Backblaze (NASDAQ: BLZE) boosts B2 growth and margins with 2026 outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Backblaze reported strong Q4 and 2025 results with clear progress toward profitability. Fourth-quarter revenue was $37.8 million, up 12% year over year, driven by B2 Cloud Storage revenue of $21.3 million, which grew 24%. GAAP net loss narrowed to $5.4 million, while adjusted EBITDA reached $10.4 million, a 28% margin.
Adjusted free cash flow turned positive in Q4 at $4.1 million versus a $4.5 million outflow a year earlier. For 2025, revenue rose 14% to $145.8 million, GAAP net loss improved to $25.6 million, and non-GAAP net income was $4.3 million. Annual recurring revenue reached $154.4 million. For 2026, the company guides to revenue of $156.5–$158.5 million and adjusted EBITDA margin of 19%–21%.
Positive
- Profitable on a non-GAAP basis with stronger cash generation: 2025 non-GAAP net income was $4.3 million versus a $17.5 million non-GAAP loss in 2024, while operating cash flow rose to $23.5 million and Q4 adjusted free cash flow turned positive at $4.1 million.
- Rapidly improving margins and operating leverage: Q4 gross margin expanded to 62% and adjusted EBITDA margin reached 28%, with full-year adjusted EBITDA margin rising to 22% from 10%, indicating meaningful efficiency gains as the business scales.
- Healthy growth led by B2 Cloud Storage: 2025 revenue grew 14% to $145.8 million, with B2 Cloud Storage up 26% to $79.9 million and B2 ARR up 27% to $88.9 million, reinforcing the shift toward higher-growth cloud storage.
- Supportive 2026 outlook: Management projects 2026 revenue between $156.5 million and $158.5 million and adjusted EBITDA margin of 19%–21%, signaling expectations for continued growth with disciplined profitability.
Negative
- None.
Insights
Backblaze combined double‑digit growth with a sharp swing to profitability metrics.
Backblaze is growing its B2 Cloud Storage franchise quickly while improving efficiency. Q4 revenue rose to
Profitability metrics improved markedly. Q4 gross margin increased to
Cash generation also moved in the right direction. Q4 operating cash flow was
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 205490
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
2261 Market Street STE 81006, San Francisco, CA | ||||||||||||||
(Address of Principal Executive Offices) | (Zip Code) | |||||||||||||
(650 ) 352-3738
Registrant's telephone number, including area code
(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 | ||||||
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 February 23, 2026, the Company issued a press release announcing its financial results for the quarter ended December 31, 2025. 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 February 23, 2026 | |||||||
99.2 | Supplemental earnings presentation, dated February 23, 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: | February 23, 2026 | Backblaze, Inc. | |||||||||
By: | /s/ Marc Suidan | ||||||||||
Marc Suidan, Chief Financial Officer | |||||||||||
Exhibit 99.1
Backblaze Announces Fourth Quarter and Full Year 2025 Financial Results
24% Revenue Growth in B2 Cloud Storage, 12% Revenue Growth Overall in Q4 2025
San Mateo, CA (February 23, 2026)—Backblaze, Inc. (Nasdaq: BLZE), the high-performance cloud storage platform for the AI era, today announced results for its fourth quarter ended December 31, 2025.
“In Q4, we closed our first eight-figure TCV neocloud agreement,” said Gleb Budman, co-founder and CEO of Backblaze. “This marks yet another neocloud win and, together with the launch of B2 Neo, our neocloud-specific storage offering, demonstrates the strength of our storage cloud platform and our continued progress moving upmarket. We drove diversified growth across AI, cyber resilience, and application storage use cases. At the same time, we achieved 11% in adjusted free cash flow margin in the quarter, reflecting continued operating discipline. Looking ahead, we see Backblaze increasingly serving as the storage backbone for neocloud providers and as a trusted platform for developers building data-intensive and AI-driven applications.”
Fourth Quarter 2025 Financial Highlights:
•Revenue of $37.8 million, an increase of 12% year-over-year (YoY).
•B2 Cloud Storage revenue was $21.3 million, an increase of 24% YoY.
•Computer Backup revenue was $16.5 million, flat YoY.
•Gross profit of $23.4 million, or 62% of revenue, compared to $18.5 million, or 55% of revenue, in Q4 2024.
•Adjusted gross profit of $30.1 million, or 80% of revenue, compared to $26.3 million or 78% of revenue in Q4 2024.
•Net loss was $5.4 million compared to a net loss of $14.4 million in Q4 2024.
•Net loss per share was $0.09 compared to a net loss per share of $0.30 in Q4 2024.
•Adjusted EBITDA was $10.4 million, or 28% of revenue, compared to $4.6 million or 14% of revenue in Q4 2024.
•Non-GAAP net income of $3.5 million compared to non-GAAP net loss of $3.0 million in Q4 2024.
•Non-GAAP net income per share of $0.06 compared to a non-GAAP net loss per share of $(0.06) in Q4 2024.
•Cash flow from operations was $9.3 million, compared to $2.2 million in Q4 2024.
•Adjusted free cash flow was $4.1 million, compared to $(4.5) million in Q4 2024.
•Cash, cash equivalents, and marketable securities totaled $51.4 million as of December 31, 2025.
Full-Year 2025 Financial Highlights:
•Revenue of $145.8 million, an increase of 14% YoY.
•B2 Cloud Storage revenue was $79.9 million, an increase of 26% YoY.
•Computer Backup revenue was $65.9 million, an increase of 3% YoY.
