Strong Financial Performance#
Backblaze Inc. (BLZE) delivered impressive results for the first quarter of 2026, significantly exceeding earnings expectations. The company reported earnings per share (EPS) of $0.04, compared to a forecasted EPS of -$0.0043, resulting in an earnings surprise of over 1030%. Additionally, revenue reached $38.7 million, surpassing the expected $37.79 million.
Key Growth Metrics#
In Q1 2026, Backblaze achieved a 12% increase in revenue compared to the same period last year. Notably, the B2 Cloud Storage segment experienced a remarkable 24% year-over-year revenue growth. Although the Computer Backup segment saw a 5% decline, the overall performance highlighted the company's successful focus on expanding its cloud storage services.
Financial Highlights#
- Revenue: $38.7 million, up 12% year-over-year.
- Earnings per share: $0.04, compared to a forecast of -$0.0043.
- Gross Margin: Improved to 61% from 56% in Q1 2025.
- Adjusted EBITDA: Rose to $10 million, reflecting a 26% margin, up from $6 million (18% margin) in Q1 2025.
- Operating Expenses: Remained stable at $29 million compared to Q4 2025.
Market Reaction#
Despite the strong earnings report, Backblaze's stock saw a slight decline of 0.67% in aftermarket trading, closing at $4.42. Over the past six months, the stock has decreased by approximately 52% and is trading 43% below its 52-week high of $10.86. Analysts remain hopeful, with price targets ranging from $4.50 to $15.90.
Future Outlook#
Looking ahead, Backblaze anticipates continued growth, with EPS projections for the upcoming quarters ranging from $0.00 to $0.02. Revenue forecasts for Q2 2026 are set at $38.09 million, increasing to $41.54 million by Q4 2026. The company expects to generate positive free cash flow for the entire year of 2026, with improvements anticipated in the latter half.