Backblaze Stock Surges 35% After Hours: B2 Cloud Revenue Jumps 47%

Backblaze stock surged after hours on Monday, November 2, 2026, after the cloud storage company beat earnings estimates, grew B2 Cloud Storage revenue 47%, and raised its full-year revenue outlook. Shares closed the regular session down 2.5% at $7.40, then climbed 25% to $9.25 in early after-hours trading tracked by Chartmill, and later rose 35% to $10 in Dow Jones reporting — one of the biggest post-earnings moves of the evening.

What happened

Backblaze reported third-quarter revenue of $46.7 million, up 26% from a year earlier and above the roughly $44.6 million analysts expected. That beat powered the stock higher even though the company still posted a small net loss for the quarter.

The growth came almost entirely from one segment. B2 Cloud Storage revenue was $30.5 million, an increase of 47% year over year, while Computer Backup revenue was $16.2 million, down 2%. In other words, Backblaze is increasingly an AI-era cloud storage business, and its older consumer backup business is no longer the growth engine.

On earnings, the numbers beat on both a GAAP and an adjusted basis. GAAP net loss per share narrowed to $0.04 from $0.07 a year earlier, beating estimates by $0.04. Non-GAAP earnings were $0.09 per share, beating the Zacks consensus of $0.04 and delivering what Zacks called a +125% earnings surprise. Revenue also beat the Zacks estimate by 4.54%.

Why the stock is blowing up

The headline beat was only part of the story. Investors reacted most to the raised outlook and to improving profitability. Backblaze lifted full-year 2026 revenue guidance to between $177.8 million and $178.2 million, up from $172.0 million to $174.0 million previously. It also raised its adjusted EBITDA margin outlook to 30% to 31%, from 27% to 29%.

Profitability in the quarter itself moved sharply. Gross profit was $29.8 million, or 64% of revenue, up from 62% a year earlier. Adjusted EBITDA was $15.2 million, or 33% of revenue, compared with $8.4 million, or 23%, in the same quarter last year. The net loss narrowed to $2.4 million from $3.8 million, and non-GAAP net income rose to $6.7 million from $1.9 million.

Management tied the B2 acceleration directly to AI demand. Chief executive Gleb Budman said B2 revenue growth accelerated to 47%, up from 28% a year ago, with a record number of net new self-serve customers — four times as many as in the same period last year. The number of customers contributing more than $50,000 each in annual recurring revenue grew 57% to 254, and the company signed four large agreements, including a $4 million AI builder expansion.

Key facts

• Stock move: Closed at $7.40, down 2.5% in the regular session; up 25% to $9.25 in early after-hours trading and later reported up 35% to $10.
• Revenue: $46.7 million, up 26% year over year, beating estimates of about $44.6 million.
• B2 Cloud Storage: $30.5 million, up 47%; annual recurring revenue for B2 was $126.8 million, up 53%.
• Computer Backup: $16.2 million, down 2% year over year.
• Loss and profit measures: Net loss narrowed to $2.4 million, or $0.04 per share; adjusted EBITDA rose to $15.2 million, 33% of revenue.
• Guidance: Fourth-quarter revenue expected between $49.8 million and $50.2 million; full-year revenue guidance raised to $177.8 million to $178.2 million.
• Balance sheet move: The company completed a $201 million convertible notes offering and held $230.2 million in cash, equivalents and marketable securities at September 30.

What to watch next

The next test is whether B2 growth can stay near this pace. Annual recurring revenue overall was $190.7 million, up 29%, and B2 net revenue retention was 115%, meaning existing B2 customers are spending more over time. Computer Backup retention was weaker at 94%, so the company needs cloud growth to keep outrunning the backup decline.

Investors will also watch whether the higher margin guidance holds in the fourth quarter, when Backblaze expects an adjusted EBITDA margin of 32% to 34%.

After-hours moves in a small-cap stock can fade, and Backblaze remains loss-making on a GAAP basis. Tuesday's session will show how much of the gain holds. This report describes what happened; it is not a recommendation to buy, sell or hold any security.

Sources

Backblaze Q3 2026 results — Business Wire | Stocks to Watch — Morningstar / Dow Jones Newswires | Backblaze Q3 earnings top estimates — Zacks | Backblaze GAAP EPS and revenue beat — Seeking Alpha | After-hours gainers and losers, Nov. 2 — Chartmill

FAQ

Why did Backblaze stock surge after hours?

Backblaze beat revenue and earnings estimates, grew B2 Cloud Storage revenue 47%, and raised its full-year revenue and margin outlook, sending shares up 25% to 35% after the close.

What were Backblaze's Q3 2026 results?

Revenue was $46.7 million, up 26% year over year, with a net loss of $2.4 million, or $0.04 per share, and adjusted EBITDA of $15.2 million.

What guidance did Backblaze raise?

It raised full-year 2026 revenue guidance to $177.8 million to $178.2 million and its adjusted EBITDA margin outlook to 30% to 31%.

What drove B2 Cloud Storage growth?

Management cited broad-based customer momentum and AI workloads, including a record number of new self-serve customers and four large agreements, one a $4 million AI builder expansion.