Backblaze (BLZE) Q4 2025 Earnings Call Transcript

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 23, 2026

AI-Generated Deep Dive Summary

Backblaze (BLZE) delivered a strong Q4 2025 earnings performance, highlighting significant growth across key metrics. The company reported total revenue of $37.8 million, aligning with its guidance. Notably, the B2 cloud storage segment continued to drive growth, with revenue increasing by 24% year over year, though slightly below prior expectations due to net revenue retention (NRR) variability from a single large customer. The B2 segment’s NRR stood at 111%, a sequential decline from Q3 but still indicative of sustained demand for Backblaze's cloud storage solutions. The quarter also saw the signing of the company’s largest contract to date—an eight-figure deal with a two-year duration, expected to contribute over $15 million in revenue starting in 2027. This reflects Backblaze’s growing appeal as a preferred cloud storage provider for enterprises and high-growth startups through its Flamethrower program, which aims to target future large customers. Additionally, the company’s adjusted EBITDA margin improved to 28%, doubling year over year, despite nonrecurring items, and Q4 adjusted free cash flow reached $4 million, marking its first positive quarter as a public company. Looking ahead, Backblaze provided guidance for 2026, projecting revenue between $156.5 million and $158.5 million, with B2 segment growth expected at approximately 20%. The company’s focus on gross margin optimization, driven by increased costs, includes strategic initiatives around pricing, packaging, and infrastructure. Leadership changes, including the addition of a strategic transformation leader and go-to-market advisory committee, underscore Backblaze’s commitment to scaling its operations effectively. Backblaze’s performance is particularly significant for investors due to its strong financial fundamentals and growth trajectory in the competitive cloud storage market. The company’s ability to secure large deals while maintaining high NRR demonstrates its value proposition in a rapidly evolving sector. Additionally, its strategic focus on AI-driven customer expansion and innovation

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Originally published on The Motley Fool on 2/23/2026