Exploring Backblaze, Inc. (BLZE) Investor Profile: Who’s Buying and Why?

You've seen Backblaze, Inc. (BLZE) post some interesting numbers lately-Q3 2025 revenue hit a solid $37.2 million, and the high-growth B2 Cloud Storage Annual Recurring Revenue (ARR) jumped 26% to $81.8 million, which defintely gets my attention. But as a seasoned investor, you know the real story isn't just the financials; it's who is buying, and why they're betting on a cloud storage player that's not Amazon or Microsoft. The ownership structure is fascinating: retail investors hold a commanding 51% of the stock, but institutions still own a significant 39%, with giants like BlackRock, Inc. leading the pack at about 6.4% of shares outstanding. So, are the institutions chasing the company's full-year revenue guidance of up to $146.0 million, or are they focused on the improved profitability, like the $8.4 million in Adjusted EBITDA this quarter? We need to look past the headlines and figure out if the big money is buying the B2 cloud growth story or just trading the improved margins-what's your next move in this crowded cloud market?

Who Invests in Backblaze, Inc. (BLZE) and Why?

You're looking at Backblaze, Inc. (BLZE) and trying to figure out who's driving the stock's ownership structure and what their endgame is. The direct takeaway is that this is a stock with an unusual and powerful dynamic: a large retail base holds the majority, but institutional giants are key anchor investors, all motivated by the company's clear path to profitability driven by its high-growth B2 Cloud Storage segment.

This ownership structure is a bit defintely different for a publicly traded tech company. Retail investors-the general public-hold the largest slice of the pie, controlling approximately 51% of the shares outstanding as of November 2025. This gives individual investors a significant collective voice, which can influence decisions around governance or potential acquisitions. Institutional investors, including mutual funds and hedge funds, own about 39% of the stock, providing a crucial layer of professional validation and stability.

Investment Motivations: The Path to Profitability

Investors are primarily attracted to Backblaze, Inc. not for dividends-it pays none, as is typical for a growth-focused tech company-but for the twin catalysts of high-growth potential and a clear, near-term path to profitability. The investment thesis centers on the B2 Cloud Storage product, which is the company's engine for future value.

The numbers from the Q3 2025 earnings report show why this is compelling. B2 Cloud Storage revenue jumped 28% year-over-year to $20.7 million, driving the total Annual Recurring Revenue (ARR) up 13% to $147.2 million. This growth is fueled by the product's competitive pricing, which is often nearly one-fifth the cost of comparable offerings from hyperscalers like Amazon S3, and its positioning as a simple, S3-compatible storage solution for AI and data-heavy workloads.

Here's the quick math on the shift: Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) hit $8.4 million in Q3 2025, or 23% of revenue, a huge jump from $3.7 million (or 12% of revenue) in Q3 2024. This margin expansion is a huge signal to the market. The company is now projecting to be free-cash-flow (FCF) positive in the fourth quarter of 2025, a critical milestone for a small-cap growth stock. You can dive deeper into the operational efficiency driving these results in Breaking Down Backblaze, Inc. (BLZE) Financial Health: Key Insights for Investors.

Strategies: Long-Term Anchors Meet Active Traders

The investor base employs a few distinct strategies. The presence of passive investment giants like Vanguard Group Inc. and BlackRock, Inc. means a significant portion of the stock is held in long-term, passive funds that track indices like the Russell 2000. They are long-term holders by mandate. Their position is a vote of confidence in the company's long-term viability and index inclusion.

On the other side, the hedge funds, which hold about 5.4% of the stock, are typically more active. They are looking for medium-term catalysts-like the successful transition to FCF positivity or a significant new B2 partnership-to drive a quick appreciation in share price.

• Passive/Long-Term Holding: Driven by index funds from firms like Vanguard and BlackRock, Inc..
• Growth Investing: Focused on the B2 Cloud Storage growth rate of 28% and the expanding gross margin of 62% in Q3 2025.
• Value/Catalyst Investing: Hedge funds and active managers see the stock as undervalued, betting on the improved profitability metrics and the potential for a takeover given its compelling market niche.

What this estimate hides is the volatility that comes with such high retail ownership. Retail investors are often more sensitive to short-term news and sentiment, which can lead to sharper price swings. Still, the underlying story is solid: they are all betting on the company's ability to continue converting B2 Cloud Storage growth into real profitability. The next concrete step is to watch the Q4 2025 report closely for confirmation of that FCF positive milestone.

Institutional Ownership and Major Shareholders of Backblaze, Inc. (BLZE)

You're looking at Backblaze, Inc. (BLZE) and wondering who the big players are and what their moves mean for the stock. The direct takeaway is that while institutional ownership has been increasing, retail investors still hold the majority stake, which is a unique dynamic for a publicly traded cloud storage company.