•Gross profit of $88.8 million, or 61% of revenue, compared to $69.3 million, or 54% of revenue, in 2024.
•Adjusted gross profit of $115.6 million, or 79% of revenue, compared to $99.2 million or 78% of revenue in 2024.
•Net loss was $25.6 million compared to a net loss of $48.5 million in 2024.
•Net loss per share was $0.46 compared to a net loss per share of $1.11 in 2024.
•Adjusted EBITDA was $31.8 million, or 22% of revenue, compared to $13.0 million or 10% of revenue in 2024.
•Non-GAAP net income of $4.3 million compared to non-GAAP net loss of $17.5 million in 2024.
•Non-GAAP net income per share of $0.07 compared to a non-GAAP net loss per share of $0.40 in 2024.
•Cash flow from operations during the year ended December 31, 2025 was $23.5 million, compared to $12.5 million during the year ended December 31, 2024.
•Adjusted free cash flow during the year ended December 31, 2025 was $(5.4) million, compared to $(20.1) million during the year ended December 31, 2024.
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Fourth Quarter 2025 Operational Highlights:
•Annual recurring revenue (ARR) was $154.4 million, an increase of 13% YoY.
◦B2 Cloud Storage ARR was $88.9 million, an increase of 27% YoY.
◦Computer Backup ARR was $65.5 million, flat YoY.
•Net revenue retention rate (NRR) was 105% compared to 116% in Q4 2024.
◦B2 Cloud Storage NRR was 111% compared to 123% in Q4 2024.
◦Computer Backup NRR was 98% compared to 109% in Q4 2024.
•Gross customer retention rate was 91% in Q4 2025 compared to 90% in Q4 2024.
◦B2 Cloud Storage gross customer retention rate was 89% in both Q4 2025 and Q4 2024.
◦Computer Backup gross customer retention rate was 91% in Q4 2025 compared to 90% Q4 2024.
•Number of customers was 503,866 versus 507,647 in Q4 2024.
◦B2 Cloud Storage number of customers was 119,154 versus 107,616 in Q4 2024.
◦Computer Backup number of customers was 402,589 versus 417,845 in Q4 2024.
•Total annual average revenue per customer (ARPU) was $307 versus $268 in Q4 2024.
◦B2 Cloud Storage ARPU was $750 versus $645 in Q4 2024.
◦Computer Backup ARPU was $163 versus $159 in Q4 2024.
Recent Business Highlights:
•Launched B2 Neo: New solution allows neocloud providers to quickly add a high-performance, scalable storage service to their platforms, accelerating time to market while offloading storage complexity.
•Signed record eight-figure neocloud TCV deal: Combined with other 6- and 7-figure neocloud wins, this demonstrates growing adoption of our platform as the storage backbone for neocloud providers.
•Introduced Backblaze Flamethrower startup program: Deepens our engagement in the early-stage ecosystem, building platform affinity among data-intensive founders and small teams while strengthening our long-term customer relationships as these companies grow.
•Continued upmarket momentum: ARR from customers generating more than $50,000 annually increased 73% year over year, from $15 million to $26 million, while the number of these customers grew 35% to 168, reflecting the continued success of our go-to-market transformation.
•Achieved adjusted free cash flow positivity in Q4 for the first time since going public: Improved adjusted free cash flow by more than $8.6 million year over year, demonstrating significant progress toward sustainable profitability.
•Strengthened engineering and product leadership: Appointed Dan Spraggins as Senior Vice President of Engineering, Rhett Dillingham as Senior Vice President of Product, and Russ Artzt, co-founder of CA Technologies, as advisor to accelerate product and platform leadership.
•Established a go-to-market (GTM) advisory committee: Composed of experienced GTM leaders to accelerate execution and help capture the expanding data growth opportunity driven by AI workloads.
Financial Outlook:
Based on information available as of the date of this press release,
For the first quarter of 2026, we expect:
•Revenue between $37.6 million to $38.0 million.
•Adjusted EBITDA margin between 18% to 20%.
•Basic weighted average shares outstanding of 59.2 million to 59.4 million shares.
For full-year 2026, we expect:
•Revenue between $156.5 million to $158.5 million.
•Adjusted EBITDA margin between 19% to 21%.
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Conference Call Information:
Backblaze will host a conference call today, February 23, 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/991328028.
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/Q4I789404935.
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; 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 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.
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The forward-looking statements made in this release reflect our views as of the date of this press release. We undertake no obligation to update any forward-looking statements in this press release, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
To supplement the financial measures, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we provide investors with non-GAAP financial measures including (i) adjusted gross profit (and margin), (ii) adjusted EBITDA and adjusted EBITDA margin, (iii) non-GAAP net income (loss) and non-GAAP net income (loss) per share, (iv) adjusted free cash flow and adjusted free cash flow margin, and (v) other Non-GAAP measures. These non-GAAP financial measures are not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. We present these non-GAAP measures because management believes they are a useful measure of our performance and provide an additional basis for assessing our operating results. Please see the appendix attached to this press release for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.
A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses and other factors in the future. For example, stock-based compensation expense-related charges are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict with reasonable accuracy and subject to constant change.
Adjusted Gross Profit and Margin
We believe adjusted gross profit (and margin), when taken together with our GAAP financial results, provides a meaningful assessment of our performance and is useful to us for evaluating our ongoing operations and for internal planning and forecasting purposes.
We define adjusted gross profit as gross profit, excluding stock-based compensation expense, depreciation and amortization and restructuring charges within cost of revenue. We define adjusted gross margin as a percentage of adjusted gross profit to revenue. We exclude stock-based compensation, which is a non-cash item, and restructuring charges because we do not consider 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.
