Backblaze Inc (NASDAQ:BLZE) Surprises with Q2 2025 Earnings Beat as Revenue and Profitability Exceed Expectations

Backblaze Inc (NASDAQ:BLZE) Reports Q2 2025 Earnings: Revenue Beats, Non-GAAP Profit Surprises

Backblaze Inc, the cloud storage provider, delivered a stronger-than-expected second quarter for 2025, with revenue and profitability metrics surpassing analyst estimates. The company reported $36.3 million in revenue, a 16% year-over-year increase, and above the consensus estimate of $36.1 million. Non-GAAP earnings per share (EPS) came in at $0.01, significantly outperforming the expected loss of $0.18 per share.

Key Financial Highlights vs. Estimates

• Revenue: $36.3M (actual) vs. $36.1M (estimated) – beat
• Non-GAAP EPS: $0.01 (actual) vs. -$0.18 (estimated) – beat
• B2 Cloud Storage Revenue Growth: 29% YoY, accelerating from 23% in Q1
• Adjusted EBITDA Margin: 18%, up from 9% in Q2 2024

The market reaction has been cautiously positive, with pre-market trading showing a 3.2% increase, suggesting investor optimism around the earnings beat and improved profitability. However, the stock’s performance over the past month (-3.3%) reflects broader market uncertainty, which may temper short-term gains.

Operational and Business Highlights

• AI and Enterprise Momentum: Secured a multi-million-dollar annual recurring revenue (ARR) customer in AI workloads and signed its first six-figure B2 Overdrive customer shortly after launch.
• Cost Efficiency: Independent analysis confirmed Backblaze B2 is up to 3.2x more cost-effective than competitors.
• Stock Repurchase Program: Announced a $10 million buyback, signaling confidence in long-term value.
• New Credit Facility: Secured a $20 million credit line to enhance financial flexibility.

Outlook vs. Analyst Expectations

For Q3 2025, Backblaze expects:

• Revenue: $36.7M–$37.1M (vs. analyst estimate of $37.3M) – slightly below expectations
• Adjusted EBITDA Margin: 17%-19% (indicating sustained profitability)

Full-year revenue guidance was raised to $145M–$147M, aligning closely with the consensus estimate of $148.2M. The company’s focus on B2 Cloud Storage growth (28-30% in Q3) suggests continued momentum in its high-margin segment.

Market Sentiment and Next Steps

While the earnings beat and improved margins are encouraging, the slightly conservative Q3 revenue outlook may weigh on near-term sentiment. Investors will watch for execution on AI-driven growth and further cost optimizations.

For a deeper dive into Backblaze’s earnings and future estimates, visit the earnings estimates page.

Disclaimer: This article is not investment advice. Please conduct your own research before making any investment decisions.