Backblaze, Inc. (BLZE) · Nov 2, 2026 · Earnings

Backblaze earnings beat as AI storage growth accelerates and guidance rises

Beat — Revenue $46.7M vs ~$44.6M consensus

Backblaze earnings show AI-driven B2 storage growth accelerating to 47%, with Q3 revenue above consensus and FY 2026 guidance raised.

Backblaze is shifting from a slower legacy backup business toward B2 cloud storage for AI workloads; the market already knew the direction was working after the CoreWeave agreement and Q2 guidance raise. Q2 management had guided to Q3 revenue of $44.4M–$44.8M and FY 2026 revenue of $172.0M–$174.0M, while the published Q3 consensus was about $44.6M.

The quarter materially exceeded the operating bar. Revenue reached $46.7M, about 4.6% above consensus, while B2 Cloud Storage revenue accelerated 47% year over year to $30.5M. The result was not just a one-off accounting beat: B2 ARR reached $127M, up 53%, B2 net revenue retention was 115%, and four large agreements above $500K of ARR were booked. 〔0〕

MetricQ3 2026Q3 2025Consensus / Prior guide
Revenue (Financial Statements)$46.7M (+25.5%)$37.2M~$44.6M consensus
B2 Cloud Storage revenue (Financial and operational highlights)$30.5M (+47%)——
Computer Backup revenue (Financial and operational highlights)$16.2M (-2%)——
Adjusted EBITDA margin (Adjusted EBITDA reconciliation)33% (+10 pts)23%27%–29% Q3 guide
FY 2026 revenue guide (Q4 and full-year guidance)$177.8M–$178.2M—$172.0M–$174.0M prior guide
FY 2026 adjusted EBITDA margin guide (Q4 and full-year guidance)30%–31%—27%–29% prior guide
Adjusted free cash flow, YTD (Cash Flow reconciliation)$1.9M$(9.5M)—

Management raised both growth and profitability expectations. Full-year revenue moved to $177.8M–$178.2M from $172.0M–$174.0M, and the adjusted EBITDA margin target rose to 30%–31% from 27%–29%. That is a meaningful upgrade to the business trajectory, not merely a reaffirmation, and Q4 B2 growth is now expected near 60%.

The main qualification is that the AI buildout still requires capital. Backblaze completed a $201M, 0% convertible-notes offering and ended September with $189.0M of cash, but it also carried $194.5M of long-term debt and remains GAAP-unprofitable. The financing supports capacity expansion for contracted growth, so it strengthens execution capacity while increasing balance-sheet complexity.

Bottom line: This was a clear beat-and-raise quarter that strengthens Backblaze’s AI-storage transition. The story was already improving, but accelerating B2 growth, better profitability, and higher guidance move it materially further ahead of the prior plan.

What to watch next

Q4 report, early February 2027

Original filing on SEC EDGAR

More Backblaze, Inc. news

Backblaze earnings beat as AI storage growth accelerates and guidance rises | BLZE Stock News
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