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Backblaze Q3 2026 revenue rises 26% to $46.7M

Backblaze raised full-year 2026 revenue and adjusted EBITDA margin outlook, with $230.2 million in cash, cash equivalents and marketable securities.

Available on EDGAR Accepted by SEC EDGAR
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Filing Sentiment

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Form Type
8-K

Rhea-AI Filing Summary

Backblaze, Inc. reported Q3 2026 revenue of $46.7 million, up 26% year over year: B2 Cloud Storage revenue was $30.5 million, up 47%, while Computer Backup revenue was $16.2 million, down 2%. Net loss was $2.4 million versus $3.8 million in Q3 2025, and non-GAAP adjusted EBITDA was $15.2 million versus $8.4 million. Total annual recurring revenue was $190.7 million, up 29%; B2 ARR was $126.8 million, up 53%.

For the nine months ended September 30, 2026, operating cash flow was $22.8 million versus $14.2 million, and adjusted free cash flow was $1.9 million versus negative $9.5 million. Cash, cash equivalents and marketable securities totaled $230.2 million as of September 30, 2026. Backblaze raised full-year 2026 revenue outlook to $177.8 million–$178.2 million from $172.0 million–$174.0 million, and adjusted EBITDA margin outlook to 30%–31% from 27%–29%; Q4 revenue outlook is $49.8 million–$50.2 million and margin outlook is 32%–34%.

The company signed four large agreements across AI and core workloads, including a $4 million AI builder expansion. It also completed a $201 million offering of 0% convertible senior notes due 2031 and related capped call transactions; proceeds are expected to fund capital expenditures supporting contracted growth and general corporate purposes.

4 points · 1 major

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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0 major · 0 points

Hollow bars mark forward-looking points. How the balance works

Positive

  • Major point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 revenue outlook rose to $177.8 million–$178.2 million.
  • Moderate pointRevenue rose 26% year over year to $46.7 million.
  • Moderate pointAdjusted EBITDA was $15.2 million, versus $8.4 million in Q3 2025.
  • Minor pointB2 Cloud Storage revenue rose 47% year over year to $30.5 million.

Negative

  • None.

Filing Explained

For Backblaze’s completed notes, the presentation illustrates potential net shares after capped calls, assuming principal is paid in cash: zero at stock prices up to $33.76, 0.32 million at $35 (0.5%), based on 63 million shares outstanding as of September 30, 2026.

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, or exhibit attachments filed with this report.
Revenue $46.7 million Q3 2026; up 26% year over year
B2 Cloud Storage revenue $30.5 million Q3 2026; up 47% year over year
Computer Backup revenue $16.2 million Q3 2026; down 2% year over year
Net loss $2.4 million Q3 2026, compared with $3.8 million in Q3 2025
Adjusted EBITDA $15.2 million Q3 2026, compared with $8.4 million in Q3 2025
Net cash provided by operating activities $22.8 million Nine months ended September 30, 2026, compared with $14.2 million in 2025
Adjusted Free Cash Flow $1.9 million Nine months ended September 30, 2026, compared with negative $9.5 million in 2025
Full-year revenue outlook $177.8 million to $178.2 million FY 2026; raised from $172.0 million to $174.0 million
annual recurring revenue (ARR) financial
"Annual recurring revenue (ARR) was $190.7 million"
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 105%"
Net revenue retention rate (NRR) measures how much recurring revenue from existing customers has grown or shrunk over a set period after accounting for expansions (upsells), contractions (downsells), and churn, expressed as a percentage of the starting revenue. It matters to investors because it reveals whether a company can increase revenue from its current customer base without new customers—high NRR is like earning more from the same group of clients over time, while low NRR shows revenue loss from that group.
Adjusted EBITDA financial
"Adjusted EBITDA is defined as net loss adjusted to exclude"
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.
Adjusted Free Cash Flow financial
"Adjusted free cash flow during the nine months ended September 30, 2026"
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.
capped call transactions financial
"entered into related capped call transactions"
Capped call transactions are agreements where investors buy options that give them the chance to benefit if a stock's price goes up, but with a limit on how much they can gain. This helps protect them from paying too much if the stock's price rises a lot, similar to having a maximum limit on a reward. They matter because they help investors manage risk while still allowing some upside potential.
Revenue $46.7 million up 26% year over year
B2 Cloud Storage revenue $30.5 million up 47% year over year
Net loss $2.4 million compared with $3.8 million in Q3 2025
Adjusted EBITDA $15.2 million compared with $8.4 million in Q3 2025
Guidance

Q4 2026 revenue of $49.8 million to $50.2 million and adjusted EBITDA margin of 32% to 34%; full-year 2026 revenue of $177.8 million to $178.2 million, raised from $172.0 million to $174.0 million, and adjusted EBITDA margin of 30% to 31%, raised from 27% to 29%.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What revenue and earnings did BLZE report for Q3 2026?
Backblaze reported $46.7 million in revenue, up 26% year over year, and a net loss of $2.4 million, compared with a $3.8 million net loss in Q3 2025. Non-GAAP adjusted EBITDA was $15.2 million, compared with $8.4 million a year earlier.

