
Non-GAAP weighted average common shares outstanding - diluted
64,789,304 
57,226,640 
62,833,283 
54,835,639 
________________
(1) $0.4 million and $0.6 million of stock-based compensation expense for the three and six months ended June 30, 2026, respectively, are classified as restructuring charges in the table above.

Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin
Six Months Ended June 30,
2026
2025
(dollars in thousands)
Net cash provided by operating activities
$
13,787 
$
8,488 
Capital expenditures(1)
(6,615)
(5,471)
Principal payments on finance leases and lease financing obligations
(8,501)
(9,277)
Payments on litigation settlement costs
15 
12 
Payments on restructuring costs
2,716 
230 
Adjusted Free Cash Flow
$
1,402 
$
(6,018)
Adjusted Free Cash Flow Margin
2 
%
(8)
%
________________
(1) Capital expenditures are defined as cash used for purchases of property and equipment and capitalized internal-use software costs.


12
Backblaze ©2026 | 1 August 3, 2026 Q2 2026 Results Gleb Budman CEO and Co-Founder Backblaze Marc Suidan CFO

 

Backblaze ©2026 | 2 Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements, which involve risks and uncertainties. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this presentation, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, planned investments and initiatives, prospects, plans, objectives of management and general economic trends and trends in the industry and markets are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results to differ materially from any future results expressed or implied by the forward-looking statements, including that our AI customer revenue is early-stage and widespread adoption is uncertain; we may not achieve the growth rates implied by current trends; estimates of addressable market size and market opportunity are based on internal assumptions and third-party data that may prove inaccurate or may not reflect actual market conditions; our sales and marketing and cost-saving initiatives may not achieve their intended results; new features and price changes may not have the anticipated impact; supply availability, volatility and pricing may adversely affect our business; our recently announced strategic agreement with CoreWeave involves a new delivery model and is subject to risks related to customer concentration, ramp timing, consumption levels, and our ability to scale operations, any of which could cause actual revenue to differ from contracted amounts. Additional risks are set forth under “Risk Factors” in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. These forward-looking statements reflect our views with respect to future events as of the date of this presentation and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this presentation, except as required by applicable law. Non-GAAP Financial Measures To supplement the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use non-GAAP Adjusted Gross Profit and Margin, non-GAAP Net Income (Loss), non-GAAP Net Income (Loss) per share, Adjusted EBITDA and Margin, and Adjusted Free Cash Flow and Margin. These non-GAAP financial measures exclude certain items and are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. We present these non-GAAP measures because management believes they are a useful measure of the Company’s performance and provide an additional basis for assessing our operating results. Please see the Appendix attached to this presentation for a reconciliation of non-GAAP Adjusted Gross Margin, non-GAAP Net Income, Adjusted EBITDA Margin and Adjusted Free Cash Flow to the most directly comparable GAAP financial measures. Important Information About This Presentation

 

Backblaze ©2026 | 3 Our Mission To make customers unstoppable by solving their toughest data storage challenges.

 

Backblaze ©2026 | 4 Key Highlights ● B2 growth accelerated to 34% ● Signed $335M multi-exabyte CoreWeave agreement ● Broad-based AI traction, including a leading frontier model developer win ● Validated as the capacity tier for AI infrastructure AI Strategy is Working

 

Backblaze ©2026 | 5 AI creates active data at every stage Training datasets Model checkpoints Model snapshots captured during training Inference outputs Predictions, scores and generated output GenAI assets Generated images, video, audio and text Every stage adds data that must be stored, moved and used. Raw, curated and labeled data

 

Backblaze ©2026 | 6 AI Companies Choose Backblaze For: GROWTH Scalability Capacity that keeps pace with fast-growing datasets CHOICE Architectural freedom Ability to move data to the best suited cloud SPEED Performance Throughput that supports emerging AI workflows All with efficient economics that make AI sustainable at scale.

 

Backblaze ©2026 | 7 Neoclouds need a complete storage stack FLASH BASED TIER Maximum speed For workloads that demand the highest performance HDD BASED CAPACITY TIER Active data at scale $14B estimated neocloud HDD capacity-tier opportunity by 2031* Capacity and performance with significantly better economics Backblaze B2 powered *NOTES: Company estimate based on management's analysis of third-party market data published by Synergy Research Group (April 2026) and Market.us. The neocloud market forecasts cited in these reports measure cloud infrastructure and platform service revenues and do not separately report storage-related revenues. The estimated market opportunity reflects management's assumptions regarding the proportion of neocloud revenues attributable to storage services and the addressable share relevant to Backblaze's offerings. Actual market size may differ materially from this estimate. See "Forward-Looking Statements" for additional information. **Source: IDC, Worldwide Global StorageSphere Forecast, 2025–2029 80% Of data in the cloud is estimated to be stored on HDD**

