blze-20250807
0001462056FALSE00014620562025-08-072025-08-07

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 205490

FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

August 7, 2025 (August 1, 2025)
Date of Report (date of earliest event reported)

Backblaze, Inc.
(Exact name of registrant as specified in its charter)

Delaware001-4102620-8893125
(State or other jurisdiction of incorporation or organization)(Commission File Number)(I.R.S. Employer Identification No.)
201 Baldwin Ave., San Mateo, California
94401
(Address of Principal Executive Offices)(Zip Code)
(650) 352-3738
Registrant's telephone number, including area code

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, par value $0.0001 per shareBLZEThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐


Item 1.01 Entry into a Material Definitive Agreement.

In connection with the Repurchase Program described in Item 8.01 below, on August 1, 2025, Backblaze, Inc. (the “Company”) amended its existing credit agreement with Citizens Bank, N.A. to permit the Repurchase Program (the “Credit Agreement Amendment”).

The foregoing description of the Credit Agreement Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Credit Agreement Amendment, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.

Item 2.02 Results of Operations and Financial Condition.

On August 7, 2025, the Company issued a press release announcing its financial results for the quarter ended June 30, 2025. A copy of the press release and supplemental earnings presentation is attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated herein by reference.

This information is intended to be furnished under Item 2.02 and Item 9.01 of Form 8-K, “Results of Operations and Financial Condition” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 8.01 Other Events.

On August 7, 2025, the Company announced that its Board of Directors has approved a stock repurchase program (the “Repurchase Program”), pursuant to which the Company may repurchase from time to time, shares of the Company’s Class A common stock, par value $0.0001 per share, up to an aggregate purchase price of $10 million during the next 12 months.

Repurchases under the Repurchase Program may be made from time to time through open market purchases, in privately negotiated transactions, accelerated share repurchase programs or other derivative transactions, issue self-tender offers or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions, including Rule 10b-18. The timing, value and number of shares repurchased will be determined in the Company's discretion and will be based on various factors, including an evaluation of current and future capital needs, current and forecasted cash flows, the Company's capital structure, cost of capital and prevailing stock prices, general market and economic conditions, applicable legal requirements, and compliance with covenants in our credit facility that may limit share repurchases based on defined leverage ratios. The Repurchase Program does not obligate the Company to purchase a specific number of, or any, shares and may be modified, suspended or terminated at any time without notice at our discretion.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.Description
99.1
99.2
10.1
104Cover Page Interactive Data File (formatted as Inline XBRL)




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date:
August 7, 2025
Backblaze, Inc.
By:/s/ Marc Suidan
Marc Suidan, Chief Financial Officer

Exhibit 10.1
FIRST AMENDMENT TO CREDIT AGREEMENT

    THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is made as of August 1, 2025, by and among BACKBLAZE, INC., a Delaware corporation (“Borrower”) and CITIZENS BANK, N.A. (the “Lender”).

RECITALS

    WHEREAS, Borrower and Lender are parties to that certain Credit Agreement, dated as of June 4, 2025 (as modified, amended and or amended and restated from time to time, the “Credit Agreement”) with respect to certain financial accommodations made available to Borrower by Lender;

    WHEREAS, Borrower has requested that Lender amend the Credit Agreement to make certain revisions to the Credit Agreement as more fully set forth herein; and

    WHEREAS, Lender has agreed to amend certain provisions of the Credit Agreement in accordance with, and subject to the terms and conditions of, this Amendment.

    NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration the sufficiency of which are hereby acknowledged, the parties hereto hereby covenant and agree as follows:

1.Defined Terms. Unless otherwise specified, capitalized terms not defined herein shall bear the same definitions set forth in the Credit Agreement.

2.Amendment of Section 7.8 of the Credit Agreement. Section 7.8 (Restricted Payments) of the Credit Agreement is hereby amended by: (i) replacing the “.” at the end of clause (c) with “;” and (ii) inserting a new clause (d) to reflect the following:

(d)     commencing on August 1, 2025 and continuing through and including August 1, 2026, Borrower may make Restricted Payments consisting of the repurchase of Borrower’s Equity Interests from the holders of such Equity Interests in an aggregate amount not to exceed $10,000,000 (the “Stock Repurchase Transaction”); provided, that (x) Borrower shall fund the Stock Repurchase Transaction solely from proceeds received by Borrower in respect of: (i) employee exercises of options to purchase Borrower’s Equity Interests and (ii) employee purchases of Equity Interests made pursuant to Borrower’s employee stock purchase plan; and (y) no Default or Event of Default exists prior to, or would result after giving effect to, any such Stock Repurchase Transaction.

3.Miscellaneous.

(a)No course of dealing on the part of Lender or its officers, nor any failure or delay in the exercise of any right by Lender, shall operate as a waiver thereof, and any single or partial exercise of any such right shall not preclude any later exercise of any such right. Lender’s failure at any time to require strict performance by Borrower of any provision shall not affect any right of Lender thereafter to demand strict compliance and performance. Any suspension or waiver of a right must be in writing signed by an officer of Lender.

(b)The Credit Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Lender under the Credit Agreement, as in effect prior to the date hereof.

(c)Borrower represents and warrants that the Representations and Warranties contained in the Credit Agreement are true and correct as of the date of this Amendment, and that no Default or Event of Default has occurred and is continuing.

Exhibit 10.1

(d)Section 10.9 (Governing Law; Jurisdiction; Consent to Service of Process) of the Credit Agreement is incorporated herein by this reference as though fully set forth.

4.Conditions Precedent to Amendment. As a condition to the effectiveness of this Amendment, Lender shall have received, in form and substance satisfactory to Lender, this Amendment, duly executed by Borrower.

5.Lender’s Expenses. Borrower shall remit to Lender, within two (2) Business Days of the date of this Amendment, the reasonable fees, disbursements and other charges of counsel to Lender incurred through the date of this Amendment, which may be debited from any of Borrower’s accounts.

6.Counterparts. This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Amendment or any other document required to be delivered hereunder, by fax transmission or e-mail transmission (e.g., “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Amendment. Without limiting the foregoing, upon the request of any party, such fax transmission or e-mail transmission shall be promptly followed by such manually executed counterpart.



