Backblaze(US:BLZE)2026-02-23 21:07Financial Performance - Q4 2025 revenue was $37.8 million, a 12% year-over-year increase, with B2 Cloud Storage revenue growing 24% to $21.3 million[5] - Adjusted EBITDA for Q4 2025 was $10.4 million, representing 28% of revenue, compared to 14% in Q4 2024[5] - Annual recurring revenue (ARR) reached $154.4 million, a 13% increase year-over-year, with B2 Cloud Storage ARR growing 27% to $88.9 million[9] - Net loss for Q4 2025 was $5.4 million, significantly improved from a net loss of $14.4 million in Q4 2024[5] - Cash flow from operations in Q4 2025 was $9.3 million, up from $2.2 million in Q4 2024[5] - For the year ended December 31, 2025, total revenue was $145.835 million, a 14.2% increase from $127.628 million in 2024[32] - Gross profit for the year ended December 31, 2025, was $88.793 million, compared to $69.343 million in 2024, reflecting a gross margin increase from 54% to 61%[32][36] - The company reported a net loss of $25.612 million for the year ended December 31, 2025, compared to a net loss of $48.531 million in 2024[34][32] - For the year ended December 31, 2025, the net loss and comprehensive loss was $25.6 million, compared to $48.5 million for 2024, representing a 47% improvement[39] - Revenue for the year ended December 31, 2025, reached $145.8 million, a 14% increase from $127.6 million in 2024[43] Cash Flow and Profitability - The company achieved adjusted free cash flow positivity in Q4 2025 for the first time since going public, improving by over $8.6 million year-over-year[7] - Adjusted free cash flow for the year ended December 31, 2025, was $(5.4) million, an improvement from $(20.1) million in 2024[46] - Cash and cash equivalents at the end of the period were $29.182 million, down from $45.776 million at the beginning of the period[34] - Operating cash flow margin for the year ended December 31, 2025, was 16%, compared to 10% in 2024[46] Operational Efficiency - Adjusted EBITDA for the year ended December 31, 2025, was $31.8 million, up from $13.0 million in 2024, indicating a significant increase in operational efficiency[43] - The adjusted gross margin improved to 79% for the year ended December 31, 2025, compared to 78% in 2024[43] - Adjusted gross profit for the year ended December 31, 2025, was $115.601 million, with an adjusted gross margin of 79%[36] Customer Metrics - Net Revenue Retention Rate (NRR) is calculated as the average of quarterly rates over the past four quarters, indicating revenue trends from existing customers[25] - Gross Customer Retention Rate measures the ability to retain customers, calculated as a trailing four-quarter average of quarterly rates[26] - Annual Recurring Revenue (ARR) is a key metric, calculated by multiplying the monthly revenue from B2 Cloud Storage and Computer Backup arrangements by 12, reflecting the renewable nature of the business[24] Future Guidance - For Q1 2026, revenue is expected to be between $37.6 million and $38.0 million, with an adjusted EBITDA margin of 18% to 20%[8] - For full-year 2026, revenue guidance is between $156.5 million and $158.5 million, with an adjusted EBITDA margin of 19% to 21%[8] Strategic Initiatives - Backblaze launched B2 Neo, a new solution for neocloud providers, enhancing their storage offerings[9] - The company signed a record eight-figure TCV neocloud deal, indicating strong market adoption of its platform[9] Restructuring Charges - The company incurred $2.5 million in stock-based compensation classified as restructuring charges for the year ended December 31, 2024[42] - Restructuring charges for the year ended December 31, 2025, totaled $2.5 million, down from $4.9 million in 2024[39]