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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 B2 Cloud Storage 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. ARR is calculated based on multiplying the monthly revenue from all B2 Cloud Storage and Computer Backup arrangements for the last month of a period by 12. Our ARR for each of B2 Cloud Storage and Computer Backup is calculated in the same manner as our overall ARR based on the revenue from our B2 Cloud Storage and Computer Backup solutions, respectively.
5
Net Revenue Retention Rate (NRR)
To calculate the 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. Our overall NRR rate is calculated as the average of these quarterly rates over the past four quarters to provide a comprehensive view of revenue trends.
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.
Number of Customers
We define a customer at the end of any period as a distinct account, as identified by a unique account identifier, that has paid for our cloud services, including end-user customers that purchase through a reseller. This population makes up substantially all of our user base.
Annual Average Revenue Per User
We define annual average revenue per user (Annual ARPU) as the annualized value for the average revenue per customer. Annual ARPU is calculated by dividing our revenue for the last month of a period by the total number of customers as of the last day of the same period, and then multiplying the resulting quotient by 12. Our annual average revenue per user for B2 Cloud Storage and Computer Backup is calculated in the same manner based on the revenue and number of customers from our B2 Cloud Storage and Computer Backup solutions, respectively.
Investors Contact
Mimi Kong
Sr. Director, Investor Relations and Corporate Development
ir@backblaze.com
Press Contact
Yev Pusin
Sr. Director, Marketing
press@backblaze.com
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BACKBLAZE, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
December 31, | |||||||||||
2025 | 2024 | ||||||||||
(audited) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 29,182 | $ | 45,776 | |||||||
Marketable securities | 22,199 | 9,139 | |||||||||
Accounts receivable, net | 3,482 | 1,831 | |||||||||
Prepaid expenses | 4,195 | 3,457 | |||||||||
Other current assets | 6,630 | 5,545 | |||||||||
Total current assets | 65,688 | 65,748 | |||||||||
Property and equipment, net | 57,310 | 42,949 | |||||||||
Operating lease right-of-use assets, net | 22,713 | 15,873 | |||||||||
Capitalized internal-use software, net | 40,825 | 41,801 | |||||||||
Other assets | 5,290 | 2,187 | |||||||||
Total assets | $ | 191,826 | $ | 168,558 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 1,588 | $ | 1,459 | |||||||
Accrued expenses and other current liabilities | 9,406 | 7,584 | |||||||||
Finance lease liabilities and lease financing obligations, current | 14,873 | 16,327 | |||||||||
Operating lease liabilities, current | 5,253 | 4,026 | |||||||||
Deferred revenue, current | 30,498 | 30,407 | |||||||||
Total current liabilities | 61,618 | 59,803 | |||||||||
Finance lease liabilities and lease financing obligations, non-current | 21,292 | 13,142 | |||||||||
Operating lease liabilities, non-current | 20,166 | 12,844 | |||||||||
Deferred revenue and other liabilities, non-current | 5,529 | 5,147 | |||||||||
Total liabilities | 108,605 | 90,936 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders’ Equity | |||||||||||
Class A common stock, $0.0001 par value; 113,000,000 shares authorized as of December 31, 2025 and 2024; 58,962,339 shares issued and 58,705,790 outstanding as of December 31, 2025 and 53,375,770 shares issued and outstanding as of December 31, 2024. | 6 | 5 | |||||||||
Treasury stock, at cost; 256,549 and zero shares as of December 31, 2025 and 2024, respectively | (1,983) | — | |||||||||
Additional paid-in capital | 306,795 | 273,602 | |||||||||
Accumulated deficit | (221,597) | (195,985) | |||||||||
Total stockholders’ equity | 83,221 | 77,622 | |||||||||
Total liabilities and stockholders’ equity | $ | 191,826 | $ | 168,558 | |||||||
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BACKBLAZE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share data)
Three Months Ended December 31, | For the Years Ended December 31, | ||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
(unaudited) | (audited) | ||||||||||||||||||||||
Revenue | $ | 37,762 | $ | 33,786 | $ | 145,835 | $ | 127,628 | |||||||||||||||
Cost of revenue | 14,337 | 15,283 | 57,042 | 58,285 | |||||||||||||||||||
Gross profit | 23,425 | 18,503 | 88,793 | 69,343 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | 11,141 | 12,029 | 46,109 | 42,098 | |||||||||||||||||||
Sales and marketing | 8,966 | 11,704 | 37,397 | 44,440 | |||||||||||||||||||
General and administrative | 7,983 | 8,542 | 28,910 | 29,094 | |||||||||||||||||||
Total operating expenses | 28,090 | 32,275 | 112,416 | 115,632 | |||||||||||||||||||
Loss from operations | (4,665) | (13,772) | (23,623) | (46,289) | |||||||||||||||||||
Investment income | 451 | 363 | 1,961 | 1,422 | |||||||||||||||||||
Interest expense | (1,199) | (968) | (3,866) | (3,658) | |||||||||||||||||||
Loss before provision for income taxes | (5,413) | (14,377) | (25,528) | (48,525) | |||||||||||||||||||
Income tax provision | — | — | 84 | 6 | |||||||||||||||||||
Net loss and comprehensive loss | $ | (5,413) | $ | (14,377) | $ | (25,612) | $ | (48,531) | |||||||||||||||
Net loss per share, basic and diluted | $ | (0.09) | $ | (0.30) | $ | (0.46) | $ | (1.11) | |||||||||||||||
Weighted average common shares outstanding | 58,144,740 | 48,212,796 | 56,209,667 | 43,543,023 | |||||||||||||||||||