[signature pages follow this page]


Exhibit 10.1
IN WITNESS WHEREOF the parties have executed this Amendment as of the date above written.


BORROWER:

BACKBLAZE, INC.

By:
/s/ Marc Suidan
Name: Marc Suidan
Title: Chief Financial Officer


BANK:

CITIZENS BANK, N.A.

By:
/s/ Hugo Valencia
Name: Hugo Valencia
Title: Vice President


































[Signature Page to First Amendment to Credit Agreement]

Exhibit 99.1
Backblaze Announces Strong Second Quarter 2025 Financial Results

29% Revenue Growth in B2 Cloud Storage, 16% Revenue Growth Overall in Q2 2025

San Mateo, CA (August 7, 2025)—Backblaze, Inc. (Nasdaq: BLZE), the cloud storage innovator delivering a modern alternative to traditional cloud providers, today announced results for its second quarter ended June 30, 2025.

“We’re pleased with our continued strong quarterly performance, with B2 revenue growth accelerating from 23% to 29% sequentially and solidifying our journey to be Adjusted Free Cash Flow positive in Q4,” said Gleb Budman, CEO of Backblaze. “We drove innovation with a suite of new cyber security data offerings announced in Q2 and Q3, including AI-powered ‘Anomaly Alerts,’ functionality designed to help customers detect potential suspicious activity. We also signed our first six-figure B2 Overdrive customer in early Q3, just two months after product launch, demonstrating the clear value our solutions bring to AI workloads. Through product innovation, go-to-market transformation, and the power of AI, we are expanding our role as the leading independent cloud storage provider shaping the AI-driven future."

Second Quarter 2025 Financial Highlights:

•Revenue of $36.3 million, an increase of 16% year-over-year (YoY).
•B2 Cloud Storage revenue was $19.8 million, an increase of 29% YoY.
•Computer Backup revenue was $16.5 million, an increase of 4% YoY.
•Gross profit of $23.0 million, or 63% of revenue, compared to $17.2 million, or 55% of revenue, in Q2 2024.
•Adjusted gross profit of $28.8 million, or 79% of revenue, compared to $24.5 million or 78% of revenue in Q2 2024.
•Net loss was $7.1 million compared to a net loss of $10.3 million in Q2 2024.
•Net loss per share was $0.13 compared to a net loss per share of $0.25 in Q2 2024.
•Adjusted EBITDA was $6.6 million, or 18% of revenue, compared to $2.7 million or 9% of revenue in Q2 2024.
•Non-GAAP net income of $0.8 million compared to non-GAAP net loss of $4.8 million in Q2 2024.
•Non-GAAP net income per share of $0.01 compared to a non-GAAP net loss per share of $0.11 in Q2 2024.
•Cash flow from operations during the six months ended June 30, 2025 was $8.5 million, compared to $5.6 million during the six months ended June 30, 2024.
•Adjusted free cash flow during the six months ended June 30, 2025 was $(6.0) million, compared to $(11.6) million in the six months ended June 30, 2024.
•Cash and marketable securities totaled $50.5 million as of June 30, 2025.
1

Second Quarter 2025 Operational Highlights:

•Annual recurring revenue (ARR) was $145.9 million, an increase of 16% YoY.
◦B2 Cloud Storage ARR was $80.7 million, an increase of 29% YoY.
◦Computer Backup ARR was $65.2 million, an increase of 3% YoY.
•Net revenue retention rate (NRR) was 109% compared to 114% in Q2 2024.
◦B2 Cloud Storage NRR was 112% compared to 126% in Q2 2024.
◦Computer Backup NRR was 106% compared to 105% in Q2 2024.
•Gross customer retention rate was 90% in both Q2 2025 and 2024.
◦B2 Cloud Storage gross customer retention rate was 89% in both Q2 2025 and 2024.
◦Computer Backup gross customer retention rate was 90% in both Q2 2025 and 2024.

Recent Business Highlights:

•Scaled an AI Customer to Over Several Million Dollars in ARR in Q2: Demonstrates the B2 platform’s inherent scalability and performance to accommodate customer’s rapid growth.
•Signed First B2 Overdrive Customer in Early Q3: This highlights the strong product-market fit of B2 Overdrive with AI use cases.
•Up-Market Momentum: Customers contributing over $50,000 in ARR grew 53% year over year in Q2.
•Launched a Suite of Enterprise Cyber Security Features in Q2 and Q3: Customers can further safeguard their data with Anomaly Alerts, Enterprise Web Console with role-based access control, and Bucket Access Logs.
•Backblaze B2 Up to 3.2x More Cost-Effective: Commissioned independent analyst firm, Enterprise Strategy Group, found B2 to be dramatically more cost-efficient and easy-to-use compared to alternatives.
•Authorized Cash-Neutral Stock Repurchase Program: Up to $10 million authorized, to be funded by cash proceeds from employee options exercised and purchases under our employee stock purchase plan.
•Secured New $20M Credit Facility: Enhancing financial flexibility and strategic capital access.


Financial Outlook:

Based on information available as of the date of this press release,

For the third quarter of 2025 we expect:
•Revenue between $36.7 million to $37.1 million.
•Adjusted EBITDA margin between 17% to 19%.
•Basic weighted average shares outstanding of 56.9 million to 57.0 million shares.

For full-year 2025 we expect:
•Revenue between $145.0 million to $147.0 million, which was raised from $144.0 million to $146.0 million previously.
•Adjusted EBITDA margin range of 17%-19%.
•For YoY growth in our B2 business, refer to table below:
Q1 2025Q2 2025Q3 2025Q4 2025
Outlook21-23%23 - 25%28-30%
(25-28% prev)		30%+
Actuals23%29%

2

Conference Call Information:

Backblaze will host a conference call today, August 7, 2025, at 5:00 a.m. PT (8:00 a.m. ET) to review its financial results.

