Meanwhile, high-capacity drives (20TB+) grew by nearly 8,000 units and now represent 21% of the active drive pool. The lifetime AFR remains steady at 1.31%, consistent with the previous two quarters. Backblaze Q3 2025 Drive Stats: Rethinking Failure, Celebrating High-Capacity Drive Strength Share Four models achieve zero failures across 328,000+ drives; new failure analysis on outliers prompts dive into failure definitions SAN MATEO, Calif.--(BUSINESS WIRE)--Backblaze, Inc. (Nasdaq: BLZE), the high-performa ...

SAN MATEO, Calif.--(BUSINESS WIRE)---- $blze #BackblazeStats--Backblaze, Inc. (Nasdaq: BLZE), the high-performance cloud storage platform for the AI era, today announced the release of its latest Network Stats Report, revealing how AI workloads are reshaping global data flows to the extent that the company is building a new metric. The report examines the unprecedented rise of AI-driven data gravity and provides a first look at the telemetry metrics shaping digital infrastructure in the age of generative AI ...

Core Insights - Backblaze, Inc. reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of a loss of $0.01 per share, and showing improvement from a loss of $0.10 per share a year ago, resulting in an earnings surprise of +400.00% [1] - The company achieved revenues of $37.16 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.58% and increasing from $32.59 million year-over-year [2] - Backblaze shares have increased approximately 55.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 15.6% [3] Earnings Outlook - The future performance of Backblaze's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is breakeven on revenues of $38.38 million, while for the current fiscal year, the estimate is -$0.03 on revenues of $146.26 million [7] Industry Context - The Internet - Software industry, to which Backblaze belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Company revenue grew 14% year over year, reaching $37.2 million, exceeding the high end of guidance of $37.1 million [13] - Adjusted EBITDA margin reached 23%, almost double the 12% from a year ago [18] - GAAP net loss improved to $3.8 million, a 70% improvement from a loss of $12.8 million in the prior year [17] - Adjusted free cash flow was negative $3.5 million, improving by roughly $500,000 year over year [18] Business Line Data and Key Metrics Changes - B2 Cloud Storage revenue grew 28% year over year, compared to organic growth of 19% in the same period last year [13] - Computer Backup revenue was flat year over year, reflecting the final rolloff of the price increase implemented in 2023 [14] - Net revenue retention (NRR) for B2 improved to 116% in Q3 from 109% in Q2 [15] Market Data and Key Metrics Changes - The company is seeing diversification within B2 across core use cases, including live application hot storage, backup, media, and AI-related workloads [14] - Industry-wide demand for data storage is expected to grow rapidly, positioning the company well to support expanding needs [14] Company Strategy and Development Direction - The company is launching phase two of its go-to-market transformation to accelerate sales velocity and improve efficiency [12] - Focus on moving upmarket with larger deals while also increasing the core base of smaller deals for consistency [26] - The company aims to achieve a rule of 40 profile, with a current score of 9 expected to triple by Q4 [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges variability in data usage from large AI customers, impacting growth expectations [26][30] - The company remains confident in its ability to deliver consistent, durable growth over time despite not reaching the 30% B2 growth goal [20] - Management emphasizes the importance of AI workloads and the company's positioning to support these transformative needs [72] Other Important Information - The company ended the quarter with $50 million in cash and marketable securities, largely unchanged from the previous quarter [18] - A modest share repurchase program was initiated, with $1.2 million of shares repurchased in Q3 [19] Q&A Session Summary Question: Sales evolution in phase two - Management discussed the focus on driving execution velocity and moving upmarket while supporting larger deals [25] Question: B2 growth expectations - Management noted that variability from a large AI customer and longer execution times for larger deals impacted growth expectations [26] Question: Data variability from customers - Management explained that AI use cases are evolving rapidly, leading to fluctuations in data storage needs [30] Question: Long-term growth expectations for B2 and CBU - Management indicated that B2 is on track for mid-20s growth in 2025, while Computer Backup is expected to contract in low to mid-single digits [35] Question: Phase two initiative investments - Management clarified that sales and marketing expenses should remain stable as a percentage of revenue, with restructuring costs being one-time charges [52] Question: Larger deals in the pipeline - Management noted that larger deals are more complex and can take longer to close due to various internal factors [57] Question: Improvements in self-serve motion - Management highlighted efforts to enhance the self-serve experience for data-heavy AI use cases [59] Question: Powered By white-label solution - Management expressed excitement about the Powered By initiative and its potential in the Neo Cloud market [67] Question: Uptick in AI video companies - Management confirmed an increase in customers from the AI video sector, reflecting the growing data needs associated with video generation [72]

