Backblaze Q1 2026 earnings snapshot

Backblaze (BLZE) has just updated investors with Q1 2026 results against a backdrop where trailing 12 month revenue sits at about US$145.8 million and the company remains loss making, with basic EPS of US$0.46 loss on this basis as of Q4 2025. Over recent quarters, the company has seen quarterly revenue move from US$33.8 million in Q4 2024 to US$37.8 million in Q4 2025. Basic EPS shifted from a loss of US$0.30 per share to a loss of US$0.09 per share across the same periods, setting up this latest update as a check in on whether margins are starting to stabilize or still compressing.

See our full analysis for Backblaze.

With the headline numbers on the table, the next step is to see how this earnings trend lines up with the widely followed Backblaze narratives, and where the story investors tell about the company may need updating.

Losses narrow but profitability still distant

• On a trailing 12 month basis, Backblaze reported total revenue of about US$145.8 million and a net loss of about US$25.6 million, compared with a Q4 2025 quarterly net loss of US$5.4 million on revenue of US$37.8 million.
• Consensus narrative highlights surging AI storage demand and products like B2 Overdrive as potential margin drivers. However, the trailing 12 month loss and recent quarterly losses mean any path toward the consensus view of higher long term earnings still depends on closing that roughly US$25.6 million earnings gap and sustaining revenue at or above the current US$145.8 million run rate.
  • Analysts in that consensus framework discuss a future scenario where earnings could reach around US$15.6 million, which is a very different picture from the current trailing loss, so readers need to weigh how quickly that shift could realistically occur against the present figures.
  • The current revenue base near US$145.8 million is the platform that would need to support those higher earnings expectations, so monitoring whether it stays at least in this range is critical when comparing actual results to the consensus story.

Premium P/S multiple with ongoing losses

• The stock trades on a trailing P/S of about 3.1x while still loss making, compared with about 1.7x for the broader US IT industry and 1.8x for peers, and the trailing 12 month loss sits at roughly US$25.6 million.
• Bears argue that paying a 3.1x P/S multiple for a company with multi year losses that have grown about 13% annually is hard to justify, and the current financials give them clear talking points.
  • The pattern of losses over the last five years, combined with a trailing net loss of about US$25.6 million and no expectation of profitability within three years in the provided data, fits the cautious view that profitability remains a key execution risk.
  • When that loss profile is set against a premium P/S multiple versus industry and peers, skeptics see little margin of safety if revenue or margins soften from the current trailing revenue level around US$145.8 million.

Skeptics warn that paying a premium sales multiple while losses persist could backfire if execution slips, so it helps to see exactly how the cautious analysts frame that downside case before deciding how much risk you are comfortable with. 🐻 Backblaze Bear Case

Volatile share price and no identified rewards

• The share price sits at US$7.59, with the stock described as highly volatile over the past three months, and the recent risk review did not flag any specific rewards in the trailing 12 month data to offset that volatility.
• Bullish investors point to strong AI driven storage demand and large enterprise deals as a reason this volatility could be worth tolerating, but the current data also show no forecasted profitability in the next three years, which keeps the bullish story heavily reliant on future execution rather than present day cash generation.
  • The bullish view references rapid growth in AI customers and large contracts, yet the last twelve months still add up to a loss of about US$25.6 million, so the benefits of those AI deals are not yet visible in bottom line results.
  • With no explicit rewards identified in the recent risk review and a share price that has swung sharply in a short period, readers weighing the bullish case may want to be very clear about their tolerance for swings around that US$7.59 level while waiting for any financial improvement to show up.

If you want to see how the more optimistic investors connect AI driven growth to these current numbers, it is worth reading their full argument next. 🐂 Backblaze Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Backblaze on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With mixed views running through this update, it makes sense to look at the figures yourself and decide how comfortable you are with the risk profile. To help frame that risk picture quickly, start with the 3 important warning signs.

See What Else Is Out There

Backblaze carries ongoing losses of about US$25.6 million, trades on a premium 3.1x P/S multiple, and shows no identified rewards to balance recent volatility.

If that mix of losses, premium pricing, and sharp share price swings feels uncomfortable, it is worth checking out 72 resilient stocks with low risk scores that focus on steadier companies with lower risk profiles and potentially smoother rides.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.