Backblaze, Inc.

Q2 revenue was $42.7 million, up 18% year over year and $2.5 million above the high end of guidance. Adjusted EBITDA was $13 million, nearly doubled year over year, with adjusted EBITDA margin at 30%, up 1,200 basis points year over year. Gross margin was 63% and operating expenses increased 6% year over year, improving to 73% of revenue. B2 growth accelerated to 34% year over year, B2 ARR reached $113 million, up 39% year over year, and B2 NRR was 113% versus 114% last year. For Q3, management guided revenue to $44.4 million to $44.8 million and adjusted EBITDA margin to 27% to 29%. For full-year 2026, revenue guidance was raised to $172 million to $174 million from $161.5 million to $163.5 million, and adjusted EBITDA margin guidance was raised to 27% to 29% from 23% to 25%. Management also said B2 should be on track to grow 40% or higher through the rest of 2026 and 2027, with 2027 full outlook to be provided in February.

Gleb Budman framed the quarter as evidence that Backblaze's AI strategy is working, saying the company is benefiting from customer needs for scale, architectural freedom, and performance at an affordable price. He highlighted the CoreWeave win, new AI customer signings, the launch of managed storage for customer-owned data centers, and product additions like the TypeScript SDK and Genblaze. His tone was confident and expansive, emphasizing that as AI scales, data grows, and Backblaze is positioned to benefit whether customers prioritize growth or cost discipline.

Marc Suidan emphasized that Q2 was both an operating beat and a validation of strategy, with revenue of $42.7 million, adjusted EBITDA of $13 million, and 30% margin all above plan. He said the price increase contributed about 8 percentage points to B2 growth, sequential B2 ARR rose by $20 million, and about $320 million of RPO was added in the quarter, including $313 million from CoreWeave net of $22 million in warrant value. He also noted cash and marketable securities ended at $50 million, up from $45 million, available and unused capital lease lines were over $150 million, CapEx is expected to be 55% to 65% of revenue in 2026, and the company expects to be adjusted free cash flow neutral for the full year despite accelerating CapEx.

Analysts focused on how much of the raised 2026 outlook was driven by CoreWeave versus the broader business, and Marc said the increase was a mix of the Q2 beat, the May 1 price increase, and CoreWeave ramp, with none dominating. Questions also probed whether CoreWeave could crowd out other AI customers; Gleb said the deal has instead elevated Backblaze as a validated AI infrastructure provider and helped open conversations with other neoclouds and AI-native companies. On managed storage, management said it is early but already seeing about half a dozen active discussions, generally for larger, more sophisticated customers with scale, data sovereignty, or balance-sheet preferences. Analysts also asked about capex and capital needs; Marc said the company is well set with cash, lease lines, and operating cash flow, and does not currently expect to need to raise more capital.