Highlights

  • For the quarter ended 30 June 2026, revenue was $42.7 million, up 18%.
  • The net loss narrowed to $5.1 million from $7.1 million a year earlier.
  • The convertible offering was upsized from $150 million to $175 million.
  • Against the $16.88 reference price on 19 August, the 14 October close is roughly 42% lower.

Backblaze (NASDAQ:BLZE), a cloud storage and backup provider, announced on 12 October 2026 that it will report third-quarter results on 2 November. Its most substantive recent corporate actions are older: second-quarter results on 3 August and a $175 million convertible notes offering priced on 19 August.

Smaller items include a Mac backup integration with Jamf (1 October) and its quarterly Drive Stats report, published on 29 September, which put the quarterly drive failure rate at 1.73%. None of these changes the financial picture on its own.

Second-quarter results

For the quarter ended 30 June 2026, revenue was $42.7 million, up 18%. B2 Cloud Storage revenue, the faster-growing line, was $26.6 million, up 34%. Annual recurring revenue (ARR) was $177.3 million, up 21%, with B2 ARR of $113.3 million, up 39%. B2 therefore accounted for about 62% of second-quarter revenue.

The net loss narrowed to $5.1 million from $7.1 million a year earlier. Adjusted EBITDA was $12.8 million, a 30% margin, versus $6.6 million (18%) in the second quarter of 2025. Chief executive Gleb Budman called it "an amazing quarter" and, discussing a customer agreement with CoreWeave, said: "That is where Backblaze is built to win."

Guidance and the convertible notes

Backblaze raised full-year 2026 revenue guidance to $172.0 million to $174.0 million, from $161.5 million to $163.5 million, and lifted its adjusted EBITDA margin outlook to 27% to 29% from 23% to 25%. For the third quarter it guided to revenue of $44.4 million to $44.8 million and a margin of 27% to 29%. The midpoint of the third-quarter revenue range, $44.6 million, is about 4% above the second-quarter figure.

The convertible offering was upsized from $150 million to $175 million. The notes carry a 0.00% coupon, mature on 15 August 2031 and convert at about $21.94 a share, a roughly 30% premium to the $16.88 close on 19 August. Net proceeds were about $167.2 million, of which about $15.2 million funded capped call transactions with a cap price of $33.76. The remainder is for general corporate purposes, including capital expenditure. Backblaze cannot redeem the notes before 20 August 2029, and holders may require repurchase at par on a fundamental change. Initial purchasers held an option for up to $26.25 million more, and the private placement to qualified institutional buyers was expected to close on 24 August.

Share price context

Backblaze closed at $9.73 on Wednesday 14 October 2026, down from $12.51 the previous session, a one-day fall of about 22%, In the reported figures. Thursday's quote on the same page, $9.43 at 12:54 PM EDT, was intraday and is not treated as a close.

Against the $16.88 reference price on 19 August, the 14 October close is roughly 42% lower. Readers should note that the convertible's conversion price of about $21.94 now sits well above the market price. Price data come from a third-party website and may be revised; they are given for context only.

What to watch

The 2 November report will test whether Backblaze delivers within its third-quarter range and whether B2 growth continues to outpace total revenue growth. The raised full-year range implies the company expects continued expansion, but guidance is a forecast and not a reported result.

Other points include the margin outlook of 27% to 29%, the use of the convertible proceeds, and the development of the CoreWeave relationship. Because Investors may also compare the roughly $12.8 million of quarterly adjusted EBITDA with the capital expenditure that the notes are intended to help fund.