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…
Earnings analysis · 10-Q
BLZE earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
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,…
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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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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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.
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.