Backblaze Raises Targets as B2 Storage Grows 47%

Growth in its low-cost B2 object-storage line is outpacing the company's legacy backup business.

Updated on Nov. 3, 2026 in Data Centers

Backblaze Raises Targets as B2 Storage Grows 47%

Cloud storage provider Backblaze reported third-quarter 2026 sales of $46.7 million, up 26% from a year earlier, and raised its 2026 revenue and adjusted EBITDA margin targets in a Monday, November 2 announcement. This is a reported financial result for an operating company, not an announced product or research effort.

Why it matters

Growth is concentrated in B2 Cloud Storage, whose revenue rose 47% year over year, while the older Computer Backup line declined 2%, signaling where demand for low-cost data storage is moving as companies and developers store more data outside traditional backup products.

Backblaze's own quarterly filing shows B2 Cloud Storage generating $30.5 million of the $46.7 million total, with adjusted EBITDA at $15.2 million, or 33% of revenue, while GAAP results show a $2.4 million net loss. Adjusted EBITDA is a non-GAAP measure, so it excludes certain costs that appear in the GAAP figures.

The players

Backblaze

A cloud storage company whose B2 Cloud Storage object-storage service competes on price with larger cloud providers, alongside its Computer Backup product.

The details

Backblaze sells cloud object storage, a service that holds files as discrete objects in remote data centers and bills customers for capacity and data transfer. Its B2 product competes on price against larger hyperscale providers, and the company reports two lines: B2 Cloud Storage and Computer Backup, a consumer and small-business backup product. Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization, adjusted to exclude certain items; it is a non-GAAP measure, meaning it is not calculated under standard accounting rules.

Quarter ended September 30, 2026: third-quarter sales of $46.7 million were recorded.
Monday, November 2, 2026: the company raised its 2026 revenue and adjusted EBITDA margin targets.
Fourth quarter 2026: the company projects revenue of $49.8 million to $50.2 million.

The Tech Race

Backblaze's B2 Cloud Storage, growing 47% year over year, is positioned as a lower-cost alternative to large hyperscale cloud platforms in the object-storage market. The company's shift toward B2 and away from Computer Backup places it more directly in competition with those providers for data-center-hosted storage demand.

Customers of B2 Cloud Storage and Computer Backup see no change in product availability or pricing from these results, which report financial performance rather than a new offering. The expansion of B2 suggests continued demand for low-cost cloud storage among businesses and developers, though the company has not announced any pricing changes.

The takeaway

Watch whether Backblaze reports fourth-quarter revenue within its projected range of $49.8 million to $50.2 million, which would confirm the raised 2026 target of $177.8 million to $178.2 million. Its fourth-quarter results will show whether B2 growth holds near the roughly 60% projected at the midpoint.