Backblaze (BLZE) Stock Forecast & Price Target

Backblaze Inc demonstrated strong financial growth, with annual recurring revenue (ARR) increasing 13% year-over-year to $154.4 million, driven largely by a 27% growth in B2 Cloud Storage ARR to $88.9 million. The company reported a revenue growth of 12% year-over-year, reaching $37.8 million, which was slightly above initial guidance and estimates, indicating robust demand for its cloud storage solutions. Additionally, Backblaze achieved a record EBITDA margin of 27.6% while generating positive adjusted free cash flow of $4.1 million, reflecting effective operational leverage and a sustainable growth trajectory moving forward.

Backblaze Inc faces significant challenges reflected in its negative outlook, primarily stemming from its declining performance in the Computer Backup segment, which experienced a year-over-year decline of 5% and a net revenue retention (NRR) drop to 98%. Despite guidance suggesting growth in B2 Cloud Storage, the overall forecast for FY27 indicates a mid-single-digit decline in the Computer Backup sector, which is not expected to recover without future price increases. Additionally, the company’s initial revenue guidance for FY26 was slightly below prior estimates and consensus, further highlighting potential revenue pressures amid mixed performance in key business segments.