Backblaze reported faster cloud-storage growth on Nov. 2, 2026, and raised its annual revenue outlook, providing a stronger operating update as the company expands its role in AI infrastructure. The storage provider remained unprofitable under generally accepted accounting principles.
This Rapid News Brief follows NextNow’s earnings preview with the company’s reported results for the quarter ended Sept. 30.
Cloud storage outpaces backup
Quarterly revenue reached $46.7 million, up 26% from a year earlier. B2 Cloud Storage generated $30.5 million, an increase of 47%, while Computer Backup revenue declined 2% to $16.2 million, according to the company’s earnings release furnished to the Securities and Exchange Commission.
Its net loss narrowed to $2.4 million from $3.8 million. Adjusted earnings before interest, taxes, depreciation and amortization increased to $15.2 million from $8.4 million. That adjusted measure excludes expenses and is not a substitute for GAAP earnings.
The distinction matters for buyers assessing a storage supplier’s financial position: stronger adjusted earnings and a smaller reported loss describe different aspects of performance. Neither measure establishes the economics of an individual customer’s storage deployment.
Annual expectations move higher
Backblaze now expects annual revenue between $177.8 million and $178.2 million, compared with its previous range of $172 million to $174 million. These figures are management forecasts, not completed sales.
The prior quarter provides context for the acceleration. In its Aug. 3 earnings release, Backblaze reported second-quarter revenue of $42.7 million, up 18% year over year. B2 revenue then was $26.6 million, with growth of 34%. Computer Backup contributed $16.1 million and declined 2%.
The latest report therefore extends a split already visible in the earlier results: expanding B2 revenue alongside a smaller, declining backup business. Second-quarter gross profit was $26.8 million, representing a gross margin of 63%, according to the August release. The figures do not isolate how much growth came from AI customers, pricing changes or other sources. Treating the overall increase as an AI-only result would go beyond the reported evidence.