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Backblaze Soars Past Guidance on AI Deal
4 Aug
Summary
- Backblaze exceeded Q2 2026 guidance with $42.7M revenue.
- B2 cloud storage revenue grew 34%, strongest in seven quarters.
- A new $335 million deal with CoreWeave was announced.
Backblaze announced its second-quarter 2026 financial results, surpassing company guidance. Revenue reached $42.7 million, marking an 18% increase from the previous year and exceeding the high end of its projections by $2.5 million. The company's adjusted EBITDA nearly doubled year-over-year, reaching $13 million, with an adjusted EBITDA margin of 30%.
Significant growth was observed in Backblaze's B2 cloud storage segment. B2 revenue climbed 34% year-over-year, achieving its highest growth rate in seven quarters. This surge was complemented by a substantial new contract with AI cloud provider CoreWeave, valued at $335 million and spanning over five years. This agreement represents the largest contract in Backblaze's history.
CEO Gleb Budman highlighted broad business momentum, including accelerated B2 growth and increased customer commitments. Despite a recent price increase for B2 services, customer churn did not materialize as anticipated, with B2 net revenue retention remaining strong at 113%.