What is BLZE's full-year 2026 outlook?
Backblaze raised its full-year revenue outlook to $177.8 million–$178.2 million from $172.0 million–$174.0 million. Its adjusted EBITDA margin outlook increased to 30%–31% from 27%–29%.

How does BLZE plan to use proceeds from its convertible notes?
Backblaze issued $201 million of 0% convertible senior notes due 2031 and entered into related capped call transactions. It expects to use the proceeds for capital expenditures supporting contracted growth and for general corporate purposes.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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0001462056FALSE00014620562026-11-022026-11-02

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

November 2, 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 November 2, 2026, the Company issued a press release announcing its financial results for the quarter ended September 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:
November 2, 2026
Backblaze, Inc.
By:
/s/ Marc Suidan
Marc Suidan, Chief Financial Officer

Exhibit 99.1
Backblaze Announces Third Quarter 2026 Financial Results

47% Revenue Growth in B2 Cloud Storage, 26% Revenue Growth Overall in Q3 2026

San Francisco, CA (November 2, 2026)—Backblaze, Inc. (Nasdaq: BLZE), the high-performance capacity storage layer for AI, today announced results for its third quarter ended September 30, 2026.

“Q3 2026 was another strong quarter, with B2 revenue growth accelerating to 47% year over year, up from 28% a year ago, reflecting broad-based momentum across our customer base,” said Gleb Budman, co-founder and CEO of Backblaze. “We added a record number of net new B2 self-serve customers, four times as many as in the same period last year. The number of customers contributing more than $50,000 each in ARR grew 57% year over year to 254. We also signed four large agreements across AI and core workloads. As AI customers scale, we are solidifying Backblaze’s role as the capacity tier for AI infrastructure companies and AI builders.”

Third Quarter 2026 Financial Highlights:(1)

•Revenue of $46.7 million, an increase of 26% year-over-year (YoY).
•B2 Cloud Storage revenue was $30.5 million, an increase of 47% YoY.
•Computer Backup revenue was $16.2 million, a decrease of 2% YoY.
•Gross profit of $29.8 million, or 64% of revenue, compared to $23.1 million, or 62% of revenue, in Q3 2025.
•Net loss was $2.4 million compared to a net loss of $3.8 million in Q3 2025.
•Net loss per share was $0.04 compared to a net loss per share of $0.07 in Q3 2025.
•Adjusted EBITDA was $15.2 million, or 33% of revenue, compared to $8.4 million, or 23% of revenue, in Q3 2025.
•Non-GAAP net income of $6.7 million compared to non-GAAP net income of $1.9 million in Q3 2025.
•Cash flow from operations during the nine months ended September 30, 2026 was $22.8 million, compared to $14.2 million for the same period in 2025.
•Adjusted free cash flow during the nine months ended September 30, 2026 was $1.9 million, compared to $(9.5) million for the same period in 2025.
•Cash, cash equivalents, and marketable securities totaled $230.2 million as of September 30, 2026.
________________
(1) Some amounts may not sum due to rounding.
1

Third Quarter 2026 Operational Highlights:

•Annual recurring revenue (ARR) was $190.7 million, an increase of 29% YoY.
◦B2 Cloud Storage ARR was $126.8 million, an increase of 53% YoY.
◦Computer Backup ARR was $63.9 million, a decrease of 2% YoY.
•Net revenue retention rate (NRR) was 105% compared to 107% in Q3 2025.
◦B2 Cloud Storage NRR was 115% compared to 116% in Q3 2025.
◦Computer Backup NRR was 94% compared to 96% in Q3 2025.
•Gross customer retention rate was 91% in both Q3 2026 and Q3 2025.
◦B2 Cloud Storage gross customer retention rate was 89% in both Q3 2026 and Q3 2025.
◦Computer Backup gross customer retention rate was 91% compared to 90% in Q3 2025.

