Is Wasabi Technologies profitable in 2026?

No confirmed profitability. Wasabi raised $70M in equity (Jan 13, 2026) and a $250M debt facility (Apr 20, 2026) in the same year, and CEO David Friend has said the company remains focused on growth, not profitability.

Who owns Wasabi Technologies?

Wasabi is privately held, backed by VC, PE, and debt investors. Its Series E ($70M, Jan 13, 2026) was led by L2 Point Management with Pure Storage and Fidelity M&R participating, valuing the company at $1.8B. No IPO or acquisition has occurred.

Who is Wasabi Technologies' biggest competitor?

Cloudflare R2 offers cleaner zero-egress terms than Wasabi's fair-use-capped model (per May 2026 comparisons), while Vast Data, an AI-storage specialist, raised $1B at a $30B valuation on July 13, 2026, dwarfing Wasabi's $1.8B.

Could AI replace Wasabi's storage business?

Core object storage itself isn't AI-replaceable, but automated tiering (like AWS Intelligent-Tiering) could commoditize margins. Wasabi instead launched Wasabi Fire on Nov 18, 2025, an NVMe storage class aimed at capturing AI training and inference workloads.

How much funding has Wasabi Technologies raised?

Wasabi's lifetime funding is estimated at $700M to $866M as of April 2026, including a $70M Series E (Jan 13, 2026, $1.8B valuation) and a $250M Bain Capital-led credit facility closed April 20, 2026.

What is Wasabi Fire and why does it matter?

Wasabi Fire is an NVMe-based high-performance storage class for AI training and inference, launched Nov 18, 2025, alongside a new San Jose region co-located with IBM Cloud, marking Wasabi's push into AI infrastructure against larger specialists.

Telecom operators · United States

Wasabi Technologies

wasabi.com ↗

Sells low-cost, no-egress-fee cloud storage that competes with AWS S3 on price.

Losing its protection

Assessed 22 July 2026 · Evidence as of 22 July 2026

The structural protection is eroding.

On the recordSince 22 July 2026 · Checkable from Q3-Q4 2026 · Every call on the record Checkpoint: Wasabi Fire general availability rollout and Lyve Cloud migration churn results

The call

Wasabi keeps raising money to fund growth in a business AWS, Cloudflare, and AI-storage specialists are all circling from different angles.

Wasabi stores backup and archive files in the cloud without charging customers extra fees to download them, which was novel when they started. They have about 50,000 customers and make roughly $150 million a year, but Cloudflare and Backblaze now offer nearly identical storage at lower prices or with fewer catches, and these competitors have much more money behind them. The company is not making a profit and keeps needing to borrow more cash to stay afloat. Wasabi is trying to rebrand itself as an artificial intelligence storage specialist with a product called Wasabi Fire, but much better-funded AI storage companies like Vast Data already dominate that space, and it is unclear whether Wasabi can compete there or win over large customers in the next six months.

Why

AI pressure: Vast Data and other AI-native storage specialists. Vast Data, valued near $30B, and rivals like Weka and DDN are built for AI workloads while Wasabi Fire is still unproven in the market. Could AI do the core job? Unlikely.

Bigger players: Cloudflare R2. Cloudflare R2 offers zero-egress storage with fewer catches, backed by Cloudflare's balance sheet and existing customer base. Could a giant copy it? Probably.

What protects it. Existing backup and archive customers face switching costs and channel partners keep selling Wasabi by default.

What would change this call

Cloudflare publishes enterprise customer wins or pricing cuts for R2 in 2026. Would show R2 actively converting Wasabi's target buyers on price/terms.
Wasabi Fire GA (2026) produces named AI-customer wins vs Vast Data or Weka. Would show Wasabi's AI pivot gaining real share, not just marketing.
Lyve Cloud customer retention data through Q3/Q4 2026. Would show whether the Seagate acquisition adds sticky customers or triggers churn.

Key numbers

$1.8B valuation after $70M Series E (2026-01-13)
$250M credit facility closed (2026-04-20)
Revenue estimated $121.9M to $160M range (2026-07-21)

Named risks

Continued dependence on new equity and debt raises without proven profitability. Severity: high
Lyve Cloud integration and customer migration could trigger churn through late 2026. Severity: medium
Cloudflare R2 and other zero-egress rivals compressing core storage growth rate. Severity: medium
AI-storage specialists like Vast Data hold 15-17x greater capital, outpacing Wasabi Fire. Severity: high
Third-party revenue estimates range wildly ($121.9M to $500M), no audited figures disclosed. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
Cloudflare R2	gaining on	Ranked with cleaner zero-egress terms vs Wasabi's fair-use cap, as of 2026-05-30
Vast Data	losing to	Raised $1B Series F at $30B valuation on 2026-07-13, dwarfing Wasabi's $1.8B AI push
Backblaze B2	contesting	Q1 2026 vendor benchmarks show each leading different upload/download categories
AWS S3	gaining on	AWS priced roughly 15x higher than Wasabi for equivalent workloads, as of 2026-04-10

Questions people ask

Is Wasabi Technologies profitable in 2026?: No confirmed profitability. Wasabi raised $70M in equity (Jan 13, 2026) and a $250M debt facility (Apr 20, 2026) in the same year, and CEO David Friend has said the company remains focused on growth, not profitability.
Who owns Wasabi Technologies?: Wasabi is privately held, backed by VC, PE, and debt investors. Its Series E ($70M, Jan 13, 2026) was led by L2 Point Management with Pure Storage and Fidelity M&R participating, valuing the company at $1.8B. No IPO or acquisition has occurred.
Who is Wasabi Technologies' biggest competitor?: Cloudflare R2 offers cleaner zero-egress terms than Wasabi's fair-use-capped model (per May 2026 comparisons), while Vast Data, an AI-storage specialist, raised $1B at a $30B valuation on July 13, 2026, dwarfing Wasabi's $1.8B.
Could AI replace Wasabi's storage business?: Core object storage itself isn't AI-replaceable, but automated tiering (like AWS Intelligent-Tiering) could commoditize margins. Wasabi instead launched Wasabi Fire on Nov 18, 2025, an NVMe storage class aimed at capturing AI training and inference workloads.
How much funding has Wasabi Technologies raised?: Wasabi's lifetime funding is estimated at $700M to $866M as of April 2026, including a $70M Series E (Jan 13, 2026, $1.8B valuation) and a $250M Bain Capital-led credit facility closed April 20, 2026.
What is Wasabi Fire and why does it matter?: Wasabi Fire is an NVMe-based high-performance storage class for AI training and inference, launched Nov 18, 2025, alongside a new San Jose region co-located with IBM Cloud, marking Wasabi's push into AI infrastructure against larger specialists.

Timeline

2026-07-21Wasabi and Megaport partner to embed Wasabi storage in Megaport Storage for AI/neocloud customers
2026-06-30Wasabi raises entry pricing from $6.99 to $7.99 per TB per month
2026-04-20Wasabi closes $250M credit facility led by Bain Capital Private Credit
2026-04-09Wasabi acquires Seagate's Lyve Cloud business; Seagate becomes a shareholder
2026-01-13Wasabi raises $70M Series E led by L2 Point Management, valuation hits $1.8B
2025-11-18Wasabi launches Wasabi Fire AI storage class and opens San Jose region with IBM Cloud
2022-09Wasabi raises ~$125M Series D, reaching unicorn status at ~$1.1B valuation
2017-05Wasabi launches its commercial S3-compatible hot cloud storage product

Revision history

22 July 2026

First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.

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