Needham Reiterates Buy on Backblaze, Trims Price Target to $8 After Q3 Print

Backblaze, Inc. (NASDAQ:BLZE) is one of the small-cap tech stocks on Wall Street's radar.

On November 6, 2025, Needham maintained its Buy rating on Backblaze and cut its 12-month price target to $8. However, we could not find any commentary accompnying the price-target update.

The same day, Backblaze reported Q3 2025 results. The company's Q3 worked because mix and scale finally lined up. B2 Cloud Storage jumped 28% to $20.7M while Computer Backup stayed flat, so growth came from the higher-velocity product. That shift, plus pricing and utilization, lifted gross margin to 62% from 55% and pushed adjusted EBITDA margin near 23%, with the net loss shrinking sharply. ARR rose 13% to $147.2M, led by B2 at $81.8M. The one caution sign: expansion slowed, with NRR easing to 106% from 118%, so upsell is less forceful than last year. Guidance keeps the bet on B2 momentum into Q4.

Backblaze, Inc. (NASDAQ:BLZE) is an independent cloud storage platform best known for B2 object storage and Computer Backup. The company says it serves over 500,000 customers in 175 countries and emphasizes S3-compatible, price-predictable storage for AI and data-heavy workloads.

While we acknowledge the potential of BLZE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.