 

Backblaze ©2026 | 8 CoreWeave $335M, 5+ Year Strategic Agreement B2 Cloud Storage BACKBLAZE INFRASTRUCTURE Multi-exabyte object storage capacity at the HDD tier STRATEGIC ALIGNMENT — WARRANT STRUCTURE 4,194,876 total shares · $7.60 exercise price Vesting tied to contract performance and duration B2 Cloud Storage Managed Storage Shares 3,053,314 1,141,562 Vesting Installments over 5 years Time-based and milestone-based Expiry June 16, 2032 June 16, 2035 NOTES: Net RPO addition of $313M reflects the $335M contract value less $22M in warrant value. Managed Storage COREWEAVE INFRASTRUCTURE Backblaze software and people embedded in CoreWeave data centers — a new delivery model SERVICES DELIVERED

 

Backblaze ©2026 | 9 Q2 AI Wins with >$500K in ARR GROWTH Scalability CUSTOMER 1 Data Training Provider ● Another ~$1M ARR commitment ● Faster-than-expected growth drove expansion CHOICE Architectural freedom SPEED Performance All with efficient economics that make AI sustainable at scale. CUSTOMER 2 Conversational AI Developer ● Six-figure ARR Win ● Freed data to move across clouds without egress-driven lock-in CUSTOMER 3 Frontier AI Model Developer ● Seven-figure ARR Win ● Delivered high throughput at large scale with efficient economics

 

Backblaze ©2026 | 10 SHIPPED THIS QUARTER TypeScript SDK Language of choice for AI coding agents Genblaze SDK GenAI media workflows AI agent tools For agentic workflows storing data on B2 BUILDING THE PLATFORM A natural platform for developers and AI agents to build on COMMUNITY ENGAGEMENT Launched Generative Media Hackathon Drove awareness of B2 as the storage layer for GenAI media applications Building for the Builders

 

Backblaze ©2026 | 11 Capacity for growth. As AI scales, data grows. Economics for discipline As AI companies mature, storage efficiency matters. Positioned for durable growth BACKBLAZE DELIVERS BOTH

 

Backblaze ©2026 | 12 Financial Overview Marc Suidan CFO

 

Backblaze ©2026 | 13 Key Financial Highlights ● FY revenue guidance raised by $10M+ ● B2 Rule of 40 Score of 42: B2 Revenue Growth 34% + Adj. FCF Margin of 8% ● Signed commitments enable B2 Revenue directional growth outlook of 40%+ in 2027 NOTES: The financial information presented above includes forward-looking statements and non-GAAP financial measures. Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. See "Cautionary Note Regarding Forward-Looking Statements" for additional information. Adjusted EBITDA Margin and Adjusted Free Cash Flow Margin are non-GAAP financial measures. Please refer to the Appendix for reconciliations to the most directly comparable GAAP measures.

 

Backblaze ©2026 | 14 B2 Growth Accelerating

 

Backblaze ©2026 | 15 Upmarket Momentum Accelerated $50K+ ARR CUSTOMERS +67% y/y ARR from $50K+ ARR customers +57% y/y customer count growth Q2 $500K+ ARR WINS 4 new deals 3 of 4 were AI-related

 

Backblaze ©2026 | 16 RPO Reaches ~$396M, Providing Greater Visibility CoreWeave drives the step-change, while momentum continues across the broader business TOTAL RPO ($M) A step-change in contracted demand visibility +$313M CoreWeave contribution $335M commitment less ~$22M warrant value Broader business strength +$6M NOTE: Q4’25 RPO has been recast to conform to the methodology adopted in Q1’26.

 

Backblaze ©2026 | 17 Financial and Operational Q2 Highlights REVENUE ($M) Y/Y GROWTH NET REVENUE RETENTION GROSS CUSTOMER RETENTION B2 Cloud Storage $26.6 34% 113% 89% Computer Backup $16.1 -2% 94% 91% Total Company $42.7 18% 103% 91% Note: Some amounts may not sum due to rounding.

