Backblaze (BLZE) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $46.7M, up 26% YoY; B2 Cloud Storage revenue grew 47%, while Computer Backup declined 2%.

• Adjusted EBITDA rose to $15.2M from $8.4M, with margin expanding to 33% from 23%; GAAP net loss narrowed to $2.4M from $3.8M.

• Four agreements above $500K ARR and the $335.1M CoreWeave contract add contracted demand, while increasing customer concentration and delivery exposure.

Financial highlights

• Q3 revenue was $46.7M, up 26% YoY; 9M revenue was $128.0M, up 18%.

• GAAP gross margin was 64%, up from 62%; adjusted gross margin was 81%, up from 79%.

• Non-GAAP net income rose to $6.7M from $1.9M; diluted EPS was $0.09 versus $0.03.

• 9M operating cash flow was $22.8M versus $14.2M; adjusted free cash flow was $1.9M versus negative $9.5M.

• Cash, cash equivalents and marketable securities totaled $230.2M at September 30, 2026.

Outlook and guidance

• Q4 2026 revenue guidance is $49.8M–$50.2M, with adjusted EBITDA margin of 32%–34% and expected B2 growth of ~60%.

• FY2026 revenue guidance rose to $177.8M–$178.2M from $172.0M–$174.0M; adjusted EBITDA margin guidance increased to 30%–31% from 27%–29%.

• Revenue from larger AI infrastructure agreements was minimal in Q3 and is expected to become meaningful beginning Q1 2027; timing and scale depend on deployment and usage.

• Managed storage revenue is not anticipated in FY2026; service revenue begins when capacity is deployed or the applicable minimum commitment starts.

• Significant data-center capacity and equipment investments are expected through the remainder of 2026 and in 2027 to support CoreWeave and other neocloud demand.