Financial Performance - Backblaze reported Q3 revenue of $37.2 million, a 14% year-over-year increase, exceeding market expectations [1] - Non-GAAP EPS was $0.03, surpassing market expectations, compared to a loss of $0.10 per share in the same period last year [1] - Adjusted gross profit for Q3 was $29.4 million, representing 79% of revenue, up from $25.5 million or 78% of revenue in the previous year [2] Business Segments - B2 cloud storage revenue reached $20.7 million, a 28% year-over-year growth, while computer backup revenue remained flat at $16.5 million [1] - The company secured a seven-figure expansion deal with an existing customer, highlighting the value of its offerings in the AI and data-intensive workflow space [2] Profitability and Cash Flow - Adjusted EBITDA for Q3 was $8.4 million, accounting for 23% of revenue, compared to $3.7 million or 12% of revenue in the previous year [2] - The company achieved a significant milestone in profitability, with non-GAAP net profit of $1.9 million, compared to a net loss of $4.1 million in the same quarter last year [2][3] - Cash and cash equivalents totaled $50.3 million as of September 30, 2025 [2] Future Outlook - For Q4, the company expects revenue between $37.3 million and $37.9 million, with adjusted EBITDA margin between 20% and 22% [3] - Full-year revenue guidance for 2025 is narrowed to between $145.4 million and $146.0 million, with adjusted EBITDA margin expectations raised to between 18% and 20% [3]

Financial Performance - B2 Cloud Storage revenue grew by 29% year-over-year in Q2 2025[11, 19, 33], accelerating from 23% growth in Q1 2025[11] - Total company revenue reached $36.3 million in Q2 2025, representing a 16% year-over-year increase[42] - The company's adjusted EBITDA margin doubled year-over-year[33, 61], reaching 18% in 1H 2025[44] - The company is targeting 30%+ B2 growth in Q4 2025[34, 35, 40] Customer Growth and Value - The number of customers with ARR (Annual Recurring Revenue) above $50,000 increased by 30% year-over-year[19, 20] - AI customers' data stored grew by 40x year-over-year[28] - The AI customer count increased by 70% year-over-year[28] - 3 of the top 10 customers are AI companies[28] Financial Strategy - The company secured a new $20 million line of credit[32, 33] - A stock buyback program of up to $10 million was approved[32, 33, 49, 50] - The company aims to reduce equity dilution by 15% to 25%[34]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-41026 ____________________________ ...

Exhibit 99.1 Backblaze Announces Third Quarter 2025 Financial Results 28% Revenue Growth in B2 Cloud Storage, 14% Revenue Growth Overall in Q3 2025 San Mateo, CA (November 6, 2025)—Backblaze, Inc. (Nasdaq: BLZE), the high-performance cloud storage platform for the AI era, today announced results for its third quarter ended September 30, 2025. "I am pleased with our third quarter financial results exceeding the high end of our revenue and Adjusted EBITDA guidance and expanding gross margin by ~700 bps YoY to ...

Core Insights - BackBlaze (BLZE) is expected to report third-quarter 2025 results on November 6, with revenues estimated at $36.95 million, reflecting a year-over-year increase of 13.37% [1] - The consensus estimate for loss is projected at one cent per share, indicating a 90% improvement from the previous year's loss of ten cents [1] - The company has shown a strong earnings surprise history, with an average positive surprise of 51.02% over the last four quarters [2] Revenue Estimates - The Zacks Consensus Estimate for third-quarter 2025 B2 Cloud Storage revenues is $20.9 million, representing a growth of 29.17% year over year [9] - The estimate for Computer Backup revenues is $16.05 million, indicating a decline of 2.2% from the previous year [9] Operational Momentum - Backblaze has entered the third quarter with solid operational momentum, particularly in its B2 Cloud Storage business, which saw a 29% year-over-year revenue increase [4] - The company aims for third-quarter revenue between $36.7 million and $37.1 million, with adjusted EBITDA margins of 17-19% [4] Growth Drivers - The company's sales pipeline has doubled year over year, contributing to growth [5] - Backblaze added its first six-figure B2 Overdrive customer, indicating strong product fit for high-throughput AI workloads [5][6] Competitive Landscape - Challenges persist in the Computer Backup segment, which has been experiencing low-to-mid single-digit declines [8] - Competition from established players like Dropbox, Datadog, and Snowflake has intensified, impacting market share [8] Stock Performance - Backblaze has seen a 72.9% surge year-to-date, outperforming the Zacks Internet-Software industry and the Computer and Technology sector [10] - The stock is currently trading at 3.58X forward 12-month price-to-sales, below the industry average of 5.34X, indicating attractive valuation [13] Investment Considerations - The company is positioned for growth in its B2 Cloud Storage business and AI workloads, supported by new enterprise security features [15] - However, the stock's sharp year-to-date rally may have priced in much of the optimism, and competition could temper near-term gains [15][16]

Group 1 - Backblaze, Inc. (NASDAQ:BLZE) is gaining attention from hedge funds, indicating a positive sentiment in the small-cap tech sector [1] - Oppenheimer analyst Ittai Kidron has raised the price target for Backblaze from $10 to $11, reflecting confidence in the company's revenue growth and customer acquisition strategies [1][2] - The company is experiencing steady deal flow in Q3 and a healthy pipeline momentum heading into Q4, with the competitive landscape described as "normal" [1][2] Group 2 - Backblaze is recognized for its affordable and scalable B2 cloud platform, catering to developers, SMBs, and enterprise clients with object storage and backup solutions [3] - The company positions itself as a cost-effective alternative to larger hyperscalers in the cloud storage market [3]