Attend the webcast here: https://events.q4inc.com/attendee/666498838

Register to listen by phone here: https://registrations.events/direct/Q4I9661615

Phone registrants will receive dial-in information via email.

An archive of the webcast will be available shortly after its completion on the Investor Relations section of the Backblaze website at https://ir.backblaze.com.

About Backblaze

Backblaze is the cloud storage innovator delivering a modern alternative to traditional cloud providers. We offer high-performance, secure cloud object storage that customers use to develop applications, manage media, secure backups, build AI workflows, protect from ransomware, and more. Backblaze helps businesses break free from the walled gardens that traditional providers lock customers into, enabling customers to use their data in open cloud workflows with the providers they prefer at a fraction of the cost. Headquartered in San Mateo, CA, Backblaze (Nasdaq: BLZE) was founded in 2007 and serves over 500,000 customers in 175 countries around the world. For more information, please go to www.backblaze.com.

Cautionary Note Regarding Forward-looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve risks and uncertainties. These forward-looking statements are frequently identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” or other similar terms or expressions that relate to our future performance, expectations, strategy, plans or intentions, and include statements in the section titled “Financial Outlook.”

Our actual results could differ materially from those stated in or implied by the forward-looking statements in this press release due to a number of factors, including but not limited to: the impact of our go-to-market transformation and ability to attract and retain customers, including increasingly larger customers; the continued growth of data stored by our customers; continued growth of AI related business; realizing the anticipated benefits relating to cost savings initiatives and the re-investment of savings in additional sales capacity; market competition, including competitors that may have greater size, offerings and resources; effectively managing growth and scaling of our platform; ability to offer new features and other offerings on a timely basis, including new enterprise cyber security features, B2 Overdrive offering and geographic expansion in Canada or other jurisdictions, and achieve desired market adoption; disruption in our service or loss of availability of customers’ data; cyberattacks; continued growth consistent with historical levels; the impact of pricing and other product offering changes; material defects or errors in our software; supply chain disruption; ability to maintain existing relationships with partners and to enter into new partnerships; ability to remediate and prevent material weaknesses in our internal controls over financial reporting; hiring and retention of key employees; the impact of changes to global trade and tariff policies, on us or our vendors, partners and customers; war or hostilities, and other significant world or regional events on our business and the business of our customers, vendors, supply chain and partners; litigation and other disputes; third party attempts to generate negative news regarding the Company, regardless of accuracy; availability of additional capital; and general market, political, economic, and business conditions. Further information on these and additional risks, uncertainties, assumptions, and other factors that could cause actual results or outcomes to differ materially from those included in or implied by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in our Quarterly Reports on Form 10-Q and other filings and reports we make with the SEC from time to time.

3


The forward-looking statements made in this release reflect our views as of the date of this press release. We undertake no obligation to update any forward-looking statements in this press release, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

To supplement the financial measures, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we provide investors with non-GAAP financial measures including (i) adjusted gross profit (and margin), (ii) adjusted EBITDA and adjusted EBITDA margin, (iii) non-GAAP net income (loss) and non-GAAP net income (loss) per share, and (iv) adjusted free cash flow and adjusted free cash flow margin. These non-GAAP financial measures exclude certain items and are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. We present these non-GAAP measures because management believes they are a useful measure of our performance and provide an additional basis for assessing our operating results. Please see the appendix attached to this press release for a reconciliation of non-GAAP adjusted gross margin and adjusted EBITDA margin to the most directly comparable GAAP financial measures.

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses and other factors in the future. For example, stock-based compensation expense-related charges are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict with reasonable accuracy and subject to constant change.

Adjusted Gross Profit and Margin

We believe adjusted gross profit (and margin), when taken together with our GAAP financial results, provides a meaningful assessment of our performance and is useful to us for evaluating our ongoing operations and for internal planning and forecasting purposes.

We define adjusted gross profit as gross profit, excluding stock-based compensation expense, depreciation and amortization and restructuring charges within cost of revenue. We define adjusted gross margin as a percentage of adjusted gross profit to revenue. We exclude stock-based compensation, which is a non-cash item, and restructuring charges because we do not consider it indicative of our core operating performance. We exclude depreciation expense of our property and equipment and amortization expense of capitalized internal-use software because these may not reflect current or future cash spending levels to support our business. We believe adjusted gross profit (and margin) provides consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this metric eliminates the effects of depreciation and amortization.

Adjusted EBITDA and Adjusted EBITDA Margin

We define Adjusted EBITDA as net loss adjusted to exclude depreciation and amortization, stock-based compensation, interest expense, investment income, income tax provision, realized and unrealized gains and losses on foreign currency transactions, impairment of long-lived assets, restructuring charges, legal settlement costs, and other non-recurring charges. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenues for the period. We use Adjusted EBITDA and Adjusted EBITDA Margin to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that Adjusted EBITDA and Adjusted EBITDA Margin, when taken together with our GAAP financial results, provide meaningful supplemental information regarding our operating performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. We consider Adjusted EBITDA and Adjusted EBITDA Margin to be important measures because they help illustrate underlying trends in our business and our historical operating performance on a more consistent basis.

4

Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) Per Share

We define non-GAAP net income (loss) as net income adjusted to exclude stock-based compensation, realized and unrealized gains and losses on foreign currency transactions, restructuring charges, legal settlement costs, and other items we deem non-recurring. Non-GAAP net income (loss) per share is defined as non-GAAP net income (loss) divided by basic and diluted weighted average common shares outstanding. We believe that non-GAAP net income (loss) and non-GAAP net income (loss) per share, when taken together with our GAAP financial results, provide meaningful supplemental information regarding our operating performance by excluding certain items that may not be indicative of our business, results of operations, or outlook.

Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin

We believe that Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin are useful metrics for assessing liquidity that provide information to management and investors about the cash generated from our core operations that can be reinvested in the business. However, these measures should not replace cash flows from operations as a liquidity benchmark. One limitation of these metrics is that they do not reflect our future contractual commitments, nor do they capture the overall changes in our cash balance during a specific period. Nonetheless, we believe that Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin are key metrics providing insight into our financial trajectory that helps us make informed decisions as we work towards sustainable positive cash flow.

