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Sep 30, 2025
Backblaze Q3 2025 Earnings Report
Backblaze announced its financial results for the third quarter ended September 30, 2025, exceeding revenue and Adjusted EBITDA guidance and expanding gross margin.
Key Takeaways
Backblaze reported a strong third quarter in 2025, with total revenue reaching $37.2 million, a 14% increase year-over-year. B2 Cloud Storage was a significant growth driver, increasing by 28% year-over-year to $20.7 million. The company achieved record non-GAAP net income of $1.9 million and an Adjusted EBITDA of $8.4 million, demonstrating improved profitability and operational efficiency.
Total revenue for Q3 2025 was $37.2 million, marking a 14% year-over-year increase.
B2 Cloud Storage revenue grew by 28% year-over-year to $20.7 million, while Computer Backup revenue remained flat at $16.5 million.
The company achieved a gross profit of $23.1 million (62% of revenue) and an Adjusted EBITDA of $8.4 million (23% of revenue).
Non-GAAP net income reached $1.9 million, or $0.03 per share, a significant improvement from a non-GAAP net loss in the prior year.
Revenue by Segment
Forward Guidance
For the fourth quarter of 2025, Backblaze expects revenue between $37.3 million to $37.9 million and an Adjusted EBITDA margin between 20% to 22%. For the full year 2025, revenue is expected to be between $145.4 million to $146.0 million, with an Adjusted EBITDA margin range of 18%-20%.
Positive Outlook
- Anticipated revenue growth for Q4 2025, with a midpoint of $37.6 million.
- Expected Adjusted EBITDA margin for Q4 2025 between 20% to 22%, indicating continued profitability.
- Narrowed full-year 2025 revenue guidance, suggesting increased confidence in projections.
- Raised full-year 2025 Adjusted EBITDA margin range to 18%-20%, up from 17%-19%.
- Strong B2 Cloud Storage YoY growth outlook for Q4 2025 between 25%-28%.
Challenges Ahead
- The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially.
- Market competition, including competitors with greater size, offerings, and resources, could impact future performance.
Revenue & Expenses
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Avg. Return Before/After Earnings
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