Backblaze (BLZE) investor relations material

Executive summary

• Q2 2026 revenue reached $42.7 million, up 18% year-over-year, driven by 34% B2 Cloud Storage growth and a price increase.

• Signed a $335 million, 5+ year strategic agreement with CoreWeave, the largest in company history, significantly increasing contracted revenue visibility and including $22 million in warrants.

• Net loss narrowed to $5.1 million from $7.1 million in Q2 2025; non-GAAP net income rose to $5.0 million, up from $0.8 million.

• Annual recurring revenue (ARR) rose 21% year-over-year to $177.3 million, with B2 Cloud Storage ARR up 39%.

• Raised full-year 2026 revenue guidance to $172–$174 million and adjusted EBITDA margin outlook to 27–29%.

Financial highlights

• Adjusted EBITDA margin reached 30% in Q2 2026, nearly doubling from 18% in Q2 2025.

• Adjusted gross margin was 80% in Q2 2026; gross margin stable at 63%.

• Adjusted free cash flow margin was 8% for Q2 2026; cash and marketable securities totaled $49.9 million as of June 30, 2026.

• Non-GAAP net income per share was $0.08, up from $0.01 in Q2 2025.

• Operating expenses increased 6% year-over-year, improving as a percentage of revenue by 800 basis points to 73%.

Outlook and guidance

• Q3 2026 revenue expected between $44.4–$44.8 million; adjusted EBITDA margin projected at 27–29%.

• Full-year 2026 revenue guidance raised to $172–$174 million, representing 19% year-over-year growth at midpoint.

• B2 revenue expected to grow over 40% year-over-year in 2027, based on contracted demand.

• Revenue from CoreWeave and new managed storage services expected to begin in Q3 2026.

• CapEx for 2026 projected at 55–65% of revenue, with capital leases used to remain free cash flow neutral.