Recent Business Highlights:

•Signed four large agreements, including a $4 million AI builder expansion: Three agreements supported AI workloads, while the fourth supported a core workload.
•Delivered broad-based customer growth: Net new B2 self-serve customer additions reached a record, quadrupling year over year, while the number of customers each contributing over $50,000 in ARR grew 57% year over year to 254.
•Established a collaboration with WEKA, the AI data and memory infrastructure company: Pairs WEKA’s high-performance data storage with extended GPU memory with Backblaze B2’s scalable capacity to simplify AI storage and reduce integration work for customers.
•Introduced the Backblaze B2 MCP Server: Enables AI agents to use B2 storage directly within developers’ existing tools, positioning Backblaze for the growth of agent-driven workflows.
•Completed a $201 million convertible notes offering: Backblaze issued 0% convertible senior notes due 2031 and entered into related capped call transactions. The company expects to use the proceeds for capital expenditures supporting contracted growth and for general corporate purposes.

Financial Outlook:

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

For the fourth quarter of 2026, we expect:
•Revenue between $49.8 million and $50.2 million.
•Adjusted EBITDA margin between 32% and 34%.
•Basic weighted average shares outstanding of 63.6 million to 63.8 million shares.

For full-year 2026, we have raised our outlook:
•Revenue between $177.8 million and $178.2 million, raised from $172.0 million to $174.0 million.
•Adjusted EBITDA margin range of 30% to 31%, raised from 27% to 29%.

2

Conference Call Information:

Backblaze will host a conference call today, November 2, 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/717942152

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/717942152?pwd=8YiJ0Zpn
Phone registrants will receive dial-in information via email.


About Backblaze

Backblaze (NASDAQ: BLZE) is the high-performance capacity storage layer for AI. 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 based on management’s current assumptions and expectations of future events, and often can be identified by words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” variations of such words or the negative thereof, and 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 most recent annual report on Form 10-K, 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 adjusted gross profit 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. The non-GAAP financial measures included within this press release and the related earnings call 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 Adjusted Gross Profit 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 adjusted gross profit as a percentage of revenue. We exclude stock-based compensation, which is non-cash, 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, and certain non-recurring, infrequent items, and other items that we do not consider as indicative of our core operating performance, including litigation settlement costs, restructuring charges, stock-based consideration to a customer, impairment of long-lived assets, and other similar charges. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue 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, stock-based consideration to a customer, 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)

September 30,
December 31,
2026
2025
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
189,018 
$
29,182 
Marketable securities
41,223 
22,199 
Accounts receivable, net
6,678 
3,482 
Prepaid expenses
4,090 
4,195 
Other current assets
9,008 
6,630 
Total current assets
250,017 
65,688 
Property and equipment, net
79,453 
57,310 
Operating lease right-of-use assets, net
37,482 
22,713 
Capitalized internal-use software, net
43,026 
40,825 
Other assets
17,614 
5,290 
Total assets
$
427,592 
$
191,826 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable, accrued expenses and other current liabilities
$
24,000 
$
10,994 
Operating lease liabilities, current
7,549 
5,253 
Finance lease liabilities and lease financing obligations, current
17,651 
14,873 
Deferred revenue, current
29,755 
30,498 
Total current liabilities
78,955 
61,618 
Operating lease liabilities, non-current
33,089 
20,166 
Finance lease liabilities and lease financing obligations, non-current
34,504 
21,292 
Long-term debt, net
194,485 
— 
Deferred revenue and other liabilities, non-current
5,266 
5,529 
Total liabilities
346,299 
108,605 
Commitments and contingencies
Stockholders’ Equity
Class A common stock, $0.0001 par value; 113,000,000 shares authorized as of September 30, 2026 and December 31, 2025; 63,705,070 shares issued and 63,134,256 shares outstanding as of September 30, 2026 and 58,962,339 shares issued and 58,705,790 shares outstanding as of December 31, 2025.
6 
6 
Treasury stock, at cost; 570,814 and 256,549 shares as of September 30, 2026 and December 31, 2025, respectively
(3,358)
(1,983)
Additional paid-in capital
319,842 
306,795 
Accumulated deficit
(235,197)
(221,597)
Total stockholders’ equity
81,293 
83,221 
Total liabilities and stockholders’ equity
$
427,592 
$
191,826 
7

