Backblaze Reports Strong Q4 2025 Results, Achieves Positive Adjusted Free Cash Flow, and Secures Record Neocloud Deal

summarizeSummary

Backblaze reported strong Q4 and full-year 2025 results, achieving positive adjusted free cash flow for the first time since its IPO and securing a record eight-figure neocloud agreement, alongside significant profitability improvements.

check_boxKey Events

• Achieved Positive Adjusted Free Cash Flow

  Backblaze reported adjusted free cash flow of $4.1 million in Q4 2025, a significant improvement from a negative $4.5 million in Q4 2024, marking the first positive adjusted free cash flow quarter since the company went public.

• Secured Record Neocloud Agreement

  The company closed its first eight-figure Total Contract Value (TCV) neocloud agreement, exceeding $15 million, positioning Backblaze as a key storage layer for next-generation AI compute platforms.

• Strong Profitability Improvement

  Net loss significantly narrowed to $5.4 million in Q4 2025 from $14.4 million in Q4 2024. Adjusted EBITDA more than doubled to $10.4 million (28% margin) from $4.6 million (14% margin) year-over-year, and non-GAAP net income turned positive at $3.5 million.

• Solid Revenue Growth, Driven by B2 Cloud Storage

  Total revenue increased 12% year-over-year to $37.8 million in Q4 2025. B2 Cloud Storage revenue grew 24% year-over-year to $21.3 million, while Computer Backup revenue remained flat.

auto_awesomeAnalysis

Backblaze, Inc. delivered a strong fourth quarter and full-year 2025 performance, highlighted by significant improvements in profitability and a landmark business win. The company achieved positive adjusted free cash flow in Q4 2025 for the first time since its IPO, a critical milestone demonstrating enhanced financial sustainability. This was coupled with a substantial reduction in net loss and a swing to non-GAAP net income. Operationally, Backblaze secured its largest agreement to date, an eight-figure TCV neocloud deal (exceeding $15 million), and launched its B2 Neo solution, signaling strong momentum in the high-growth AI and neocloud markets. While the net revenue retention rate saw a slight decrease, the overall growth in B2 Cloud Storage revenue and Annual Recurring Revenue, alongside improved gross customer retention and ARPU, indicates a healthy underlying business trajectory. The company's improved Rule of 40 score further underscores its balanced approach to growth and profitability. Investors should monitor the execution of the new neocloud deals and the continued expansion of B2 Cloud Storage.