Backblaze Inc - Class A

Backblaze posted a standout second quarter, delivering a rare profit beat against a consensus that had expected a loss, with non-GAAP EPS of $0.01 clearing the $-0.0525 estimate by 119.05% as the cloud storage company swung from a non-GAAP net loss of $4.82 million a year ago. Revenue climbed 16.0% year-over-year to $36.30 million, edging past the $35.42 million consensus by 2.49%, while adjusted EBITDA more than doubled to $6.61 million, representing an 18% margin versus 9% in the prior-year period. The primary engine behind the improvement was B2 Cloud Storage, where revenue growth accelerated to 29% year-over-year, fueled by surging AI-related workloads, with three of Backblaze's top ten customers now AI companies and data stored by that cohort growing 40x year-over-year. Gross margin expanded sharply to 63% GAAP from 55% a year ago, reflecting cost discipline at scale. Analysts tracking the stock have noted meaningful upside potential, and management reinforced that optimism by raising full-year 2025 revenue guidance to $145.00 million to $147.00 million while targeting positive adjusted free cash flow in Q4 2025.