Backblaze (NASDAQ:BLZE) Posts Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Backblaze (NASDAQ:BLZE) issued its earnings results on Monday. The company reported $0.09 earnings per share for the quarter, beating analysts’ consensus estimates of $0.05 by $0.04, FiscalAI reports. The firm had revenue of $46.65 million for the quarter, compared to the consensus estimate of $44.59 million. Backblaze had a negative return on equity of 13.18% and a negative net margin of 11.47%.

Here are the key takeaways from Backblaze’s conference call:

• Q3 exceeded expectations, with revenue up 26% year over year to $47 million, adjusted EBITDA margin expanding to 33%, and full-year revenue guidance raised to $177.8–$178.2 million. Full-year adjusted EBITDA margin guidance also increased to 30%–31%.
• B2 Cloud Storage growth accelerated to 47% year over year, with B2 ARR reaching $127 million and net revenue retention improving to 115%. Growth was broad-based across self-serve, sales-led, and larger customers, although the May price increase contributed approximately 12 percentage points to B2 growth.
• CoreWeave and another large neocloud customer have begun ramping under multi-year minimum commitments, with the larger neocloud starting ahead of schedule. Management expects the neocloud agreements to contribute more meaningfully in the first half of 2027, with CoreWeave reaching its committed run rate by July 2027.
• AI-builder momentum strengthened, with the pipeline of new AI builders doubling sequentially in Q3 and four agreements exceeding $500,000 in ARR. Three existing AI customers more than doubled their original commitments within a year, supporting management’s confidence in 40%-plus B2 growth in 2027.
• Backblaze is accelerating capacity investment to support contracted demand, with fourth-quarter PP&E spending expected to reach $65 million–$83 million and capital expenditures projected at 55%–65% of revenue for the full year. Depreciation from capacity added ahead of customer ramps is expected to reduce GAAP gross margin by 3–6 percentage points over the next four to five quarters, while Computer Backup revenue is still expected to decline at a low-single-digit rate in Q4.

Backblaze Price Performance

BLZE opened at $8.38 on Wednesday. Backblaze has a twelve month low of $3.26 and a twelve month high of $23.99. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.34. The company’s 50-day moving average price is $12.15 and its two-hundred day moving average price is $9.23.

Insider Activity

In related news, CFO Marc Suidan sold 2,110 shares of the business’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $15.82, for a total value of $33,380.20. Following the sale, the chief financial officer directly owned 349,518 shares in the company, valued at approximately $5,529,374.76. The trade was a 0.60% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gleb Budman sold 12,855 shares of the stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $15.82, for a total transaction of $203,366.10. Following the completion of the sale, the chief executive officer directly owned 2,192,103 shares in the company, valued at approximately $34,679,069.46. The trade was a 0.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 4.20% of the company’s stock.

Analyst Ratings Changes

A number of brokerages have weighed in on BLZE. Citigroup restated a “market outperform” rating on shares of Backblaze in a research report on Tuesday. William Blair reiterated a “market perform” rating on shares of Backblaze in a research report on Friday, October 2nd. Lake Street Capital reissued a “buy” rating and issued a $21.00 price target on shares of Backblaze in a research note on Tuesday, August 4th. Weiss Ratings restated a “sell (e+)” rating on shares of Backblaze in a research note on Wednesday, August 12th. Finally, B. Riley Financial upped their price objective on shares of Backblaze from $16.00 to $24.00 and gave the stock a “buy” rating in a report on Tuesday, August 4th. Eight analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $18.57.

Backblaze News Summary

Here are the key news stories impacting Backblaze this week:

• Positive Sentiment: Backblaze reported Q3 adjusted earnings of $0.09 per share, ahead of analyst estimates of roughly $0.04–$0.05, while revenue of $46.65 million also exceeded expectations of about $44.59 million. Q3 financial results
• Positive Sentiment: The company raised its FY 2026 revenue forecast to $177.8–$178.2 million, above the roughly $173 million consensus. Its Q4 revenue outlook of $49.8–$50.2 million also topped analysts’ expectations of about $47 million; management additionally targeted a 32%–34% adjusted EBITDA margin. Q4 revenue and margin outlook
• Positive Sentiment: Management said B2 revenue growth accelerated to 47% year over year, and the company added a record number of net new B2 self-serve customers—supporting the case for stronger demand in its cloud-storage business. Q3 financial results
• Neutral Sentiment: Needham lowered its price target from $23 to $15 but kept a Buy rating. The lower target may temper enthusiasm, though the firm still sees potential upside from the stock’s referenced price. Needham analyst recommendations
• Negative Sentiment: A reported $335 million, five-year CoreWeave contract is a significant revenue opportunity, but reliance on a major customer and volatility in the neocloud sector create concentration and execution risks. Backblaze analysis and risks

About Backblaze

Backblaze, Inc provides cloud storage and data backup services for businesses, developers and individual users. The company’s offerings are designed to help customers protect, store, manage and access data without maintaining their own extensive storage infrastructure.

Its primary products include Backblaze Computer Backup, a subscription service that automatically backs up data from computers, and Backblaze B2 Cloud Storage, an object-storage platform used for applications such as backup, archiving, content storage and media workflows.