Backblaze, Inc. reported its financial results for the third quarter of 2025, revealing a revenue increase of 14% to $37.2 million compared to $32.6 million in the same period last year. For the nine months ending September 30, 2025, total revenue reached $108.1 million, up 15% from $93.8 million in the prior year. The company's gross profit for the quarter was $23.1 million, representing a gross margin of 62%, an improvement from 55% in the previous year. Despite the revenue growth, Backblaze recorded a net loss of $3.8 million for the quarter, a significant reduction from a net loss of $12.8 million in Q3 2024.
The increase in revenue was primarily driven by a 28% rise in B2 Cloud Storage revenue, which reached $20.7 million, attributed to higher storage usage and new customer acquisitions. Computer Backup revenue remained stable at $16.5 million, with slight increases due to price adjustments and customer utilization. The company also noted a decrease in operating expenses, which fell to $26.4 million from $30 million in the prior year, largely due to reduced sales and marketing costs following a restructuring initiative.
In terms of operational metrics, Backblaze reported a customer base exceeding 500,000, with a net revenue retention rate of 106% for the total company, down from 118% a year earlier. The company’s gross customer retention rate remained stable at 91%. Backblaze has also expanded its international presence, with 29% of total revenue coming from outside the United States during the quarter.
Strategically, Backblaze launched its B2 Overdrive service, targeting data-intensive workloads, and introduced new cybersecurity features to enhance its offerings. The company is also undergoing a restructuring plan aimed at improving sales and marketing efficiency, with expected charges of $4.4 million to $6.0 million primarily in Q4 2025. Looking ahead, Backblaze anticipates continued investment in its technology platform and infrastructure to support growth, particularly in the enterprise market. The company believes its existing cash and marketable securities, totaling approximately $50.3 million, will be sufficient to meet its operational needs for at least the next 12 months.
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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