We define adjusted free cash flow as net cash provided by operating activities less purchases of property and equipment, capitalized internal-use software costs, principal payments on finance leases and lease financing obligations, as reflected in our consolidated statements of cash flows, and excluding payments on restructuring charges, payments on legal settlement costs, and payments on other non-recurring charges. Adjusted free cash flow margin is calculated as adjusted free cash flow divided by revenue.

Key Business Metrics:

Annual Recurring Revenue (ARR)

We define annual recurring revenue (ARR) as the annualized value of all Backblaze B2 and Computer Backup arrangements as of the end of a period. Given the renewable nature of our business, we view ARR as an important indicator of our financial performance and operating results, and we believe it is a useful metric for internal planning and analysis. ARR is calculated based on multiplying the monthly revenue from all Backblaze B2 and Computer Backup arrangements, which represent greater than 98% of our revenue for the periods presented for the last month of a period by 12. Our annual recurring revenue for Computer Backup and B2 Cloud Storage is calculated in the same manner as our overall annual recurring revenue based on the revenue from our Computer Backup and B2 Cloud Storage solutions, respectively.

Net Revenue Retention Rate (NRR)

To calculate the NRR for a specific quarter, we determine the revenue recognized in that quarter from customers who generated revenue during the same quarter of the previous year. This revenue is then divided by the revenue generated in the prior year quarter. Our overall NRR rate is calculated as the average of these quarterly rates over the past four quarters to provide a comprehensive view of revenue trends.

5

Gross Customer Retention Rate
We use gross customer retention rate to measure our ability to retain our customers. Our gross customer retention rate reflects only customer losses and does not reflect the expansion or contraction of revenue we earn from our existing customers. We believe our high gross customer retention rates demonstrate that we provide a vital service to our customers, as the vast majority of our customers tend to continue to use our platform from one period to the next. To calculate our gross customer retention rate, we take the trailing four-quarter average of our quarterly gross customer retention rates. We calculate the quarterly gross customer retention rates by dividing (i) the number of accounts that generated revenue in the last month of the current quarter that also generated recurring revenue during the last month of the corresponding quarter in the prior year, by (ii) the number of accounts that generated recurring revenue during the last month of the corresponding quarter in the prior year.

Investors Contact
Mimi Kong
Sr. Director, Investor Relations and Corporate Development
[email protected]
 
Press Contact
Yev Pusin
Sr. Director, Marketing
[email protected]

6

BACKBLAZE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)

June 30,December 31,
20252024
(unaudited)
Assets
Current assets:
Cash and cash equivalents$32,187 $45,776 
Marketable securities18,354 9,139 
Accounts receivable, net3,240 1,831 
Prepaid expenses3,258 3,458 
Other current assets7,414 5,544 
Total current assets64,453 65,748 
Property and equipment, net49,938 42,949 
Operating lease right-of-use assets, net25,873 15,873 
Capitalized internal-use software, net42,183 41,801 
Other assets3,598 2,187 
Total assets$186,045 $168,558 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable, accrued expenses and other current liabilities$9,164 $9,043 
Finance lease liabilities and lease financing obligations, current15,250 16,327 
Operating lease liabilities, current4,970 4,026 
Deferred revenue, current30,530 30,407 
Total current liabilities59,914 59,803 
Finance lease liabilities and lease financing obligations, non-current19,180 13,142 
Operating lease liabilities, non-current22,197 12,844 
Deferred revenue, non-current and other liabilities, non-current5,112 5,147 
Total liabilities106,403 90,936 
Commitments and contingencies
Stockholders’ Equity
Class A common stock, $0.0001 par value; 113,000,000 shares authorized as of both June 30, 2025 and December 31, 2024; 56,462,752 and 53,375,770 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively.6 5 
Additional paid-in capital292,042 273,602 
Accumulated deficit(212,406)(195,985)
Total stockholders’ equity79,642 77,622 
Total liabilities and stockholders’ equity$186,045 $168,558 
7

BACKBLAZE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share data)

Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(unaudited)
Revenue$36,298 $31,285 $70,911 $61,253 
Cost of revenue13,257 14,056 28,614 28,213 
Gross profit23,041 17,229 42,297 33,040 
Operating expenses:
Research and development11,878 9,589 23,733 19,335 
Sales and marketing10,172 10,991 19,435 21,013 
General and administrative7,708 6,458 14,766 13,011 
Total operating expenses29,758 27,038 57,934 53,359 
Loss from operations(6,717)(9,809)(15,637)(20,319)
Investment income 500 362 1,033 746 
Interest expense(880)(901)(1,733)(1,822)
Loss before provision for income taxes(7,097)(10,348)(16,337)(21,395)
Income tax provision— — 84 6 
Net loss and comprehensive loss$(7,097)$(10,348)$(16,421)$(21,401)
Net loss per share, basic and diluted$(0.13)$(0.25)$(0.30)$(0.52)
Weighted average common shares outstanding, basic and diluted55,627,214 42,151,850 54,835,639 41,188,544 
8

BACKBLAZE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Six Months Ended June 30,
20252024
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss$(16,421)$(21,401)
Adjustments to reconcile net loss to net cash provided by operating activities:
Noncash lease expense on operating leases1,964 1,018 
Depreciation and amortization13,238 13,937 
Impairment loss on right-of-use assets 59 — 
Stock-based compensation
14,663 11,057 
Gain on disposal of assets (248)(6)
Other 407 31 
Changes in operating assets and liabilities:
Accounts receivable(1,409)(1,014)
Prepaid expenses354 87 
Other current assets(1,722)(146)
Other assets(827)(104)
Accounts payable, accrued expenses and other current liabilities441 (1,019)
Deferred revenue and other liabilities, non-current88 3,994 
Operating lease liabilities(2,099)(791)
Net cash provided by operating activities8,488 5,643 
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of marketable securities(28,132)(24,127)
Maturities of marketable securities18,884 26,523 
Proceeds from disposal of property and equipment30 184 
Purchases of property and equipment(1,287)(694)
Capitalized internal-use software costs(4,184)(6,828)
Net cash used in investing activities(14,689)(4,942)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on finance leases and lease financing obligations(9,277)(9,711)
Payment of offering costs(20)— 
Proceeds from debt facility— 554 
Payment of debt issuance costs(554)— 
Principal payments on insurance premium financing— (590)
Proceeds from exercises of stock options1,894 5,012 
Taxes paid for net share settlement of equity awards(819)— 
Proceeds from ESPP1,388 1,359 
Net cash used in financing activities(7,388)(3,376)
Net decrease in cash and cash equivalents and restricted cash(13,589)(2,675)
Cash and cash equivalents and restricted cash, at beginning of period45,776 16,630 
Cash and cash equivalents and restricted cash, at end of period$32,187 $13,955 
RECONCILIATION OF CASH AND RESTRICTED CASH
Cash and cash equivalents$32,187 $9,273 
Restricted cash, non-current— 4,682 
Total cash and cash equivalents and restricted cash$32,187 $13,955 
9

