Backblaze Inc. (NASDAQ: BLZE) saw its stock price plummet 10.06% in Thursday's pre-market trading, despite reporting better-than-expected third-quarter earnings. The cloud storage company's shares took a significant hit after it announced restructuring plans and associated charges, overshadowing its positive financial results.

For the third quarter, Backblaze reported adjusted earnings of $0.03 per share, significantly beating analyst estimates of a $0.12 loss per share. Revenue also exceeded expectations, coming in at $37.2 million, a 14.15% increase year-over-year. However, investors seemed more focused on the company's forward-looking statements and restructuring plans.

In a regulatory filing, Backblaze revealed that it had initiated "certain transformation and restructuring actions" in November 2025. The company expects to incur restructuring charges between $4.4 million and $6.0 million, primarily in the fourth quarter of 2025. This announcement likely sparked concerns among investors about potential challenges in Backblaze's business model or growth prospects, leading to the significant pre-market sell-off despite the strong quarterly performance. The market's reaction suggests that investors are wary of the company's future direction and the potential impact of these restructuring efforts on its long-term growth and profitability.