Backblaze Reports Strong Q3 2026 Results Driven by B2 Cloud Storage and AI Demand
Backblaze (BLZE) delivered a robust third quarter for 2026, reporting total revenue of $46.7 million, a 26% year-over-year increase that exceeded the high end of previous guidance. The growth was primarily fueled by the B2 Cloud Storage segment, which saw revenue rise 47% to $30.5 million. This momentum is supported by significant expansion in the upmarket segment, with customers contributing over $50,000 in annual recurring revenue (ARR) growing by 57% year-over-year. The company is successfully pivoting toward large-scale capacity deployment to meet demand from AI builders and NeoCloud partners. While management warned of potential temporary GAAP gross margin compression due to front-loaded capital expenditures for data center capacity, the overall financial health remains strong with $230.2 million in cash reserves. Backblaze raised its full-year revenue guidance following these results.
Tickers: $BLZE
Topics: Annual Recurring Revenue B2 Cloud Storage EBITDA Financial Guidance Revenue Growth