Backblaze, Inc. (BLZE)

Backblaze, Inc. (BLZE) Technology Profile & Competitive Position

Backblaze, Inc. delivers cloud storage solutions for businesses and consumers, differentiating itself through a web-scale infrastructure built on commodity hardware. The company competes in the Infrastructure-as-a-Service (IaaS) and Data-Protection-as-a-Service markets, providing cost-effective alternatives for data storage, backup, and application development.

What Is the Investment Thesis for BLZE?

Backblaze presents a compelling investment case based on its focus on the growing cloud storage and data protection markets. The company's competitive pricing, driven by its use of commodity hardware, allows it to attract cost-conscious customers. With a gross margin of 62.1%, Backblaze demonstrates efficient operations. Key growth catalysts include expanding its customer base through strategic partnerships and increasing adoption of Backblaze B2 Cloud Storage. However, investors should be aware of the company's negative profit margin of -15.0% and the need to achieve profitability. The company's beta of 1.30 indicates higher volatility compared to the market.

Based on FMP financials and quantitative analysis

BLZE Key Highlights

• Market capitalization of $942.83M reflects the company's current valuation in the cloud storage market.
• Gross margin of 62.1% indicates efficient cost management in delivering cloud storage services.
• Negative profit margin of -15.0% highlights the company's ongoing investments in growth and infrastructure.
• Beta of 1.30 suggests higher volatility compared to the overall market.
• Backblaze B2 Cloud Storage drives expansion by enabling developers to build applications and partners to expand their use cases.

Who Are BLZE's Competitors?

BLZE is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are BLZE's Key Strengths?

• Competitive pricing.
• User-friendly interface.
• Strong focus on data protection.
• Reliable and scalable infrastructure.

What Are BLZE's Weaknesses?

• Negative profit margin.
• Smaller market share compared to larger cloud providers.
• Limited brand awareness compared to major competitors.
• Reliance on commodity hardware.

What Could Drive BLZE Stock Higher?

• Launch of new data protection features leveraging AI and machine learning (Q3 2026).
• Expansion of strategic partnerships with MSPs and VARs to reach new customer segments.
• Increasing adoption of Backblaze B2 Cloud Storage among developers for cloud-based applications.
• Geographic expansion into international markets, particularly in Europe and Asia.

What Are the Key Risks for BLZE?

• Negative return on equity (-27.2%) — the business is not currently generating profit on shareholder capital.
• Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
• Intense competition from larger cloud providers with greater resources and brand recognition.
• Security breaches and data loss incidents affecting customer trust and brand reputation.
• Reliance on commodity hardware, which could be subject to supply chain disruptions and price fluctuations.
• Economic downturn affecting IT spending and demand for cloud storage services.
• Negative profit margin requiring careful management of expenses and investments.

What Are the Growth Opportunities for BLZE?

• Expanding Backblaze B2 Cloud Storage adoption among developers: Backblaze can capitalize on the growing demand for cloud-based application development by attracting more developers to its B2 platform. By offering competitive pricing and easy-to-use APIs, Backblaze can gain market share in the Infrastructure-as-a-Service (IaaS) market, projected to reach $155 billion by 2026. This involves targeted marketing campaigns and developer outreach programs to showcase the benefits of B2 for various application development use cases.
• Strategic partnerships with MSPs and VARs: Backblaze can expand its reach by forming strategic partnerships with Managed Service Providers (MSPs) and Value-Added Resellers (VARs). These partners can bundle Backblaze's services with their existing offerings, providing a comprehensive solution to their customers. The managed services market is expected to reach $356 billion by 2025, presenting a significant opportunity for Backblaze to tap into new customer segments and revenue streams.
• Increasing adoption of Backblaze Computer Backup among SMBs: Backblaze can target small and medium-sized businesses (SMBs) with its Computer Backup solution, offering a simple and affordable way to protect their data. The SMB data protection market is estimated at $10 billion annually, with a growing need for automated and reliable backup solutions. Backblaze can leverage its user-friendly interface and competitive pricing to gain market share in this segment.
• Geographic expansion into international markets: Backblaze can expand its presence in international markets, particularly in Europe and Asia, where demand for cloud storage and data protection is growing rapidly. By establishing data centers in these regions and offering localized support, Backblaze can attract new customers and diversify its revenue streams. The global cloud storage market is projected to reach $137.33 billion in 2029, presenting significant opportunities for international expansion.
• Leveraging AI and machine learning for enhanced data protection: Backblaze can integrate AI and machine learning technologies into its platform to enhance data protection capabilities. This includes using AI to detect and prevent ransomware attacks, as well as to optimize data storage and retrieval. The AI in cybersecurity market is expected to reach $35 billion by 2025, and Backblaze can leverage this trend to offer more advanced and secure data protection solutions.

What Opportunities Does BLZE Have?

