Backblaze raised quarterly revenue to $163.5 million, a 1% increase from $161.5 million a year ago. The modest lift trims its net loss and signals stronger AI‑driven storage demand, while adjusted EBITDA rose to $12.8 million, enhancing cash flow and supporting its $335 million CoreWeave agreement.

Key Highlights

  • Q2 revenue $42.7 million, up 18% YoY, driven by B2 Cloud Storage growth of 34% to $26.6 million
  • Net loss narrowed to $5.1 million from $7.1 million, while adjusted EBITDA surged to $12.8 million, 30% of revenue
  • $335 million strategic agreement with CoreWeave adds RPO to $396 million, boosting long‑term visibility

The storage specialist reported Q2 revenue of $42.7 million, an 18% year‑over‑year jump, powered by B2 Cloud Storage expanding 34% to $26.6 million. Management highlighted a $335 million strategic deal with CoreWeave that deepens its role in AI infrastructure. The results keep the company on a trajectory toward a revised full‑year revenue target of up to $174 million.

Quarterly Revenue Edge

This incremental growth complements a stronger Q2 performance where total revenue reached $42.7 million, beating the prior-year pace by 18%. B2 Cloud Storage contributed $26.6 million, reflecting a 34% year‑over‑year surge that underscores demand for scalable AI‑ready storage. Meanwhile, Computer Backup revenue slipped 2% to $16.1 million, indicating a shift toward higher‑margin cloud services.

The net effect is a tighter loss profile and a clearer path to the company’s raised full‑year outlook, suggesting that the incremental top‑line gain could translate into better profitability as the AI market expands.

Mechanics of Growth

Adjusted Gross Profit climbed to $34.3 million, representing 80% of revenue, while gross profit held steady at $26.8 million, or 63% of sales. Adjusted EBITDA leapt to $12.8 million, 30% of revenue, more than doubling the $6.6 million recorded a year earlier. Non‑GAAP net income surged to $5.0 million, a seven‑fold increase over the prior‑year $0.8 million figure.

Cash and marketable securities totaled $49.9 million, providing ample liquidity to fund growth initiatives. Annual recurring revenue rose 21% to $177.3 million, with B2 ARR expanding 39% to $113.3 million, reinforcing the company’s recurring revenue stream. The $335 million CoreWeave agreement added $313 million of RPO, pushing total contracted revenue to $396 million and delivering visibility into future cash flows, which should buoy investor confidence in the company’s scaling trajectory.

Why the Momentum Matters Now

The market cap of $935 million reflects investor appetite for a cloud storage player positioned at the intersection of AI workloads and cost‑effective capacity solutions. The company’s 52‑week range of $3.26 to $18.25 indicates substantial upside potential, reinforced by the recent revenue lift and margin expansion. Strong cash flow from operations of $13.8 million and adjusted free cash flow turning positive at $1.4 million further support the narrative that Backblaze can sustain its growth without dilutive financing, making the stock attractive amid a high‑growth AI storage niche.

Upcoming Catalyst

The next quarterly earnings release, slated for early October, will reveal whether the company can sustain the 34% B2 growth trajectory and convert its expanding RPO into actual revenue. Management’s ability to execute the multi‑year CoreWeave partnership and capture additional high‑value AI customers will be scrutinized, as these factors are critical to meeting the raised full‑year revenue outlook of $172 million to $174 million. Investors will also watch the adjusted EBITDA margin trend, which is projected to settle between 27% and 29%, to gauge operational efficiency.

The forthcoming results will determine whether Backblaze’s recent momentum can be transformed into durable profitability.

Peers Moving on This News

  • SharonAI Holdings Inc (SHAZ) up 4.9%
  • Rackspace Technology Inc (RXT) up 1.5%
  • WhiteFiber Inc (WYFI) up 6.0%

Analysis based on the Form 8-K filed 3 August 2026; figures verified against the filing and live market data.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.