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Backblaze (NASDAQ: BLZE) lifts 2026 guidance on Q1 growth and 26% EBITDA margin

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

Rhea-AI Filing Summary

Backblaze, Inc. reported solid first quarter 2026 results, highlighted by faster growth in its B2 Cloud Storage business and improved profitability metrics. Revenue reached $38.7 million, up 12% year over year, driven by B2 Cloud Storage revenue of $22.4 million, which grew 24% while Computer Backup revenue was $16.2 million and relatively flat.

GAAP gross profit was $23.5 million with a 61% margin, up from 56% a year earlier. Net loss narrowed to $6.1 million, or $0.10 per share, compared with a $9.3 million loss, or $0.17 per share, in Q1 2025. On a non-GAAP basis, adjusted EBITDA improved to $10.1 million, or 26% of revenue, versus $6.4 million, or 18%.

Annual recurring revenue was $158.2 million, up 13%, with B2 ARR of $93.0 million up 28%. The company highlighted 76% growth in AI customers and about $1.5 million in annual contract value from two new AI wins. Management raised full-year 2026 guidance to revenue of $161.5–$163.5 million and a higher adjusted EBITDA margin outlook of 23–25%, and guided Q2 2026 revenue to $39.8–$40.2 million with adjusted EBITDA margin of 21–23%.

Positive

  • Raised full-year 2026 outlook: Revenue guidance increased to $161.5–$163.5 million from $156.5–$158.5 million, and adjusted EBITDA margin guidance lifted to 23–25% from 19–21%, indicating stronger expected growth and profitability.
  • Strong B2 and AI-driven growth: B2 Cloud Storage revenue grew 24% year over year to $22.4 million and B2 ARR grew 28% to $93.0 million, supported by 76% year-over-year growth in AI customers and about $1.5 million in new AI annual contract value.
  • Significant margin improvement: Gross margin increased to 61% from 56%, while adjusted EBITDA margin rose to 26% from 18%, showing better operating leverage compared with Q1 2025.

Negative

  • None.

Insights

Backblaze posted strong B2 and AI-driven growth, expanded margins, and raised full-year 2026 guidance.

Backblaze delivered Q1 2026 revenue of $38.7M, up 12%, with B2 Cloud Storage growing 24% to $22.4M. Mix is shifting toward the higher-growth B2 segment while Computer Backup remained roughly flat at $16.2M. Gross margin expanded to 61% from 56%, reflecting better unit economics.

Profitability improved meaningfully: net loss narrowed to $6.1M, and Adjusted EBITDA rose to $10.1M, a 26% margin versus 18% a year earlier. Non-GAAP net income reached $2.7M, showing that on an adjusted basis the business is now profitable while still investing for growth.

Demand from AI customers is becoming a key driver. AI customer count grew 76% year over year, and two AI deals contributed about $1.5M in annual contract value. Management raised full-year 2026 revenue guidance to $161.5–$163.5M and lifted the adjusted EBITDA margin outlook to 23–25%, signaling confidence in continued growth and margin expansion.

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.
Q1 2026 Revenue $38.7M Quarter ended March 31, 2026; up 12% year over year
B2 Cloud Storage Revenue $22.4M Q1 2026; 24% year-over-year growth
Net Loss $6.1M Q1 2026 GAAP net loss vs $9.3M in Q1 2025
Adjusted EBITDA $10.1M Q1 2026; 26% of revenue vs 18% in Q1 2025
Annual Recurring Revenue $158.2M ARR as of March 31, 2026; 13% year-over-year increase
B2 ARR $93.0M As of March 31, 2026; 28% year-over-year growth
Cash, Equivalents & Securities $45.5M Balance as of March 31, 2026
FY 2026 Revenue Guidance $161.5M–$163.5M Raised full-year 2026 outlook from $156.5M–$158.5M
Adjusted EBITDA financial
"Adjusted EBITDA was $10.1 million, or 26% of revenue, compared to $6.4 million, or 18% of revenue, in Q1 2025."
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.
Annual recurring revenue (ARR) financial
"Annual recurring revenue (ARR) was $158.2 million, an increase of 13% 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 105% in Q1 2025."
Adjusted free cash flow financial
"Adjusted free cash flow was $(1.8) million, compared to $(2.1) million in Q1 2025."
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.
Gross customer retention rate financial
"Gross customer retention rate was 91% in Q1 2026 compared to 90% in Q1 2025."
Percentage of existing customers a company keeps over a set period, calculated by counting how many of the original customer base remain at the end of that period without counting any new customers or extra purchases. Investors use it like a loyalty meter — higher gross customer retention means a business is losing fewer clients, which suggests more predictable revenue and lower pressure to replace lost customers through costly marketing or sales.
Revenue $38.7M +12% YoY
Net income (loss) ($6.1M) vs ($9.3M) in Q1 2025
Adjusted EBITDA $10.1M 26% margin vs 18% in Q1 2025
ARR $158.2M +13% YoY
B2 ARR $93.0M +28% YoY
Guidance