• Expanding into new geographic markets.
• Developing new data protection solutions.
• Forming strategic partnerships.
• Increasing adoption of Backblaze B2 Cloud Storage.

What Threats Does BLZE Face?

• Intense competition from larger cloud providers.
• Rapid technological changes in the cloud storage market.
• Security breaches and data loss incidents.
• Economic downturn affecting IT spending.

What Are BLZE's Competitive Advantages?

• Cost-effective pricing due to use of commodity hardware.
• Simple and user-friendly interface.
• Developer-friendly APIs for Backblaze B2 Cloud Storage.
• Strong reputation for reliability and customer support.

What Does BLZE Do?

Backblaze, Inc., founded in 2007 and headquartered in San Mateo, California, operates as a storage cloud platform, providing cloud services to businesses and consumers globally. The company's core mission is to make data storage and protection simple and affordable. Backblaze's infrastructure is built on a web-scale software architecture using commodity hardware, which allows it to offer competitive pricing. Its primary offerings include Backblaze B2 Cloud Storage, an Infrastructure-as-a-Service (IaaS) solution that enables customers to store data, developers to build applications, and partners to expand their use cases. Backblaze B2 serves various use cases, including backups, multi-cloud storage, application development, and ransomware protection. Additionally, Backblaze offers Backblaze Computer Backup, a subscription-based Software-as-a-Service (SaaS) that automatically backs up data from laptops and desktops for both businesses and individuals. This service addresses needs such as computer backup, ransomware protection, theft and loss protection, and remote access. Backblaze targets the public cloud IaaS storage and Data-Protection-as-a-Service markets, positioning itself as a cost-effective and user-friendly alternative to larger cloud providers.

What Products and Services Does BLZE Offer?

• Provides cloud storage services for businesses and consumers.
• Offers Backblaze B2 Cloud Storage for data storage and application development.
• Delivers Backblaze Computer Backup for automatic data backup from laptops and desktops.
• Serves the public cloud Infrastructure-as-a-Service (IaaS) storage market.
• Offers Data-Protection-as-a-Service solutions.
• Provides ransomware protection services.
• Enables remote access to backed-up data.

How Does BLZE Make Money?

• Subscription-based Software-as-a-Service (SaaS) for Backblaze Computer Backup.
• Consumption-based Infrastructure-as-a-Service (IaaS) for Backblaze B2 Cloud Storage.
• Revenue generated from storage usage and data transfer fees.
• Partnerships with MSPs and VARs for expanded reach.

What Industry Does BLZE Operate In?

Backblaze operates in the competitive cloud storage and data protection market, which is experiencing rapid growth driven by increasing data volumes and the need for secure and accessible storage solutions. The market includes major players like Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure, as well as specialized providers. Backblaze differentiates itself through its focus on simplicity, affordability, and a developer-friendly approach. The company targets small and medium-sized businesses (SMBs) and individual users, offering a cost-effective alternative to the larger, more complex cloud platforms. The increasing threat of ransomware and data loss further fuels demand for Backblaze's backup and recovery services.

Who Are BLZE's Key Customers?

• Small and medium-sized businesses (SMBs).
• Individual users.
• Developers building cloud-based applications.
• Managed Service Providers (MSPs).
• Value-Added Resellers (VARs).

Backblaze, Inc. (BLZE) Valuation Context

Valued at $942.83M, BLZE is classified as a small-cap stock. Relative to its peer group, BLZE's quantitative score of 32/100 is below the peer average of 77/100.

BLZE Revenue & Earnings Trend

In Q1 2026, BLZE generated $38.7M in top-line revenue, marking a sequential increase of 2.4%. The company recorded a net loss of $6.1M, with diluted EPS of $-0.10. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this small-cap Technology company. Across the four most recent quarters, BLZE averaged $-0.10 in diluted EPS.

Company Profile

Backblaze, Inc. operates in the Software - Infrastructure industry within the Technology sector. It is headquartered in San Mateo, US. The company is led by CEO Gleb Budman. BLZE has traded publicly since 2021.

ROE -27%Key Financial Metrics

Return on equity for Backblaze, Inc. stands at -27.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -11.6%, showing how much profit it generates from its asset base. Its free cash flow yield is 3.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.05 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -5.1%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 3/9Financial Health

Backblaze, Inc.'s Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of 4.04 places it in the safe zone, indicating low near-term bankruptcy risk.

FY2026 estForward Outlook

Wall Street analysts project Backblaze, Inc. revenue of about $162.4M for fiscal 2026, with EPS near $0.10. The estimate reflects 6 contributing analysts.

Net buyingInsider Activity

Over the past six months, Backblaze, Inc. insiders filed 22 SEC Form 4 transactions — 12 sales and 10 purchases. On net that is roughly 486K shares acquired (about $921K) — insiders putting money in tends to read as conviction.

BLZE Financials

BLZE Latest News

BLZE Analyst Consensus

BLZE MoonshotScore

Backblaze, Inc. Technology Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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