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

Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
(unaudited)
Revenue
$
46,654 
$
37,162 
$
128,033 
$
108,073 
Cost of revenue
16,816 
14,091 
47,832 
42,705 
Gross profit
29,838 
23,071 
80,201 
65,368 
Operating expenses:
Research and development
11,346 
11,235 
33,634 
34,968 
Sales and marketing
10,739 
8,996 
31,238 
28,431 
General and administrative(1)
9,163 
6,350 
26,266 
20,490 
Total operating expenses
31,248 
26,581 
91,138 
83,889 
Loss from operations
(1,410)
(3,510)
(10,937)
(18,521)
Investment income
1,024 
477 
1,809 
1,510 
Interest expense
(1,981)
(934)
(4,453)
(2,667)
Other income (expense), net
63 
189 
109 
(437)
Loss before provision for income taxes
(2,304)
(3,778)
(13,472)
(20,115)
Income tax provision
60 
— 
128 
84 
Net loss and comprehensive loss
$
(2,364)
$
(3,778)
$
(13,600)
$
(20,199)
Net loss per share, basic and diluted
$
(0.04)
$
(0.07)
$
(0.22)
$
(0.36)
Weighted average common shares outstanding, basic and diluted
62,536,342 
56,977,764 
60,885,388 
55,557,541 
________________
(1) To conform to the current period's presentation, a foreign exchange gain of $0.2 million for the three months ended September 30, 2025 and a foreign exchange loss of $0.4 million for the nine months ended September 30, 2025 that were previously included in "General and administrative" operating expenses are now included within "Other income (expense), net" in the condensed consolidated statement of operations and comprehensive loss for the three and nine months ended September 30, 2025. This reclassification had no impact on total net loss and comprehensive loss.

8

BACKBLAZE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Nine Months Ended September 30,
2026
2025
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss
$
(13,600)
$
(20,199)
Adjustments to reconcile net loss to net cash provided by operating activities:
Noncash lease expense on operating leases
4,826 
3,365 
Depreciation and amortization
21,431 
19,282 
Impairment loss on right-of-use assets
— 
59 
Stock-based compensation
23,720 
20,108 
Loss (gain) on disposal of property and equipment
30 
(363)
Stock-based consideration to a customer
70 
— 
Other, net
102 
425 
Changes in operating assets and liabilities:
Accounts receivable
(3,196)
(1,531)
Prepaid expenses and other current assets
(2,140)
(2,052)
Other assets
(9,182)
(1,704)
Accounts payable, accrued expenses and other current liabilities
5,964 
7 
Deferred revenue and other liabilities, non-current
(1,006)
298 
Operating lease liabilities
(4,230)
(3,464)
Net cash provided by operating activities
22,789 
14,231 
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of marketable securities
(38,694)
(34,396)
Maturities of marketable securities
19,727 
22,341 
Proceeds from disposal of property and equipment
24 
154 
Purchases of property and equipment
(4,356)
(4,429)
Capitalized internal-use software costs
(7,906)
(5,890)
Net cash used in investing activities
(31,205)
(22,220)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of convertible senior notes
201,250 
—
Payment for capped calls related to convertible senior notes
(17,529)
—
Principal payments on finance leases and lease financing obligations
(13,030)
(13,898)
Payment of debt issuance costs
(6,512)
(602)
Proceeds from borrowings under revolving credit facility
— 
2,454 
Payment of offering costs
— 
(20)
Purchase of treasury stock
(1,375)
(1,185)
Proceeds from exercises of stock options
7,198 
4,746 
Taxes paid for net share settlement of equity awards
(2,550)
(1,593)
Proceeds from ESPP
1,071 
1,388 
Other
(271)
— 
Net cash provided by (used in) financing activities
168,252 
(8,710)
Net increase (decrease) in cash and cash equivalents
159,836 
(16,699)
Cash and cash equivalents, at beginning of period
29,182 
45,776 
Cash and cash equivalents, at end of period
$
189,018 
$
29,077 
9

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



Adjusted Gross Profit and Adjusted Gross Margin
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
(dollars in thousands)
Gross profit
$
29,838 
$
23,071 
$
80,201 
$
65,368 
Adjustments:
Stock-based compensation
425 
318 
1,414 
1,170 
Depreciation and amortization(1)
7,442 
5,970 
20,754 
18,998 
Restructuring charges
114 
— 
486 
(13)
Adjusted gross profit
$
37,819 
$
29,359 
$
102,855 
$
85,523 
Gross margin
64 
%
62 
%
63 
%
60 
%
Adjusted gross margin
81 
%
79 
%
80 
%
79 
%
________________
(1) $0.1 million and $0.4 million of amortization expense recorded to cost of revenue for the three and nine months ended September 30, 2026, respectively, are classified as restructuring charges in the table above.