For Q2 2026, revenue is expected between $39.8M and $40.2M with adjusted EBITDA margin of 21–23%. For full-year 2026, revenue guidance is $161.5M–$163.5M with adjusted EBITDA margin of 23–25%.

Understanding 8-K Material Events →
0001462056FALSE00014620562026-05-042026-05-04

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

May 4, 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 May 4, 2026, the Company issued a press release announcing its financial results for the quarter ended March 31, 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 May 4, 2026
99.2
Supplemental earnings presentation, dated May 4, 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:
May 4, 2026
Backblaze, Inc.
By:
/s/ Marc Suidan
Marc Suidan, Chief Financial Officer

Exhibit 99.1
Backblaze Announces First Quarter 2026 Financial Results

24% Revenue Growth in B2 Cloud Storage, 12% Revenue Growth Overall in Q1 2026

San Francisco, CA (May 4, 2026)—Backblaze, Inc. (Nasdaq: BLZE), the high-performance cloud storage platform for the AI era, today announced results for its first quarter ended March 31, 2026.

"In Q1, we exceeded the top end of our revenue and Adjusted EBITDA guidance, with B2 growing 24% year over year," said Gleb Budman, co-founder and CEO of Backblaze. "We are seeing growing traction with AI customers, including winning a AI training data company and a generative AI video creation company, jointly contributing about $1.5 million in annual contract value, along with a 76% growth in AI customers year over year. As AI models shift from text to multimodal, the volume of data required to train and operate them grows exponentially, and the need for storage that is performant, open, and cost-efficient at scale has never been greater. Backblaze is emerging as a compelling storage platform of choice for the AI economy."


First Quarter 2026 Financial Highlights:(1)

•Revenue of $38.7 million, an increase of 12% year-over-year (YoY).
•B2 Cloud Storage revenue was $22.4 million, an increase of 24% YoY.
•Computer Backup revenue was $16.2 million, relatively flat YoY.
•Gross profit of $23.5 million, or 61% of revenue, compared to $19.3 million, or 56% of revenue, in Q1 2025.
•Adjusted gross profit of $30.7 million, or 79% of revenue, compared to $27.3 million, or 79% of revenue, in Q1 2025.
•Net loss was $6.1 million compared to a net loss of $9.3 million in Q1 2025.
•Net loss per share was $0.10 compared to a net loss per share of $0.17 in Q1 2025.
•Adjusted EBITDA was $10.1 million, or 26% of revenue, compared to $6.4 million, or 18% of revenue, in Q1 2025.
•Non-GAAP net income of $2.7 million compared to non-GAAP net loss of $1.8 million in Q1 2025.
•Non-GAAP net income per share of $0.04 compared to a non-GAAP net loss per share of $0.03 in Q1 2025.
•Cash flow from operations was $3.4 million, compared to $4.9 million in Q1 2025.
•Adjusted free cash flow was $(1.8) million, compared to $(2.1) million in Q1 2025.
•Cash, cash equivalents, and marketable securities totaled $45.5 million as of March 31, 2026.
________________
(1) Some amounts may not sum due to rounding.
1

First Quarter 2026 Operational Highlights:

•Annual recurring revenue (ARR) was $158.2 million, an increase of 13% YoY.
◦B2 Cloud Storage ARR was $93.0 million, an increase of 28% YoY.
◦Computer Backup ARR was $65.2 million, relatively flat YoY.
•Net revenue retention rate (NRR) was 103% compared to 105% in Q1 2025.
◦B2 Cloud Storage NRR was 110% compared to 105% in Q1 2025.
◦Computer Backup NRR was 95% compared to 103% in Q1 2025.
•Gross customer retention rate was 91% in Q1 2026 compared to 90% in Q1 2025.
◦B2 Cloud Storage gross customer retention rate was 89% in both Q1 2026 and Q1 2025.
◦Computer Backup gross customer retention rate was 91% compared to 90% in Q1 2025.

