Backblaze (BLZE) Q2 2025 Earnings
How Did BLZE Stock React to Q2 2025 Earnings?
S&P 500 over the same 30 days: +2.86%.
Did BLZE Beat Earnings? Q2 2025 Results
Yes. Backblaze reported Q2 2025 earnings of $0.01 a share on Aug 7, 2025, beating the $-0.05 consensus estimate by 119.0%. Revenue was $36.3M against a $35.4M estimate.
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.
- B2 Cloud Storage revenue growth accelerated from 23% to 29% YoY sequentially
- AI customer momentum: 3 of top 10 customers are AI companies, 40x growth in data stored by AI customers YoY
- Up-market momentum: customers contributing over $50,000 in ARR grew 53% YoY
- Gross margin expansion to 63% GAAP from 55% in Q2 2024
- Adjusted EBITDA more than doubled YoY to $6.6 million (18% margin vs 9%)
- 150 customers with $50K+ ARR, up 30% YoY
“We're pleased with our continued strong quarterly performance, with B2 revenue growth accelerating from 23% to 29% sequentially and solidifying our journey to be Adjusted Free Cash Flow positive in Q4.”
Backblaze CEO, on the earnings call
What Was Backblaze's Outlook in Q2 2025?
For Q3 2025, Backblaze expects revenue of $36.7 million to $37.1 million with adjusted EBITDA margin of 17% to 19%. For full-year 2025, the company raised revenue guidance to $145.0 million to $147.0 million (from $144.0 million to $146.0 million previously) with adjusted EBITDA margin of 17% to 19%. B2 Cloud Storage growth is expected to reach 28-30% in Q3 (raised from 25-28%) and 30%+ in Q4. The company targets positive adjusted free cash flow in Q4 2025.
BLZE YoY Financials
| Metric | Q2 2025 | Q2 2024 | Year over year |
|---|---|---|---|
| Revenue | $36.3M | $31.3M | +16.0% |
| Gross Profit | $23.0M | $17.2M | +33.7% |
| Operating Income | −$6.7M | −$5.1M | +31.5% |
| Net Income | −$7.1M | −$5.4M | +31.4% |
BLZE Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.