As of late 2025, institutional investors hold a significant, but not controlling, portion of the company's shares, totaling approximately 29,960,552 shares. This represents about 39% of the total stock. The fact that professional money managers are accumulating shares suggests a growing belief in the long-term cloud storage thesis, but the outsized 51% ownership by retail investors means the stock can be subject to different volatility drivers than a typical institutionally-dominated company.

Top Institutional Investors and Their Shareholdings

The institutional investor landscape for Backblaze, Inc. is anchored by some of the largest asset managers in the world, which lends the stock a degree of credibility among professional investors. BlackRock, Inc. is currently the single largest institutional shareholder, holding 6.4% of the shares outstanding. This is a substantial position, especially for a smaller-cap company.

The presence of major index fund providers like Vanguard Group Inc and iShares is expected, as Backblaze, Inc. is included in various indices, but their individual holdings are still quite large. Here's a quick look at the top institutional holders and their recent reported share counts:

What this table hides is the passive versus active management split. Firms like Vanguard and iShares are mostly passive index trackers, buying based on the fund's mandate, but others like First Eagle Investment Management LLC are active, which makes their positioning more of a direct investment call.

Changes in Ownership: Are Stakes Increasing or Decreasing?

The near-term trend in institutional ownership for Backblaze, Inc. is one of accumulation. Institutional shares (Long) increased by 4.32% in the most recent reporting quarter leading up to November 2025. This is a clear signal that professional money is flowing into the stock.

Specific examples from the 2025 fiscal year show this buying activity:

• First Eagle Investment Management LLC boosted its stake by 8.6% in the second quarter of 2025, acquiring an additional 92,000 shares.
• Bank of New York Mellon Corp increased its holdings by 5.3% in the first quarter.
• XTX Topco Ltd grew its position by 11.9% during the first quarter of 2025.

This accumulation trend is defintely a positive sign. It suggests that as the company continues to report strong results-like the Q2 2025 revenue of $36.3 million and a surprise positive earnings per share (EPS) of $0.01-institutional investors are increasingly willing to pay the price for a piece of the action. You can see more on the underlying business performance in Breaking Down Backblaze, Inc. (BLZE) Financial Health: Key Insights for Investors.

Impact of Institutional Investors on Stock and Strategy

Institutional investors play a dual role: they provide liquidity and validate the company's business model, but they also exert influence. The presence of 246 institutional owners holding a combined value of approximately $174,720 thousand USD in shares (Long) as of a recent report gives Backblaze, Inc. a solid foundation. This institutional backing provides a degree of stability, but if a few large holders decide to sell simultaneously, you could see a sharp price drop.

Their impact on strategy is also felt. Large, active shareholders often engage with management on capital allocation, governance, and long-term strategic direction. A key example of this alignment is Backblaze, Inc.'s adoption of a stock ownership policy in August 2025, requiring executives and directors to hold a material amount of company equity. This move directly aligns the leadership's financial interests with those of the shareholders, a common demand from institutional owners seeking better governance.

The unique factor here is the high retail ownership at 51%. This means the stock price is also highly sensitive to general market sentiment and news flow that influences individual investors, sometimes leading to more volatile price swings than a stock where institutions dominate the float. For you, this means watching both institutional accumulation and retail sentiment is crucial.

Next step: Check the latest 13F filings for Q3 2025 to see if the rate of institutional accumulation has accelerated or slowed.

Key Investors and Their Impact on Backblaze, Inc. (BLZE)

If you're looking at Backblaze, Inc. (BLZE), you need to know who holds the cards, because ownership structure defintely dictates a company's near-term trajectory. The biggest takeaway here is that Backblaze is a rare case where retail investors-the general public-hold the largest collective stake, giving them a powerful, decentralized voice.

As of November 2025, institutional investors hold a significant, but not controlling, portion of the stock. This means the stock's volatility can be higher, as retail sentiment shifts faster than large fund mandates. Plus, the company's focus on cost and performance, which you can read more about in their Mission Statement, Vision, & Core Values of Backblaze, Inc. (BLZE)., seems to resonate broadly.

The Institutional Heavyweights: BlackRock and Vanguard

The institutional roster for Backblaze, Inc. includes some of the largest names in asset management, a sign of professional validation for the cloud storage platform. The total institutional ownership sits around 54.03% of the stock. This indicates that while retail investors hold the majority, the professional money managers still account for over half the shares available to the public.

The single largest institutional shareholder, BlackRock, Inc., holds approximately 6.4% of the shares outstanding. Other major players include Vanguard Group Inc and AWM Investment Company, Inc. These are generally passive investors, meaning they buy the index or a broad strategy, but their sheer size gives them influence, especially on governance issues.