Recent Business Highlights:

•AI customer count grew 76% year over year: An AI training data company and a generative AI video creation company were among the quarter’s wins and together contributed about $1.5 million in annual contract value, reflecting our growing traction in AI.
•ARR from large customers grew 72% year over year: The number of customers generating $50,000+ in ARR increased 51% year over year, reflecting continued success scaling with larger accounts.
•Appointed Anuj Kumar as Chief Revenue Officer: With senior leadership experience at Rackspace, VMware, Red Hat, and NetApp, Anuj brings a proven track record of scaling cloud infrastructure businesses, strengthening our ability to accelerate revenue growth.
•Leading venture firm a16z selected Backblaze for its founder resource program: Together with our participation in Launch, Startup Grind and other startup programs, this broadens our reach across the startup ecosystem and positions us earlier with high-growth companies as they build and scale.
•Raised B2 pricing and eliminated transaction fees to deliver greater value: Effective May 1st, Backblaze increased pay-as-you-go storage pricing to support our continued investment in performance, while removing API transaction fees to simplify pricing and support customers.

Financial Outlook:

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

For the second quarter of 2026, we expect:
•Revenue between $39.8 million to $40.2 million.
•Adjusted EBITDA margin between 21% to 23%.
•Basic weighted average shares outstanding of 60.5 million to 60.7 million shares.

For full-year 2026, we have raised our outlook:
•Revenue between $161.5 million to $163.5 million, raised from $156.5 million to $158.5 million.
•Adjusted EBITDA margin range of 23% to 25%, raised from 19% to 21%.

2

Conference Call Information:

Backblaze will host a conference call today, May 4, 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/290886121

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://registrations.events/direct/Q4I1757373
Phone registrants will receive dial-in information via email.

About Backblaze

Backblaze (NASDAQ: BLZE) gives businesses the freedom to innovate without limits by removing the barriers of lock-in, complexity, and cost. Our high-performance cloud object storage accelerates AI workflows, powers data-heavy applications, streamlines media management, and protects critical data. As an award-winning independent cloud, we provide levels of interoperability that enable over 500,000 of our customers to reach and serve hundreds of millions of end users in 175 countries around the world. For more information, please go to 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.

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.
3


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 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.

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. This measure provides 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
Caroline Statile
press@backblaze.com

6

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

March 31,
December 31,
2026
2025
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$
26,276 
$
29,182 
Marketable securities
19,207 
22,199 
Accounts receivable, net
4,261 
3,482 
Prepaid expenses
5,687 
4,195 
Other current assets
7,405 
6,630 
Total current assets
62,836 
65,688 
Property and equipment, net
61,305 
57,310 
Operating lease right-of-use assets, net
21,403 
22,713 
Capitalized internal-use software, net
40,857 
40,825 
Other assets
6,265 
5,290 
Total assets
$
192,666 
$
191,826 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable, accrued expenses and other current liabilities
$
9,227 
$
10,994 
Finance lease liabilities and lease financing obligations, current
15,181 
14,873 
Operating lease liabilities, current
4,530 
5,253 
Deferred revenue, current
30,999 
30,498 
Total current liabilities
59,937 
61,618 
Finance lease liabilities and lease financing obligations, non-current
23,627 
21,292 
Operating lease liabilities, non-current
19,016 
20,166 
Deferred revenue and other liabilities, non-current
5,443 
5,529 
Total liabilities
108,023 
108,605 
Commitments and contingencies
Stockholders’ Equity
Class A common stock, $0.0001 par value; 113,000,000 shares authorized as of both March 31, 2026 and December 31, 2025; 60,478,861 shares issued and 60,033,083 shares outstanding as of March 31, 2026 and 58,962,339 shares issued and 58,705,790 outstanding as of December 31, 2025.
6 
6 
Treasury stock, at cost; 445,778 and 256,549 shares as of March 31, 2026 and December 31, 2025, respectively
(2,792)
(1,983)
Additional paid-in capital
315,173 
306,795 
Accumulated deficit
(227,744)
(221,597)
Total stockholders’ equity
84,643 
83,221 
Total liabilities and stockholders’ equity
$
192,666 
$
191,826 
7