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BACKBLAZE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
For the Years Ended December 31, | |||||||||||
2025 | 2024 | ||||||||||
(audited) | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net loss | $ | (25,612) | $ | (48,531) | |||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Noncash lease expense on operating leases | 4,944 | 2,727 | |||||||||
Depreciation and amortization | 25,591 | 28,328 | |||||||||
Impairment loss on long-lived assets | 1,159 | 898 | |||||||||
Stock-based compensation | 26,436 | 28,628 | |||||||||
Gain on disposal of property and equipment | (347) | (154) | |||||||||
Other, net | 686 | 409 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (1,651) | (1,031) | |||||||||
Prepaid expenses and other current assets | (1,527) | (741) | |||||||||
Other assets | (2,673) | (1,346) | |||||||||
Accounts payable | 402 | (547) | |||||||||
Accrued expenses and other current liabilities | 130 | 948 | |||||||||
Deferred revenue and other liabilities, non-current | 473 | 5,505 | |||||||||
Operating lease liabilities | (4,467) | (2,588) | |||||||||
Net cash provided by (used in) operating activities | 23,544 | 12,505 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Purchases of marketable securities | (39,530) | (38,097) | |||||||||
Maturities of marketable securities | 26,281 | 45,693 | |||||||||
Proceeds from disposal of property and equipment | 167 | 455 | |||||||||
Purchases of property and equipment | (4,694) | (1,711) | |||||||||
Capitalized internal-use software costs | (7,564) | (12,471) | |||||||||
Net cash (used in) provided by investing activities | (25,340) | (6,131) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Principal payments on finance lease and lease financing obligations | (18,164) | (19,503) | |||||||||
Proceeds from issuance of common stock upon public offering, net of underwriting discounts and commission and other offering costs | — | 37,434 | |||||||||
Payments of offering costs | (20) | (383) | |||||||||
Proceeds from debt facility | 2,454 | 554 | |||||||||
Repayment of debt facility | (2,454) | (4,682) | |||||||||
Payment of debt issuance costs | (602) | — | |||||||||
Principal payments on insurance premium financing | — | (893) | |||||||||
Purchase of treasury stock | (1,983) | — | |||||||||
Proceeds from exercises of stock options | 5,338 | 7,477 | |||||||||
Taxes paid for net share settlement of equity awards | (1,917) | — | |||||||||
Proceeds from ESPP | 2,550 | 2,768 | |||||||||
Net cash (used in) provided by financing activities | (14,798) | 22,772 | |||||||||
Net (decrease) increase in cash and cash equivalents | (16,594) | 29,146 | |||||||||
Cash and cash equivalents and restricted cash, beginning of period | 45,776 | 16,630 | |||||||||
Cash and cash equivalents, end of period | $ | 29,182 | $ | 45,776 | |||||||
9
BACKBLAZE, INC.
RECONCILIATION OF GAAP TO NON-GAAP DATA
(in thousands, except percentages)
Adjusted Gross Profit and Adjusted Gross Margin
For the Three Months Ended December 31, | For the Years Ended December 31, | ||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Gross profit | $ | 23,425 | $ | 18,503 | $ | 88,793 | $ | 69,343 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Stock-based compensation(1) | 387 | 398 | 1,557 | 1,616 | |||||||||||||||||||
Depreciation and amortization(2) | 6,138 | 6,917 | 25,136 | 27,761 | |||||||||||||||||||
Restructuring charges | 128 | 460 | 115 | 460 | |||||||||||||||||||
Adjusted gross profit | $ | 30,078 | $ | 26,278 | $ | 115,601 | $ | 99,180 | |||||||||||||||
Gross margin | 62 | % | 55 | % | 61 | % | 54 | % | |||||||||||||||
Adjusted gross margin | 80 | % | 78 | % | 79 | % | 78 | % | |||||||||||||||
________________
(1) $0.3 million of stock-based compensation expense for the three months and year ended December 31, 2024 is classified as restructuring charges in the table above, as these charges were incurred as part of our restructuring program.
(2) $0.1 million of depreciation and amortization expense for the three months and year ended December 31, 2025 is classified as restructuring charges in the table above, as these charges were incurred as part of our restructuring program.
Adjusted EBITDA and Adjusted EBITDA Margin
For the Three Months Ended December 31, | For the Years Ended December 31, | ||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Net loss and comprehensive loss | $ | (5,413) | $ | (14,377) | $ | (25,612) | $ | (48,531) | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Depreciation and amortization(1) | 6,211 | 7,060 | 25,493 | 28,328 | |||||||||||||||||||
Stock-based compensation(2) | 6,317 | 6,609 | 26,425 | 26,104 | |||||||||||||||||||
Interest expense and investment income, net | 748 | 605 | 1,905 | 2,236 | |||||||||||||||||||
Income tax provision | — | — | 84 | 6 | |||||||||||||||||||
Foreign exchange loss (gain) | 14 | (127) | 451 | 32 | |||||||||||||||||||
Litigation settlement payments | — | — | 288 | — | |||||||||||||||||||
Impairment of long-lived assets(3) | — | — | 258 | — | |||||||||||||||||||
Restructuring charges | 2,538 | 4,861 | 2,472 | 4,861 | |||||||||||||||||||
Adjusted EBITDA | $ | 10,415 | $ | 4,631 | $ | 31,764 | $ | 13,036 | |||||||||||||||
Net loss and comprehensive loss margin | (14 | %) | (43 | %) | (18 | %) | (38 | %) | |||||||||||||||
Adjusted EBITDA margin | 28 | % | 14 | % | 22 | % | 10 | % | |||||||||||||||
________________
(1) $0.1 million of depreciation and amortization expense for the three months and year ended December 31, 2025 is classified as restructuring charges in the table above, as these charges were incurred as part of our restructuring program.
