Backblaze Raises 2026 Revenue Outlook After B2 Growth

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter revenue was $46.7 million, up 26% from a year earlier, and the company lifted its full-year 2026 revenue outlook to $177.8 million to $178.2 million.

Backblaze, Inc. (BLZE), the high-performance capacity storage layer for AI, reported third-quarter revenue of $46.7 million, up 26% from a year earlier, as year-over-year growth in both the company and its B2 Cloud Storage unit accelerated for a second consecutive quarter.

B2 Cloud Storage revenue was $30.5 million, up 47% from a year earlier, after 34% growth in the second quarter and 24% in the first. Overall revenue growth had been 18% in the second quarter and 12% in the first. Computer Backup revenue was $16.2 million, down 2% year over year.

Co-founder and CEO Gleb Budman said B2 revenue growth accelerated to 47% from 28% a year earlier, reflecting broad-based momentum across the customer base. The company said it added a record number of net new B2 self-serve customers, four times as many as in the same period last year, and that the number of customers contributing more than $50,000 each in annual recurring revenue grew 57% year over year to 254. It also said it signed four large agreements across AI and core workloads.

Gross profit was $29.8 million, or 64% of revenue, compared with $23.1 million, or 62% of revenue, in the third quarter of 2025. Adjusted EBITDA was $15.2 million, or 33% of revenue, compared with $8.4 million, or 23% of revenue, a year earlier. Adjusted EBITDA margin had been 30% in the second quarter and 26% in the first. Net loss was $2.4 million, or $0.04 a share, compared with a net loss of $3.8 million, or $0.07 a share, a year earlier. Non-GAAP net income was $6.7 million.

Annual recurring revenue was $190.7 million at quarter-end, up 29% year over year. B2 Cloud Storage ARR was $126.8 million, up 53% year over year. Computer Backup ARR was $63.9 million, down 2% year over year. Net revenue retention was 105%, after 103% in both the second and first quarters. B2 Cloud Storage NRR was 115%. Computer Backup NRR was 94%. Gross customer retention was 91%.

The company said three of the four large agreements supported AI workloads and the fourth supported a core workload, including a $4 million AI builder expansion. It also said it established a collaboration with WEKA pairing WEKA’s high-performance data storage with Backblaze B2’s scalable capacity, and introduced the Backblaze B2 MCP Server for AI agents.

Backblaze completed a $201 million convertible notes offering, issuing 0% convertible senior notes due 2031 and entering related capped call transactions. The company said it expects to use the proceeds for capital expenditures supporting contracted growth and for general corporate purposes. Cash, cash equivalents, and marketable securities totaled $230.2 million as of September 30, 2026.

For the fourth quarter of 2026, Backblaze expects revenue between $49.8 million and $50.2 million and an adjusted EBITDA margin between 32% and 34%. It raised its full-year 2026 revenue outlook to $177.8 million to $178.2 million from $172.0 million to $174.0 million, and raised its full-year adjusted EBITDA margin outlook to 30% to 31% from 27% to 29%. Basic weighted average shares outstanding for the fourth quarter are expected at 63.6 million to 63.8 million.