Corporate Paralegal

Backblaze has priced a $175 million offering of convertible senior notes due 2031, up from the previously announced $150 million. The storage platform company granted initial purchasers an option to buy an additional $26.25 million in notes. The sale is expected to close on 24 August 2026. The notes carry a 0% interest rate and can be converted at an initial price of approximately $21.94 per share, representing a 30% premium over Backblaze's 19 August closing price of $16.88. The company estimates net proceeds of approximately $167.2 million after fees. Backblaze will use about $15.2 million for capped call transactions to reduce potential dilution from note conversions. The remainder will fund general corporate purposes, including capital expenditures. The notes mature on 15 August 2031.

Backblaze stocks hit 55-month high, CoreWeave deal drives 50% surge. 2026-08-04 07:09:54 Key Takeaways * Backblaze Inc. stock soared nearly 50% in Tuesday's opening trade after reporting Q2 earnings per share of $0.08 on $42.7 million revenue. * Backblaze reported B2 Cloud Storage revenue of $26.6 million, up 34% year-on-year, driven by the $335 million CoreWeave strategic agreement. * Backblaze raised its full-year 2026 revenue forecast to $172 million-$174 million, with CoreWeave contract minimum commitments expected by mid-2027. Shares of Backblaze Inc. (BLZE) soared nearly 50% in Tuesday's opening trade, hitting their highest levels in about 55 months after the cloud storage company reported second-quarter (Q2) earnings per share of $0.08 on revenue of $42.7 million, exceeding Wall Street expectations of $0.02 on $39.9 million. The strong performance was driven by a $335 million strategic agreement with CoreWeave Inc. (CRWV) and rising AI demand for data-intensive workloads. The Q2 results prompted multiple Wall Street analysts to raise their price targets on BLZE stock, with Oppenheimer lifting its target to $25 from $15, Lake Street to $21 from $14, and Citizens to $21 from $16, all maintaining positive ratings. AI infrastructure spending and growing enterprise customer traction are fueling momentum in the cloud storage sector as companies seek scalable, cost-effective solutions for AI workloads. Oppenheimer raises BLZE price target to $25 on CoreWeave deal strength. Oppenheimer analyst Ittai Kidron raised his price target on Backblaze to $25 from $15 while maintaining an 'Outperform' rating, saying B2 cloud storage revenue came in well ahead of expectations. Kidron attributed the strong quarter to rising AI demand, improving traction with larger enterprise customers and Backblaze's largest-ever deal with CoreWeave. The analyst said those factors underscore the company's positioning as AI infrastructure spending continues to expand, with the CoreWeave agreement serving as a key contributor to the quarter's outperformance. Lake Street lifts price target to $21 citing CoreWeave revenue ramp. Lake Street raised its price target on Backblaze to $21 from $14 while maintaining a 'Buy' rating, saying revenue from the CoreWeave partnership is expected to build gradually through 2026 because of data transfer limits and the time required to onboard managed services. The firm expects the contract's minimum revenue commitments to "fully kick in" by mid-2027, prompting it to raise its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) estimates for both 2026 and 2027. Lake Street said the phased ramp supports stronger profitability over the next two years as the CoreWeave relationship matures. Citizens raises price target to $21 on broad-based business momentum. Citizens analyst Rustam Kanga raised his price target on Backblaze to $21 from $16, while reiterating an 'Outperform' rating. The analyst pointed to the company's higher full-year outlook, citing broad-based business strength rather than a single growth driver. According to Citizens, strong sales execution, resilient customer retention, growing AI-related demand and the CoreWeave contract support Backblaze's growth outlook, with the raised guidance reinforcing confidence in the company's momentum. Backblaze CEO Gleb Budman reports Q2 EPS of $0.08 on $42.7M revenue. Backblaze co-founder and CEO Gleb Budman called Q2 "an amazing quarter" after the company exceeded the high end of its revenue and adjusted EBITDA guidance. The company reported earnings per share (EPS) of $0.08 on revenue of $42.7 million, while Wall Street expected an EPS of $0.02 on revenue of $39.9 million, according to Fiscal.ai data. Backblaze stated that its B2 Cloud Storage revenue climbed 34% year-on-year to $26.6 million, driven by growing demand for AI and data-intensive workloads. Budman highlighted the company's recently announced $335 million strategic agreement with CoreWeave as validation of Backblaze's role in the AI infrastructure stack, saying AI workloads require scalable, cost-effective storage where the company is "built to win." Backblaze also raised its full-year 2026 outlook, increasing its revenue forecast to $172 million-$174 million from $161.5 million-$163.5 million, compared to Wall Street estimates of $164.2 million. Retail sentiment on BLZE stock reaches extremely bullish levels. Retail sentiment on Stocktwits around Backblaze trended in the 'extremely bullish' territory with message volumes at 'extremely high' levels. BLZE stock is up 398% year-to-date and 349% over the past 12 months. The iShares Russell 2000 Growth ETF (IWO) is up 31% over the past 12 months, while the iShares Micro-Cap ETF (IWC) is up 49%. Faq. What did Backblaze report for Q2 earnings? Backblaze reported Q2 earnings per share of $0.08 on revenue of $42.7 million, exceeding Wall Street expectations of $0.02 on $39.9 million. B2 Cloud Storage revenue climbed 34% year-on-year to $26.6 million. Why did BLZE stock surge nearly 50% in Tuesday's opening trade? BLZE stock surged after the company reported stronger-than-expected Q2 results and announced a $335 million strategic agreement with CoreWeave Inc. Analysts attributed the performance to rising AI demand, improving traction with larger enterprise customers, and the CoreWeave deal. What price targets did analysts set for Backblaze stock? Oppenheimer raised its price target to $25 from $15 with an 'Outperform' rating. Lake Street raised its target to $21 from $14 with a 'Buy' rating. Citizens raised its target to $21 from $16 with an 'Outperform' rating. Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.

