Backblaze Reports 18% Revenue Growth to $42.7 Million in Q2 2026

Backblaze, Inc. reported a significant increase in revenue for the second quarter of 2026, achieving $42.7 million, up 18% from $36.3 million in the same period last year. For the first half of 2026, total revenue reached $81.4 million, a 15% increase compared to $70.9 million in the first half of 2025. The growth was primarily driven by a 34% increase in revenue from the B2 Cloud Storage service, which generated $26.6 million, while revenue from the Computer Backup service slightly declined by 2% to $16.1 million. The company reported a net loss of $5.1 million for the quarter, an improvement from a loss of $7.1 million in the prior year, reflecting a narrowing of losses as operational efficiencies were realized.

In terms of operational metrics, Backblaze's customer base grew to over 500,000 as of June 30, 2026, with more than 5 billion gigabytes of data stored across its platform. The company also reported a net revenue retention rate of 103% for the total company, indicating strong customer loyalty and expansion within existing accounts. The gross customer retention rate stood at 91%, consistent with the previous year, demonstrating the company's ability to maintain its customer base effectively.

Strategically, Backblaze has made significant moves to enhance its market position, including a multi-year agreement with CoreWeave, Inc. to provide committed B2 Cloud Storage capacity and managed services, valued at approximately $335.1 million. This agreement is expected to bolster Backblaze's presence in the AI cloud infrastructure market. Additionally, the company implemented a price increase for its B2 Cloud Storage service in May 2026, raising the pay-as-you-go rate from $6.00 to $6.95 per terabyte per month, which is anticipated to positively impact future revenue.

The company’s operating expenses for the second quarter totaled $31.0 million, up from $29.3 million a year earlier, with notable increases in general and administrative costs attributed to stock-based compensation and restructuring efforts. Backblaze is currently undergoing a restructuring plan aimed at improving operational efficiency and enhancing its sales and marketing functions. The company expects to incur additional restructuring charges of approximately $2.4 million to $3.7 million through early 2027 as it continues to optimize its operations.

Looking ahead, Backblaze remains focused on expanding its product offerings and enhancing its platform to meet the growing demands of AI and data-intensive workloads. The company anticipates that its ongoing investments in technology and infrastructure will support continued revenue growth and operational improvements, positioning it well for future opportunities in the evolving cloud storage market.