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Jun 30, 2025
Backblaze Q2 2025 Earnings Report
Backblaze announced strong second quarter 2025 financial results, with significant revenue growth in B2 Cloud Storage and overall revenue increase, alongside improved profitability metrics.
Key Takeaways
Backblaze reported a strong second quarter in 2025, achieving $36.3 million in revenue, a 16% year-over-year increase. The company significantly reduced its net loss to $7.1 million and achieved a non-GAAP net income of $0.8 million. B2 Cloud Storage revenue grew by an impressive 29% year-over-year, driving overall performance and solidifying the company's path towards becoming Adjusted Free Cash Flow positive.
Total revenue reached $36.3 million, marking a 16% increase year-over-year.
B2 Cloud Storage revenue surged by 29% year-over-year to $19.8 million.
Net loss significantly improved to $7.1 million from $10.3 million in Q2 2024, with non-GAAP net income reaching $0.8 million.
Annual Recurring Revenue (ARR) grew to $145.9 million, a 16% increase year-over-year, driven by strong B2 Cloud Storage ARR growth of 29%.
Revenue by Segment
Forward Guidance
Backblaze provided optimistic financial guidance for Q3 and the full year 2025, raising its full-year revenue expectations and projecting continued strong Adjusted EBITDA margins, particularly driven by robust growth in the B2 business.
Positive Outlook
- Q3 2025 revenue expected between $36.7 million to $37.1 million.
- Full-year 2025 revenue guidance raised to $145.0 million to $147.0 million.
- Adjusted EBITDA margin for Q3 and full-year 2025 expected between 17% to 19%.
- B2 business year-over-year growth outlook for Q3 2025 is 28-30%, and for Q4 2025 is 30%+.
- Journey to be Adjusted Free Cash Flow positive in Q4 2025.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text.
- The company's forward-looking statements involve risks and uncertainties that could cause actual results to differ materially.
- Market competition and ability to attract and retain customers remain ongoing challenges.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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