Backblaze, Inc. — Cyborg Score 7/10

Strong
Cloud Storage & Data Infrastructure

Strategic Profile

Backblaze reported Q4 2025 revenue of $37.8M with 24% B2 growth, a 28% adjusted EBITDA margin and positive adjusted free cash flow, with 2026 guidance calling for higher revenue and 19–21% adjusted EBITDA margins. The company is progressing toward becoming a Rule of 40 company, with infrastructure that scales with discipline and a capital-efficient model allowing pursuit of the massive AI-driven opportunity while maintaining financial discipline and building a durable self-funding business.

Cyborg Score Rationale

Backblaze achieved its first ever positive adjusted free cash flow quarter and posted improved profitability, with adjusted EBITDA margin reaching 28%. AI-focused customers grew 75% with usage expanding three times faster than average, with B2 Neo launched and initial adoption including several six-, seven-, and eight-figure deals. However, the computer backup business is expected to decline 5% year-over-year, creating a mixed growth picture.

Top Insights

  • Company closed its first eight-figure TCV neocloud agreement in Q4 with the launch of B2 Neo, demonstrating strength of the storage cloud platform and progress moving upmarket.
  • AI-focused customers grew 75% with usage expanding approximately three times faster than the average customer base.
  • Capital position strong with $51 million in cash and marketable securities at end of Q4 with no anticipated need to raise additional capital under current plans.
  • Backblaze recognized as a Leader in G2's Winter 2026 Report, earning over 15 badges across object storage and storage management categories.

Named Competitors

  • Amazon S3 — Cloud object storage from hyperscale provider
  • Microsoft Azure Blob Storage — Enterprise cloud storage solution
  • Google Cloud Storage — Hyperscale cloud storage platform

Recent Developments

  • (February 2026) Q4 2025 earnings: Achieved first positive adjusted free cash flow quarter with 28% EBITDA margin
  • (February 2026) Closed first eight-figure TCV neocloud deal; launched B2 Neo storage offering
  • (February 2026) AI customer base grew 75% with three times faster usage expansion vs. average customers
  • (February 2026) Recognized as G2 Leader with 15+ awards for ROI, support, adoption and ease of use

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