(2) $2.5 million of stock-based compensation expense for the three months and year ended December 31, 2024, as well as a nominal amount for the three months and year ended December 31, 2025, is classified as restructuring charges in the table above, as these charges were incurred as part of our restructuring programs.
(3) $1.0 million and $0.9 million of impairment loss on right-if-use assets for the three months and years ended December 31, 2025 and 2024, respectively, are classified as restructuring charges in the table above, as these charges were incurred as part of our restructuring programs.
10
Other Non-GAAP Measures
Adjusted Cost of Revenue and Adjusted Operating Expenses
For the Three Months Ended December 31, | For the Years Ended December 31, | ||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Revenue | $ | 37,762 | $ | 33,786 | $ | 145,835 | $ | 127,628 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Adjusted cost of revenue: | |||||||||||||||||||||||
Cost of revenue | 14,337 | 15,283 | 57,042 | 58,285 | |||||||||||||||||||
Less: Depreciation and amortization(1) | (6,138) | (6,917) | (25,136) | (27,761) | |||||||||||||||||||
Less: Stock-based compensation(2) | (387) | (398) | (1,557) | (1,616) | |||||||||||||||||||
Less: Restructuring charges | (128) | (460) | (115) | (460) | |||||||||||||||||||
Adjusted cost of revenue | 7,684 | 7,508 | 30,234 | 28,448 | |||||||||||||||||||
Adjusted gross margin | 80 | % | 78 | % | 79 | % | 78 | % | |||||||||||||||
Adjusted Operating Expenses: | |||||||||||||||||||||||
Research and development | 11,141 | 12,029 | 46,109 | 42,098 | |||||||||||||||||||
Less: Depreciation and amortization | (35) | (66) | (170) | (262) | |||||||||||||||||||
Less: Stock-based compensation(2) | (2,791) | (2,937) | (12,094) | (10,392) | |||||||||||||||||||
Less: Restructuring charges | (319) | (1,278) | (285) | (1,278) | |||||||||||||||||||
Less: Impairment of long-lived assets | — | — | (258) | — | |||||||||||||||||||
Adjusted research and development | 7,996 | 7,748 | 33,302 | 30,166 | |||||||||||||||||||
Sales and marketing | 8,966 | 11,704 | 37,397 | 44,440 | |||||||||||||||||||
Less: Depreciation and amortization | (22) | (45) | (117) | (190) | |||||||||||||||||||
Less: Stock-based compensation(2) | (1,211) | (1,788) | (6,119) | (8,280) | |||||||||||||||||||
Less: Restructuring charges | (751) | (1,867) | (687) | (1,867) | |||||||||||||||||||
Adjusted sales and marketing | 6,982 | 8,004 | 30,474 | 34,103 | |||||||||||||||||||
General and administrative(3) | 7,983 | 8,542 | 28,910 | 29,094 | |||||||||||||||||||
Less: Depreciation and amortization | (16) | (32) | (70) | (115) | |||||||||||||||||||
Less: Stock-based compensation(2) | (1,928) | (1,486) | (6,655) | (5,816) | |||||||||||||||||||
Less: Foreign exchange (loss) gain | (14) | 127 | (451) | (32) | |||||||||||||||||||
Less: Restructuring charges | (1,340) | (1,256) | (1,385) | (1,256) | |||||||||||||||||||
Less: Litigation settlement costs | — | — | (288) | — | |||||||||||||||||||
Adjusted general and administrative | 4,685 | 5,895 | 20,061 | 21,875 | |||||||||||||||||||
Total Adjusted Operating Expenses | $ | 19,663 | $ | 21,647 | $ | 83,837 | $ | 86,144 | |||||||||||||||
Adjusted EBITDA | $ | 10,415 | $ | 4,631 | $ | 31,764 | $ | 13,036 | |||||||||||||||
________________
(1) $0.1 million of depreciation and amortization expense recorded to cost of revenue for the year ended December 31, 2025 is classified as restructuring charges in the table above, as these charges were incurred as part of our restructuring and transformation activities in 2025.
(2) $2.5 million of stock-based compensation incurred during the year ended December 31, 2024 is classified as restructuring charges in the table above, including $0.3 million related to cost of revenue, $0.9 million related to research and development costs, $1.2 million related to sales and marketing costs, and $0.1 million related to general and administrative costs, as these charges were incurred as part of our restructuring activities in 2024. A nominal amount of stock-based compensation incurred during the year ended December 31, 2025 is classified as restructuring charges in the table above.
(3) $1.0 million and $0.9 million of impairment loss on right-if-use assets for the three months and years ended December 31, 2025 and 2024, respectively, are classified as restructuring charges in the table above, as these charges were incurred as part of our restructuring programs.
