Key Highlights

  • Backblaze shares closed up 26.94% at $19.79 on August 4, hitting a fresh 52-week and 55-month high intraday before paring some gains.
  • Second-quarter revenue of $42.7 million topped guidance, up 18% year over year, with B2 Cloud Storage revenue accelerating to 34% growth, its strongest pace in seven quarters.
  • The results were driven by a newly signed $335 million multi-year strategic agreement with CoreWeave, the largest contract in company history.
  • Backblaze raised full-year guidance to $172 million to $174 million in revenue and an adjusted EBITDA margin of 27% to 29%.
  • A wave of bullish analyst actions followed, with Oppenheimer, Needham, B. Riley, and Citizens all raising price targets to $25, $23, $24, and $21 respectively.

What Drove the Close

Backblaze (NASDAQ:BLZE) shares closed up 26.94% at $19.79 on August 4, after the company reported second-quarter 2026 results that topped guidance across the board, driven by accelerating cloud storage growth and a landmark new enterprise agreement. The stock hit a fresh 52-week high, and its highest level in 55 months, intraday before paring back some gains into the close.

Backblaze is a San Mateo, California-based cloud storage platform founded in 2007 that provides businesses and consumers with services to store, manage, use, and protect data both in the United States and internationally. The company operates through two core offerings, Backblaze B2 Cloud Storage, a consumption-based infrastructure-as-a-service object storage platform, and Backblaze Computer Backup, a subscription-based service serving individuals and businesses across more than 175 countries.

Second-quarter revenue was $42.7 million, up 18% year over year, beating guidance by $2.5 million, with adjusted EBITDA margin of 30%, 700 basis points above the high end of guidance. B2 Cloud Storage revenue accelerated to 34% year-over-year growth, its strongest pace in seven quarters. Investors are focused on the newly signed $335 million multi-year strategic agreement with CoreWeave (NASDAQ:CRWV), the largest contract in Backblaze's history, validating the company's role in AI infrastructure storage.

The company raised full-year 2026 guidance to $172 million to $174 million in revenue, up from a prior range of $161.5 million to $163.5 million, with an adjusted EBITDA margin outlook of 27% to 29%, up from 23% to 25%. Third-quarter guidance of $44.4 million to $44.8 million also beat consensus.

Analyst Reaction

A wave of bullish analyst actions followed the report, with Oppenheimer, Needham, B. Riley, and Citizens all raising price targets to $25, $23, $24, and $21 respectively, while reiterating bullish ratings and citing accelerating B2 growth, expanding large-customer annual recurring revenue, and improving profitability metrics. Adjusted EBITDA margin of 30% for the quarter compares with 18% a year ago, underscoring the scale of the company's margin improvement.

Backblaze's market capitalization stood at $1.19 billion at the close, with a trailing price-to-earnings ratio of 197.90. The stock's 52-week range spans $3.26 to $23.99, with today's session briefly touching that upper bound before settling into the close.

Conclusion

Backblaze's sharp rally reflects a genuine acceleration in its core B2 Cloud Storage business, anchored by the landmark CoreWeave agreement and a broad-based wave of analyst price target increases. With full-year guidance raised and margins expanding well ahead of prior-year levels, the stock's continued momentum will likely depend on the company converting its expanding enterprise pipeline into sustained revenue and profitability gains in the coming quarters.

This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research before making financial decisions.