Key Highlights

  • Backblaze's second-quarter 2026 Revenue was $42.7m, up 18%, with B2 Cloud Storage revenue up 34% to $26.6m.
  • A strategic agreement with CoreWeave worth $335m raised remaining performance obligations to $396m.
  • The company raised full-year 2026 revenue guidance to $172.0m to $174.0m from $161.5m to $163.5m.

The reported quarter

Backblaze, Inc. (NASDAQ:BLZE), a cloud storage and computer backup provider, reported second-quarter 2026 results on 3 August 2026. Revenue was $42.7m, up 18% from $36.3m a year earlier. B2 Cloud Storage revenue rose 34% to $26.6m, while Computer Backup revenue fell 2% to $16.1m.

The net loss narrowed to $5.1m, or $0.08 per share, from $7.1m, or $0.13, in the second quarter of 2025. Adjusted EBITDA was $12.8m, a 30% margin, compared with $6.6m and 18% a year earlier. Non-GAAP Net Income was $5.0m, or $0.08 per diluted share.

The CoreWeave agreement

The company also disclosed a strategic agreement with CoreWeave lasting more than five years and worth $335m, including warrants that Backblaze valued at about $22m. Remaining performance obligations (RPO) were $396m at quarter end, up $319.5m from the previous quarter.

RPO represents contracted revenue not yet recognised, so it is not the same as revenue. How quickly the contract translates into reported sales depends on delivery schedules. Backblaze also said it signed its largest B2 Overdrive deal to date, a seven-figure annual Recurring Revenue (ARR) agreement with a frontier artificial intelligence model developer.

Recurring revenue, retention and margins

Total ARR was $177.3m, up 21%. B2 Cloud Storage ARR was $113.3m, up 39%, while Computer Backup ARR was $64.0m, roughly flat. This divergence means the faster-growing segment is steadily becoming a larger part of the business.

Net revenue retention was 103%, down from 106% a year earlier. B2 Cloud Storage retention was 113% against 114%, and Computer Backup retention was 94% against 99%. Gross customer retention was 91%, compared with 90%. Customers with ARR above $50,000 grew their ARR by 67%, and their number rose 57%.

GAAP Gross Profit was $26.8m, or 63% of revenue, unchanged as a percentage from the second quarter of 2025 when it was $23.0m. Adjusted gross profit was $34.3m, an 80% Margin against 79% a year earlier. The difference between the two measures reflects non-cash and other items that the company excludes from its adjusted figure.

The larger improvement came further down the income statement. Adjusted EBITDA margin rose by 12 percentage points, which suggests operating costs grew far more slowly than revenue. Whether that Operating Leverage persists as the company invests to serve larger customers is a fair question for the next few quarters, especially because the CoreWeave arrangement involves a single large counterparty, which may concentrate customer exposure.

Cash and outlook

Cash, cash equivalents and marketable securities were $49.9m at 30 June 2026. Operating Cash Flow for the first half was $13.8m, up from $8.5m, and adjusted free cash flow was $1.4m, compared with an outflow of $6.0m a year before.

Guidance is not a reported result. For the third quarter, Backblaze expects revenue of $44.4m to $44.8m and an adjusted EBITDA margin of 27% to 29%. It raised full-year 2026 revenue guidance to $172.0m to $174.0m from $161.5m to $163.5m, and the adjusted EBITDA margin range to 27% to 29% from 23% to 25%.

What to watch

Key items include delivery of third-quarter revenue within the guided range, the pace at which the CoreWeave contract converts from RPO into revenue, and whether net revenue retention stabilises. The cash balance of $49.9m relative to growth ambitions, and whether the margin guidance proves achievable as the mix shifts towards B2, are also points to follow.