Backblaze, Inc. BLZE used its second-quarter 2026 earnings call to frame AI infrastructure as a central growth theme for B2 Cloud Storage, with the $335-million CoreWeave agreement adding visibility.
Non-GAAP earnings per share of $0.08 beat the Zacks Consensus Estimate for earnings of $0.01. Revenues of $42.7 million surpassed the consensus estimate of $39.9 million. Management paired the beat with a higher 2026 outlook.
Backblaze, Inc. Price, Consensus and EPS Surprise
Backblaze, Inc. price-consensus-eps-surprise-chart | Backblaze, Inc. Quote
BLZE Leans Into AI Capacity Storage
CEO Gleb Budman said that B2 revenues grew 34% year over year as AI customers sought scalable capacity storage, architectural freedom and performance at efficient economics.
Budman added that CoreWeave selected Backblaze for a multi-exabyte deployment spanning more than five years, across Backblaze-hosted and customer-owned storage.
An Oppenheimer analyst asked whether CoreWeave could deter rival AI infrastructure providers. Budman stated that it instead increased interest and noted roughly half a dozen active managed-storage discussions.
Backblaze Raises 2026 Outlook
CFO Marc Suidan said that third-quarter revenues are expected at $44.4-$44.8 million, with an adjusted EBITDA margin of 27-29%.
Suidan raised the full-year revenue guidance to $172-$174 million from $161.5-$163.5 million. The adjusted EBITDA margin outlook was raised to 27-29% from 23-25%.
A Needham analyst asked how much the increase depends on CoreWeave. CFO Marc Suidan said that the $10.5-million raise reflects the second-quarter beat, pricing and CoreWeave ramp, while guidance excludes usage above contracted minimums and potential deals above $500,000.
Suidan also said that B2 revenues are expected to grow more than 40% in 2027, with CoreWeave's platform minimum reached around midyear. He called this an early directional commentary and not formal guidance.
BLZE's Upmarket Motion Broadens
Budman said that Backblaze ended the second quarter with 235 customers generating more than $50,000 each in ARR, up 57% year over year. ARR from that cohort rose 67%.
Suidan informed that the company closed four deals above $500,000, including three AI-related wins, while many large deals were expansions.
A Craig-Hallum analyst asked about the seven-figure ARR B2 Overdrive win with a frontier AI model developer. CEO Budman said that the customer needed more capacity and throughput, and viewed the initial commitment as a starting point for expansion.
Backblaze Sees Pricing Stickiness
Suidan said that the May 1 B2 price increase contributed about 8 percentage points to B2 growth and $9 million of the $20-million sequential increase in B2 ARR.
A Lake Street analyst asked whether outperformance was concentrated in large transactions. Suidan informed that strength was broad-based across direct sales and self-service, while anticipated churn did not materialize.
B2 ARR grew 39% to $113.3 million, while B2 NRR was 113% versus 114% a year earlier. Budman said that Computer Backup remains cash-generating but is still expected to decline at a single-digit rate.
BLZE Balances Expansion With Capital Needs
Suidan said that 2026 capital expenditure is expected to be 55-65% of revenues, while the adjusted free cash flow is expected to be neutral for the year.
A William Blair analyst pressed on CoreWeave economics. CFO Suidan said that deals are priced around the current 63% gross margin, although depreciation before customer ramps could create a temporary setback of a few hundred basis points.
Budman said that managed storage is capital-light because customers own the hardware. CFO Suidan cited about $50 million in cash and securities, more than $150 million in available capital lease lines and operating cash flow as funding for the buildout.
Backblaze's Priorities After Q2
Budman kept the strategic focus on becoming a capacity-storage layer for AI infrastructure and AI-native customers while moving toward larger accounts.
Suidan emphasized efficient growth and operating leverage, alongside investment for signed commitments. Management's posture centered on contracted demand rather than expanding guidance assumptions beyond committed minimums.
Zacks Signals Point to Mixed Setup
BLZE currently carries a Zacks Rank #3 (Hold). Its Growth Score of A is the strongest style reading, while the Value Score of F and Momentum Score of D are weaker. The VGM Score of C is a middle-tier profile. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Style Scores complement the Zacks Rank, with A and B scores viewed more favorably than lower grades and the strongest combinations centered on Zacks Rank #1 or #2 (Buy) stocks. BLZE's current mix is not a top-ranked configuration. The Zacks Rank can change as estimate revisions incorporate the just-reported results.
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