Backblaze sets Q4 2025 B2 growth target at 25%-28% amid changing go-to-market strategy driven by AI demand.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 06 2025
0mins
Should l Buy BLZE?
Source: SeekingAlpha
Management Performance: Backblaze reported strong Q3 2025 results, with a 14% year-over-year revenue growth and a 28% increase in B2 Cloud Storage, driven by AI demand. CEO Gleb Budman highlighted significant customer wins and the launch of Phase 2 of their go-to-market strategy to enhance sales execution.
Financial Outlook: For Q4, Backblaze anticipates revenue between $37.3 million and $37.9 million, with B2 growth projected at 25%-28%. Although this is slightly below their initial 30% target, management remains focused on achieving adjusted free cash flow positivity.
Operational Efficiency: The company improved its adjusted EBITDA margin to 23% from 18% in the previous quarter, while also narrowing its GAAP net loss significantly. Operating expenses decreased as a percentage of revenue, indicating enhanced operational efficiency.
Risks and Challenges: Management acknowledged challenges related to variable demand from large AI customers and longer deal cycles due to the shift upmarket. Analysts expressed concerns about sustaining growth rates and the complexity of larger deals, prompting a cautious yet optimistic outlook from management.
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Analyst Views on BLZE
Wall Street analysts forecast BLZE stock price to rise
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 3.570
Low
8.00
Averages
9.50
High
11.00
Current: 3.570
Low
8.00
Averages
9.50
High
11.00
About BLZE
Backblaze, Inc. is a cloud storage company. The Company's two cloud services that it offers on its Storage Cloud are: Backblaze B2 Cloud Storage and Backblaze Computer Backup. Backblaze B2 Cloud Storage enables customers to store data, developers to build applications, and partners to expand their use cases. The amount of data stored in this cloud service can scale up and down as needed on a pay-as-you-go basis, or can be paid for on a capacity basis or committed contract for greater predictability. This Infrastructure-as-a-Service enables use cases including backups, multi-cloud, application storage, ransomware protection, and storage for artificial intelligence/machine learning workflows. Backblaze Computer Backup automatically backs up data from laptops and desktops for businesses and individuals. This service is offered as a subscription-based Software-as-a-Service and serves use cases including computer backup, ransomware protection, theft and loss protection, and remote access.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Significant Cost Efficiency: Since its introduction in 2009, the Storage Pod has successfully challenged traditional proprietary infrastructure models by utilizing off-the-shelf components and custom software, significantly reducing enterprise-grade storage costs.
- Industry Influence: The donation of this unit not only recognizes Backblaze's early role in reshaping cloud infrastructure design but also highlights how its open hardware approach has influenced a new era of high-performance, cost-efficient storage solutions.
- Historical Significance Solidified: The recognition of Backblaze's Storage Pod 1.0 further cements its place in computer history, inspiring future generations to continue driving technological innovation.
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- Company Overview: Backblaze provides high-performance cloud object storage that removes barriers of lock-in, complexity, and cost, enabling over 500,000 customers to serve hundreds of millions of end users across 175 countries, showcasing its strong market competitiveness.
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- Technological Innovation: The discussion will explore how AI-enabled design and production planning can meet the real-time demands of live broadcasts, showcasing how media companies can achieve scalable infrastructure to support diverse audience experiences.
- Signal Integrity: Campbell highlights that modern sports workflows are no longer just about signal transmission; they require flexible systems that maintain signal integrity and synchronization while supporting immersive and fan-specific experiences, indicating a growing need for technology partners.
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- Stock Downgrades: Dropbox and several other stocks were downgraded by William Blair analysts on Monday.
- Impact of AI: The analysts indicated that the rise of AI has introduced greater uncertainty within the software sector.
See More
Backblaze Partners with StorageReview to Release 314 Trillion Digits of Pi
- Data Storage Partnership: Backblaze collaborates with StorageReview to make the 314 trillion digits of pi dataset available to the public via its B2 Cloud Storage service, totaling over 130 terabytes, showcasing the cloud's capability in handling massive datasets.
- Computational Achievement: StorageReview successfully calculated pi to 314 trillion digits in December 2025, surpassing many hyperscalers and AI providers, highlighting the significance of high-density flash and careful workload tuning in extreme computing scenarios.
