Revenue accelerated to 17.7% YoY growth in Q2 2026 with gross margin expanding to 62.8%, while operating losses narrowed to -9.8% from -40.8% in Q4 2024.
Backblaze, Inc. (BLZE) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 156.3M | 145.84M | 127.63M | 102.02M | 85.16M | 67.48M | 53.78M | 40.75M |
| Revenue Growth % | 13.85% | 14.27% | 25.1% | 19.8% | 26.19% | 25.46% | 31.99% | - |
| Cost of Goods Sold | 59.44M | 57.04M | 58.28M | 52.16M | 41.29M | 33.14M | 25.8M | 20.13M |
| COGS % of Revenue | - | 39.11% | 45.67% | 51.13% | 48.49% | 49.11% | 47.97% | 49.39% |
| Gross Profit | 96.86M | 88.79M | 69.34M | 49.86M | 43.86M | 34.34M | 27.98M | 20.62M |
| Gross Margin % | 61.97% | 60.89% | 54.33% | 48.87% | 51.51% | 50.89% | 52.03% | 50.61% |
| Gross Profit Growth % | - | 28.05% | 39.08% | 13.67% | 27.73% | 22.72% | 35.7% | - |
| Operating Expenses | 114.37M | 112.42M | 115.63M | 107.76M | 91.98M | 53.13M | 31.71M | 19.67M |
| OpEx % of Revenue | - | 77.08% | 90.6% | 105.63% | 108.01% | 78.74% | 58.97% | 48.28% |
| Selling, General & Admin | 69.71M | 66.31M | 73.53M | 68.23M | 58.87M | 32.6M | 18.65M | 11.24M |
| SG&A % of Revenue | - | 45.47% | 57.62% | 66.88% | 69.13% | 48.31% | 34.67% | 27.57% |
| Research & Development | 44.66M | 46.11M | 42.1M | 39.53M | 33.11M | 20.54M | 13.07M | 8.44M |
| R&D % of Revenue | - | 31.62% | 32.98% | 38.74% | 38.88% | 30.43% | 24.3% | 20.7% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -17.51M | -23.62M | -46.29M | -57.91M | -48.11M | -18.79M | -3.73M | 949K |
| Operating Margin % | -11.2% | -16.2% | -36.27% | -56.76% | -56.5% | -27.85% | -6.94% | 2.33% |
| Operating Income Growth % | - | 48.97% | 20.06% | -20.35% | -156% | -403.59% | -493.26% | - |
| EBITDA | 8.37M | 1.87M | -17.96M | -32.99M | -27.96M | -2.47M | 9.22M | 10.27M |
| EBITDA Margin % | 5.36% | 1.28% | -14.07% | -32.34% | -32.84% | -3.66% | 17.14% | 25.2% |
| EBITDA Growth % | 160.28% | 110.41% | 45.56% | -17.99% | -1031.15% | -126.81% | -10.21% | - |
| D&A (Non-Cash Add-back) | 25.89M | 25.49M | 28.33M | 24.91M | 20.15M | 16.32M | 12.95M | 9.32M |
| EBIT | -15.75M | -21.66M | -44.87M | -55.92M | -47.15M | -17.93M | -3.73M | 949K |
| Net Interest Income | -4.61M | -3.87M | -3.66M | -3.79M | -4.29M | -3.68M | -2.89M | -1.93M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 4.61M | 3.87M | 3.66M | 3.79M | 4.29M | 3.68M | 2.89M | 1.93M |
| Other Income/Expense | -2.85M | -1.91M | -2.24M | -1.81M | -3.32M | -2.81M | -2.89M | -1.93M |
| Pretax Income | -20.36M | -25.53M | -48.52M | -59.71M | -51.44M | -21.61M | -6.62M | -980K |
| Pretax Margin % | -13.03% | -17.5% | -38.02% | -58.53% | -60.4% | -32.02% | -12.3% | -2.4% |
| Income Tax | 68K | 84K | 6K | 0 | -39K | 96K | 5K | 16K |
| Effective Tax Rate % | -0.33% | -0.33% | -0.01% | 0% | 0.08% | -0.44% | -0.08% | -1.63% |
| Net Income | -20.43M | -25.61M | -48.53M | -59.71M | -51.4M | -21.7M | -6.62M | -996K |
| Net Margin % | -13.07% | -17.56% | -38.03% | -58.53% | -60.36% | -32.16% | -12.31% | -2.44% |
| Net Income Growth % | 53.1% | 47.23% | 18.73% | -16.18% | -136.81% | -227.71% | -564.96% | - |
| Net Income (Continuing) | -20.43M | -25.61M | -48.53M | -59.71M | -51.4M | -21.7M | -6.62M | -996K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.34 | -0.46 | -1.11 | -1.66 | -1.63 | -0.71 | -0.22 | -0.05 |
| EPS Growth % | 61.8% | 58.56% | 33.13% | -1.84% | -129.58% | -222.73% | -311.22% | - |
| EPS (Basic) | - | -0.46 | -1.11 | -1.66 | -1.63 | -0.71 | -0.22 | -0.05 |
| Diluted Shares Outstanding | 60.79M | 56.21M | 43.54M | 36.01M | 31.66M | 30.38M | 30.3M | 18.6M |
| Basic Shares Outstanding | 60.79M | 56.21M | 43.54M | 36.01M | 31.66M | 30.38M | 30.3M | 18.6M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying BLZE stock.