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

Three Months Ended March 31,
2026
2025
(unaudited)
Revenue
$
38,666 
$
34,613 
Cost of revenue
15,137 
15,357 
Gross profit
23,529 
19,256 
Operating expenses:
Research and development
11,286 
11,855 
Sales and marketing
10,284 
9,263 
General and administrative(1)
7,312 
6,909 
Total operating expenses
28,882 
28,027 
Loss from operations
(5,353)
(8,771)
Investment income
404 
533 
Interest expense
(1,209)
(853)
Other income (expense), net
39 
(149)
Loss before provision for income taxes
(6,119)
(9,240)
Income tax provision
28 
84 
Net loss and comprehensive loss
$
(6,147)
$
(9,324)
Net loss per share, basic and diluted
$
(0.10)
$
(0.17)
Weighted average common shares outstanding, basic and diluted
59,290,195 
54,060,249 
________________
(1) To conform to the current period’s presentation, foreign exchange loss that was 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 months ended March 31, 2025. This reclassification had no impact on total net loss and comprehensive loss.
8

BACKBLAZE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended March 31,
2026
2025
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss
$
(6,147)
$
(9,324)
Adjustments to reconcile net loss to net cash provided by operating activities:
Noncash lease expense on operating leases
1,310 
925 
Depreciation and amortization
6,740 
7,764 
Stock-based compensation
6,901 
7,359 
Gain on disposal of property and equipment
(13)
(174)
Other, net
(35)
172 
Changes in operating assets and liabilities:
Accounts receivable
(779)
61 
Prepaid expenses and other current assets
(2,275)
(1,102)
Other assets
(1,049)
(129)
Accounts payable, accrued expenses and other current liabilities
111 
199 
Deferred revenue and other liabilities, non-current
415 
798 
Operating lease liabilities
(1,819)
(1,606)
Net cash provided by operating activities
3,360 
4,943 
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of marketable securities
(4,965)
(18,285)
Maturities of marketable securities
8,000 
14,765 
Proceeds from disposal of property and equipment
17 
14 
Purchases of property and equipment
(651)
(503)
Capitalized internal-use software costs
(2,112)
(2,123)
Net cash provided by (used in) investing activities
289 
(6,132)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on finance leases and lease financing obligations
(4,230)
(4,543)
Payment of offering costs
— 
(10)
Payment of debt issuance costs
— 
(20)
Purchase of treasury stock
(809)
— 
Proceeds from exercises of stock options
351 
1,050 
Taxes paid for net share settlement of equity awards
(1,778)
(458)
Other
(89)
— 
Net cash used in financing activities
(6,555)
(3,981)
Net decrease in cash and cash equivalents
(2,906)
(5,170)
Cash and cash equivalents, at beginning of period
29,182 
45,776 
Cash and cash equivalents, at end of period
$
26,276 
$
40,606 
9

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


Adjusted Gross Profit and Adjusted Gross Margin
Three Months Ended March 31,
2026
2025
(dollars in thousands)
Gross profit
$
23,529 
$
19,256 
Adjustments:
Stock-based compensation
458 
420 
Depreciation and amortization(1)
6,513 
7,644 
Restructuring charges
237 
— 
Adjusted gross profit
$
30,737 
$
27,320 
Gross margin
61 
%
56 
%
Adjusted gross margin
79 
%
79 
%
________________
(1) $0.1 million of depreciation and amortization expense recorded to cost of revenue for the three months ended March 31, 2026 is classified as restructuring charges in the table above.

Adjusted EBITDA and Adjusted EBITDA Margin
Three Months Ended March 31,
2026
2025
(dollars in thousands)
Net loss and comprehensive loss
$
(6,147)
$
(9,324)
Adjustments:
Depreciation and amortization(1)
6,593 
7,764 
Stock-based compensation(2)
6,712 
7,359 
Interest expense and investment income, net
805 
320 
Income tax provision
28 
84 
Foreign exchange (gain) loss
(39)
149 
Restructuring charges
2,191 
— 
Adjusted EBITDA
$
10,143 
$
6,352 
Net loss and comprehensive loss margin
(16
%)
(27
%)
Adjusted EBITDA margin
26
%
18
%
________________
(1) $0.1 million of amortization expense for the three months ended March 31, 2026 is classified as restructuring charges in the table above.
(2) $0.2 million of stock-based compensation expense for the three months ended March 31, 2026 is classified as restructuring charges in the table above.

