Backblaze, Inc. (BLZE) SEC Filings & Earnings Calls

Increased leverage and potential dilution from convertible notes; credit agreement amendments may impose additional covenants.

“Creation of direct financial obligation; fourth and fifth amendments to credit agreement with Citizens Bank”

Increased leverage from convertible note issuance may pressure future cash flows.

“$150M convertible notes due 2031; new fixed charge coverage ratio covenant”

Computer Backup revenue declining 2% YoY and NRR at 94% indicates potential headwinds in legacy segment.

“Computer Backup revenue $16.1M (-2% YoY); NRR 94% vs 99% prior year.”

Dependence on large AI customers for growth; concentration risk if AI demand softens.

“CoreWeave deal represents $335M of $396M RPO; ARR from $50k+ customers grew 67%.”

Customer concentration risk

“We expect our business to become substantially dependent on a limited number of customers, and our business could be harmed if a large customer fails to perform or does not renew or expand its relationship with us.” · word for word

Profitability risk

“We have a history of cumulative losses, and we do not expect to be profitable for the foreseeable future.” · word for word

Data center capacity risk

“If we underestimate the data center capacity needed to address increases in volume usage, or there is not enough capacity at the data centers at commercially acceptable rates, or at all, we may be unable to increase our data center capacity in an expedient and cost-effective manner” · word for word

Cybersecurity risk

“cybersecurity attacks evolve rapidly and are expected to continue to accelerate in both frequency and sophistication” · word for word

AI-related cost risk

“Our increasing use of AI tools, including large language model APIs and related infrastructure, exposes us to growing and potentially unpredictable costs.” · word for word

Potential increase in leverage from capital leases

“Permits up to $150M in capital leases, increasing debt obligations”

Potential dilution from warrant exercise

“Warrants for up to 4,194,876 shares at $7.60 per share”

Revenue dependency on single customer

“CoreWeave contract represents significant portion of estimated future revenue”

History of cumulative losses and no near-term profitability

“We have a history of cumulative losses, and we do not expect to be profitable for the foreseeable future.” · word for word

Intense competition from larger players (AWS, Google Cloud, Azure)

“The markets in which we operate are highly competitive, with relatively low barriers to entry for certain applications and services. Some of our competitors include cloud-based services such as those offered by Amazon.com, Inc. through Amazon Web Services, Alphabet Inc. through Google Cloud Platform, and Microsoft Corporation through Azure” · word for word

Data center capacity constraints and cost increases

“The competition for data center space, infrastructure and equipment has intensified significantly, particularly due to increased demand from AI and other compute-intensive workloads.” · word for word

Customer concentration risk from large AI/neocloud customers

“As we continue to target larger enterprise, neocloud, and AI-focused customers, our revenue may become increasingly concentrated among a smaller number of large customers, which could expose us to greater revenue volatility and outsized risk from the loss or significant reduction in usage by any single customer.” · word for word

Cybersecurity and data breach risks

“If our internal or external information technology systems, including the data of our customers stored in our systems, are breached or subject to cybersecurity attacks, our reputation and business may be harmed.” · word for word

Computer Backup segment flat; NRR declining

“Computer Backup revenue relatively flat; NRR 103% vs 105% prior year”

History of cumulative losses and no near-term profitability

“We have a history of cumulative losses, and we do not expect to be profitable for the foreseeable future.”

Intense competition from larger players (AWS, Google Cloud, Azure)

“The markets in which we operate are highly competitive, with relatively low barriers to entry for certain applications and services. Some of our competitors include cloud-based services such as those offered by Amazon.com, Inc. through Amazon Web Services, Alphabet Inc. through Google Cloud Platform, and Microsoft Corporation through Azure”

Data center capacity constraints and cost increases

“The competition for data center space, infrastructure and equipment has intensified significantly, particularly due to increased demand from AI and other compute-intensive workloads.”

Customer concentration risk from large AI/neocloud customers

“As we continue to target larger enterprise, neocloud, and AI-focused customers, our revenue may become increasingly concentrated among a smaller number of large customers, which could expose us to greater revenue volatility and outsized risk from the loss or significant reduction in usage by any single customer.”

Cybersecurity and data breach risks

“If our internal or external information technology systems, including the data of our customers stored in our systems, are breached or subject to cybersecurity attacks, our reputation and business may be harmed.”

Data Center Capacity Constraint

“The competition for data center space, infrastructure and equipment has intensified significantly, particularly due to increased demand from AI and other compute-intensive workloads.” · word for word

Cybersecurity Breach

“If our information technology systems, including the data of our customers stored in our systems, are breached or subject to cybersecurity attacks, our reputation and business may be harmed.” · word for word

Intense Competition

“The markets in which we participate are intensely competitive, and if we do not compete effectively, our operating results would be harmed.” · word for word

History of Losses

“We have a history of cumulative losses, and we do not expect to be profitable for the foreseeable future.” · word for word

Computer Backup segment flat; adjusted free cash flow still negative

“Computer Backup revenue flat; adjusted free cash flow $(5.4) million for FY2025”

Restructuring execution risk: $4.4-6.0M charges may impact near-term profitability and employee morale.

“The Company expects to incur total charges of approximately $4.4 million to $6.0 million, primarily in the fourth quarter of 2025.” · word for word

Computer Backup segment stagnation: flat revenue and ARR indicates mature product with limited growth.

“Computer Backup revenue was $16.5 million, flat YoY. Computer Backup ARR was $65.4 million, flat YoY.” · word for word

Declining net revenue retention: NRR dropped from 118% to 106% YoY, indicating slower expansion within existing customers.

“Net revenue retention rate (NRR) was 106% compared to 118% in Q3 2024.” · word for word

Free cash flow still negative: adjusted free cash flow YTD is -$9.5M, though improving from -$15.6M.

“Adjusted free cash flow during the nine months ended September 30, 2025 was $(9.5) million.” · word for word

Data Center Capacity Constraint

“The competition for data center space, infrastructure and equipment has intensified significantly, particularly due to increased demand from AI and other compute-intensive workloads.” · word for word

EU Data Act Compliance

“In September 2025, the EU Data Act imposes new requirements on cloud service providers, including enhanced data portability, interoperability, customer switching rights and early termination rights, as well as restrictions on data transfer and access by non-EU authorities.” · word for word

History of Losses

“We have a history of cumulative losses, and we do not expect to be profitable for the foreseeable future.” · word for word