Backblaze, Inc.

What they do

Backblaze operates a web-scale Infrastructure-as-a-Service (IaaS) platform built on commodity hardware, offering B2 Cloud Storage (with high-performance B2 Overdrive), Computer Backup SaaS, and white-label programs (Powered by Backblaze and B2 Neo) for neocloud platforms. The platform manages over 1 trillion files across hundreds of thousands of hard drives, serving over 500,000 customers in more than 175 countries with over 5 billion gigabytes of data under management.

Revenue drivers

• B2 Cloud Storage — Core IaaS offering with pay-as-you-go and committed contracts; B2 Overdrive adds high-throughput (up to 1Tbps) for AI workloads. B2 growth accelerated to 34% in Q2 2026.
• Computer Backup SaaS — Subscription service for businesses and individuals, offering flat-rate pricing for virtually unlimited backup of laptops and desktops.
• Powered by Backblaze and B2 Neo — White-label embedded storage programs for neocloud platforms; B2 Neo is specifically for neoclouds to offer native branded storage.
• Direct sales and partner ecosystem — Direct sales up-market motion and channel/technology partners are increasingly contributing to acquiring larger customers, including leading neoclouds.

Recent performance

Q2 2026 revenue was $42.7M, up from $37.8M in Q4 2025 and $38.7M in Q1 2026. Full-year 2025 revenue was $145.8M with a net loss of $25.6M and positive operating cash flow of $23.5M. The company reported operating cash flow of $12.5M in 2024, improving to $23.5M in 2025. B2 growth accelerated to 34% in Q2 2026. As of June 30, 2026, total assets were $223.8M, liabilities $135.3M, with cash and equivalents of $32.4M.

Strategy

Backblaze is moving up-market with direct sales, focusing on AI workloads and neocloud partnerships. The company introduced B2 Neo for neoclouds and continues investing in performance (B2 Overdrive) and developer tools. Management emphasizes a white-label capacity tier model, leveraging a new delivery model from the CoreWeave agreement. The strategy also continues to grow the self-serve developer base and community-driven acquisition.

Risks

• AI customer concentration — Revenue from AI customers is early-stage and could depend on a few large customers, including the CoreWeave agreement, leading to concentration risk.
• Ramp and consumption variability — The CoreWeave agreement involves a new delivery model with risks related to ramp timing, consumption levels, and ability to scale operations, which could cause actual revenue to differ from contracted amounts.
• Competitive pressures — Backblaze faces intense competition from larger cloud providers and legacy on-premises vendors, which may limit pricing power and market share gains.
• Execution on up-market move — The company's success depends on effectively managing growth, scaling sales and marketing initiatives, and achieving intended returns on investments.

Outlook

Management is optimistic about AI-driven demand, evidenced by the $335M multi-exabyte CoreWeave agreement and a win with a leading frontier model developer. They expect direct sales to increasingly drive customer acquisition, especially in neoclouds, and continue to invest in product and go-to-market initiatives to position across the AI data lifecycle. No specific financial guidance was provided in the excerpts.