BLZE · Backblaze, Inc.

Backblaze's Q1 2026 results exceeded expectations, with revenue of $38.7M (up 12% YoY) and Adjusted EBITDA of $10.1M (26% margin), surpassing the high end of guidance. The outperformance was driven by B2 Cloud Storage revenue growth of 24% YoY to $22.4M, fueled by strong AI customer traction—AI customer count grew 76% YoY, and two AI wins contributed approximately $1.5M in annual contract value. Computer Backup revenue was relatively flat at $16.2M. Gross margin improved to 61% (GAAP) from 56% a year ago, while adjusted gross margin remained steady at 79%. Net loss narrowed to $6.1M from $9.3M, and the company achieved positive non-GAAP net income of $2.7M. Operational highlights include B2 ARR reaching $93.0M (up 28% YoY), net revenue retention of 110% for B2, and a 51% increase in customers with $50K+ ARR. Management raised full-year 2026 revenue guidance to $161.5-$163.5M (from $156.5-$158.5M) and Adjusted EBITDA margin to 23%-25% (from 19%-21%), reflecting confidence in continued momentum. The appointment of Anuj Kumar as CRO, with experience at NetApp and VMware, signals a focus on scaling go-to-market execution. The company also raised B2 pay-as-you-go pricing effective May 1, 2026, and eliminated transaction fees to simplify pricing.