Overview

* Backblaze ( BLZE ) Q3 revenue grows 14% YoY, slightly beating analyst expectations

* Adjusted EPS for Q3 beats analyst estimates, reflecting improved profitability

* B2 Cloud Storage revenue increased 28% YoY, highlighting strong segment growth

Outlook

* Company expects Q4 2025 revenue between $37.3 mln and $37.9 mln

* Backblaze ( BLZE ) raises full-year 2025 adjusted EBITDA margin forecast to 18%-20%

* Company narrows full-year 2025 revenue guidance to $145.4 mln to $146.0 mln

Result Drivers

* B2 CLOUD STORAGE GROWTH - B2 Cloud Storage revenue grew 28% YoY, driven by price-performance and open platform, per CEO Gleb Budman

* GROSS MARGIN IMPROVEMENT - Gross margin expanded by ~700 bps YoY to 62%, attributed to operational efficiencies

* AI CUSTOMER EXPANSION - Secured a seven-figure expansion deal with an AI-powered video surveillance customer

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $37.20 $36.93

Revenue Beat* mln mln (8

Analysts

)

Q3 Beat $0.03 -$0.12

Adjusted (5

EPS Analysts

)

Q3 EPS -$0.07

Q3 $1.90

Adjusted mln

Net

Income

Q3 Net -$3.80

Income mln

Q3 $29.40

Adjusted mln

Gross

Profit

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy"

* Wall Street's median 12-month price target for Backblaze Inc ( BLZE ) is $11.50, about 18.8% above its November 5 closing price of $9.34

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)