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BackBlaze BLZE is slated to report third-quarter 2025 results on Nov. 6.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $36.95 million, indicating an increase of 13.37% year over year.
The consensus mark for loss is pegged at a penny per share, which is a 90% improvement from the year-ago quarter’s reported loss of 10 cents. The estimate has remained unchanged over the past 30days.
In the last reported quarter, the company delivered an earnings surprise of 9.09%. The company’s earnings beat the Zacks Consensus Estimate all the trailing four quarters, the average positive surprise being 51.02%.
Backblaze, Inc. price-eps-surprise | Backblaze, Inc. Quote
Our proven model does not conclusively predict an earnings beat for Backblaze this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
BLZE has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Backblaze entered the third quarter of 2025 with solid operational momentum, driven by continued strength in its B2 Cloud Storage business and strategic progress on its go-to-market transformation. The company exited the prior quarter with B2 revenue up 29% year over year and expects third-quarter revenue between $36.7 million and $37.1 million, with adjusted EBITDA margins of 17-19%. These targets reflect confidence in sustaining 30%-plus annual growth in the B2 segment by year-end.
Through the quarter, Backblaze’s pipeline expansion, marked by a doubling in qualified opportunities year over year, has been a key growth driver. Early in the third quarter, BLZE added its first six-figure B2 Overdrive customer, a generative AI video firm, suggesting the product’s fit for high-throughput AI workloads. The AI segment’s relevance is expected to have deepened, building on the 70% increase in AI customer count and a 40x surge in data stored by AI clients in the previous quarter. Complementing this, the launch of enterprise-focused security tools like AI-powered Anomaly Alerts, an Enterprise Web Console with role-based access and Bucket Access Logs, has positioned the company to strengthen retention and appeal to larger enterprises.
However, challenges are expected to have persisted in the Computer Backup segment, which has been experiencing a low-to-mid single-digit quarterly decline during the second half of 2025. Competitive pressures from established players like Dropbox DBX in the backup and collaboration space, Datadog DDOG in cloud monitoring and data infrastructure and Snowflake SNOW in the data cloud and AI storage market have intensified as these larger rivals leverage their substantial resources and established enterprise relationships to compete for market share.
The Zacks Consensus Estimate for third-quarter 2025 B2 Cloud Storage revenues is pegged at $20.9 million, indicating 29.17% growth from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for Computer Backup revenues is pegged at $16.05 million, suggesting a decline of 2.2% from the figure reported in the previous year quarter.
Backblaze has experienced a remarkable 72.9% surge year to date (YTD), outperforming the Zacks Internet-Software industry and Zacks Computer and Technology sector's return of 14.6% and 29.1%, respectively.
In comparison, Snowflake has climbed 79.5%, Datadog has appreciated 13.4% and Dropbox has declined 1.1%.
Currently, BLZE is trading at 3.58X forward 12-month price-to-sales, below the industry average of 5.34X. Datadog stands at 14.75X, Dropbox at 3.24X and Snowflake at 17.45X, positioning Backblaze as one of the most attractively valued cloud storage and data infrastructure stocks on a forward sales basis. The discount reflects Backblaze’s smaller scale and early-stage upmarket transition but offers meaningful upside if B2 momentum and margin gains hold.
Backblaze enters its third-quarter report with sustained momentum in its high-growth B2 Cloud Storage business and rising relevance in AI workloads, supported by new enterprise security features and expanding large-deal traction. The doubling of its sales pipeline and steady margin improvement reflect meaningful progress in execution and positioning within the cloud infrastructure space. However, much of this optimism may already be priced in after the stock’s sharp year-to-date rally. The continued decline in Computer Backup revenues and intensifying competition from larger peers like Dropbox, Datadog and Snowflake could temper near-term gains.
Backblaze’s fundamentals are strengthening, underpinned by expanding B2 adoption, disciplined execution and a clear path toward profitability. However, given the sharp year-to-date rally and mounting competition in the cloud and AI infrastructure space, near-term upside appears limited. Existing investors can hold positions to benefit from continued operational progress, while prospective investors may consider waiting for a more attractive entry point or confirmation of sustained growth momentum beyond the third-quarter results.
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This article originally published on Zacks Investment Research (zacks.com).
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