Adjusted EBITDA and Adjusted EBITDA Margin
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
(dollars in thousands)
Net loss and comprehensive loss
$
(2,364)
$
(3,778)
$
(13,600)
$
(20,199)
Adjustments:
Depreciation and amortization(1)
7,560 
6,044 
21,045 
19,282 
Stock-based compensation(2)
7,304 
5,445 
22,775 
20,108 
Interest expense and investment income, net
957 
457 
2,644 
1,157 
Income tax provision
60 
— 
128 
84 
Foreign exchange (gain) loss
(63)
(189)
(109)
437 
Litigation settlement costs
— 
150 
— 
288 
Restructuring charges
1,723 
— 
5,235 
(66)
Stock-based consideration to a customer
70 
— 
70 
— 
 Impairment of long-lived assets
— 
258 
— 
258 
Adjusted EBITDA
$
15,247 
$
8,387 
$
38,188 
$
21,349 
Net loss and comprehensive loss margin
(5
%)
(10
%)
(11
%)
(19
%)
Adjusted EBITDA margin
33
%
23
%
30
%
20
%
________________
(1) $0.1 million and $0.4 million of amortization expense for the three and nine months ended September 30, 2026, respectively, are classified as restructuring charges in the table above.
(2) $0.4 million and $0.9 million of stock-based compensation expense for the three and nine months ended September 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 September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
(dollars in thousands)
Revenue
$
46,654 
$
37,162 
$
128,033 
$
108,073 
Adjusted cost of revenue:
Cost of revenue
16,816 
14,091 
47,832 
42,705 
Less: Depreciation and amortization(1)
(7,442)
(5,970)
(20,754)
(18,998)
Less: Stock-based compensation
(425)
(318)
(1,414)
(1,170)
Less: Restructuring charges
(114)
— 
(486)
13 
Adjusted cost of revenue
8,835 
7,803 
25,178 
22,550 
Adjusted Operating Expenses:
Research and development
11,346 
11,235 
33,634 
34,968 
Less: Depreciation and amortization
(56)
(36)
(142)
(135)
Less: Stock-based compensation
(2,422)
(2,564)
(8,729)
(9,303)
Less: Restructuring charges
(850)
— 
(1,017)
34 
Less: Impairment of long-lived assets
— 
(258)
— 
(258)
Adjusted research and development
8,018 
8,377 
23,746 
25,306 
Sales and marketing
10,739 
8,996 
31,238 
28,431 
Less: Depreciation and amortization
(38)
(25)
(90)
(95)
Less: Stock-based compensation(2)
(2,017)
(1,230)
(5,645)
(4,908)
Less: Restructuring charges
(292)
— 
(2,048)
64 
Adjusted sales and marketing
8,392 
7,741 
23,455 
23,492 
General and administrative
9,163 
6,350 
26,266 
20,490 
Less: Depreciation and amortization
(24)
(13)
(59)
(54)
Less: Stock-based compensation(2)
(2,440)
(1,333)
(6,987)
(4,727)
Less: Restructuring charges
(467)
— 
(1,684)
(45)
Less: Litigation settlement costs
— 
(150)
— 
(288)
Adjusted general and administrative
6,232 
4,854 
17,536 
15,376 
Total Adjusted Operating Expenses
$
22,642 
$
20,972 
$
64,737 
$
64,174 
Add: Stock-based consideration to a customer
70 
— 
70 
— 
Adjusted EBITDA
$
15,247 
$
8,387 
$
38,188 
$
21,349 
________________
(1) $0.1 million and $0.4 million of amortization expense for the three and nine months ended September 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 September 30, 2026 is classified as restructuring charges in the table above, including an immaterial amount related to sales and marketing costs and $0.3 million related to general and administrative costs. $0.9 million of stock-based compensation incurred during the nine months ended September 30, 2026 is classified as restructuring charges in the table above, including $0.1 million related to sales and marketing costs, and $0.8 million related to general and administrative costs.
11

Non-GAAP Net Income (Loss)
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
(in thousands, except share and per share data)
Net loss and comprehensive loss
$
(2,364)
$
(3,778)
$
(13,600)
$
(20,199)
Adjustments:
Stock-based compensation(1)
7,304 
5,445 
22,775 
20,108 
Foreign exchange (gain) loss
(63)
(189)
(109)
437 
Litigation settlement costs
— 
150 
— 
288 
Restructuring charges
1,723 
— 
5,235 
(66)
Stock-based consideration to a customer
70 
— 
70 
— 
     Impairment of long-lived assets
— 
258 
— 
258 
Non-GAAP net income
$
6,670 
$
1,886 
$
14,371 
$
826 
Adjustments to Non-GAAP net income for diluted EPS
$
144 
$
— 
$
144 
$
— 
Non-GAAP net income attributable to common stockholders – diluted EPS
6,814 
1,886 
14,515 
826 
Non-GAAP net income per share - diluted
$
0.09 
$
0.03 
$
0.22 
$
0.01 
Shares used in Non-GAAP net income per share calculations:
GAAP weighted-average shares used to compute net loss per share - basic and diluted
62,536,342 
56,977,764 
60,885,388 
55,557,541 
Add: Dilutive ordinary share equivalents
12,239,676 
3,086,514 
5,976,881 
2,571,073 
Non-GAAP weighted average common shares outstanding - diluted
74,776,018 
60,064,278 
66,862,269 
58,128,614 
________________
(1) $0.4 million and $0.9 million of stock-based compensation expense for the three and nine months ended September 30, 2026, respectively, are classified as restructuring charges in the table above.

Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin
Nine Months Ended September 30,
2026
2025
(dollars in thousands)
Net cash provided by operating activities
$
22,789 
$
14,231 
Capital expenditures(1)
(12,262)
(10,319)
Principal payments on finance leases and lease financing obligations
(13,030)
(13,898)
Payments on litigation settlement costs
23 
271 
Payments on restructuring costs
4,396 
230 
Adjusted Free Cash Flow
$
1,916 
$
(9,485)
Adjusted Free Cash Flow Margin
1 
%
(9)
%
________________
(1) Capital expenditures are defined as cash used for purchases of property and equipment and capitalized internal-use software costs.


12
Backblaze ©2026 | 1 November 2, 2026 Q3 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 are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current assumptions and expectations of future events and often can be identified by words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” and “would,” variations of such words or the negative thereof, and similar expressions or future dates. All statements other than statements of historical facts contained in this presentation, including statements regarding our strategy, financial guidance, 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 strategic agreement with CoreWeave involves a 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. The risks described are not exhaustive. 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. Actual results may differ materially from those expressed or implied in 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 This presentation also contains non-GAAP financial measures and more information about our use of such non-GAAP financial measures, as well as a reconciliation of the most directly comparable historical U.S. GAAP financial measures to the corresponding historical non-GAAP financial measures, which can be found in our related financial filings in the section titled “Reconciliation of Non-GAAP Measures.” Non-GAAP measures should be considered in addition to, not as a substitute for, GAAP results. 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 ● 47% B2 revenue growth year over year ● Broad-based customer adoption ○ 4x net new B2 self-serve customers vs last year ○ 254 customers contributing more than $50K in ARR ○ 4 deals greater than $500K in ARR booked AI strategy drives growth

 

Backblaze ©2026 | 5 Backblaze B2 is built for this moment Rapidly expanding storage needs INDUSTRY THEMES Greater focus on AI ROI Backblaze delivers the scale and economics AI needs. THE OPPORTUNITY Note: This slide contains forward-looking statements, which are subject to risks and uncertainties. Actual results may differ materially. See “Cautionary Note Regarding Forward-Looking Statements” for additional information.

 

Backblaze ©2026 | 6 Connecting with more AI builders AI builders we reach include How we’re reaching them Foundation model developers AI search visibility Physical AI companies AI ecosystem relationships Generative media companies Developer and agent tools The number of new AI builders entering our pipeline doubled in Q3 versus Q2. Note: This slide contains forward-looking statements, which are subject to risks and uncertainties. Actual results may differ materially. See “Cautionary Note Regarding Forward-Looking Statements” for additional information.

 

Backblaze ©2026 | 7 AI search visibility drives customer acquisition +230% AI referral traffic y/y Roughly twice the market growth rate of 117%* >2x Conversion vs. organic search Self-serve account creation or contacting sales Trusted content builds authority in AI search *Source: similarweb 2026 Generative AI Landscape: The Evolution of AI Search.

 

Backblaze ©2026 | 8 Building relationships across the AI ecosystem Hundreds of startups participating in FLAMETHROWER our startup program VC relationships Connect through investor networks Startup communities Meet builders as their businesses develop Industry events TechCrunch and Coast-to-Coast Startup Lab

 

Backblaze ©2026 | 9 Building for developers and AI agents Open-source B2 MCP server Enables AI agents to use B2 storage within customer-defined permissions AI reference architectures Showing how B2 fits into AI workloads Note: This slide contains forward-looking statements, which are subject to risks and uncertainties. Actual results may differ materially. See “Cautionary Note Regarding Forward-Looking Statements” for additional information.

 

Backblaze ©2026 | 10 4 large customer wins with ARR > $500K CUSTOMER 1 EXPANSION AI training data provider AI BUILDER $4M+ expansion to add a new workload on B2 CUSTOMER 2 EXPANSION Generative AI media customer AI BUILDER Increased training activity generating more data CUSTOMER 3 EXPANSION AI audio customer AI BUILDER Consolidating more data on Backblaze B2 CUSTOMER 4 NEW LOGO Global networking technology customer CORE WORKLOAD Embedding Powered by Backblaze, our white-label solution

 

Backblaze ©2026 | 11 DISCOVER Customer Referral LAND Q1 FY26 Nearly $1M EXPAND Q2 FY26 $1M+ expansion EXPAND $4M+ expansion 11 days TRIAL TO SIGNED DEAL 12 weeks LAND TO FIRST EXPANSION 7.0x CAPACITY VS. INITIAL LAND Data Collection & Data Processing AI WORKLOAD AI builder expanded into a new workload Customer 1 case study Q3 FY26 Added Data Processing Workload Note: Single customer example. Not indicative of other customers or future results.