10

Other Non-GAAP Measures
Adjusted Cost of Revenue and Adjusted Operating Expenses
Three Months Ended March 31,
2026
2025
(dollars in thousands)
Revenue
$
38,666 
$
34,613 
Adjustments:
Adjusted cost of revenue:
Cost of revenue
15,137 
15,357 
Less: Depreciation and amortization(1)
(6,513)
(7,644)
Less: Stock-based compensation
(458)
(420)
Less: Restructuring charges
(237)
— 
Adjusted cost of revenue
7,929 
7,293 
Adjusted gross margin
79 
%
79 
%
Adjusted Operating Expenses:
Research and development
11,286 
11,855 
Less: Depreciation and amortization
(40)
(58)
Less: Stock-based compensation
(2,881)
(3,467)
Less: Restructuring charges
(155)
— 
Adjusted research and development
8,210 
8,330 
Sales and marketing
10,284 
9,263 
Less: Depreciation and amortization
(24)
(40)
Less: Stock-based compensation(2)
(1,577)
(1,797)
Less: Restructuring charges
(1,401)
— 
Adjusted sales and marketing
7,282 
7,426 
General and administrative(3)
7,312 
6,909 
Less: Depreciation and amortization
(16)
(22)
Less: Stock-based compensation(2)
(1,796)
(1,675)
Less: Restructuring charges
(398)
— 
Adjusted general and administrative
5,102 
5,212 
Total Adjusted Operating Expenses
$
20,594 
$
20,968 
Adjusted EBITDA
$
10,143 
$
6,352 
________________
(1) $0.1 million of amortization expense for the three months ended March 31, 2026 is classified as restructuring charges in the table above.
(2) $0.2 million of stock-based compensation incurred during the three months ended March 31, 2026 is classified as restructuring charges in the table above, including $0.1 million related to sales and marketing costs, and $0.1 million related to general and administrative costs.
11

Non-GAAP Net Income (Loss)
Three Months Ended March 31,
2026
2025
(in thousands, except share and per share data)
Net loss and comprehensive loss
$
(6,147)
$
(9,324)
Adjustments:
Stock-based compensation
6,712 
7,359 
Foreign exchange (gain) loss
(39)
149 
Restructuring charges
2,191 
— 
Non-GAAP net income (loss)
$
2,717 
$
(1,816)
Non-GAAP net income (loss) per share - diluted
$
0.04 
$
(0.03)
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
59,290,195 
54,060,249 
Add: Dilutive ordinary share equivalents
1,565,334 
— 
Non-GAAP weighted average common shares outstanding - diluted
60,855,529 
54,060,249 
________________
(1) $0.2 million of stock-based compensation incurred during the three months ended March 31, 2026 is classified as restructuring charges in the table above.

Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin
Three Months Ended March 31,
2026
2025
(dollars in thousands)
Net cash provided by operating activities
$
3,360 
$
4,943 
Capital expenditures(1)
(2,763)
(2,626)
Principal payments on finance leases and lease financing obligations
(4,230)
(4,543)
Payments on litigation settlement costs
15 
— 
Payments on restructuring costs
1,775 
115 
Adjusted Free Cash Flow
$
(1,843)
$
(2,111)
Adjusted Free Cash Flow Margin
(5)
%
(6)
%
________________
(1) Capital expenditures are defined as cash used for purchases of property and equipment and capitalized internal-use software costs.


12
Backblaze ©2026 | 1 May 4, 2026 Q1 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 be materially different from any future results expressed or implied by the forward-looking statements, including that our AI customer revenue is early-stage and achievement of widescale 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 be representative of actual market conditions, our GTM transformation may not achieve its intended objectives within the expected timeframe or cost, and those set forth under “Risk Factors” in our Quarterly Report on Form 10-Q for the first quarter of 2026. 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 ● Revenue and adjusted EBITDA exceeded guidance. ● Winning in AI storage. AI customers growing 76% y/y. ● GTM transformation is gaining traction. Existing customer pipeline nearly doubled y/y. Notes: AI customer count reflects the number of customers identified as having AI-related use cases on the Backblaze platform as of March 31, 2026, compared to the same period in the prior year. Growth rates for prior periods may not be indicative of future results. See "Forward-Looking Statements" for additional information.

