Backblaze (BLZE) Stock Jumps As Q3 Earnings Cement AI Margin Gains

Backblaze came into this print as a high‑growth cloud storage story with a bruised share price, down sharply over the past month and quarter. Then Q3 2026 landed and the script flipped. The stock jumped 13.2% to US$8.38 after management reported about US$47 million in revenue and an adjusted EBITDA margin of roughly 33%.

That one day surge suggests investors are paying closer attention to profitability momentum, even though the business still reports a GAAP net loss. The gap between long‑running skepticism and the latest margin trajectory is now a key question for you to weigh.

Impressed by Backblaze’s revenue scale and EBITDA margin but uneasy about the ongoing GAAP losses and share price swings? You may want to benchmark this setup against our screener of sturdier balance sheet stories in the same ballpark through the list of solid balance sheet and fundamentals stocks (24 results).

Q3 2026 Earnings Summary

• Revenue (Q3 2026 vs. Q3 2025): US$46.654 million vs. US$37.162 million (up about 25.6%)
• Net Loss (Q3 2026 vs. Q3 2025): US$2.364 million loss vs. US$3.778 million loss (loss narrowed by about 37.4%)
• Basic EPS (Q3 2026 vs. Q3 2025): US$0.037802 loss per share vs. US$0.066306 loss per share (loss per share improved by about 43%)
• Adjusted EBITDA Margin (Q3 2026 vs. Q3 2025): about 33% vs. about 23% (expanded by roughly 10 percentage points)

Backblaze just ramped CapEx to chase AI demand. Ask Charlie what makes Backblaze’s AI storage deals different this quarter.

Backblaze Q3 Shows AI Buildout Milestones Arriving

The bullish script on Backblaze hinges on AI contracts and capital spending translating into visible, long duration demand rather than just big promises.

"Backblaze is supplying HDD based capacity storage to a growing group of AI infrastructure providers that now extends well beyond the three hyperscalers."

Q3 gives real proof points. Multi year deals with CoreWeave and a large NeoCloud are now shipping hardware ahead of schedule, and one NeoCloud began loading data earlier than planned. B2 ARR reached US$127m with 53% year on year growth and 115% net revenue retention. Four contracts above US$500,000 ARR and raised 2026 guidance indicate that those AI storage commitments are moving from thesis to execution.

One Narrative disagrees with today's price. → See where this Narrative says Backblaze should trade.

Backblaze Bear Case: Concentration Risk Still On Watch

The cautious view claims Backblaze is hitching too much of its future to a handful of AI buyers.

"Bearish analysts expect Backblaze to become increasingly dependent on a concentrated group of large AI and neocloud customers, which could amplify revenue volatility and margin pressure if any of these contracts slow or reset."

Q3 progress cuts against the idea of immediate contract stress. CoreWeave and a large NeoCloud are ramping ahead of plan, and one NeoCloud began loading data early. ARR from customers above US$50,000 reached US$50 million, and there were four deals above US$500,000 ARR. The risk is not gone, though, since those same multi year deployments still anchor much of the forward CapEx and earnings path.

Hunt For Mispriced AI Demand

Backblaze just linked a sharper margin profile with concrete AI storage contracts landing ahead of schedule. The real opportunity is finding stocks that could be undervalued before the market corrects them.

• Company 1 - 49% below our estimate - uses intensive AI infrastructure investment to deepen personalized ads, business messaging and early AI agents across its large user and advertiser base.
• Company 2 - 47% below our estimate - sells NAND controllers and storage solutions supporting enterprise, automotive and hyperscaler grade flash deployments in expanding AI and data workloads.
• Company 3 - 23% below our estimate - builds power and communications systems contractors depend on to keep hyperscale data center construction schedules aligned with intensive AI infrastructure rollouts.

Those are three of them. See every one of the 34 undervalued companies on it →

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