BLZE earnings analysis
What we found in BLZE's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Backblaze delivered a strong Q2, with revenue of $42.713 million growing 18% year over year and 34% B2 Cloud Storage growth driving a meaningful operating-loss-margin improvement to 10% from 17%. The May pricing action, new enterprise activity and the CoreWeave agreement support the growth narrative, although CoreWeave revenue had not yet begun in Q2 and is expected to start in Q3. Cash generation improved, but the company remains loss-making and is taking on greater customer-concentration, infrastructure-cost and warrant-dilution risk.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth accelerated and beat consensus
- Q2 revenue reached $42.713 million, up $6.415 million or 18% from $36.298 million a year earlier and up $4.047 million from the implied $38.666 million in Q1 2026. Revenue exceeded the $39.934 million consensus estimate by $2.779 million.
- B2 growth drives the quarter
- B2 Cloud Storage revenue rose 34% year over year to $26.578 million, led by $4.5 million of new-customer sales, $1.5 million from the May price increase, and $0.7 million from upsell and organic usage. B2 ARR increased 39% to $113.3 million.
- Operating leverage improved materially
- Gross margin held at 63%, while operating loss narrowed to $4.174 million, or a 10% operating-loss margin, from a $6.240 million loss and 17% operating-loss margin a year ago. Adjusted EBITDA increased to $12.798 million from $6.610 million.
- CoreWeave creates sizable future pipeline
- The CoreWeave agreement carries approximately $335.1 million of estimated total contract value, less $21.7 million attributable to warrant fair value, across initial five- and seven-year order forms. Revenue recognition is expected to begin in Q3 2026.
- Operating cash flow strengthened
- Six-month operating cash flow increased to $13.787 million from $8.488 million. Cash spending included $1.5 million of infrastructure capex and $5.2 million of capitalized internal-use software development, indicating investment remains meaningful but operating cash generation improved.
- Liquidity and undrawn credit support expansion
- Liquidity remained substantial at $49.9 million of cash, cash equivalents and marketable securities, versus $51.4 million at year-end. The $20.0 million revolving facility was fully undrawn at June 30, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Large-customer concentration risk increased
- The company expects to become substantially dependent on a limited number of customers; CoreWeave's initial order forms represent approximately $335.1 million of estimated contract value before $21.7 million of warrant fair value. Actual usage may ramp more slowly than expected or be lower than anticipated.
- Losses persist despite operating improvement
- Backblaze reported a $5.089 million Q2 net loss and an accumulated deficit of $232.8 million at June 30, 2026. Management states it does not expect to be profitable for the foreseeable future as it continues investing in sales, development and infrastructure.
- CoreWeave warrants create dilution risk
- The CoreWeave arrangement included warrants for 4,194,876 Class A shares at a $7.60 exercise price, equal to approximately 6.8% of outstanding Class A shares at June 30, 2026. Cashless exercise could cause dilution without cash proceeds.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 63%
- Operating margin
- -10%
- Segment
- B2 Cloud Storage revenue: $26.578 million, up $6.737 million or 34% year over year.
- Segment
- Computer Backup revenue: $16.135 million, down $0.322 million or 2% year over year.
What they said about what is next.
No explicit revenue or EPS guidance was provided in the 10-Q. Management expects B2 Cloud Storage growth over time, with timing dependent on go-to-market execution, customer deployment schedules, usage levels and service commencement. CoreWeave committed-capacity and managed-storage revenue is expected to begin in Q3 2026; no related revenue was recognized in Q2. The company expects an additional $2.4 million to $3.7 million of restructuring charges through Q1 2027.
The filing reads better than the one before it.
What came before.
- 10-Q · May 4, 2026
- Backblaze, Inc. reported a solid Q1 performance with revenues of $38.67 million, marking a 12% increase from $34.61 million in the prior year. Gross margin improved to 61% from 56% year-over-year, aided by efficiencies…
- 10-K · March 10, 2026
- Backblaze describes a strategy of scaling a high-performance, price-to-performance cloud storage platform focused on AI and data-intensive workloads, emphasizing an open ecosystem and a land-and-expand model. The…
- 10-Q · November 6, 2025
- Backblaze reported Q3 revenue of $37,162,000 (up $4,573,000 or ~14.0% YoY from $32,589,000) with gross profit of $23,071,000 (62.1% gross margin) and an operating loss narrowing to $(3,321,000). Net loss per share…
- 10-Q · August 7, 2025
- Backblaze reported Q2 2025 revenue of $36,298,000, up $5,013,000 (16.0%) versus Q2 2024, with gross profit expanding to $23,041,000 (63.5% gross margin). Operating loss narrowed to $(6,717,000) and net loss per share…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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