Backblaze Q2 Earnings Call Highlights

Backblaze exceeded Q2 expectations: Revenue rose 18% year over year to $42.7 million, while adjusted EBITDA nearly doubled to $13 million and the margin reached 30%. B2 Cloud Storage accelerated: B2 revenue grew 34%, ARR increased 39% to $113 million, and larger-customer momentum strengthened, including four deals above $500,000 and three AI-related wins. CoreWeave deal boosts visibility and investment needs: The more-than-five-year, $335 million agreement added about $313 million in remaining performance obligations, prompting increased infrastructure spending but supporting raised 2026 revenue guidance of $172 million to $174 million and adjusted EBITDA margin guidance of 27% to 29%.

Backblaze NASDAQ: BLZE reported second-quarter 2026 results that exceeded its guidance, supported by accelerating B2 cloud-storage growth, improved profitability and a new multi-year agreement with AI cloud provider CoreWeave. Revenue totaled $42.7 million, up 18% from a year earlier and $2.5 million above the high end of the company’s guidance range. Adjusted EBITDA was $13 million, nearly double the prior-year level, while adjusted EBITDA margin reached 30%, exceeding the high end of guidance by 700 basis points.

Chief Executive Officer Gleb Budman said the quarter reflected “broad momentum across the business,” including an acceleration in B2 growth, larger customer commitments and AI-related customer wins. The company also announced what it described as the largest contract in its history: a $335 million, more-than-five-year agreement with CoreWeave.

B2 revenue grew 34% year over year, its strongest growth rate in seven quarters, according to Chief Financial Officer Marc Suidan. B2 annual recurring revenue reached $113 million, up 39% year over year, while sequential B2 ARR increased by $20 million. The company said its May 1 price increase accounted for $9 million of that sequential ARR increase and approximately eight percentage points of B2 growth.

Suidan said the company had anticipated churn following the price increase, but that churn “did not materialize.” B2 net revenue retention was 113%, compared with 114% a year earlier.

Backblaze continued to move upmarket during the quarter. It ended the period with 235 customers contributing more than $50,000 in ARR, up 57% from a year earlier. ARR from that group increased 67% year over year. The company closed four deals valued above $500,000 during the quarter, including three AI-related wins.

Budman said the company added nearly 50 customers to the $50,000-plus ARR category from the prior quarter, which he characterized as evidence of broader go-to-market progress beyond the CoreWeave agreement. He said Backblaze has added a chief revenue officer, a sales-development leader, a head of revenue operations, a customer-success leader and other go-to-market personnel as part of its sales transformation.

The CoreWeave agreement includes two components: use of Backblaze’s platform and a managed-storage service delivered on customer-owned hardware. Backblaze said the contract represents a multi-exabyte commitment and positions the company as a capacity-storage provider for AI infrastructure companies that need hard-drive-based storage alongside flash storage used for higher-performance workloads. During the quarter, Backblaze added approximately $320 million in remaining performance obligations, including $313 million related to CoreWeave after accounting for $22 million in warrant value.