Here's the quick math on the major ownership groups, based on data near November 2025:

Activism and Recent Investor Moves in 2025

While Backblaze, Inc. hasn't seen a high-profile activist investor fight, the hedge fund ownership of 5.4% is worth watching. These funds are more active and often push for catalysts-like a sale or a major cost-cutting measure-to drive the share price higher in the short-to-medium term.

One notable move in 2025 was First Eagle Investment Management LLC increasing its position by 8.6% in the second quarter. This firm now holds 1,157,390 shares, valued at roughly $6.37 million. This buying signals confidence in the company's long-term value proposition, particularly as Backblaze continues to expand its B2 Cloud Storage segment, which grew 28% year-over-year in Q3 2025.

• First Eagle bought 92,000 shares in Q2 2025, boosting its stake.
• The company's leadership adopted a Stock Ownership Policy in August 2025, requiring executives and directors to hold a material amount of equity to align with shareholders.
• Backblaze announced a restructuring in November 2025, expecting $4.4 million to $6.0 million in charges, which investors will scrutinize for its impact on the projected full-year 2025 revenue of $145.4 million to $146.0 million.

The market's reaction to the Q3 2025 earnings-a surprise profit of $0.03 per share and total revenue of $37.2 million-was mixed, with the stock actually dropping 3.31%. This shows that even good news can't always overcome broader market sentiment or the immediate selling pressure from a diverse and fragmented investor base.

Market Impact and Investor Sentiment

You're seeing a real disconnect in Backblaze, Inc. (BLZE) right now: analysts are bullish, but the market is defintely punishing the stock near-term. The overall sentiment from Wall Street professionals is a consensus of Strong Buy or Moderate Buy, yet the stock price has been under significant pressure, dropping by -56.29% over a recent 10-day period leading up to November 17, 2025. This tells us that while the long-term story holds up for the pros, short-term trading dynamics and market volatility are dominating the price action.

The ownership structure is unique, too. Retail investors-the general public-hold the largest slice of the pie at 51% of shares outstanding, giving them a collective power that often influences management decisions, especially around things like executive pay. Institutional investors, who own 39%, provide a layer of professional credibility, but their collective selling can trigger sharp drops, as seen in the recent volatility.

Who Holds the Largest Stakes in Backblaze, Inc. (BLZE)?

The institutional roster is anchored by some of the biggest names in asset management. BlackRock, Inc. leads the pack, holding the largest individual stake, which stood at 6.4% of shares outstanding as of June 29, 2025. This is a passive, index-driven position for the most part, but it signals inclusion in major institutional benchmarks. The CEO, Gleb Budman, also holds a notable direct stake of 3.2%.

Here's a quick look at the top institutional holders, which collectively own a significant portion of the company's professional float:

• BlackRock, Inc.: 6.4% of shares outstanding
• AWM Investment Company, Inc.: 5.4% of shares outstanding
• The Vanguard Group, Inc.: 4.5% of shares outstanding

Recent Market Reactions to Ownership Shifts

Honest to goodness, the stock market's reaction to Backblaze, Inc.'s operational performance has been bafflingly negative lately. For example, the company reported its Q3 2025 results on November 6, 2025, delivering a 'double beat' by exceeding both revenue and Adjusted EBITDA guidance. Revenue hit $37.2 million, beating the analyst consensus, and Adjusted EBITDA was a strong $8.4 million, or 23% of revenue.

But here's the kicker: following that positive earnings report, the stock price plummeted by 27.3%. What this estimate hides is that the market is hyper-focused on the company's forward-looking growth rate for its core B2 Cloud Storage business, which is projected to grow between 25% and 28% in Q4 2025, a slight step down from the internal 30% target. This is a classic case of market expectation trumping actual results.

Analyst Perspectives and Key Investor Impact

Analysts are mostly looking past the short-term noise, focusing on the company's improving profitability and the growth of its B2 segment, which is benefiting from the push into Artificial Intelligence (AI) workflows. The consensus price target from analysts is aggressive, averaging between $9.33 and $11.30 over the next 12 months, representing a massive upside from the current price. This optimism is grounded in the company's clear path to profitability.

Here's the quick math: the company's full-year 2025 revenue guidance is tight, expected to be between $145.4 million and $146.0 million, with an Adjusted EBITDA margin of 18% to 20%. The impact of key investors like BlackRock, Inc. is less about active influence and more about validation of the long-term cloud storage thesis, which you can read more about in Backblaze, Inc. (BLZE): History, Ownership, Mission, How It Works & Makes Money. The big institutional money is betting on the trend of high-performance, predictable-cost cloud storage for the AI era.

The major financial milestones for 2025 that are driving this analyst confidence are:

The company is on track to be adjusted free-cash-flow positive in Q4 2025. That's a huge psychological hurdle for a growth company to clear, and it's why analysts maintain their Buy ratings despite the stock's recent price action. Your next step is to watch the Q4 2025 results for B2 growth and the cash flow positive confirmation.