 

Backblaze ©2026 | 18 22% Building A Durable Business Q2 Adj. EBITDA Margin was 30%, and Adj. FCF Margin was 8% (3%) (11%) Adj. EBITDA Margin NOTES: Adjusted EBITDA and Adjusted Free Cash Flow margins shown for the years ending December 31, 2021, 2022, 2023, 2024, and 2025 are based on audited financial data. Please refer to the definitions of Adjusted EBITDA margins and Adjusted Free Cash Flow in the Appendix. A reconciliation of non-generally accepted accounting principles (GAAP) guidance measures to corresponding GAAP measures for historical results is provided in the Appendix to this presentation. A reconciliation for estimated future results is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of expenses and other factors in the future. 5% IPO 2021 2022 2023 Adj. Free Cash Flow Margin 2024 IPO 2021 2022 2023 2024 (54%) (42%) (29%) 2026E 27-29% 2026E 10% (16%)2025 2025 (4%) Neutral

 

Backblaze ©2026 | 19 Q3’26 and Full Year Guidance Q3’26 $44.4 to $44.8 FY 2026 Raised $172.0 to $174.0 Q3’26 27% to 29% FY 2026 Raised 27% to 29% NOTES: The above financial information guidance for Q3 of 2026 and fiscal year 2026 are forward-looking statements. The revenue outlook for fiscal year 2026 also reflects a narrowed range of total Company revenue from the previously announced outlook. These forward-looking statements reflect our views with respect to future events as of the date of this presentation and are based on assumptions and subject to risks and uncertainties, and actual results may differ materially. A reconciliation of Adjusted EBITDA Margin guidance to GAAP net loss margin is not available on a forward-looking basis without unreasonable effort because certain reconciling items, including stock-based compensation expense, restructuring charges, depreciation and amortization, interest expense, and income tax provisions cannot be reasonably predicted due to their inherent uncertainty and variability. These items could individually or in the aggregate be material to the Company's reported GAAP results. Revenue ($M) Adj. EBITDA Margin

 

Backblaze ©2026 | 20 Q&A

 

Backblaze ©2026 | 21 Thank You!

 

Backblaze ©2026 | 22 Appendix

 

Backblaze ©2026 | 23 ● “ARR” means Annual Recurring Revenue. For subscription-based arrangements, ARR is calculated by multiplying the monthly revenue for the last month of a period by 12. Beginning in the first quarter of 2026, to improve comparability between periods, we revised our methodology for calculating annual recurring revenue for our consumption-based arrangements to use a daily revenue rate during the last month of the period rather than a monthly rate. Prior period ARR amounts presented have been recast to conform to the current period presentation. ● “Gross Customer Retention” is used to measure our ability to retain our customers and is based on the trailing four-quarter average of the percentage of cohort of customers who were active at the end of the quarter in the prior year that are still active at the end of the current quarter. We calculate our gross customer retention rate for a quarter by dividing (i) the number of accounts that generated revenue in the last month of the current quarter that also generated recurring revenue during the last month of the corresponding quarter in the prior year, by (ii) the number of accounts that generated recurring revenue during the last month of the corresponding quarter in the prior year. ● “NRR” means Net Revenue Retention. To calculate NRR for a specific quarter, we determine the revenue recognized in that quarter from customers who generated revenue during the last month of the same quarter of the previous year. This revenue is then divided by the revenue generated from those same customers in the prior year quarter. Beginning in the first quarter of 2026, we are presenting NRR using a single-quarter calculation, comparing current quarter revenue to the corresponding prior year quarter, rather than an average of quarterly rates over the prior four quarters, in order to provide a more current measure of customer retention. Prior period NRR amounts have been recast to conform to the current period presentation. Definitions

 

Backblaze ©2026 | 24 ● “Customer” means a customer at the end of any period as a distinct end user, as identified by a unique account identifier, which makes up substantially all of our user base. ● “Adjusted EBITDA” is defined as net loss adjusted to exclude depreciation and amortization, stock-based compensation, interest expense, investment income, income tax provision, realized and unrealized gains and losses on foreign currency transactions, impairment of long-lived assets, restructuring charges, legal settlement costs, and other non-recurring charges. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenues for the period. We use Adjusted EBITDA and Adjusted EBITDA Margin to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that Adjusted EBITDA and Adjusted EBITDA Margin, when taken together with our GAAP financial results, provide meaningful supplemental information regarding our operating performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. We consider Adjusted EBITDA and Adjusted EBITDA Margin to be important measures because they help illustrate underlying trends in our business and our historical operating performance on a more consistent basis. ● “Adjusted Free Cash Flow” We define adjusted free cash flow as net cash provided by operating activities less purchases of property and equipment, capitalized internal-use software costs, principal payments on finance leases and lease financing obligations, as reflected in our consolidated statements of cash flows, and excluding payments on restructuring charges, legal settlement payments, and payments on other non-recurring charges. Adjusted free cash flow margin is calculated as adjusted free cash flow divided by revenue. Definitions

