Backblaze (BLZE) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 16% year-over-year to $36.3 million, led by 29% B2 Cloud Storage growth and new enterprise and AI-driven offerings.

• Adjusted EBITDA margin doubled to 18%, with net loss narrowing to $7.1 million from $10.3 million year-over-year.

• AI sector momentum: 3 of top 10 customers are AI companies, with 40x data growth and a 70% increase in AI customer count year-over-year.

• Launched B2 Overdrive and new AI-powered cybersecurity features, supporting upmarket momentum and larger customer wins.

• Announced a $10 million share repurchase program to offset stock-based compensation dilution.

Financial highlights

• Q2 2025 revenue: $36.3 million, up 16% year-over-year; B2 Cloud Storage: $19.8 million (29% growth); Computer Backup: $16.5 million (4% growth).

• Adjusted EBITDA: $6.6 million (18% margin), up from $2.7 million (9%) year-over-year.

• Gross margin improved to 63% from 55% year-over-year, aided by changes in depreciation estimates.

• Adjusted gross margin: 79% (up from 78%); adjusted free cash flow margin improved to -11% from -21% year-over-year.

• Cash and marketable securities totaled $50.5 million as of June 30, 2025.

Outlook and guidance

• Q3 2025 revenue guidance: $36.7–$37.1 million; B2 Cloud Storage growth expected at 28–30%.

• Full-year 2025 revenue guidance raised to $145–$147 million; adjusted EBITDA margin expected at 17–19%.

• On track to achieve positive adjusted free cash flow in Q4 2025.

• Continued investment in R&D and capital expenditures to support enterprise and AI-driven growth.

• Computer Backup revenue expected to decline low to mid-single digits quarterly in H2 2025.