Backblaze Delivers Impressive Q2 2025 Results, Highlighting Strong Growth and Strategic Innovation
Backblaze, Inc. (Nasdaq: BLZE), a trailblazer in cloud storage solutions and a modern alternative to traditional providers, has announced its financial and operational results for the second quarter of 2025, ended June 30. The company reported robust growth across multiple metrics, underscoring its position as a leader in the rapidly evolving cloud storage industry. With a 29% year-over-year (YoY) revenue increase in its B2 Cloud Storage segment and an overall revenue growth of 16%, Backblaze continues to demonstrate its ability to drive innovation, expand its customer base, and deliver value in an increasingly competitive market.
Accelerating Growth and Financial Strength
Revenue for Q2 2025 reached $36.3 million, reflecting a 16% YoY increase. This growth was primarily driven by the stellar performance of Backblaze’s B2 Cloud Storage segment, which generated $19.8 million in revenue—a remarkable 29% YoY increase. Meanwhile, the Computer Backup segment contributed $16.5 million, growing by 4% YoY. These results highlight the company’s dual focus on scaling its high-growth B2 platform while maintaining steady performance in its legacy services.
Gross profit for the quarter was $23.0 million, representing 63% of revenue, up from $17.2 million, or 55% of revenue, in Q2 2024. Adjusted gross profit also improved, reaching $28.8 million, or 79% of revenue, compared to $24.5 million, or 78% of revenue, in the same period last year. These figures underscore Backblaze’s commitment to operational efficiency and cost management.
Net losses narrowed significantly, with Q2 2025 reporting a net loss of $7.1 million, compared to $10.3 million in Q2 2024. On a per-share basis, the net loss decreased from $0.25 to $0.13. Additionally, Backblaze achieved non-GAAP net income of $0.8 million, reversing a non-GAAP net loss of $4.8 million in Q2 2024. Non-GAAP net income per share stood at $0.01, compared to a loss of $0.11 in the prior year.
Adjusted EBITDA for the quarter was $6.6 million, or 18% of revenue, a significant improvement from $2.7 million, or 9% of revenue, in Q2 2024. Cash flow from operations for the first half of 2025 totaled $8.5 million, up from $5.6 million in the same period last year. Adjusted free cash flow also showed marked improvement, narrowing from a deficit of $11.6 million to $6.0 million during the six months ended June 30, 2025. As of June 30, Backblaze held $50.5 million in cash and marketable securities, ensuring strong liquidity to support future growth initiatives.
Operational Highlights and Strategic Milestones
Backblaze’s annual recurring revenue (ARR) grew to $145.9 million, a 16% YoY increase. The B2 Cloud Storage segment accounted for $80.7 million of this total, growing by 29% YoY, while the Computer Backup segment contributed $65.2 million, reflecting a 3% YoY increase. The company’s net revenue retention rate (NRR) stood at 109%, with B2 Cloud Storage achieving 112% NRR and Computer Backup at 106%. Gross customer retention rates remained stable at 90% for both segments.
One of the standout achievements of Q2 was Backblaze’s ability to scale an AI-focused customer to generate several million dollars in ARR, showcasing the platform’s scalability and performance for high-growth use cases. In early Q3, the company signed its first six-figure B2 Overdrive customer just two months after the product’s launch, signaling strong product-market fit for AI-driven workloads. Additionally, Backblaze reported a 53% YoY increase in customers contributing over $50,000 in ARR, highlighting its momentum in targeting larger enterprise clients.
Innovation and Product Enhancements
Backblaze continued to invest in innovation during Q2 and Q3, launching a suite of enterprise-grade cybersecurity features designed to safeguard customer data. Key offerings include AI-powered “Anomaly Alerts,” which help detect suspicious activity, an Enterprise Web Console with role-based access control, and Bucket Access Logs for enhanced transparency. These enhancements reinforce Backblaze’s commitment to providing secure, reliable, and user-friendly cloud storage solutions.
In a commissioned study by Enterprise Strategy Group, Backblaze B2 was found to be up to 3.2x more cost-effective than competing platforms, further solidifying its appeal to businesses seeking affordable yet high-performing storage solutions. The company also authorized a cash-neutral stock repurchase program of up to $10 million, funded by proceeds from employee stock options and purchases under its employee stock purchase plan. Additionally, Backblaze secured a new $20 million credit facility, enhancing its financial flexibility to pursue strategic opportunities.
Leadership Vision and Future Outlook
Gleb Budman, CEO of Backblaze, expressed optimism about the company’s trajectory: “We’re pleased with our continued strong quarterly performance, with B2 revenue growth accelerating from 23% to 29% sequentially. This solidifies our journey toward becoming Adjusted Free Cash Flow positive in Q4. Through product innovation, go-to-market transformation, and the power of AI, we are expanding our role as the leading independent cloud storage provider shaping the AI-driven future.”
For Q3 2025, Backblaze expects revenue between $36.7 million and $37.1 million, with an adjusted EBITDA margin of 17% to 19%. For the full year, the company raised its revenue guidance to a range of $145.0 million to $147.0 million, up from the previous estimate of $144.0 million to $146.0 million. Backblaze anticipates continued YoY growth in its B2 business, with projections of 28%-30% in Q3 and over 30% in Q4.
About Backblaze
Backblaze is the cloud storage innovator delivering a modern alternative to traditional cloud providers. We offer high-performance, secure cloud object storage that customers use to develop applications, manage media, secure backups, build AI workflows, protect from ransomware, and more. Backblaze helps businesses break free from the walled gardens that traditional providers lock customers into, enabling customers to use their data in open cloud workflows with the providers they prefer at a fraction of the cost. Headquartered in San Mateo, CA, Backblaze (Nasdaq: BLZE) was founded in 2007 and serves over 500,000 customers in 175 countries around the world. For more information, please go to www.backblaze.com.