 

Backblaze ©2026 | 25 ● “Non-GAAP Net Income (Loss)” We define non-GAAP net income (loss) as net income (loss) adjusted to exclude stock-based compensation, realized and unrealized gains and losses on foreign currency transactions, impairment of long-lived assets, restructuring charges, legal settlement costs, and other items we deem non-recurring. Non-GAAP net income (loss) per share is defined as non-GAAP net income (loss) divided by basic and diluted weighted average common shares outstanding. We believe that non-GAAP net income (loss) and non-GAAP net income (loss) per share, when taken together with our GAAP financial results, provide meaningful supplemental information regarding our operating performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. ● “Adjusted Gross Profit (and Margin)” We define adjusted gross profit as gross profit, excluding stock-based compensation expense, depreciation and amortization and restructuring charges within cost of revenue. We define adjusted gross margin as a percentage of adjusted gross profit to revenue. We exclude stock-based compensation, which is a non-cash item, and restructuring charges because we do not consider it indicative of our core operating performance. We exclude depreciation expense of our property and equipment and amortization expense of capitalized internal-use software because these may not reflect current or future cash spending levels to support our business. We believe adjusted gross profit (and margin) provides consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations. Definitions

 

Backblaze ©2026 | 26 Reconciliation of Non-GAAP Measures: Adjusted Gross Margin Adjusted Gross Profit Q2’26 Q2’25 Gross Profit $26.834 $23.041 Gross Margin 63% 63% Adjustments for Cost of Revenue: Stock Based Compensation 0.531 0.432 Depreciation & Amortization(1) 6.799 5.384 Restructuring Charges 0.135 (0.013) Adjusted Gross Profit $34.299 $28.844 Adjusted Gross Margin 80% 79% Dollars in Millions (1) $0.1 million and $0.3 million of amortization expense recorded to cost of revenue for the three and six months ended June 30, 2026, respectively, are classified as restructuring charges in the table above.

 

Backblaze ©2026 | 27 Reconciliation of Non-GAAP Measures: Non-GAAP Net Income (Loss) Q2’26 Q2’25 Net Loss $(5.089) $(7.097) Net Loss Margin -12% -20% Adjustments: Stock Based Compensation(1) 8.759 7.304 Foreign Exchange Loss (Gain) (0.007) 0.477 Litigation settlement costs - 0.138 Restructuring charges 1.321 (0.066) Non-GAAP Net Income $4.984 $0.756 Non-GAAP Net Income Margin 12% 2% Non-GAAP Diluted Shares 64.789 57.227 Non-GAAP Net Income (Loss) per Diluted Share $0.08 $0.01 Dollars and Shares in Millions (1) $0.4 million and $0.6 million of stock-based compensation expense for the three and six months ended June 30, 2026, respectively, are classified as restructuring charges in the table above.

 

Backblaze ©2026 | 28 Reconciliation of Non-GAAP Measures: Adjusted EBITDA Q2’26 Q2’25 Net Loss $(5.089) $(7.097) Net Loss Margin -12% -20% Adjustments: Depreciation & Amortization(1) 6.892 5.474 Stock Based Compensation(2) 8.759 7.304 Interest Expense & Investment Income, Net 0.882 0.380 Income tax provision 0.040 - Foreign Exchange Loss (Gain) (0.007) 0.477 Litigation settlement costs - 0.138 Restructuring charges 1.321 (0.066) Adjusted EBITDA $12.798 $6.610 Adjusted EBITDA Margin 30% 18% Dollars in Millions (1) $0.1 million and $0.3 million of amortization expense for the three and six months ended June 30, 2026, respectively, are classified as restructuring charges in the table above. (2) $0.4 million and $0.6 million of stock-based compensation expense for the three and six months ended June 30, 2026, respectively, are classified as restructuring charges in the table above.

 

Backblaze ©2026 | 29 Reconciliation of Non-GAAP Measures: Adjusted Free Cash Flow QTD Q2’26 QTD Q2’25 YTD Q2’26 YTD Q2’25 Net Cash Provided by Operating Activities $10.427 $3.545 $13.787 $8.488 Capital Expenditures (3.852) (2.845) (6.615) (5.471) Principal Payments on Finance Leases and Lease Financing Obligations (4.271) (4.734) (8.501) (9.277) Payment on litigation settlement costs - .012 0.015 0.012 Payments on restructuring costs .941 .115 2.716 0.230 Adjusted Free Cash Flow 3.245 ($3.907) $1.402 ($6.018) Adjusted Free Cash Flow Margin 8% (11%) 2% (8%) Dollars in Millions

 

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