11
Non-GAAP Net Income (Loss)
For the Three Months Ended December 31, | For the Years Ended December 31, | ||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
(in thousands, except share and per share data) | |||||||||||||||||||||||
Net loss and comprehensive loss | $ | (5,413) | $ | (14,377) | $ | (25,612) | $ | (48,531) | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Stock-based compensation(1) | 6,317 | 6,609 | 26,425 | 26,104 | |||||||||||||||||||
Foreign exchange loss (gain) | 14 | (127) | 451 | 32 | |||||||||||||||||||
Litigation settlement costs | — | — | 288 | — | |||||||||||||||||||
Impairment of long-lived assets(2) | — | — | 258 | — | |||||||||||||||||||
Restructuring charges | 2,538 | 4,861 | 2,472 | 4,861 | |||||||||||||||||||
Non-GAAP net income (loss) | $ | 3,456 | $ | (3,034) | $ | 4,282 | $ | (17,534) | |||||||||||||||
GAAP net loss per share, basic and diluted | $ | (0.09) | $ | (0.30) | $ | (0.46) | $ | (1.11) | |||||||||||||||
Non-GAAP net income (loss) per share - diluted | $ | 0.06 | $ | (0.06) | $ | 0.07 | $ | (0.40) | |||||||||||||||
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 | 58,144,740 | 48,212,796 | 56,209,667 | 43,543,023 | |||||||||||||||||||
Add: Dilutive ordinary share equivalents | 3,319,901 | — | 2,772,731 | — | |||||||||||||||||||
Non-GAAP weighted average common shares outstanding - diluted | 61,464,641 | 48,212,796 | 58,982,398 | 43,543,023 | |||||||||||||||||||
________________
(1) $2.5 million of stock-based compensation expense for the three months and year ended December 31, 2024, as well as a nominal amount for the three months and year ended December 31, 2025, is classified as restructuring charges in the table above, as these charges were incurred as part of our restructuring programs.
(2) $1.0 million and $0.9 million of impairment loss on right-if-use assets for the three months and years ended December 31, 2025 and 2024, respectively, are classified as restructuring charges in the table above, as these charges were incurred as part of our restructuring programs.
Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin
For the Three Months Ended December 31, | For the Years Ended December 31, | ||||||||||||||||||||||
2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 9,313 | $ | 2,233 | $ | 23,544 | $ | 12,505 | |||||||||||||||
Capital expenditures(1) | (1,939) | (3,062) | (12,258) | (14,182) | |||||||||||||||||||
Principal payments on finance leases and lease financing obligations | (4,266) | (4,748) | (18,164) | (19,503) | |||||||||||||||||||
Payments on litigation settlement costs | 17 | — | 288 | — | |||||||||||||||||||
Payments on restructuring charges | 936 | 1,049 | 1,166 | 1,049 | |||||||||||||||||||
Adjusted Free Cash Flow | $ | 4,061 | $ | (4,528) | $ | (5,424) | $ | (20,131) | |||||||||||||||
Operating cash flow margin | 25 | % | 7 | % | 16 | % | 10 | % | |||||||||||||||
Adjusted Free Cash Flow Margin | 11 | % | (13) | % | (4) | % | (16) | % | |||||||||||||||
________________
(1) Capital expenditures are defined as cash used for purchases of property and equipment and capitalized internal-use software costs.
12
Backblaze ©2026 | 1 February 23, 2026 Q4 & FY 2025 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. 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. Non-GAAP Financial Measures To supplement the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use non-GAAP Adjusted Gross Margin, non-GAAP Net Income (Loss), Adjusted EBITDA Margin and Adjusted Free Cash Flow. 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 ● Building a sustainable, durable business ● Upgrading our GTM engine for growth ● Leaning into a structural AI opportunity
Backblaze ©2026 | 5 Strength and Durability of Our Core Business 111% B2 NRR Consistent expansion 9-Year Avg Life Long-duration customer 28% Adj EBITDA Margin Expanding Leverage ExpansionNew Customers Long-Term Retention Operating Leverage
Backblaze ©2026 | 6 $50k+ ARR Customer 2023 2024 2025 Year-end ARR $10M $15M $26M % of ARR 9% 11% 17% Upmarket Traction $50,000+ ARR Customer Count
Backblaze ©2026 | 7 Increasing awareness ● Launched ‘Flamethrower’ startup program to engage with high-growth companies early Driving greater pipeline consistency ● Upgrading top-of-funnel systems ● Scaling demand generation programs Expanding share of wallet ● Formalizing program to expand across 119k+ B2 customer base Go-to-Market Transformation Update
Backblaze ©2026 | 8 Max Altschuler Founder and general partner of GTMfund Colby Greene SVP, Data Solutions & Partnerships, ZoomInfo Charles Race GP, Windproof Partners; Former President of Worldwide Field operations, Okta Nicole Baer CMO, Carta Elias Mendoza Former Sirius Capital Operating Partner, IBM Corp Dev GTM Advisory Committee Experienced GTM leaders shaping how we win, scale, and lead our markets. Remington Rawlings Founder of OneView, a GTM advisory firm
Backblaze ©2026 | 9 ● Neoclouds and other AI tooling companies ● Building the platform for AI workflows Supply Side The AI Opportunity ● AI developers and companies ● Using and generating large datasets Demand Side Backblaze serving as the storage backbone for the next wave of cloud infrastructure.