- Technical Support and Innovation: Backblaze's B2 Cloud Storage provides a platform for researchers and developers to explore and leverage this historic dataset, further advancing the application of cloud storage in innovative projects.
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See More
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- Pioneering Design: Backblaze's Storage Pod 1.0 has been permanently preserved by the Computer History Museum, marking a milestone in open hardware innovation and showcasing the company's pioneering role in cloud storage.
- Significant Cost Efficiency: Since its introduction in 2009, the Storage Pod has successfully challenged traditional proprietary infrastructure models by utilizing off-the-shelf components and custom software, significantly reducing enterprise-grade storage costs.
- Industry Influence: The donation of this unit not only recognizes Backblaze's early role in reshaping cloud infrastructure design but also highlights how its open hardware approach has influenced a new era of high-performance, cost-efficient storage solutions.
- Historical Significance Solidified: The recognition of Backblaze's Storage Pod 1.0 further cements its place in computer history, inspiring future generations to continue driving technological innovation.
See More
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- Equity Inducement Awards: On March 24, 2026, Backblaze granted 194,240 and 82,650 restricted stock units (RSUs) to Senior VP Rhett Dillingham and VP of Revenue Operations Joey Myers, respectively, as a significant inducement for their employment, reflecting the company's commitment to its executive team.
- Vesting Schedule: Dillingham's RSUs will vest 25% after one year, with the remaining shares vesting in equal quarterly installments over the next three years, a structure designed to ensure long-term retention and continued contributions from the executives.
- Company Overview: Backblaze provides high-performance cloud object storage that removes barriers of lock-in, complexity, and cost, enabling over 500,000 customers to serve hundreds of millions of end users across 175 countries, showcasing its strong market competitiveness.
- Strategic Implications: By implementing this equity inducement plan, Backblaze not only enhances executive loyalty but also drives innovation and business growth by attracting and retaining key talent, further solidifying its leadership position in the cloud storage market.
See More
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- Industry Shift: Laquie T.N. Campbell from Backblaze will moderate a panel at NAB Show 2026 focused on modern sports workflows, emphasizing the need for flexible systems that enhance reliability and fan experiences from build to broadcast.
- Technological Innovation: The discussion will explore how AI-enabled design and production planning can meet the real-time demands of live broadcasts, showcasing how media companies can achieve scalable infrastructure to support diverse audience experiences.
- Signal Integrity: Campbell highlights that modern sports workflows are no longer just about signal transmission; they require flexible systems that maintain signal integrity and synchronization while supporting immersive and fan-specific experiences, indicating a growing need for technology partners.
- Event Highlights: NAB Show 2026 will take place from April 18-22 in Las Vegas, spotlighting trends in sports innovation, AI, streaming, and cloud-based workflows, with the Backblaze team available for meetings on the show floor to showcase their high-performance cloud storage solutions.
See More
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- Stock Downgrades: Dropbox and several other stocks were downgraded by William Blair analysts on Monday.
- Impact of AI: The analysts indicated that the rise of AI has introduced greater uncertainty within the software sector.
See More
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- Stock Downgrades: Dropbox and several other stocks were downgraded by William Blair analysts on Monday.
- Impact of AI: The analysts indicated that the rise of AI has introduced greater uncertainty within the software sector.
See More
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- Data Storage Partnership: Backblaze collaborates with StorageReview to make the 314 trillion digits of pi dataset available to the public via its B2 Cloud Storage service, totaling over 130 terabytes, showcasing the cloud's capability in handling massive datasets.
- Computational Achievement: StorageReview successfully calculated pi to 314 trillion digits in December 2025, surpassing many hyperscalers and AI providers, highlighting the significance of high-density flash and careful workload tuning in extreme computing scenarios.
- Technical Support and Innovation: Backblaze's B2 Cloud Storage provides a platform for researchers and developers to explore and leverage this historic dataset, further advancing the application of cloud storage in innovative projects.
- Global Impact: Backblaze's cloud storage services support over 500,000 customers across 175 countries, demonstrating its leadership in global data management and storage solutions.
See More