BACKBLAZE, INC.
RECONCILIATION OF GAAP TO NON-GAAP DATA
(in thousands, except percentages)


Adjusted Gross Profit and Adjusted Gross Margin
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(dollars in thousands)
Gross profit$23,041 $17,229 $42,297 $33,040 
Adjustments:
Stock-based compensation432 354 852 740 
Depreciation and amortization5,384 6,879 13,028 13,653 
Restructuring charges
(13)— (13)— 
Adjusted gross profit$28,844 $24,462 $56,164 $47,433 
Gross margin63 %55 %60 %54 %
Adjusted gross margin79 %78 %79 %77 %


Adjusted EBITDA and Adjusted EBITDA Margin
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(dollars in thousands)
Net loss and comprehensive loss$(7,097)$(10,348)$(16,421)$(21,401)
Adjustments:
Depreciation and amortization5,474 7,025 13,238 13,937 
Stock-based compensation7,304 5,528 14,663 11,057 
Interest expense and investment income, net380 539 700 1,076 
Income tax provision— — 84 6 
Foreign exchange loss (gain)(1)
477 (1)626 (19)
Litigation settlement costs
138 — 138 — 
Restructuring charges
(66)— (66)— 
Adjusted EBITDA$6,610 $2,743 $12,962 $4,656 
Adjusted EBITDA margin18%9%18%8%

(1) The Company began including foreign exchange loss (gain) in its reconciliation of net loss to Adjusted EBITDA beginning in the third quarter of 2024. Adjusted EBITDA and Adjusted EBITDA margin for the prior period presented have been updated to conform with current presentation.
10

Adjusted Gross Margin, Adjusted Operating Expenses & Adjusted EBITDA reconciliation
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(dollars in thousands)
Revenue$36,298 $31,285 $70,911 $61,253 
Adjustments:
Adjusted cost of revenue:
Cost of revenue13,257 14,056 28,614 28,213 
Less: Depreciation and amortization(5,384)(6,879)(13,028)(13,653)
Less: Stock-based compensation(432)(354)(852)(740)
Less: Restructuring charges13 — 13 — 
Adjusted cost of revenue7,454 6,823 14,747 13,820 
Adjusted gross margin79 %78 %79 %77 %
Adjusted Operating Expenses:
Research and development11,878 9,589 23,733 19,335 
Less: Depreciation and amortization(41)(67)(99)(131)
Less: Stock-based compensation(3,272)(2,250)(6,739)(4,358)
Less: Restructuring charges34 — 34 — 
Adjusted research and development8,599 7,272 16,929 14,846 
Sales and marketing10,172 10,991 19,435 21,013 
Less: Depreciation and amortization(30)(50)(70)(97)
Less: Stock-based compensation(1,881)(1,762)(3,678)(3,584)
Less: Restructuring charges64 — 64 — 
Adjusted sales and marketing8,325 9,179 15,751 17,332 
General and administrative7,708 6,458 14,766 13,011 
Less: Depreciation and amortization(19)(29)(41)(56)
Less: Stock-based compensation(1,719)(1,162)(3,394)(2,375)
Less: Foreign exchange (loss) gain(477)1 (626)19 
Less: Restructuring charges(45)— (45)— 
Less: Litigation settlement costs(138)— (138)— 
Adjusted general and administrative5,310 5,268 10,522 10,599 
Total Adjusted Operating Expenses(1)
$22,234 $21,719 $43,202 $42,777 
Adjusted EBITDA$6,610 $2,743 $12,962 $4,656 

(1) Adjusted cost of revenue and operating expenses is a non-GAAP financial measure that we define as each respective GAAP expense category excluding stock-based compensation expense, depreciation and amortization, and other non-recurring charges. This measure provides management with greater transparency into the underlying trends in our business by facilitating period-to-period comparisons of our ongoing cost structure, excluding the impact of certain non-cash or non-recurring items that may not be indicative of our operating performance. These measures are intended to assist in forecasting and budgeting by providing greater visibility into our normalized expense base.

11

Non-GAAP Net Income (Loss)
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(in thousands, except share and per share data)
Net loss and comprehensive loss$(7,097)$(10,348)$(16,421)$(21,401)
Adjustments:
Stock-based compensation7,304 5,528 14,663 11,057 
Foreign exchange loss (gain)(1)
477 (1)626 (19)
Non-recurring professional services138 — 138 — 
Restructuring charges
(66)— (66)— 
Non-GAAP net income (loss)$756 $(4,821)$(1,060)$(10,363)
Non-GAAP net income (loss) per share, basic and diluted$0.01 $(0.11)$(0.02)$(0.25)
Weighted average common shares outstanding, basic and diluted55,627,214 42,151,850 54,835,639 41,188,544 

(1) The Company began including foreign exchange loss (gain) in its calculation of Non-GAAP Net Loss beginning in the third quarter of 2024. Non-GAAP Net Loss for the prior period presented has been updated to conform with current presentation.

Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin
Six Months Ended June 30,
20252024
(dollars in thousands)
Net cash provided by operating activities
$8,488 $5,643 
Capital expenditures(1)
(5,471)(7,522)
Principal payments on finance leases and lease financing obligations
(9,277)(9,711)
Litigation settlement costs
12 — 
Payment of restructuring charges230 — 
Adjusted Free Cash Flow$(6,018)$(11,590)
Adjusted Free Cash Flow Margin(8)%(19)%

(1) Capital expenditures are defined as cash used for purchases of property and equipment and capitalized internal-use software costs.


Stock-based Compensation
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(in thousands)
Cost of revenue$432 $354 $852 $740 
Research and development3,272 2,250 6,739 4,358 
Sales and marketing1,881 1,762 3,678 3,584 
General and administrative1,719 1,162 3,394 2,375 
Total stock-based compensation expense$7,304 $5,528 $14,663 $11,057 


12
Backblaze ©2024 Confidential | 1 Q2 2025 Results August 7, 2025 Gleb Budman CEO and Co-Founder Backblaze Marc Suidan CFO

 
Backblaze ©2025 | 2 Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements, which involve risks and uncertainties. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this presentation, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, planned investments and initiatives, prospects, plans, objectives of management and general economic trends and trends in the industry and markets are forward-looking statements. The forward-looking statements are contained principally in the sections entitled. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results to be materially different from any future results expressed or implied by the forward-looking statements. These forward-looking statements reflect our views with respect to future events as of the date of this presentation and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this presentation. Non-GAAP Financial Measures To supplement the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use non-GAAP Adjusted Gross Margin, Adjusted EBITDA Margin and Adjusted Free Cash Flow. These non-GAAP financial measures exclude certain items and are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. We present these non-GAAP measures because management believes they are a useful measure of the Company’s performance and provides an additional basis for assessing our operating results. Please see the Appendix attached to this presentation for a reconciliation of non-GAAP Adjusted Gross Margin, non-GAAP Net Income, Adjusted EBITDA Margin, non-GAAP Operating Expenses and Adjusted Free Cash Flow to the most directly comparable GAAP financial measures. Important Information About This Presentation

 
Backblaze ©2025 | 3 Our Mission We make it astonishingly easy to store, use, and protect data.

 
Backblaze ©2025 | 4 ● AI opportunity fueling growth ● Accelerated B2 growth to 29% ● Launched high performance offering and cyber-security products in Q3 Key Highlights NOTES: Financial data is based on unaudited financial data. 29% growth of B2 Cloud Storage is based on comparison of B2 revenue in Q2 of 2025 compared to B2 revenue in Q2 of 2024, and reflects an acceleration of growth based on the increase in growth rate compared to the B2 Cloud Storage revenue growth rate of 23% in Q1 of 2025 (as compared to Q1 of 2024).

 
Backblaze ©2025 | 5 NOTES: Results based on an independent third-party economic validation report titled "Economic Validation: Analyzing the Economic Benefits of Backblaze B2 Cloud Storage" conducted by Informa TechTarget's Enterprise Strategy Group that was commissioned by Backblaze. Delivering Significant Customer Value

 
Backblaze ©2025 | 6 Launched a Suite of Cyber Security Features Anomaly Alerts ● Data exfiltration & ransomware protection ● AI driven solution Enterprise Web Console ● Role-based access controls ● Zero Trust principles Bucket Access Logs ● Granular data usage and access visibility ● Detailed data operation tracking

 
Backblaze ©2025 | 7 Go-to-Market Transformation Initiatives Execute Core Sales Plays Proof Points ● B2 growth accelerated to 29% ● 4th qtr in a row highlighting 7 figure wins ● 150 $50k+ ARR customers, up 30% y/y Upskill the Sales Team Deepen Partnerships NOTES: Financial data is based on unaudited financial data. 29% growth of B2 Cloud Storage is based on comparison of B2 revenue in Q2 of 2025 compared to B2 revenue in Q2 of 2024. 150 $50k+ ARR customers reflects the number of customers with an Annual Recurring Revenue (ARR) calculated to be above $50,000 on an annualized basis. The number of customers with ARR above $50,000 is up 30% as of Q2 2025 compared to Q2 2024. See appendix for definition of ARR (Annual Recurring Revenue). The “4th qtr in a row highlighting 7 figure wins” refers to the highlighting of at least one customer in each of the last 4 consecutive quarters with the revenue opportunity of $1 million or more based on total contract value, or revenue forecasted on an annualized basis.

 
Backblaze ©2025 | 8 B2 Overdrive Customer Win ● Six-figure deal ● Hyperscaler displacement ● Exceeded performance expectations Generative AI Video Company “Backblaze B2 Overdrive delivered the speed and flexibility we needed—with unlimited egress and real human support. The performance and cost savings were clear.” - Head of AI NOTES: “Six-figure deal” refers to the expected revenue based total contract value for this customer, which is expected to exceed “six figures” (ie, above $100,000) of revenue on an annualized basis.

 
Backblaze ©2025 | 9 ● 3 of Top 10 Customers are AI companies ● 40x growth in data stored by AI customers y/y ● 70% increase in AI customer count y/y AI Momentum Driving Growth NOTES: Financial data is based on unaudited financial information. “AI customer” determination is based on customer account emails with an ‘.ai’ designation or the customer has disclosed that its use of Backblaze cloud storage is primarily for an AI use case. Data reflects top 10 customers by revenue in Q2 of 2025, and comparisons of customer count and data stored for AI customers in Q2 of 2025 compared to Q2 of 2024.

 
Backblaze ©2025 | 10 Financial Overview Marc Suidan CFO

 
Backblaze ©2025 | 11 ● Double Beat ○ B2 revenue up 29% y/y ○ Adjusted EBITDA doubled over LY ● Secured new $20M line of credit ● Approved cash neutral stock buyback program Key Financial Highlights NOTES: Financial data is based on unaudited financial information. Double beat reflects results for revenue, including B2 revenue growth rate, and adjusted EBITDA margin for the quarter ended June 30, 2025 exceeded the top end of the Company’s guidance previously issued for such quarter on May 7, 2025. The Adjusted EBITDA margin for Q2 of 2025 also doubled compared to Q1 of 2024. As previously announced, on June 4, 2025, the Company entered into a new credit agreement with Citizens Bank, which provides for a senior secured revolving credit facility of up to $20 million, subject to customers covenants, restrictions and other terms. On August 7, 2025, the Company announced a stock buyback program of up to $10 million over the next 12 months. The stock buyback program is anticipated to be “cash neutral” because it will be funded solely by cash generated from employee stock option exercises and purchases under the Company’s Employee Stock Purchase Plan.

