Backblaze (BLZE) Q4 2025 earnings summary

Executive summary

• Achieved solid Q4 2025 results with 12% total revenue growth, B2 Cloud Storage revenue up 24%, and Computer Backup revenue flat year-over-year.

• Adjusted EBITDA margin doubled year-over-year to 28%, with positive adjusted free cash flow margin of 11% in Q4 2025, marking the first profitable quarter since going public.

• Signed the largest contract in company history: a neocloud agreement exceeding $15M total contract value, and launched B2 Neo, a high-performance white-label storage solution for neoclouds.

• Record direct sales bookings in Q4 2025, with remaining performance obligations up 60% year-over-year to $66M, strengthening forward revenue visibility.

• Launched Flamethrower startup program, expanded leadership, and focused on AI storage opportunities with hundreds of AI companies as customers.

Financial highlights

• Q4 2025 revenue: $37.8M (+12% YoY); full-year 2025 revenue: $145.8M (+14% YoY); B2 Cloud Storage Q4 revenue: $21.3M (+24% YoY); Computer Backup Q4 revenue: $16.5M (flat YoY).

• Q4 gross margin: 62%; adjusted gross margin: 80%.

• Q4 adjusted EBITDA: $10.4M (28% margin); full-year adjusted EBITDA: $31.8M (22% margin).

• Q4 adjusted free cash flow: $4.1M (11% margin); cash, cash equivalents, and marketable securities: $51.4M at year-end.

• Q4 non-GAAP net income: $3.5M (9% margin); Q4 net loss: $5.4M; full-year net loss: $25.6M.

Outlook and guidance

• Q1 2026 revenue expected: $37.6M–$38M; adjusted EBITDA margin: 18%–20%.

• Full-year 2026 revenue guidance: $156.5M–$158.5M; adjusted EBITDA margin: 19%–21%.

• Adjusted free cash flow expected to be roughly neutral for 2026.

• B2 revenue growth expected at ~20% for 2026, with Q2/Q3 growth 12%–19% due to tough comps.

• Computer backup business expected to decline 5% YoY in 2026.