 

Backblaze ©2026 | 5 The AI Opportunity Backblaze is serving both the builders of AI infrastructure and the companies deploying AI in real-world workflows. AI infrastructure and tools: Selling to the Suppliers of AI ● Neoclouds ● Training data providers ● AI platform builders AI companies ● Generative AI companies ● Data-intensive workflow teams ● Multimodal application builders

 

Backblaze ©2026 | 6 AI Infrastructure & Tools Market Opportunity ● $14B market opportunity estimated by 2030 Backblaze well positioned to serve the emerging storage tier demand ● Neoclouds need a performant hard drive tier behind flash ● Flash is about 10x more expensive per TB than hard drives BACKBLAZE OPPORTUNITY The scalable performant & cost-efficient storage layer behind flash Engaging with leading neocloud providers B2 Neo Case Study Note: 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.

 

Backblaze ©2026 | 7 AI Infrastructure and Tooling Customer Win THE CUSTOMER Training data provider selected B2 for large-scale video storage WHY WE WON ● Incumbent provider had rate limits and bandwidth constraints ● Won on economics and technical fit Backblaze is winning with fast-growing AI infrastructure customers 11 DAYS TO CLOSE ~$1M ARR

 

Backblaze ©2026 | 8 AI Company Market Opportunity Backblaze winning as AI workloads shift to multimodal BACKBLAZE OPPORTUNITY Price and performance get us in the door. Experience keeps them and grows them. Winning genAI companies with data-intensive workflows ● AI models are going multimodal – video, audio, and images ● These customers scale fast and need infrastructure that keeps up ● Data volumes are growing by orders of magnitude GenAI Case Study

 

Backblaze ©2026 | 9 THE CUSTOMER AI-powered video creation company selected B2 for model training data WHY WE WON ● Incumbent was difficult to manage and too expensive ● Backblaze offered the best performance per dollar ● Easy to use and scale As AI workloads scale, Backblaze is the leading storage platform for AI. ~$500K ARR AI Company Customer Win

 

Backblaze ©2026 | 10 Developer Ecosystem Meeting developers where they already work 13M users ⬝ 2M+ models Backblaze tool to store and share model caches on B2 $500M valuation Plugin to support GenAI workflows Tens of thousands of computer vision teams B2 integrated as backend for training data 60 million monthly downloads B2 added as integrated artifact store

 

Backblaze ©2026 | 11 Go-to-Market Transformation INCREASING AWARENESS 100+ companies joined Flamethrower in under 3 months Milestone achieved in half the typical time IMPROVING PIPELINE CONSISTENCY Systems upgraded Core GTM infrastructure complete Enables faster, more disciplined revenue motion EXPANDING WITHIN CUSTOMER BASE 2x pipeline Y/Y Sourced from installed base this quarter Converting more of the opportunity already in front of us

 

Backblaze ©2026 | 12 Anuj Kumar Bringing Proven GTM Leadership to Backblaze Chief Revenue Officer ● 20+ years scaling cloud revenue organizations at infrastructure companies ● Senior roles at NetApp, VMware, Rackspace, Verisign, Red Hat and SUSE “The buildout of AI infrastructure is one of the largest capital replatformings in the history of enterprise technology, and storage underpins it. Backblaze has built the right platform for this moment” - Anuj Kumar, CRO Bringing the discipline and execution rigor this phase of our growth requires

 

Backblaze ©2026 | 13 New Customer Momentum Healthcare data company Selected for disaster recovery Disaster recovery Cloud gaming platform Serving a multi-cloud environment Multi-cloud storage Audio streaming platform Migrating from self-managed infrastructure to B2 Cloud adoption Winning where data is valuable, active and operationally important

 

Backblaze ©2026 | 14 Financial Overview Marc Suidan CFO

 

Backblaze ©2026 | 15 Key Financial Highlights ● Strong B2 revenue growth at 24% ● Robust Adj. EBITDA margin of 26% ● Full-year outlook raised by $5M NOTES: Adjusted EBITDA is a non-GAAP financial measure. Please refer to the Appendix for a reconciliation to the most directly comparable GAAP measure.

 

Backblaze ©2026 | 16 B2 Growth Journey

 

Backblaze ©2026 | 17 Revenue Drivers Defined Net Organic Growth: Organic data growth less data contraction Direct Cross-sell/Upsell: Direct Sales led upsell of existing customers New Self-serve: PLG led new logo acquisition New Direct Sales: Direct Sales led new logo acquisition NOTES: PLG means Product Led Growth.

