Backblaze, Inc. reported a revenue increase of 12% for the first quarter of 2026, reaching $38.7 million compared to $34.6 million in the same period of 2025. The growth was primarily driven by a 24% rise in revenue from its B2 Cloud Storage service, which generated $22.4 million, while revenue from the Computer Backup service decreased slightly to $16.2 million. The company's gross profit also improved, rising to $23.5 million, resulting in a gross margin of 61%, up from 56% in the prior year, attributed to lower fixed costs and increased economies of scale.
In terms of profitability, Backblaze reported a net loss of $6.1 million for the quarter, a significant improvement from the $9.3 million loss recorded in the same period last year. The loss per share decreased to $0.10 from $0.17, reflecting the company's efforts to manage costs effectively. Operating expenses increased slightly to $28.9 million, primarily due to higher sales and marketing costs associated with the company's ongoing restructuring and transformation initiatives aimed at enhancing its go-to-market strategy.
Backblaze's customer base has expanded to over 500,000 as of March 31, 2026, with the company managing approximately 5 billion gigabytes of data across more than 175 countries. The net revenue retention rate for B2 Cloud Storage improved to 110%, indicating strong customer engagement and upselling success, while the overall company net revenue retention rate was 103%. The company continues to focus on expanding its international presence and enhancing its product offerings, including the recent launch of B2 Neo, a white-label cloud storage solution for enterprise customers.
The company has also initiated a restructuring plan aimed at improving operational efficiency, which has incurred approximately $4.7 million in charges since its inception. Backblaze expects to incur additional charges of $2.1 million to $4.3 million through the first quarter of 2027 as it continues to realign its resources and processes. The company maintains a strong liquidity position with cash, cash equivalents, and marketable securities totaling $45.5 million as of March 31, 2026, and has no outstanding borrowings under its $20 million revolving credit facility.
Looking ahead, Backblaze anticipates continued growth driven by its strategic initiatives, including investments in technology and marketing to capture larger enterprise customers and expand its market share. The company remains focused on optimizing its cost structure while enhancing its service offerings to meet the evolving needs of its customer base in the competitive cloud storage market.
About Backblaze, Inc.
Backblaze, Inc. provides cloud storage and backup services through its purpose-built Storage Cloud platform, designed for ease of use, affordability, reliability, and performance. Its core offerings include B2 Cloud Storage, an Infrastructure-as-a-Service solution for scalable data storage, and Computer Backup, a subscription-based service for continuous device backup. Serving over 500,000 customers globally across industries, Backblaze leverages a self-serve and direct sales model supported by a broad partner ecosystem.
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