Backblaze delivered an outstanding second quarter in 2026, exceeding financial projections with accelerated growth in its B2 Cloud Storage division. A pivotal multi-year agreement with CoreWeave, valued at $335 million, marked a historic milestone for the company. This strong performance underscores Backblaze's effective strategy in capitalizing on the burgeoning AI market, reflected in increased revenue guidance and improved adjusted EBITDA margins for the full year. The company's focus on high-value customers and innovative storage solutions positions it favorably for sustained expansion in the dynamic cloud infrastructure landscape.
The second quarter of 2026 proved to be a period of significant achievement for Backblaze. Revenue soared to $42.7 million, exceeding the higher end of their guidance by $2.5 million. Furthermore, the adjusted EBITDA margin reached an impressive 30%, surpassing expectations by 700 basis points. The B2 Cloud Storage sector, a key driver of this success, witnessed a remarkable 34% year-over-year growth, representing its strongest performance in six quarters. This acceleration is largely attributed to a strategic emphasis on catering to the demands of AI infrastructure and enterprise clients.
A cornerstone of this quarter's success was the monumental multi-year contract inked with CoreWeave, a prominent AI cloud infrastructure provider. This agreement, valued at $335 million, stands as the largest in Backblaze's history, solidifying its role as a crucial capacity tier for AI workloads. The partnership not only validates Backblaze's technological prowess but also introduces a capital-light managed storage service model. This innovative approach allows clients to utilize Backblaze's software on their own hardware, effectively addressing regional and sovereign cloud requirements without necessitating direct capital expenditures from Backblaze.
Beyond the CoreWeave deal, Backblaze demonstrated broad-based momentum across various market segments. The company significantly expanded its base of high-value customers, those contributing over $50,000 in annual recurring revenue (ARR), which surged by 57% year-over-year to 235 accounts. This growth highlights Backblaze's successful penetration into the enterprise sector and its ability to secure larger, longer-duration commitments. The B2 Cloud Storage ARR also reached $113.3 million, marking a substantial 39% increase from the previous year. Even a May 1st price adjustment for B2 services, which management had anticipated might lead to customer attrition, instead resulted in higher average revenue per new signup, further demonstrating the product's value and market acceptance.
Looking forward, Backblaze has revised its full-year 2026 revenue guidance upwards to a range of $172 million to $174 million, a significant increase from the prior $161.5 million to $163.5 million. The adjusted EBITDA margin guidance has also been raised to 27% to 29%, reflecting enhanced operational efficiency and increased visibility into contracted demand. For 2027, the company anticipates B2 revenue growth to exceed 40% year-over-year, driven by existing contracts and the robust fundamentals of its B2 business. Backblaze's strategic investments in research and development, alongside its commitment to expanding its developer ecosystem through initiatives like the TypeScript SDK and generative media hackathons, are poised to further strengthen its position as a leading storage solution for the evolving AI landscape.
The company's strong financial performance in the second quarter of 2026, highlighted by record revenue and improved profitability, firmly establishes its position as a key enabler of the rapidly expanding AI industry. Strategic partnerships, robust customer acquisition, and innovative service models underscore its capacity for continued efficient growth.
