📊 BLZE Key Takeaways
Is Backblaze, Inc. (BLZE) a Good Investment?
Backblaze demonstrates encouraging fundamental trends with 14.3% revenue growth, exceptional 60.9% gross margins, and rapidly improving losses (down 47% YoY), coupled with positive free cash flow generation. However, operational unprofitability (-13.8% margin), negative returns on equity/assets, and dangerously tight liquidity (1.05x current ratio) create execution risk that prevents upgrade to BUY until the path to profitability becomes concrete.
Backblaze shows improving fundamentals with 14.3% revenue growth, solid 60.9% gross margin, and positive operating and free cash flow, indicating the business model has underlying economic strength. Losses are narrowing materially year over year, but the company remains meaningfully unprofitable at the operating and net income levels. With no long-term debt but only modest liquidity, the fundamentals support cautious optimism rather than a fully bullish stance.
Why Buy Backblaze, Inc. Stock? BLZE Key Strengths
- Exceptional gross margins at 60.9% demonstrate strong unit economics and pricing power typical of quality software businesses
- Revenue growth of 14.3% YoY combined with 47.2% improvement in net losses indicates accelerating progress toward profitability
- Positive free cash flow of $2.7M (7.0% FCF margin) despite net losses proves underlying business is operationally viable
- Zero long-term debt and $26.3M cash reserve provide clean capital structure with financial flexibility
- Revenue is growing at a healthy double-digit rate while losses are improving materially year over year
- Positive operating cash flow and a 12.9% free cash flow margin suggest better earnings quality than net income alone indicates
- Balance sheet leverage is low with no long-term debt, reducing financial risk
BLZE Stock Risks: Backblaze, Inc. Investment Risks
- Company remains operationally unprofitable with -$5.4M operating income and -13.8% margin; negative ROE (-7.3%) and ROA (-3.2%) indicate value destruction
- Critically tight liquidity position with 1.05x current ratio leaves minimal buffer for adverse scenarios and constrains ability to fund growth investments or weather downturns
- Path to profitability unproven; if growth stalls or operating leverage fails to materialize, current cash burn could become unsustainable
- Operating and net margins remain significantly negative, so sustained profitability has not yet been achieved
- Liquidity is only modest with a 1.07x current ratio, leaving limited cushion if growth slows or spending rises
- Returns on equity and assets remain negative, showing capital is not yet generating consistent profits
Key Metrics to Watch
- Operating margin progression toward breakeven—profitability remains paramount given current losses and liquidity constraints
- Current ratio and cash balance trends—liquidity position must improve to 1.25x minimum to signal sustainable financial health
- Revenue growth sustainability and operating leverage—demonstration that revenue scale translates to profitability gains
- Operating margin progression toward breakeven
- Free cash flow margin sustainability
Backblaze, Inc. (BLZE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Backblaze, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
BLZE Profit Margin, ROE & Profitability Analysis
BLZE vs Technology Sector: How Backblaze, Inc. Compares
How Backblaze, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Backblaze, Inc. Stock Overvalued? BLZE Valuation Analysis 2026
Based on fundamental analysis, Backblaze, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Backblaze, Inc. Balance Sheet: BLZE Debt, Cash & Liquidity
BLZE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Backblaze, Inc.'s revenue has grown significantly by 116% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.66 indicates the company is currently unprofitable.
BLZE Revenue Growth, EPS Growth & YoY Performance
BLZE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $34.6M | -$6.1M | $-0.10 |
| Q3 2025 | $32.6M | -$3.8M | $-0.07 |
| Q2 2025 | $31.3M | -$7.1M | $-0.13 |
| Q1 2025 | $30.0M | -$9.3M | $-0.17 |
| Q3 2024 | $25.3M | -$12.8M | $-0.29 |
| Q2 2024 | $24.6M | -$10.3M | $-0.25 |
| Q1 2024 | $23.4M | -$11.1M | $-0.27 |
| Q3 2023 | $22.1M | -$12.8M | $-0.40 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Backblaze, Inc. Dividends, Buybacks & Capital Allocation
BLZE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Backblaze, Inc. (CIK: 0001462056)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BLZE
What is the AI rating for BLZE?
Backblaze, Inc. (BLZE) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BLZE's key strengths?
Claude: Exceptional gross margins at 60.9% demonstrate strong unit economics and pricing power typical of quality software businesses. Revenue growth of 14.3% YoY combined with 47.2% improvement in net losses indicates accelerating progress toward profitability. ChatGPT: Revenue is growing at a healthy double-digit rate while losses are improving materially year over year. Positive operating cash flow and a 12.9% free cash flow margin suggest better earnings quality than net income alone indicates.
What are the risks of investing in BLZE?
Claude: Company remains operationally unprofitable with -$5.4M operating income and -13.8% margin; negative ROE (-7.3%) and ROA (-3.2%) indicate value destruction. Critically tight liquidity position with 1.05x current ratio leaves minimal buffer for adverse scenarios and constrains ability to fund growth investments or weather downturns. ChatGPT: Operating and net margins remain significantly negative, so sustained profitability has not yet been achieved. Liquidity is only modest with a 1.07x current ratio, leaving limited cushion if growth slows or spending rises.
What is BLZE's revenue and growth?
Backblaze, Inc. reported revenue of $38.7M.
Does BLZE pay dividends?
Backblaze, Inc. does not currently pay dividends.
Where can I find BLZE SEC filings?
Official SEC filings for Backblaze, Inc. (CIK: 0001462056) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BLZE's EPS?
Backblaze, Inc. has a diluted EPS of $-0.10.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is BLZE a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Backblaze, Inc. has a HOLD rating with 73% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is BLZE stock overvalued or undervalued?
Valuation metrics for BLZE: ROE of -7.3% (sector avg: 22%), net margin of -15.9% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy BLZE stock in 2026?
Our dual AI analysis gives Backblaze, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BLZE's free cash flow?
Backblaze, Inc.'s operating cash flow is $3.4M, with capital expenditures of $651.0K. FCF margin is 7.0%.
How does BLZE compare to other Technology stocks?
Vs Technology sector averages: Net margin -15.9% (avg: 18%), ROE -7.3% (avg: 22%), current ratio 1.05 (avg: 2.5).