Backblaze

Backblaze, founded in 2007 by Gleb Budman, Brian Wilson, and Tim Nufire, is a publicly traded cloud storage company (Nasdaq: BLZE) headquartered in San Mateo, California.

Updated 17 days ago Reviewed by 7wData

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Backblaze provides cloud object storage (S3-compatible) and endpoint backup services for businesses and consumers.

Backblaze, founded in 2007 by Gleb Budman, Brian Wilson, and Tim Nufire, is a publicly traded cloud storage company (Nasdaq: BLZE) headquartered in San Mateo, California. It operates two primary businesses: B2 Cloud Storage, an S3-compatible object storage service, and Computer Backup, an endpoint backup service for consumers and businesses. As of Q1 2026, Backblaze reported annual recurring revenue (ARR) of $158.2 million, with B2 Cloud Storage ARR growing 28% year-over-year to $93.0 million, while Computer Backup ARR remained flat at $65.2 million.

Total revenue for Q1 2026 was $38.7 million, up 12% year-over-year, driven by B2 growth of 24%. The company achieved non-GAAP net income of $2.7 million and adjusted EBITDA of $10.1 million (26% margin) in Q1 2026. Backblaze held $45.5 million in cash, cash equivalents, and marketable securities as of March 31, 2026.

The company has been pushing into the AI and neocloud markets, launching B2 Neo, a storage offering for neocloud providers, and reporting a 76% year-over-year increase in AI customers in Q1 2026. It also closed its first eight-figure total contract value (TCV) neocloud agreement in Q4 2025. Backblaze has over 500,000 customers, with B2 Cloud Storage customers growing to 119,154 in Q4 2025.

The company appointed Anuj Kumar, formerly of Rackspace, VMware, Red Hat, and NetApp, as Chief Revenue Officer in Q1 2026. Backblaze has not disclosed headcount. Its net revenue retention rate (NRR) for B2 Cloud Storage was 110% in Q1 2026, down from 123% in Q4 2024, while overall NRR was 103%. The company raised B2 pricing and eliminated transaction fees effective May 1, 2026.

Who buys this

Developers and businesses needing S3-compatible object storage for applications, data lakes, and backups
AI and machine learning companies requiring high-performance, cost-efficient storage for training data
Neocloud providers and infrastructure companies using Backblaze as a storage backbone
Small to medium businesses and consumers using endpoint backup for computers and servers
Enterprises needing cyber resilience and data protection with object lock and lifecycle rules

Strengths and what to watch

Strengths

S3-compatible API with predictable, low pricing (no egress fees for certain partners, and recently eliminated transaction fees)
Strong financial trajectory: 14% revenue growth in FY2025, with B2 Cloud Storage growing 26% year-over-year, and improving profitability (non-GAAP net income positive in Q1 2026)
Growing traction in AI and neocloud segments, with a 76% year-over-year increase in AI customers and an eight-figure TCV neocloud deal in Q4 2025

Watch for

Declining net revenue retention (NRR): B2 Cloud Storage NRR fell from 123% in Q4 2024 to 110% in Q1 2026, and overall NRR dropped from 116% to 103%, indicating potential churn or slower expansion among existing customers
Flat Computer Backup business: Computer Backup ARR has been flat year-over-year, and its NRR dropped to 95% in Q1 2026, suggesting the consumer backup market is saturated or facing competition
Cash burn and free cash flow: Despite improving, adjusted free cash flow was still negative at $(1.8) million in Q1 2026 and $(5.4) million for FY2025, indicating the company is not yet self-funding its growth

Recent moves

Key Information

Industry: Storage
Founded: 2007
Headquarters: San Mateo, California

Frequently Asked Questions

What does Backblaze do?

Backblaze is a publicly traded cloud storage company offering S3-compatible object storage through B2 Cloud Storage and endpoint backup services for consumers and businesses. Founded in 2007, it serves over 500,000 customers and is headquartered in San Mateo, California.

How does Backblaze B2 Cloud Storage pricing work?

Backblaze B2 Cloud Storage uses predictable, low pricing with no egress fees for certain partners. As of May 1, 2026, Backblaze raised pay-as-you-go storage pricing but eliminated API transaction fees, simplifying costs for developers and businesses using S3-compatible object storage.

What is Backblaze's financial performance in 2026?

In Q1 2026, Backblaze reported $38.7 million in revenue, up 12% year-over-year, with B2 Cloud Storage growing 24%. Annual recurring revenue reached $158.2 million. The company achieved non-GAAP net income of $2.7 million and adjusted EBITDA of $10.1 million.

How is Backblaze growing in the AI and neocloud markets?

Backblaze reported a 76% year-over-year increase in AI customers in Q1 2026 and launched B2 Neo for neocloud providers. It also closed its first eight-figure total contract value neocloud agreement in Q4 2025, showing strong traction in these segments.

What is Backblaze's net revenue retention rate?

Backblaze's B2 Cloud Storage net revenue retention rate was 110% in Q1 2026, down from 123% in Q4 2024. Overall NRR dropped to 103% from 116%, indicating slower expansion among existing customers, while Computer Backup NRR fell to 95%.

What are the risks with Backblaze's Computer Backup business?

Backblaze's Computer Backup annual recurring revenue remained flat at $65.2 million year-over-year, with net revenue retention dropping to 95% in Q1 2026. This suggests the consumer backup market may be saturated or facing increased competition, limiting growth in that segment.

Sources

ir.backblaze.com — FY2025 and Q4 2025 financial results, ARR, NRR, customer counts, neocloud deal
ir.backblaze.com — Q3 2025 financial results, seven-figure expansion deal, AI customer traction
ir.backblaze.com — Q1 2026 financial results, AI customer growth, CRO appointment, pricing changes
www.backblaze.com — S3-compatible API documentation, product features (buckets, lifecycle rules, object lock, etc.)