 
Backblaze ©2025 | 12 Financial Transformation Over the Past Year 🗹 Current Ratio > 1 🗹 Secondary Offering 🗹 New Line of Credit I. Solidify Balance Sheet 🗹 Transition to Adj. FCF from Adj. EBITDA 🗹 Zero-Based Budgeting (ZBB) II. Sustainable Profitability 🗹 Two consecutive quarters of accelerated B2 Revenue Growth III. Accelerate Growth Positive Adj. FCF in Q4’25 30%+ B2 Growth in Q4’25 Delivered Target Reduce equity dilution by 15 to 25% NOTES: “Current Ratio” refers to the ratio of current assets divided by current liabilities as of June 30, 2025 and is unaudited financial data. “Reduce equity dilution by 15 to 25%” refers to the Company’s expectation that various measures, including the impact from the stock buyback program, net share settlements, and transitioning for annual employee bonuses to be paid out in cash in lieu of shares, will reduce equity dilution by 15 to 25% over approximately the next 12 months. Two consecutive quarters of accelerated B2 Revenue Growth refers to the growth rate of B2 Cloud Storage in each of Q2 2025 and Q1 2025 compared to the same respective period one year earlier.

 
Backblaze ©2025 | 13 Path to 30%+ B2 growth 22% 23% 29% 28-30% 30%+ NOTES: See next slide for definitions of above referenced categories of revenue drivers.

 
Backblaze ©2025 | 14 Revenue Drivers Defined Net Organic Growth: Organic data growth less data contraction Direct Cross-sell/Upsell: Direct Sales led upsell of existing customers New Self-serve: PLG led new logo acquisition New Direct Sales: Direct Sales led new logo acquisition

 
Backblaze ©2025 | 15 Beating B2 Growth Targets Q1’25 Q2’25 Q3’25E Q4’25E Outlook 21-23% 23-25% 28-30% (25-28% Prev.) 30%+ Actuals 23% 29% NOTES: The above financial information is based on unaudited financial data and the Company’s outlook for future periods. It reflects the revenue growth of B2 Cloud Storage for the referenced periods compared to the same quarter one year earlier. For the outlook for Q3’25E, it also reflects an increase in the proposed range of revenue growth for B2 Cloud Storage from the previously announced outlook. The forward-looking statements reflect our views with respect to future events as of the date of this presentation and are based on assumptions and subject to risks and uncertainties, and actual results may differ materially.

 
Backblaze ©2025 | 16 Financial and Operational Q2 Highlights Revenue ($M) Y/Y Growth NRR Gross Customer Retention B2 Cloud Storage $19.8 29% 112% 89% Computer Backup $16.5 4% 106% 90% Total Company $36.3 16% 109% 90% NOTES: All financial information is as of June 30, 2025, with year-over-year revenue comparisons to the same period as of June 30, 2024, and are based on unaudited financial information. For the periods presented, Physical Media revenue has been consolidated into B2 Cloud Storage or Computer Backup revenue based on the underlying offering from which it originates; previously Physical Media revenue was disclosed separately. NRR (Net Revenue Retention) and Gross Customer Retention are defined in the appendix.

 
Backblaze ©2025 | 17 On The Path to Positive Adj. Free Cash Flow (4%) (11%) Adj. EBITDA Margin NOTES: Adjusted EBITDA and Adjusted Free Cash Flow margins are shown for the years ending December 31, 2021, 2022, 2023, 2024 are based on audited financial data, and 1H 2025 is based on unaudited financial data. The estimated Q4 2025E Adjusted EBITDA and Adjusted Free Cash Flow margins are forward-looking statements and reflect our views with respect to future events as of the date of this presentation and are based on assumptions and subject to risks and uncertainties, and actual results may differ materially. Please refer to the definitions of Adjusted EBITDA margins and Adjusted Free Cash Flow in the Appendix. A reconciliation of non-generally accepted accounting principles (GAAP) guidance measures to corresponding GAAP measures for historical results is provided in the Appendix to this presentation. A reconciliation for estimated future results is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of expenses and other factors in the future. 5% IPO 2021 2022 2023 Adj. Free Cash Flow Margin 2024 IPO 2021 2022 2023 2024 (54%) (42%) (29%) Q4 2025E 20%+ Q4 2025E 10% (16%) 1H 2025 18% 1H 2025 (8%)

 
Backblaze ©2025 | 18 Stock Buyback Program ● Up to $10 million approved ● Funded with proceeds from stock options exercised and Employee Stock Purchase Plan ● 12 month window Summary of Terms Reduce equity dilution trajectory Cash neutral NOTES: On August 7, 2025, the Company announced a stock buyback program of up to $10 million over the next 12 months. The stock buyback program is anticipated to be “cash neutral” because it will be funded solely by cash generated from employee stock option exercises and purchases under the Company’s Employee Stock Purchase Plan.

 
Backblaze ©2025 | 19 Q3’25 and Full Year Guidance Q3’25 $ 36.7 to $37.1 FY 2025 - Raised $145 to $147 (prev $144 to $146) Q3’25 17% to 19% FY 2025 17% to 19% NOTES: The above financial information guidance for Q2 of 2025 and fiscal year 2025 are forward-looking statements. For the revenue outlook for FY 2025, it also reflects an increase in the proposed range of total Company revenue from the previously announced outlook. These forward-looking statements reflect our views with respect to future events as of the date of this presentation and are based on assumptions and subject to risks and uncertainties, and actual results may differ materially. A reconciliation of non-generally accepted accounting principles (GAAP) guidance measures to corresponding GAAP measures for Adjusted EBITDA Margin is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of expenses and other factors in the future. Revenue ($M) Adj. EBITDA Margin

 
Backblaze ©2025 | 20 Q&A

 
Backblaze ©2025 | 21 Thank You!