Growth accelerates at Backblaze. Chris Mellor STORAGE EDITOR Blocks & Files editor Published tue 4 Aug 2026 // 14:21 UTC Backblaze increased revenues Y/Y in its second 2026 quarter by 18 percent as growth accelerated, with its full year outlook raised to an almost 19 percent growth, as providing cloud storage for AI-generated data resonated with neocloud and other AI factory type customers. Revenues of $47.2 million beat its high-end $40.2 million outlook and there was a GAAP net loss of -$5.1 million, better than the year-ago $7.1 million loss and the previous quarter's $6.1 million loss. The company has two business units. B2 Cloud Storage pulled in $22.4 million, up 34% Y/Y while fading star Computer Backup revenues declined 2.2 percent to $16.14 million. Co-founder and CEO Gleb Budman said: "Q2 was an amazing quarter for Backblaze. We exceeded the high end of our revenue and Adjusted EBITDA guidance, with B2 growth accelerating to 34 percent year over year. We also signed a $335 million strategic agreement with CoreWeave offering the strongest validation yet of our critical role in the AI infrastructure stack. AI workloads need a capacity storage layer that can scale to exabytes, while delivering performance at attractive economics. That is where Backblaze is built to win." Backblaze software and people are embedded in CoreWeave data centers in a managed storage aspect of the deal, with a 70/30 split, 30 being the managed services. Suidan said: "The managed storage portion of the CoreWeave agreement is delivered on customer-owned hardware." Budman amplified the point: "The way that it works is they provide us the data center space. They provide us how much storage they would like. We provide the build materials. They buy the equipment. They hand it to us, it's actually our people in that part of the data center, which is cordoned off for our purposes. It's our people racking, stacking, managing with our software, that part of the storage stack. CoreWeave will have multiple parts of their storage stack. We'll have the part that we're managing. They will own the equipment, we will have the people." Backblaze is offering similar managed storage deals to other customers. These support sovereign cloud requirements and are capital-light from Backblaze's point of view. Backblaze has issued share purchase warrants at a fixed price to CoreWeave so that CoreWeave can get a potential equity profit if their partnership is a success and Backblaze stock price rises. Suidan said: "The warrants reflect the strategic and mutually beneficial nature of the relationship and align both companies around the long-term success of the agreement." Budman said: "CoreWeave is now the fourth major AI cloud infrastructure company to contract with Backblaze. We're in conversations with many of the leading other ones." He reckons that, as AI scales, data grows, and as AI companies mature, storage efficiency matters. They can't keep all their data on flash. Financial summary * Gross margin: 63 percent vs year-ago 63 percent * Operating cash flow: $10.4 million vs $3.4 million last quarter and year-ago $3.6 million * Adjusted free cash flow: $3.2 million vs last quarter's -$1.8 million and year-ago -$3.9 million * Cash, cash equivalents, and marketable securities: $50.0 million vs last quarter's $45.5 million CFO Marc Suidan said the quarter's results "represented our strongest growth in six quarters." A new CRO and go-to-marke team are having positive results. The company is moving up-market and growth indicators are accelerating. The large customer count, ones with >$50,000 ARR, shot up from 187 last quarter to 235, a 25.7 percent Q/Q rise and a 57 percent Y/Y increase. There were 4 wins in the quarter for $500,000 ARR deals. A chart showing quarterly B2 Cloud Storage and Computer Backup revenues shows them markedly diverging. The company increased its prices in May but hasn't seen an adverse effect with Suidan saying: "We anticipated some churn. We really haven't seen any churn. In fact, what we've seen is an acceleration of people signing up... It's broad-based, the general business health. We're seeing really healthy acceleration." The Q3 revenue outlook is $44.6 million +/- $200K, up 19 pertcent Y/Y at the mid-point, and the full year outlook has been raised a second time, from last quarter's $162 million +/- $1 million to $172 million +/- $1 million, an 18.7% increase Y/Y. Growth could accelerate. Suidan said signed commitments enable the B2 revenue growth outlook to be >40 percent in 2027.