Start here if you're new
what it is
Backblaze sells cloud storage and backup tools for businesses and consumers who need their data kept safe.
how it gets paid
Last year Backblaze made $146M in revenue. B2 Cloud Storage was the main engine at $78M, or 53% of sales.
why it's growing
Revenue grew 14.3% last year. The $108M quarter matters because it is bigger than the whole-year $146M figure.
what just happened
Backblaze posted $108M in quarterly revenue with a 60.5% gross margin.
At a glance
C++ balance sheet — some cracks in the foundation
-$1.11 fy2024 eps est
$128M fy2024 rev est
16.2% operating margin
1.5 beta
xvary composite: 33/100 — weak
What they do
Backblaze sells cloud storage and backup tools for businesses and consumers who need their data kept safe.
Backblaze brought in $146M last year with 346 employees. That is a tiny headcount for a real revenue stream. Gross margin → money left after direct costs → 60.5% means 39.5 cents disappears before overhead. B2 Cloud Storage grew 24% in the quarter, while the company grew 14.3% for the year. Your upside sits in that gap.
How they make money
$146M
annual revenue · their business grew +14.3% last year
B2 Cloud Storage
$78M
+24.0%
Computer Backup
$52M
+8.0%
AI and workflow storage
$10M
+14.3%
Other services
$6M
0.0%
The products that matter
cloud object storage
B2 Cloud Storage
$21.3M in Q4 revenue · +24%
This is the growth engine. Revenue rose 24% in Q4 2025, but that was down from 28% in the prior quarter. You need this line to reaccelerate, not just stay respectable.
56% of Q4 segment mix
consumer and business backup
Computer Backup
$16.5M in Q4 revenue · -2%
This piece still matters because it generated 43.7% of the quarter's segment revenue. It also shrank 2% from a year ago. That's not fatal, but it leaves less margin for error elsewhere.
legacy base
ai workload storage
B2 Neo
meaningful revenue expected in 2027
Management says the NeoCloud contract is not expected to bring meaningful revenue in 2026 and targets more than 300 basis points — three percentage points — of growth contribution in 2027. The catalyst exists. You are still waiting for it.
future catalyst
Key numbers
-$1.11
fy2024 eps est
$128M
fy2024 rev est
60.5%
gross margin
Gross profit kept about 60.5% of each revenue dollar.
n/a
dividend yield
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 4 — safer than 20% of stocks
- price stability 5 / 100
- long-term debt $44M (17% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for BLZE right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Backblaze posted $108M in quarterly revenue with a 60.5% gross margin.
Revenue jumped 191% vs. prior year, while EPS was -$0.36. That mix says growth is loud and profits are still quiet.
$108.0M
revenue
-$0.36
eps
60.5%
gross margin
the number that mattered
The $108M quarter matters because it is bigger than the whole-year $146M figure. That tells you the reported quarter is doing most of the lifting.
source: company earnings report, 2026
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What could go wrong
The #1 risk here is gross margin compression before B2 Neo arrives.
med
Gross margin compression
Management guided to a few hundred basis points of margin compression in 2026 because data-center costs and capital expenditures are rising.
At $128M of annual revenue, every 100 basis points of gross margin is about $1.28M of gross profit. This company is too small for that to be background noise.
med
Growth deceleration in the core engine
B2 Cloud Storage growth slowed to 24% in Q4 2025 from 28% in the prior quarter, while total revenue grew 12%.
If the faster-growing segment keeps slowing before the newer products contribute, the valuation can stay cheap for a long time.
med
B2 Neo revenue is still delayed
Management does not expect meaningful revenue from the NeoCloud contract in 2026 and instead points to more than 300 basis points of growth contribution in 2027.
That pushes the hoped-for reacceleration out at least another year. The runway gets longer while investors wait.
med
Legal distraction
A law firm disclosed a securities class action investigation tied to potential claims against Backblaze in May 2025.
Even if it goes nowhere, it can still consume management time and add legal expense for a company with a C++ balance sheet.
Costs are rising before the next growth product arrives. If margin slips while B2 keeps decelerating, one positive cash-flow quarter will not be enough to hold the story together.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Q1 2026 earnings report
Estimated for May 6, 2026. Revenue guidance is $37.6M–$38.0M. You want to see the free-cash-flow improvement survive another quarter.
margin
gross margin trend
Management already warned about a few hundred basis points of compression in 2026. Watch how fast 60.5% moves lower.
growth
B2 cloud storage growth rate
Q4 growth was 24% after 28% in the prior quarter. If that line stabilizes or improves, the story looks different fast.
product timing
B2 Neo and the NeoCloud ramp
Meaningful revenue is not expected in 2026. Watch for any signal that the 2027 growth contribution arrives earlier or larger than planned.
Analyst rankings
risk profile
below average
risk rank 4 — more volatile than most — brace for bigger swings.
chart momentum
below average
momentum rank 4 — analysts see underperformance risk in the near term.
source: institutional data
Institutional activity
institutional ownership data for BLZE is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$5
current price
n/a
target midpoint · n/a from current
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