 
Backblaze ©2025 | 22 Appendix

 
Backblaze ©2025 | 23 ● “ARR” means Annual Recurring Revenue and is based on the monthly revenue from all B2 Cloud Storage and Computer Backup arrangements (excluding revenue for Physical Media) for the last month of a period and multiplying it by 12. Our annual recurring revenue for each of Computer Backup and B2 Cloud Storage is calculated in the same manner as our overall annual recurring revenue based on the revenue from our Computer Backup and B2 Cloud Storage solutions, respectively. ● “Gross Customer Retention” is used to measure our ability to retain our customers and is based on the trailing four-quarter average of the percentage of cohort of customers who were active at the end of the quarter in the prior year that are still active at the end of the current quarter. We calculate our gross customer retention rate for a quarter by dividing (i) the number of accounts that generated revenue in the last month of the current quarter that also generated recurring revenue during the last month of the corresponding quarter in the prior year, by (ii) the number of accounts that generated recurring revenue during the last month of the corresponding quarter in the prior year. ● “NRR” means Net Revenue Retention and is based on a trailing four-quarter average of the recurring revenue from a cohort of customers in a quarter as compared to the same period in the prior year. Our net revenue retention rate for each of Computer Backup and B2 Cloud Storage is calculated in the same manner as our overall net revenue retention rate based on the revenue from our Computer Backup and B2 Cloud Storage solutions, respectively. ● “Customer” means a customer at the end of any period as a distinct end user, as identified by a unique account identifier, which makes up substantially all of our user base.In Q4 2023, we refined our customer definition to include end-user customers that purchase through a reseller. This resulted in no impact to previously reported metrics other than a 1% decrease to the 120% NRR metric reported for Q3 2023. Definitions

 
Backblaze ©2025 | 24 ● Adjusted EBITDA is defined as net loss adjusted to exclude depreciation and amortization, stock-based compensation, interest expense, investment income, income tax provision, realized and unrealized gains and losses on foreign currency transactions, impairment of long-lived assets, and other non-recurring charges. We use adjusted EBITDA to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that adjusted EBITDA, when taken together with our GAAP financial results, provides meaningful supplemental information regarding our operating performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. We consider adjusted EBITDA to be an important measure because it helps illustrate underlying trends in our business and our historical operating performance on a more consistent basis. ● Adjusted Free Cash Flow We define adjusted free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment, capitalized internal-use software costs, principal payments on finance leases and lease financing obligations, as reflected in our consolidated statements of cash flows, and excluding restructuring costs, legal settlement costs, and other non-recurring charges. ● Non-GAAP Net Income (Loss) We define non-GAAP net income (loss) as net income adjusted to exclude stock-based compensation and other items we deem non-recurring. We believe that non-GAAP net income (loss), when taken together with our GAAP financial results, provides meaningful supplemental information regarding our operating performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. ● Adjusted Gross Profit (and Margin) We define adjusted gross margin as gross profit, exclusive of stock-based compensation expense, depreciation expense of our property and equipment, and amortization expense of capitalized internal-use software included within cost of revenue, as a percentage of adjusted gross profit to revenue. We exclude stock-based compensation, which is a non-cash item, because we do not consider it indicative of our core operating performance. We exclude depreciation expense of our property and equipment and amortization expense of capitalized internal-use software, because these may not reflect current or future cash spending levels to support our business. We believe adjusted gross margin provides consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this metric eliminates the effects of depreciation and amortization Definitions

 
Backblaze ©2025 | 25 Reconciliation of Non-GAAP Measures: Adjusted Gross Margin Adjusted Gross Profit Q2’25 Q2’24 Gross Profit $23.041 $17.229 Gross Margin 63% 55% Adjustments for Cost of Revenue: Stock Based Compensation 0.432 0.354 Depreciation and Amortization 5.384 6.879 Restructuring Charges (0.013) — Adjusted Gross Profit $28.844 $24.462 Adjusted Gross Margin 79% 78% Dollars in Millions

 
Backblaze ©2025 | 26 Reconciliation of Non-GAAP Measures: Non-GAAP Net Income (Loss) Q2’25 Q2’24 Net Loss $(7.097) $(10.348) Net Loss Margin -20% -33% Adjustments: Total Stock Based Compensation 7.304 5.528 Foreign Exchange loss (gain) 0.477 (0.001) Litigation settlement costs 0.138 — Restructuring Charges (0.066) — Non-GAAP Net Income (Loss) $0.756 $(4.821) Non-GAAP Net Income Margin 2% -15% Non-GAAP Diluted Shares 55.627 42.152 Non-GAAP Net Loss per Diluted Share $0.01 $(0.11) Dollars and Shares in Millions

 
Backblaze ©2025 | 27 Reconciliation of Non-GAAP Measures: Adjusted EBITDA Q2’25 Q2’24 Net Loss $(7.097) $(10.348) Net Loss Margin -20% -33% Adjustments: Total depreciation & amortization 5.474 7.025 Total stock based compensation 7.304 5.528 Interest expense and investment income 0.380 0.539 Litigation settlement costs 0.138 — Foreign exchange loss (gain) 0.477 (0.001) Restructuring charges (0.066) — Adjusted EBITDA $6.610 $2.743 Adjusted EBITDA Margin 18% 9% Dollars in Millions

 
Backblaze ©2025 | 28 Reconciliation of Non-GAAP Measures: Adjusted Free Cash Flow Q2’25 Q2’24 Net Cash Provided by (Used In) Operating Activities $3.545 $2.227 Capital Expenditures (2.845) (3.776) Principal Payments on Finance Leases and Lease Financing Obligations (4.734) (4.909) Litigation settlement costs 0.012 — Cash payments for workforce reduction and severance charges .115 — Adjusted Free Cash Flow ($3.907) ($6.458) Adjusted Free Cash Flow Margin -11% -21% Dollars in Millions