Needham Reiterates Buy on Backblaze, Trims Price Target to $8 After Q3 Print

Group 1 - Backblaze, Inc. (NASDAQ:BLZE) is recognized as a small-cap tech stock with a focus on cloud storage solutions, particularly B2 object storage and Computer Backup [1][3] - On November 6, 2025, Needham maintained a Buy rating on Backblaze but reduced its 12-month price target to $8, with no additional commentary provided [1][2] - In Q3 2025, Backblaze reported a 28% increase in B2 Cloud Storage revenue, reaching $20.7 million, while Computer Backup revenue remained flat [2] Group 2 - The company's gross margin improved to 62% from 55%, and adjusted EBITDA margin approached 23%, indicating operational efficiency [2] - Annual Recurring Revenue (ARR) increased by 13% to $147.2 million, driven by B2 revenue of $81.8 million [2] - A cautionary note was raised as Net Revenue Retention (NRR) decreased to 106% from 118%, suggesting a slowdown in upselling compared to the previous year [2]