Backblaze (BLZE) investor relations material

Executive summary

• Q1 2026 revenue grew 12% year-over-year to $38.7 million, exceeding guidance, driven by 24% B2 Cloud Storage growth and strong AI customer momentum, with AI customers up 76% year-over-year and notable wins in AI infrastructure and generative AI.

• Adjusted EBITDA reached $10.1 million (26% margin), up from 18% prior year, and the company raised full-year revenue and adjusted EBITDA margin guidance.

• Net loss narrowed to $6.1 million from $9.3 million in Q1 2025, reflecting improved gross margin and restructuring benefits.

• Go-to-market transformation doubled the customer pipeline, included a new CRO hire, and focused on enterprise and AI-driven workloads.

• Raised full-year revenue guidance by $5 million and adjusted EBITDA margin guidance by 400 basis points.

Financial highlights

• B2 Cloud Storage revenue was $22.4 million, up 24% year-over-year; Computer Backup revenue declined 2% to $16.2–$18.0 million as forecasted.

• Gross margin improved to 61% from 56% a year ago, driven by cost management and asset life extension.

• Adjusted gross margin remained strong at 79%.

• Adjusted EBITDA margin was 26% for Q1 2026, up from 18% in Q1 2025.

• Cash, cash equivalents, and marketable securities totaled $45.5 million as of March 31, 2026.

Outlook and guidance

• Q2 2026 revenue guidance: $39.8–$40.2 million; B2 growth expected at ~20% year-over-year.

• Full-year 2026 revenue guidance raised to $161.5–$163.5 million; adjusted EBITDA margin guidance raised to 23–25%.

• Pricing and packaging changes for B2 effective May 1, 2026, are expected to be accretive to revenue and margins.

• Operating expenses (excluding depreciation, amortization, restructuring, and stock-based compensation) expected to remain flat in 2026, with increased sales and marketing investments.

• Additional restructuring charges of $2.1–$4.3 million anticipated through Q1 2027.