Backblaze ©2026 | 10 ● Multiple neoclouds signed as customers ● Roughly 200 neoclouds in the market ● Neocloud storage is estimated to be a $14B opportunity by 2030 Supply Side: Neocloud Opportunity
Backblaze ©2026 | 11 8-Figure, $15M+ TCV Neocloud Win ● Largest agreement in company history ● Positions Backblaze as the storage layer for next-generation AI compute platforms
Backblaze ©2026 | 12 High performance, white-label storage offering New B2 Neo Solution Developed in collaboration with neocloud customers Up to 1 TB/Second throughput speed
Backblaze ©2026 | 13 ● Hundreds of AI companies are B2 customers ○ E.g. AI audio (Six-figure annual deal) ● 12,000 self-serve B2 customers added in 2025 enables AI growth ● ‘Flamethrower’ startup and developer relations programs to fuel adoption Demand Side: AI Developers
Backblaze ©2026 | 14 Dan Spraggins ● SVP of Engineering ● Expertise in cloud and AI infrastructure and scaling ● Previously at HP, Rackspace Leadership in Place to Build the AI Storage Platform Russ Artzt ● Advisor ● Co-founder & former Head of R&D, CA Technologies ● Systems-scale architecture expertise Rhett Dillingham ● SVP of Product ● Cloud platform product leadership and roadmap ● Previously at Sumo Logic, Rackspace & AWS
Backblaze ©2026 | 15 Financial Overview Marc Suidan CFO
Backblaze ©2026 | 16 Key Financial Highlights ● Durable growth with 24% B2 growth ● Margin expansion to 28% adjusted EBITDA margin ● Achieved positive adjusted free cash flow milestone
Backblaze ©2026 | 17 B2 Growth Journey
Backblaze ©2026 | 18 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 | 19 ● Record direct sales bookings in Q4 ● RPO increases to $66M, up 60% YoY ● Strengthening forward revenue visibility Record Bookings and Expanding Backlog
Backblaze ©2026 | 20 Financial and Operational Q4 Highlights Revenue ($M) Y/Y Growth Trailing 4-Qtr NRR In-Quarter NRR Gross Customer Retention B2 Cloud Storage $21.3 24% 111% 111% 89% Computer Backup $16.5 Flat 98% 95% 91% Total Company $37.8 12% 105% 104% 91% NOTES: All financial information is for the quarter ended December 31, 2025, with year-over-year revenue comparisons to the same period as of December 31, 2024, and are based on unaudited financial information. Trailing 4-Qtr NRR (Net Revenue Retention), In-Quarter NRR and Gross Customer Retention are defined in the Appendix.
Backblaze ©2026 | 21 B2 Growth Excluding the Large Variable Customer Q1’25A Q2’25A Q3’25A Q4’25A Y/Y B2 Growth 23% 29% 28% 24% Growth Excluding Large Variable Usage Customer 23% 22% 22% 23%
Backblaze ©2026 | 22 22% Achieving Positive Adj. Free Cash Flow (4%) (11%) Adj. EBITDA Margin NOTES: Adjusted EBITDA and Adjusted Free Cash Flow margins shown for the years ending December 31, 2021, 2022, 2023, 2024 are based on audited financial data. Results for 2025 and Q4 2025 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%) Q4 2025 28% Q4 2025 10% (16%)2025 2025 (4%) 11%
Backblaze ©2026 | 23 Q1’26 and Full Year Guidance Q1’26 $ 37.6 to $38.0 FY 2026 $156.5 to $158.5 Q1’26 18% to 20% FY 2026 19% to 21% NOTES: The above financial information guidance for Q1 of 2026 and fiscal year 2026 are forward-looking statements. The revenue outlook for fiscal year 2026 also reflects a narrowed range of total Company revenue from the previously announced outlook. These forward-looking statements reflect our views with respect to future events as of the date of this presentation and are based on assumptions and subject to risks and uncertainties, and actual results may differ materially. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures for Adjusted EBITDA Margin is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of expenses and other factors in the future. Revenue ($M) Adj. EBITDA Margin
Backblaze ©2026 | 24 Our Financial Profile is Evolving Fast NOTES: The above Rule of 40 calculations are unaudited financial data and calculated as set forth above. The results for Q4’24 through Q4’25 are based on actual results. Please refer to the definition of Adjusted Free Cash Flow and a reconciliation of non-generally accepted accounting principles (GAAP) guidance measures to corresponding GAAP measures for historical results is provided in the Appendix. 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. Q4’24A Q1’25A Q2’25A Q3’25A Q4’25A B2 Y/Y Growth 22% 23% 29% 28% 24% Total Company Adj. Free Cash Flow Margin -13% -6% -11% -9% 11% Rule of 40 Score 9% 17% 18% 19% 35% Rule of 40 Score = B2 y/y Revenue Growth + Total Company Adj FCF 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 based on the monthly revenue from all B2 Cloud Storage and Computer Backup arrangements for the last month of a period and multiplying it by 12. Our annual recurring revenue for each of Computer Backup and B2 Cloud Storage is calculated in the same manner as our overall annual recurring revenue based on the revenue from our Computer Backup and B2 Cloud Storage solutions, respectively. ● “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 In-Quarter NRR, we determine the revenue recognized in a specific 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. Our Trailing 4-Qtr NRR (previously reported as “NRR”) is calculated as the average of these quarterly rates over the past four quarters to provide a comprehensive view of revenue trends. ● “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. Definitions
