Backblaze is converting AI-driven storage demand and CoreWeave commitments into a high-margin enterprise growth platform, but execution, concentration, and dilution risks make the upside asymmetric rather than risk-free.
Overview
Backblaze is a specialized cloud storage company with two segments: the higher-growth B2 Cloud Storage platform and the mature Computer Backup business. B2 provides S3-compatible, always-hot object storage at $6.95 per TB per month, with free egress up to three times average monthly storage and excess egress at $0.01 per GB; Computer Backup is subscription-based and historically priced at $99 per computer per year. The company serves more than 500,000 customers across 175 countries. **The central inflection is B2’s role in AI and neocloud infrastructure**: B2 grew 34% year over year in Q2 2026, high-value customers rose 57% to 235, and the CoreWeave agreement contributes $335.1 million of RPO. Q2 revenue was $42.71 million, up 18%, with 80% non-GAAP adjusted gross margin and 30% adjusted EBITDA margin. FY2026 revenue guidance rose to $172 million–$174 million and adjusted EBITDA margin guidance to 27%–29%. The trade-off is heavy CapEx of 55%–65% of revenue, GAAP losses, CoreWeave concentration, and convertible-note dilution. At $15.02 and 5.64x EV/Sales, the report sees a five-year probability-weighted value of $25.87, with Investor Day on September 9, 2026 as a near-term catalyst.