Key Highlights from the Quarterly Report

• Quarterly Period Ended: March 31, 2026
• Company Status: Emerging Growth Company, not a large accelerated filer, not a smaller reporting company, and not a shell company
• Commission File Number: 001-41026
• Exchange: The Stock Market LLC

Financial Performance and Balance Sheet Overview

• Total Assets: \$191.8 million as of March 31, 2026, up from \$187.8 million at year-end 2025
• Cash and Cash Equivalents: \$29.2 million
• Stockholders’ Equity: \$84.6 million (down from \$83.2 million at December 31, 2025)
• Net Loss: \$(9.3) million for Q1 2026, compared to \$(9.3) million for Q1 2025
• Net Loss Per Share, Basic and Diluted: \$(0.10) for Q1 2026, widened compared to \$(0.17) for Q1 2025
• Weighted Average Shares Outstanding: 54.06 million (basic and diluted)

Revenue and Expenses

• Research and Development Expenses: \$11.3 million for Q1 2026, up from \$10.2 million in Q1 2025
• Investment Income: \$404,000
• Interest Expense: Not specifically highlighted, but included in operating loss
• Operating Loss: \$(8.8) million

Shareholder Activity and Equity Changes

• Common Stock Issuance: 129,084 shares issued upon exercise of stock options; 697,648 shares issued for share-based compensation
• Restricted Stock Awards: 689,790 shares issued net of forfeitures; \$2.59 million value
• Treasury Stock: Company acquired 189,229 shares at a cost of \$809,000, bringing total treasury stock to 445,778 shares
• Share Registration Offering Costs: \$89,000 deducted from additional paid-in capital

Forward-Looking Statements and Risks

The company cautions investors that forward-looking statements in the report are subject to numerous risks and uncertainties, including but not limited to:

• Ability to attract new customers and retain/expand platform usage by existing customers
• Effectively managing growth and obtaining returns on investments in sales, marketing, and R&D
• Maintaining competitive advantages and expanding partner ecosystem
• Security and privacy of customer data
• Attraction and retention of qualified employees and key personnel
• Defending against litigation
• Impact of pandemics, inflation, war, hostilities, and disruptive events
• Prevention of material weaknesses in internal financial controls

The company stresses that actual results may differ materially from those expressed or implied in forward-looking statements, particularly given the rapidly changing competitive environment and the emergence of new risks.

Potential Price-Sensitive Items for Shareholders

• Continued Operating Losses: The company remains unprofitable, posting a net loss of \$9.3 million for the quarter. This ongoing loss could pressure the share price, especially if investors had expected a path to profitability.
• Rising R&D Expenses: Increased investment in R&D may signal aggressive product development efforts but also contributes to continued losses.
• Treasury Stock Activity: Significant repurchase of shares (treasury stock) may indicate management’s view of undervaluation, but also reduces cash reserves.
• Share-Based Compensation: Large issuance of shares for compensation may dilute existing shareholders’ interests.

Investors should closely monitor Backblaze’s ability to control expenses, return to profitability, defend its market position, and manage risks related to the macroeconomic environment and internal controls.

Conclusion

Backblaze’s Q1 2026 report signals ongoing challenges with profitability, increased investment in growth, and risk factors that could materially impact future results. Shareholders should be aware of the continued losses, increased R&D spending, and treasury stock activity as key price-sensitive issues. No material improvement in profitability or revenue trends is noted for this quarter, which may influence share value negatively unless strategic initiatives yield returns.