Backblaze (BLZE) Q4 2025 earnings summary

Executive summary

• Achieved solid Q4 and full-year 2025 results, with total revenue up 12% year-over-year and B2 Cloud Storage revenue up 24%–26%, while Computer Backup revenue was flat.

• Adjusted EBITDA margin doubled year-over-year to 28%, and adjusted free cash flow margin reached 11%, marking the first positive quarter since going public.

• Signed the largest contract in company history: a neocloud deal exceeding $15M total contract value, with revenue impact starting in 2027.

• Launched B2 Neo, a high-performance white-label storage for neoclouds, and Flamethrower, a startup program targeting AI and high-growth companies.

• Strengthened leadership team and established a go-to-market advisory committee with industry leaders.

Financial highlights

• Q4 2025 total revenue: $37.8M (+12% YoY); full-year 2025 revenue: $145.8M (+14% YoY).

• Q4 B2 Cloud Storage revenue: $21.3M (+24% YoY); full-year: $79.9M (+26% YoY).

• Q4 gross margin: 62%; adjusted gross margin: 80%.

• Q4 adjusted EBITDA: $10.4M (28% margin); full-year adjusted EBITDA: $31.8M (22% margin).

• Q4 adjusted free cash flow: $4.1M (11% margin); cash and marketable securities at year-end: $51.4M.

Outlook and guidance

• Q1 2026 revenue expected: $37.6M–$38.0M; adjusted EBITDA margin: 18%–20%.

• Full-year 2026 revenue guidance: $156.5M–$158.5M; adjusted EBITDA margin: 19%–21%.

• Adjusted free cash flow expected to be roughly neutral for 2026.

• B2 revenue growth expected at ~20% for 2026, with Q2/Q3 growth 12%–19% due to tough comps.

• Computer backup business expected to decline 5% YoY in 2026.