Backblaze Shares Jump 39.86% After Hours as Company Raises 2026 Revenue Outlook
Key Facts
Backblaze shares jumped 39.86% in after-hours trading on November 2 to $10.35 after the company reported third-quarter results and raised its annual outlook, according to Investing.com data. The stock had closed the regular session at $7.40, down 2.5%, before the results were released. The company reported adjusted earnings of $0.09 per share, above the market estimate of $0.05. Revenue was $46.65 million, versus expectations of $41.2 million. Backblaze reported results for the period ended September 30 on the evening of November 2, according to its filing with the U.S. Securities and Exchange Commission.
Quarterly revenue was $46.7 million, up 26% year over year, the company said. Most of the growth came from its B2 Cloud Storage service, which generated $30.5 million in revenue, up 47% from the same period. By contrast, Computer Backup revenue fell 2% to $16.2 million. Co-founder and co-CEO Gleb Budman said B2 revenue growth accelerated to 47%, compared with 28% in the third quarter of the previous year. Budman attributed the acceleration to broad-based customer momentum, while company figures showed B2 annual recurring revenue reached $126.8 million, up 53%.
Revenue growth came alongside an improvement in adjusted operating profitability: Adjusted EBITDA was about $15.2 million, or 33% of revenue, compared with $8.4 million and a 23% margin in the third quarter of 2025. Gross profit rose to $29.8 million, or 64% of revenue, from $23.1 million and 62% a year earlier. On a GAAP basis, the loss per share narrowed to $0.04 from $0.07 in the comparable period. The company’s annual recurring revenue also reached $190.7 million, up 29% year over year. For the nine months ended September 30, cash flow from operations was $22.8 million, versus $14.2 million in the same period of 2025.
The company pointed to growth in its customer base and demand tied to AI workloads. New self-service B2 customer additions reached a record, at four times the level in the comparable period. The number of customers each contributing more than $50,000 in annual recurring revenue also rose 57% to 254. Backblaze signed four large agreements during the quarter, including a $4 million expansion with an AI developer. It said three of the agreements support AI workloads, while the fourth serves a core workload.
On guidance, Backblaze raised its fiscal 2026 revenue range to $177.8–178.2 million from a previous estimate of $172.0–174.0 million. The company expects fourth-quarter revenue of $49.8–50.2 million. It also raised its full-year Adjusted EBITDA margin range to 30%–31%, from 27%–29%. For the fourth quarter, it expects a margin of 32%–34%. These revisions lift revenue and margin estimates from the company’s previous guidance.
This follows the company’s June 23 announcement of a five-year, $335 million multi-exabyte storage agreement with CoreWeave. Backblaze said the agreement provides low-cost storage capacity supporting parts of CoreWeave’s managed storage infrastructure. As of September 30, Backblaze had $230.2 million in cash, cash equivalents and marketable securities, while its balance sheet showed $194.485 million in long-term debt, net. The financial position cannot be assessed by comparing only these two items, as the balance sheet includes other obligations and liabilities. The company’s shares had closed at $7.59 on October 30, before closing at $7.40 in the regular session on November 2.