 

Backblaze ©2026 | 12 AI growth accelerates demand for our capacity tier • The AI storage opportunity keeps broadening. • Agents accelerate data access and use. • Scale and ROI strengthen the case for B2. Note: This slide contains forward-looking statements, which are subject to risks and uncertainties. Actual results may differ materially. See “Cautionary Note Regarding Forward-Looking Statements” for additional information.

 

Backblaze ©2026 | 13 Financial Overview Marc Suidan CFO

 

Backblaze ©2026 | 14 Key Financial Highlights ● B2 ARR: $127M, up 53% year over year ● B2 Rule of 40 Score*: 48 ● Guidance for FY’26: Raised ● Expected Q4 B2 growth: ~60% 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, Adjusted Free Cash Flow Margin and ARR are non-GAAP financial measures. Please refer to the Appendix for reconciliations to the most directly comparable GAAP measures. *Rule of 40 score is calculated by adding Q3’26 B2 Growth with Q3’26 Adj. FCF margin.

 

Backblaze ©2026 | 15 23% Q1’25 29% Q2’25 28% Q3’25 24% Q4’25 24% Q1’26 34% Q2’26 47% Q3’26 B2 growth accelerating B2 REVENUE GROWTH REVENUE DRIVERS DEFINED New Direct Sales Direct-sales-led new-logo acquisition New Self-Serve Product-led new-logo acquisition Direct Cross-Sell / Upsell Direct-sales-led expansion within existing customers Net Organic Growth Organic data growth, net of contraction

 

Backblaze ©2026 | 16 Upmarket momentum $50K+ ARR CUSTOMERS +109% y/y ARR from $50K+ ARR customers +57% y/y customer count growth Q3 $500K+ ARR WINS 4 new deals ARR from $50K+ ARR customers $50M 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, Adjusted Free Cash Flow Margin and ARR are non-GAAP financial measures. Please refer to the Appendix for reconciliations to the most directly comparable GAAP measures.

 

Backblaze ©2026 | 17 Financial and operational Q3 highlights REVENUE ($M) Y/Y GROWTH NET REVENUE RETENTION GROSS CUSTOMER RETENTION B2 Cloud Storage $30.5 47% 115% 89% Computer Backup $16.2 -2% 94% 91% Total Company $46.7 26% 105% 91% Note: Some amounts may not sum due to rounding.

 

Backblaze ©2026 | 18 22% Building a durable business (3%) (11%) Adj. EBITDA Margin 5% IPO 2021 2022 2023 Adj. Free Cash Flow Margin 2024 IPO 2021 2022 2023 2024 (54%) (42%) (29%) YTD 2026 30% YTD 2026 10% (16%)2025 2025 (4%) 1% 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.

 

Backblaze ©2026 | 19 Q4’26 and full year guidance Q4’26 $49.8 to $50.2 FY 2026 Raised $177.8 to $178.2 Q4’26 32% to 34% FY 2026 Raised 30% to 31% NOTES: The above financial information guidance for Q4 of 2026 and fiscal year 2026 are forward-looking statements. The revenue outlook for fiscal year 2026 also reflects a narrowed range of total Company revenue from the previously announced outlook. These forward-looking statements reflect our views with respect to future events as of the date of this presentation and are based on assumptions and subject to risks and uncertainties, and actual results may differ materially. A reconciliation of Adjusted EBITDA Margin guidance to GAAP net loss margin is not available on a forward-looking basis without unreasonable effort because certain reconciling items, including stock-based compensation expense, restructuring charges, depreciation and amortization, interest expense, and income tax provisions cannot be reasonably predicted due to their inherent uncertainty and variability. These items could individually or in the aggregate be material to the Company's reported GAAP results. Revenue ($M) Adj. EBITDA Margin

 

Backblaze ©2026 | 20 Lower funding costs with capped-call protection $201M 0% Capital raised Coupon Illustrative dilution after capped calls, if principal paid in cash. Stock price Net shares issued (millions) Equity dilution Up to $33.76 0 0% $35 0.32 0.5% $41 1.62 2.6% $45 2.29 3.6% 0% coupon financing replaces higher-cost capital leases Note: Equity dilution scenarios are based on 63 million shares outstanding as of September 30, 2026.

