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SAN MATEO, Calif. - Cloud storage provider Backblaze, Inc. (NASDAQ:BLZE), a $293.55 million market cap company currently trading at $5.35, announced Thursday that its Board of Directors has authorized a share repurchase program of up to $10 million of its common stock through August 1, 2026. According to InvestingPro data, the company has shown strong momentum with a 21.81% revenue growth over the last twelve months.
The company stated the program will be funded through cash proceeds from employee stock option exercises and purchases under the Employee Stock Purchase Plan, making the initiative cash neutral. According to the announcement, this approach aims to reduce equity dilution while preserving the company’s cash balance. This strategic move comes as InvestingPro analysis shows the company operating with a moderate debt-to-equity ratio of 0.62 and maintaining a healthy current ratio of 1.09.
"With our progress solidifying our Balance Sheet, and our acceleration of our B2 Cloud Storage growth, we are now expanding our focus to manage our equity dilution from stock compensation," said Marc Suidan, Chief Financial Officer of Backblaze.
The repurchase program allows for shares to be acquired through open market transactions, privately negotiated transactions, or other means, including automatic purchase plans pursuant to Rule 10b5-1, in accordance with securities laws.
Backblaze indicated that management will determine the timing, number of shares, and prices paid based on business and market conditions, regulatory limitations, stock prices, and other factors. The company noted the program may be suspended, modified, or discontinued at any time and does not obligate Backblaze to acquire any specific amount of common stock.
The announcement comes as Backblaze reports it is on track to achieve positive Adjusted Free Cash Flow in the fourth quarter of 2025.
Based on a press release statement, Backblaze provides cloud object storage services to over 500,000 customers in 175 countries. Analysts maintain a bullish outlook on the stock, with price targets ranging from $7 to $15.90, suggesting significant upside potential. For deeper insights into Backblaze’s financial health and growth prospects, including additional ProTips and comprehensive analysis, check out the full research report available on InvestingPro.
In other recent news, Backblaze, Inc. announced a significant expansion of its US-East data center, doubling its capacity to better support AI workflows and other complex computing demands. This move enhances the company’s ability to cater to clients seeking alternatives to larger cloud providers. Additionally, Backblaze introduced several new security features, including AI-powered anomaly detection and improved enterprise management tools, aimed at identifying suspicious data activity. The company also launched a Legal Hold feature for its Computer Backup with Enterprise Control service, allowing businesses to preserve entire backup histories without extra charges. In leadership developments, Backblaze reported that Senior Vice President of Engineering, Tina Cessna, will step down at the end of August 2025. Her departure follows a severance agreement initiated in May 2021. Furthermore, Backblaze will participate as a Gold-level sponsor at the Ai4 2025 conference in Las Vegas, highlighting its AI storage solutions to a global audience.
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