 

Backblaze ©2026 | 18 B2 ARR Methodology Change B2 ARR ($M) Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 New Method 58.4 63.5 65.7 69.0 72.5 81.8 82.8 87.4 93.0 Old Method 59.5 62.8 64.9 70.2 73.8 80.7 81.8 88.9 94.7 Delta -1.1 0.7 0.8 -1.2 -1.3 1.1 1 -1.5 -1.7 +$5M Q1’26 sequential ARR addition WHAT CHANGED ARR is now annualized from the final month of the quarter to 365 days, improving comparability across periods.

 

Backblaze ©2026 | 19 RPO Growth Methodology Change WHAT CHANGED Now capturing both annual and multi-year customer commitments, aligned to peer group. +$31M YEAR OVER YEAR +$6M QUARTER OVER QUARTER Note: RPO growth reflects new methodology comparison. New method ($M) Within 1 Year Over 1 Year Total Q1 2026 42.9 33.6 76.5 Q4 2025 39.5 30.7 70.2 Q/Q change +3.4 +2.9 +6.3 Reconciliation ($M) Q1 2025 Q4 2025 Previously reported 44.9 66.2 New method 45.7 70.2 Delta +0.8 +4.0 RPO is becoming more important as we sign larger, longer commitments

 

Backblaze ©2026 | 20 Q2’25 Q3’25 Q4’25 Q1’26 ARR $23M $24M $25M $27M % of Total ARR 15% 16% 17% 17% Upmarket Traction $50K+ ARR CUSTOMERS $50k+ CUSTOMER COUNT 187 CUSTOMERS in Q1 2026 UP 51% Y/Y Note: Historical ARR is based on the new methodology.

 

Backblaze ©2026 | 21 Financial and Operational Q1 Highlights REVENUE ($M) Y/Y GROWTH IN- QUARTER NRR GROSS CUSTOMER RETENTION B2 Cloud Storage $22.4 24% 110% 89% Computer Backup $16.2 -2% 95% 91% Total Company $38.7 12% 103% 91% Note: Some amounts may not sum due to rounding.

 

Backblaze ©2026 | 22 B2 Growth Excluding the Large Variable Customer Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Y/Y B2 Growth 23% 29% 28% 24% 24% Growth Excluding Large Variable Usage Customer 23% 22% 22% 23% 23% Factoring out variable usage of this large AI customer, B2 Revenue Growth has stabilized. Q2’25 and Q3’25 reflects variable peak usage.

 

Backblaze ©2026 | 23 22% Building A Self-Funding Business (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. Results for Q1 2026 are based on unaudited 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 23-25% 2026E 10% (16%)2025 2025 (4%) ~1%

 

Backblaze ©2026 | 24 Q2’26 and Full Year Guidance Q2’26 $39.8 to $40.2 FY 2026 Raised $161.5 to $163.5 Q2’26 21% to 23% FY 2026 Raised 23% to 25% NOTES: The above financial information guidance for Q2 of 2026 and fiscal year 2026 are forward-looking statements. The revenue outlook for fiscal year 2026 also reflects a narrowed range of total Company revenue from the previously announced outlook. These forward-looking statements reflect our views with respect to future events as of the date of this presentation and are based on assumptions and subject to risks and uncertainties, and actual results may differ materially. A reconciliation of Adjusted EBITDA Margin guidance to GAAP net loss margin is not available on a forward-looking basis without unreasonable effort because certain reconciling items, including stock-based compensation expense, restructuring charges, depreciation and amortization, interest expense, and income tax provisions cannot be reasonably predicted due to their inherent uncertainty and variability. These items could individually or in the aggregate be material to the Company's reported GAAP results. Revenue ($M) Adj. EBITDA Margin

 

Backblaze ©2026 | 25 Q&A

 

Backblaze ©2026 | 26 Thank You!

 

Backblaze ©2026 | 27 Appendix

 

Backblaze ©2026 | 28 ● “ARR” means Annual Recurring Revenue and is calculated based on the monthly revenue from all B2 Cloud Storage arrangements for the last month of a period multiplied by 12, and for Computer Backup arrangements, based on the average daily revenue from the last month of the period multiplied by 365. 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. ● “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 | 29 ● “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 | 30 ● “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 | 31 Reconciliation of Non-GAAP Measures: Adjusted Gross Margin Adjusted Gross Profit Q1’26 Q1’25 Gross Profit $23.529 $19.256 Gross Margin 61% 56% Adjustments for Cost of Revenue: Stock Based Compensation 0.458 0.420 Depreciation & Amortization(1) 6.513 7.644 Restructuring Charges .237 — Adjusted Gross Profit $30.737 $27.320 Adjusted Gross Margin 79% 79% Dollars in Millions (1) $0.1 million of amortization expense for the three months ended March 31, 2026 is classified as restructuring charges in the table above.

