Backblaze, Inc. (BLZE) · Nov 2, 2026 · Earnings
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〕
| Metric | Q3 2026 | Q3 2025 | Consensus / 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.
Q4 report, early February 2027
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