 

Backblaze ©2026 | 21 Capex & Free Cash Flow Reconciliation ($M) Q1’26 Q2’26 Q3’26 2026 YTD Net cash provided by operating activities 3.4 10.4 9.0 22.8 Capital Expenditures* (2.8) (3.9) (5.6) (12.3) Principal payments on finance leases and lease financing obligations (4.2) (4.3) (4.5) (13.0) Adjustments 1.8 0.9 1.7 4.4 Adjusted Free Cash Flow (1.8) 3.2 0.5 1.9 PP&E Additions** 7.7 11.7 13.2 32.6 *Capital expenditures are defined as cash used for purchases of property and equipment and capitalized internal-use software costs. ** PP&E additions represent both cash purchases and equipment acquired through finance leases, net of disposals.

 

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, and certain non-recurring, infrequent items, and other items that we do not consider as indicative of our core operating performance, including litigation settlement costs, restructuring charges, stock-based consideration to a customer, impairment of long-lived assets, and other similar charges. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue 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, litigation settlement costs, stock-based consideration to a customer, and certain non-recurring, infrequent items, and other items that we do not consider as indicative of our core operating performance. 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 adjusted gross profit as a percentage of revenue. We exclude stock-based compensation, which is non-cash, 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. Definitions

 

Backblaze ©2026 | 26 Reconciliation of Non-GAAP Measures: Adjusted Gross Margin Adjusted Gross Profit Q3’26 Q3’25 Gross Profit $29.838 $23.071 Gross Margin 64% 62% Adjustments for Cost of Revenue: Stock Based Compensation 0.425 0.318 Depreciation & Amortization(1) 7.442 5.970 Restructuring Charges 0.114 - Adjusted Gross Profit $37.819 $29.359 Adjusted Gross Margin 81% 79% Dollars in Millions (1) $0.1 million of amortization expense recorded to cost of revenue for the three months ended September 30, 2026 is classified as restructuring charges in the table above.

 

Backblaze ©2026 | 27 Reconciliation of Non-GAAP Measures: Non-GAAP Net Income (Loss) Q3’26 Q3’25 Net Loss $(2.364) $(3.778) Adjustments: Stock Based Compensation(1) 7.304 5.445 Foreign Exchange (Gain) Loss (0.063) (0.189) Litigation settlement costs - 0.150 Restructuring charges 1.723 - Stock-based consideration to a customer 0.070 - Impairment of Long-Lived Assets - 0.258 Non-GAAP Net Income $6.670 $1.886 Adjustments to Non-GAAP net income for diluted EPS 0.144 - Non-GAAP Net Income Attributable to Common Stockholders – Diluted EPS $6.814 $1.886 Non-GAAP Diluted Shares 74.776 60.064 Non-GAAP Net Income (Loss) per Diluted Share $0.09 $0.03 Dollars and Shares in Millions (1) $0.4 million of stock-based compensation expense for the three months ended September 30, 2026 is classified as restructuring charges in the table above.

 

Backblaze ©2026 | 28 Reconciliation of Non-GAAP Measures: Adjusted EBITDA Q3’26 Q3’25 Net Loss $(2.364) $(3.778) Net Loss Margin -5% -10% Adjustments: Depreciation & Amortization(1) 7.560 6.044 Stock Based Compensation(2) 7.304 5.445 Interest Expense & Investment Income, Net 0.957 0.457 Income tax provision 0.060 - Foreign Exchange (Gain) Loss (0.063) (0.189) Litigation settlement costs - 0.150 Restructuring charges 1.723 - Stock-based consideration to a customer 0.070 - Impairment of Long-Lived Assets - 0.258 Adjusted EBITDA $15.247 $8.387 Adjusted EBITDA Margin 33% 23% Dollars in Millions (1) $0.1 million of amortization expense for the three months ended September 30, 2026 is classified as restructuring charges in the table above. (2) $0.4 million of stock-based compensation expense for the three months ended September 30, 2026 is classified as restructuring charges in the table above.

 

Backblaze ©2026 | 29 Reconciliation of Non-GAAP Measures: Adjusted Free Cash Flow QTD Q3’26 QTD Q3’25 YTD Q3’26 YTD Q3’25 Net Cash Provided by Operating Activities $9.002 $5.743 $22.789 $14.231 Capital Expenditures (5.647) (4.848) (12.262) (10.319) Principal Payments on Finance Leases and Lease Financing Obligations (4.529) (4.621) (13.030) (13.898) Payment on litigation settlement costs 0.008 0.259 0.023 0.271 Payments on restructuring costs 1.680 - 4.396 0.230 Adjusted Free Cash Flow $0.514 ($3.467) $1.916 ($9.485) Adjusted Free Cash Flow Margin 1% (9%) 1% (9%) Dollars in Millions

 

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