Backblaze 2025 Q2 Earnings Narrowed Losses Amid Revenue Growth

Backblaze (BLZE) reported its fiscal 2025 Q2 earnings on August 8, 2025, showing revenue growth and reduced losses, though the company has posted losses for five consecutive years in this quarter. Management provided modest guidance for the upcoming quarter, emphasizing cost discipline and infrastructure investment.

Revenue
Backblaze reported total revenue of $36.30 million for the second quarter of 2025, representing a 16.0% year-over-year increase from $31.29 million in the same period in 2024. The company’s B2 Cloud Storage segment contributed $19.84 million, while the Computer Backup segment accounted for $16.46 million, combining to drive the revenue expansion.

Earnings/Net Income
The company narrowed its loss per share to $0.13 in Q2 2025 from $0.25 in Q2 2024, marking a 48.0% improvement. Net loss also decreased to $-7.10 million, a 31.4% reduction from $-10.35 million in the prior year. Despite these improvements, Backblaze continues to face financial challenges, as it has posted losses for five consecutive years in this quarter.

Price Action
Backblaze’s stock price saw a strong rally following the earnings report, with a 17.92% gain on the latest trading day, a 33.87% increase for the week, and a 23.48% rise month-to-date.

Post-Earnings Price Action Review
A strategy of buying Backblaze shares following a revenue increase quarter-over-quarter and holding for 30 days has underperformed significantly over the past three years. This approach resulted in a -17.13% return, compared to a benchmark of 47.91%, yielding an excess return of -65.04% and a compound annual growth rate of -6.14%. The strategy also experienced a maximum drawdown of 65.00%, underscoring the high volatility and risk associated with the investment.

CEO Commentary
CEO Jeff Clark emphasized Backblaze’s resilience in a competitive cloud storage market, highlighting the company’s focus on scalable, cost-effective solutions. He noted growing demand for secure data storage and the company’s efforts to maintain profitability despite rising operational costs. Clark also outlined strategic investments in expanding data center capacity and enhancing user experience, while expressing cautious optimism about Backblaze’s long-term positioning.

Guidance
Backblaze expects revenue to grow modestly in Q3 2025, with a continued emphasis on cost discipline. Management also plans to invest in infrastructure to support long-term scalability, though specific financial targets were not disclosed. The company reaffirmed its commitment to profitability, consistent with its Q2 results of $36.3 million in revenue and an adjusted loss of $0.13 per share.

Additional News
In international news, global tensions remain high amid ongoing discussions over a Gaza plan, with diplomatic rifts emerging before key cabinet meetings. In the U.S., Trump announced key appointments, including a nomination to the Federal Reserve Board and a directive to exclude illegal immigrants from the census. Meanwhile, in Asia, India pushed back against increased tariffs, and Cambodia and Thailand signed a ceasefire agreement. In Europe, Portugal extended its national wildfire alert, while the UK faces a doctor shortage and EU pharma firms prepare for U.S. tariff impacts.