For fiscal year 2025, Backblaze, Inc. (BLZE) reported total revenue of $145.8M. This represents a 257.9% increase compared to $40.7M in 2019.
Backblaze, Inc. (BLZE) reported a net loss of $25.6M for the fiscal year ending 2025.
Backblaze, Inc. (BLZE) reported an operating income of $-23.6M, resulting in an operating profit margin of -16.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Backblaze, Inc. (BLZE) generated $88.8M in gross profit for the year, representing a gross profit margin of 60.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Hyperscaler cold storage competition
Metrics are mathematically derived from official filings.
B2 Acceleration Drives Revenue Momentum
Revenue grew 17.7% year-over-year in Q2 2026 to $42.7M, with B2 storage accelerating to 34% growth per CEO commentary, indicating a strategic pivot gaining traction.
The sequential acceleration from 11.7% in Q1 2026 to 17.7% in Q2 2026 suggests the B2 segment is becoming a more significant growth driver, likely offsetting any deceleration in the Computer Backup segment. The raised forward guidance of $44.4M-$44.8M implies management expects this momentum to persist, though the sustainability of B2's 34% growth rate warrants monitoring given the competitive landscape.
Gross Margin Expansion Reflects Scale
Gross margin improved from 52.8% in Q1 2024 to 62.8% in Q2 2026, a 10-point expansion, suggesting improved cost efficiency and pricing power in the B2 segment.
The consistent upward trend in gross margin, despite the mix shift toward lower-margin B2, indicates that the company is achieving better utilization of its storage infrastructure. The 62.8% gross margin in Q2 2026 is still below pure-play software peers like Box (79.2%) but reflects the capital-intensive nature of the business. Investors should monitor whether hardware replacement cycles or competitive pricing pressures could reverse this trend.
Operating Leverage Emerging as Losses Narrow
Operating margin improved from -40.8% in Q4 2024 to -9.8% in Q2 2026, with revenue growing 26% over that period, indicating that fixed costs are being spread over a larger base.
The dramatic improvement in operating margin, from -40.8% to -9.8%, suggests that the company is beginning to realize operating leverage as revenue scales. However, the absolute operating loss of -$4.2M in Q2 2026 remains significant, and the path to profitability depends on continued revenue growth without proportional increases in R&D and SG&A. The recent EPS beat of $0.08 versus $0.01 estimate may indicate that this leverage is accelerating faster than expected.
SBC Burden Masks Underlying Cash Burn
Stock-based compensation totaled $9.2M in Q2 2026, exceeding the net loss of $5.1M, implying that cash burn is higher than reported losses and warranting scrutiny of cash flow sustainability.
The significant SBC expense, which has ranged from $5.5M to $9.2M per quarter, suggests that reported net losses understate the true cash outflow. When adjusting for SBC, the company's cash burn appears to be accelerating, which may raise questions about the adequacy of its cash reserves. Investors should monitor the deferred revenue balance and capitalized software costs, as these can also affect the quality of reported earnings.
R&D Discipline Contrasts with SG&A Volatility
R&D spending remained flat at $11.0M in Q2 2026 versus $11.9M in Q2 2025, while SG&A fluctuated between $15.0M and $20.2M, indicating uneven cost control in sales and marketing.
The stability in R&D spending suggests a disciplined approach to product development, but the volatility in SG&A, which spiked to $20.2M in Q4 2024 and $20.0M in Q2 2026, may indicate that the company is still calibrating its sales and marketing investments. The recent price increases on Computer Backup could be a lever to improve profitability, but they also risk churn among price-sensitive users, which would require higher SG&A to offset.
Hyperscaler Cold Storage Threat Looms
Despite accelerating B2 growth, increasing competition from hyperscaler cold storage tiers like AWS Glacier Instant Retrieval could undermine Backblaze's price advantage, pressuring margins and growth.
The primary risk to the income statement narrative is the potential for hyperscalers to offer comparable retrieval speeds at similar price points, which would erode Backblaze's core value proposition. While the company's cost structure may allow it to survive price wars, the market may be overestimating the durability of its growth if enterprise customers view cold storage as a sufficient alternative. The recent price increases on Computer Backup could also accelerate churn, offsetting the benefits of improved margins.