Backblaze ©2026 | 29 ● “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, and other non-recurring charges. We use adjusted EBITDA to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that adjusted EBITDA, when taken together with our GAAP financial results, provides 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 to be an important measure because it helps 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 (used in) 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 restructuring costs, legal settlement costs, and other non-recurring charges. ● “Non-GAAP Net Income (Loss)” We define non-GAAP net income (loss) as net income adjusted to exclude stock-based compensation and other items we deem non-recurring. We believe that non-GAAP net income (loss), when taken together with our GAAP financial results, provides 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 margin as gross profit, excluding stock-based compensation, depreciation, amortization, and restructuring expenses that are within cost of revenue, as a percentage of adjusted gross profit to revenue. We exclude stock-based compensation, which is a non-cash item, 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 margin provides consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this metric eliminates the effects of depreciation and amortization. Definitions
Backblaze ©2026 | 30 Reconciliation of Non-GAAP Measures: Adjusted Gross Margin Adjusted Gross Profit Q4’25A Q4’24A Gross Profit $23.425 $18.503 Gross Margin 62% 55% Adjustments for Cost of Revenue: Stock Based Compensation 0.387 0.398 Depreciation & Amortization 6.138 6.917 Restructuring Charges .128 .460 Adjusted Gross Profit $30.078 $26.278 Adjusted Gross Margin 80% 78% Dollars in Millions
Backblaze ©2026 | 31 Reconciliation of Non-GAAP Measures: Non-GAAP Net Income (Loss) Q4’25A Q4’24A Net Loss $(5.413) $(14.377) Net Loss Margin -14% -43% Adjustments: Stock Based Compensation 6.317 6.609 Foreign Exchange Loss (Gain) .014 (0.127) Restructuring charges 2.538 4.861 Non-GAAP Net Income (Loss) 3.456 $(3.034) Non-GAAP Net Income (Loss) Margin 9% -9% Non-GAAP Diluted Shares 61.465 48.213 Non-GAAP Net Income (Loss) per Diluted Share $0.06 $(0.06) Dollars and Shares in Millions
Backblaze ©2026 | 32 Reconciliation of Non-GAAP Measures: Adjusted EBITDA Q4’25A Q4’24A Net Loss $(5.413) $(14.377) Net Loss Margin -14% -43% Adjustments: Depreciation & Amortization 6.211 7.060 Stock Based Compensation 6.317 6.609 Interest Expense & Investment Income, Net 0.748 0.605 Foreign Exchange Loss (Gain) 0.014 (0.127) Restructuring charges 2.538 4.861 Adjusted EBITDA $10.415 $4.631 Adjusted EBITDA Margin 28% 14% Dollars in Millions
Backblaze ©2026 | 33 Reconciliation of Non-GAAP Measures: Adjusted Free Cash Flow Q4’25A Q4’24A Net Cash Provided by (Used In) Operating Activities $9.313 $2.233 Capital Expenditures (1.939) (3.062) Principal Payments on Finance Leases and Lease Financing Obligations (4.266) (4.748) Litigation settlement payments 0.017 — Payment of workforce reduction and related severance charges 0.936 1.049 Adjusted Free Cash Flow $4.061 ($4.528) Adjusted Free Cash Flow Margin 11% -13% Dollars in Millions
FAQ
How did Backblaze (BLZE) perform financially in Q4 2025?
Backblaze delivered Q4 2025 revenue of $37.8 million, up 12% year over year, with B2 Cloud Storage driving growth. GAAP net loss narrowed to $5.4 million, while adjusted EBITDA improved to $10.4 million for a 28% margin, reflecting stronger operating leverage.
What were Backblaze’s full-year 2025 results and growth for BLZE?
For 2025, Backblaze generated $145.8 million in revenue, a 14% year-over-year increase. GAAP net loss improved to $25.6 million, and non-GAAP net income reached $4.3 million. Adjusted EBITDA was $31.8 million, representing a 22% margin versus 10% in 2024.
How fast is Backblaze’s B2 Cloud Storage business growing?
B2 Cloud Storage remained Backblaze’s key growth engine, with Q4 2025 revenue of $21.3 million, up 24% year over year. For the full year, B2 revenue was $79.9 million, growing 26%, and B2 annual recurring revenue rose 27% to $88.9 million.
Is Backblaze (BLZE) improving its profitability and cash flow?
Yes. Q4 2025 adjusted EBITDA margin expanded to 28%, and adjusted free cash flow turned positive at $4.1 million. For 2025, operating cash flow increased to $23.5 million and adjusted free cash flow improved to a $(5.4) million outflow from $(20.1) million.
What guidance did Backblaze provide for Q1 2026 and full-year 2026?
For Q1 2026, Backblaze expects revenue between $37.6 million and $38.0 million and adjusted EBITDA margin of 18%–20%. For full-year 2026, revenue guidance is $156.5 million to $158.5 million with adjusted EBITDA margin of 19%–21%.
How are Backblaze’s key metrics like ARR and customer retention trending?
Backblaze’s annual recurring revenue reached $154.4 million, up 13% year over year. Overall net revenue retention was 105%, while gross customer retention was 91%. B2 Cloud Storage net revenue retention was 111%, indicating continued expansion within existing customers.
What is Backblaze’s balance sheet position at year-end 2025?
As of December 31, 2025, Backblaze held $51.4 million in cash, cash equivalents, and marketable securities. Total assets were $191.8 million, total liabilities $108.6 million, and stockholders’ equity stood at $83.2 million, providing financial flexibility.
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Backblaze, Inc.
NASDAQ:BLZE
BLZE Rankings
BLZE Latest News
Feb 23, 2026
Backblaze Launches B2 Neo to Power Surging Neocloud Market; Multiple Major Platforms Already Signed On
Feb 18, 2026
Backblaze Flamethrower Startup Program Launches to Help Founders Build Faster Without Infrastructure Surprises
BLZE Latest SEC Filings
Nov 24, 2025
[Form 4] Backblaze, Inc. Insider Trading Activity
Nov 24, 2025
[Form 4] Backblaze, Inc. Insider Trading Activity
Nov 6, 2025
[10-Q] Backblaze, Inc. Quarterly Earnings Report
Nov 6, 2025
[8-K] Backblaze, Inc. Reports Material Event