 

Backblaze ©2026 | 32 Reconciliation of Non-GAAP Measures: Non-GAAP Net Income (Loss) Q1’26 Q1’25 Net Loss $(6.147) $(9.324) Net Loss Margin -16% -27% Adjustments: Stock Based Compensation(1) 6.712 7.359 Foreign Exchange Loss (Gain) (0.039) 0.149 Restructuring charges 2.191 — Non-GAAP Net Income (Loss) 2.717 (1.816) Non-GAAP Net Income (Loss) Margin 7% -5% Non-GAAP Diluted Shares 60.856 54.060 Non-GAAP Net Income (Loss) per Diluted Share $0.04 $(0.03) Dollars and Shares in Millions (1) $0.2 million of stock-based compensation incurred during the three months ended March 31, 2026 is classified as restructuring charges in the table above.

 

Backblaze ©2026 | 33 Reconciliation of Non-GAAP Measures: Adjusted EBITDA Q1’26 Q1’25 Net Loss $(6.147) $(9.324) Net Loss Margin -16% -27% Adjustments: Depreciation & Amortization(1) 6.593 7.764 Stock Based Compensation(2) 6.712 7.359 Interest Expense & Investment Income, Net 0.805 0.320 Income tax provision 0.028 0.084 Foreign Exchange Loss (Gain) (0.039) 0.149 Restructuring charges 2.191 — Adjusted EBITDA $10.143 $6.352 Adjusted EBITDA Margin 26% 18% Dollars in Millions (1) $0.1 million of amortization expense for the three months ended March 31, 2026 is classified as restructuring charges in the table above. (2) $0.2 million of stock-based compensation incurred during the three months ended March 31, 2026 is classified as restructuring charges in the table above.

 

Backblaze ©2026 | 34 Reconciliation of Non-GAAP Measures: Adjusted Free Cash Flow Q1’26 Q1’25 Net Cash Provided by (Used In) Operating Activities $3.360 $4.943 Capital Expenditures (2.763) (2.626) Principal Payments on Finance Leases and Lease Financing Obligations (4.230) (4.543) Payment on litigation settlement costs 0.015 — Payments on restructuring costs 1.775 0.115 Adjusted Free Cash Flow ($1.843) ($2.111) Adjusted Free Cash Flow Margin -5% -6% Dollars in Millions

 

Source: View Original Filing on SEC EDGAR

FAQ

How did Backblaze (BLZE) perform financially in Q1 2026?

Backblaze generated $38.7 million in revenue in Q1 2026, up 12% year over year. Gross margin improved to 61%, and net loss narrowed to $6.1 million, while adjusted EBITDA rose to $10.1 million, or 26% of revenue, versus 18% a year earlier.

How fast is Backblaze (BLZE) growing its B2 Cloud Storage business?

B2 Cloud Storage revenue reached $22.4 million in Q1 2026, growing 24% year over year. B2 annual recurring revenue was $93.0 million, up 28%, highlighting that this segment is expanding faster than the overall company and becoming an increasingly important growth driver.

What progress is Backblaze (BLZE) seeing with AI customers?

Backblaze reported 76% year-over-year growth in AI customers in Q1 2026. The company highlighted wins with an AI training data provider and a generative AI video creation company that together added about $1.5 million in annual contract value, reinforcing traction in AI storage workloads.

What is Backblaze’s (BLZE) revenue and profit outlook for full-year 2026?

For full-year 2026, Backblaze now expects $161.5–$163.5 million in revenue, up from its prior outlook of $156.5–$158.5 million. It also raised its adjusted EBITDA margin guidance to 23–25%, compared with a previous range of 19–21% for the year.

How did Backblaze’s recurring revenue and retention metrics trend in Q1 2026?

Annual recurring revenue was $158.2 million, up 13% year over year. Net revenue retention was 103%, with B2 at 110% and Computer Backup at 95%. Gross customer retention was 91%, with B2 at 89% and Computer Backup at 91%.

What guidance did Backblaze (BLZE) give for Q2 2026?

For Q2 2026, Backblaze expects revenue between $39.8 million and $40.2 million. The company also guided to an adjusted EBITDA margin of 21–23% and projected basic weighted average shares outstanding of 60.5–60.7 million shares for the quarter.

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