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Backblaze Lifts 2026 Outlook After Q1 Beat Fueled by B2 Cloud Storage

Management points to AI storage needs as a durable tailwind.

Overview

  • Backblaze beat its first‑quarter guidance with $38.7 million in revenue, which rose 12% from a year ago.
  • B2 Cloud Storage led the growth with $22.4 million in revenue, up 24%, helped by customers storing and accessing more data.
  • Profitability improved as gross margin reached 61% and adjusted EBITDA rose to $10 million for a 26% margin.
  • The company raised full‑year targets to $161.5 million to $163.5 million in revenue and a 23% to 25% adjusted EBITDA margin.
  • Backblaze removed API transaction fees for B2 on May 1 and expects near break‑even full‑year adjusted free cash flow with more than $100 million of leasing capacity and no planned equity raise.