Backblaze Revenue Jumps 26% as AI Drives Cloud Growth
Backblaze reported a 26% revenue increase and surged in after-hours trading following strong B2 Cloud Storage growth driven by artificial intelligence workloads.
Cloud storage provider Backblaze reported third-quarter 2026 financial results on November 2, showing total revenue of $46.7 million, a 26% increase year-over-year. The growth was primarily driven by the B2 Cloud Storage business, which grew 47% year-over-year and saw its annual recurring revenue rise 53% to $127 million.
The company achieved positive adjusted free cash flow for the first time and raised its full-year fiscal 2026 revenue guidance to between $177.8 million and $178.2 million. Shares surged nearly 40% in after-hours trading to $10.35 following the announcement.
To meet contracted demand from AI builders and neocloud customers such as CoreWeave, Backblaze expects to increase capital expenditures approximately 10 times over the next year. The company projected B2 growth of approximately 60% for the fourth quarter.
