Companies /Technology

Backblaze Inc - Class A

NASDAQ: BLZE Software - Infrastructure
$13.57
▼ $0.56 (−3.94%) today
Markets open · 11:08am ET

Q3 2025 Earnings

Reported Nov 6, 2025, 7:03am ET · SEC source
$0.03
Beat +275.44%
EPS · est. $-0.02
$37.2M
Beat +0.63%
Revenue · est. $36.9M
−21.0%
Trailing market
BLZE vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−40%−20%0Nov 6Nov 7report 7:03am ETearnings−2.1%−37.8%
−40%−20%0Nov 6Nov 7earnings−2.1%−37.8%
BLZE −37.8%S&P 500 −2.1%
−40%−20%0Nov 6Nov 7report 7:03am ETearnings−3.5%−37.8%
−40%−20%0Nov 6Nov 7earnings−3.5%−37.8%
BLZE −37.8%NASDAQ −3.5%
−40%−20%0Nov 5Nov 14report 7:03am ETearnings−1.9%−46.6%
−40%−20%0Nov 5Nov 14earnings−1.9%−46.6%
BLZE −46.6%S&P 500 −1.9%
−40%−20%0Nov 5Nov 14report 7:03am ETearnings−4.0%−46.6%
−40%−20%0Nov 5Nov 14earnings−4.0%−46.6%
BLZE −46.6%NASDAQ −4.0%
−33.83%
Day of report
−6.15%
Next session
−17.48%
One week
−19.09%
30 days

S&P 500 over the same 30 days: +1.90%.

Did BLZE Beat Earnings? Q3 2025 Results

Backblaze posted a standout third quarter, delivering what management described as a "double beat" as the cloud storage provider earned $0.03 per diluted share on a non-GAAP basis, well ahead of the consensus estimate of negative $0.02, representing a 275.44% earnings surprise, while revenue climbed 14.0% year-over-year to $37.16 million, edging past the $36.93 million consensus by 0.63%. The primary engine behind the quarter was B2 Cloud Storage, which surged 28% year-over-year to $20.70 million, fueling gross margin expansion of roughly 700 basis points to 62% on a GAAP basis as the platform's cost leverage became increasingly visible at scale. Adjusted EBITDA reached $8.39 million, a 23% margin that arrived a full quarter ahead of the company's own 20%-plus target. The company has also noted that AI-related workflows now account for nearly a quarter of its network traffic, reinforcing B2's positioning as a vendor-lock-in-free alternative to hyperscale providers. Looking ahead, Backblaze guided Q4 revenue to $37.30 million to $37.90 million with Adjusted EBITDA margin of 20% to 22%, while targeting free-cash-flow break-even by year-end.

Key Takeaways
  • B2 Cloud Storage grew 28% YoY, driven by AI and data-intensive workflow adoption
  • Gross margin expanded ~700 bps YoY to 62% due to operating leverage
  • Adjusted EBITDA margin reached 23%, up from 12% in Q3 2024
  • Non-GAAP net income more than doubled quarter-over-quarter to $1.9 million
  • Stock-based compensation declined to $5.4 million from $8.4 million YoY, reducing operating expense pressure

“I am pleased with our third quarter financial results exceeding the high end of our revenue and Adjusted EBITDA guidance and expanding gross margin by ~700 bps YoY to 62%. We remain on track to be free-cash-flow positive in Q4. B2 Cloud Storage grew 28% YoY and we won another seven-figure expansion with an existing customer, reinforcing the value of our price-performance and open platform.”

Backblaze CEO, on the earnings call

Forward Guidance & Outlook

For Q4 2025, Backblaze expects revenue of $37.3 million to $37.9 million with Adjusted EBITDA margin of 20% to 22% and basic weighted average shares outstanding of 58.0 million to 58.2 million. For full-year 2025, the company narrowed its revenue outlook to $145.4 million to $146.0 million (from $145.0 million to $147.0 million) and raised its Adjusted EBITDA margin guidance to 18%-20% (from 17%-19%). B2 Cloud Storage YoY growth is expected at 25%-28% for Q4 2025. The company remains on track to achieve positive free cash flow in Q4 2025.

BLZE YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$20.0M$40.0M$32.6M$37.2MRevenue$17.8M$23.1MGross Profit$-1,922,209$-3,321,000Operating Income$-2,217,396$-3,778,000Net Income
$0$20.0M$40.0MRevenueGross ProfitOperating IncomeNet Income

BLZE Revenue by Segment

B2 Cloud Storage$20.7M+28.0%
Computer Backup$16.5M+0.0%

Figures from SEC filings and company reports. Not investment advice.