Blaize Holdings, Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS BLAIZE HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Amounts in thousands, except shares and per share amounts, or unless otherwise noted) As of: June 30, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 36,847 $ 45,781 Accounts receivable, net of allowance for credit losses of $ 9,548 and $ 523 , respectively 13,860 33,363 Accounts receivable - related party, net of allowance for credit losses of $ — and $ 34 , respectively — 3,330 Inventories, net 10,027 10,130 Prepaid expenses and deposits 12,858 3,240 Other current assets 392 763 Total current assets 73,984 96,607 Property and equipment, net 1,401 1,226 Deferred income tax assets 2,036 2,123 Other assets 2,093 2,255 Total assets $ 79,514 $ 102,211 Liabilities and stockholders’ equity Current liabilities Accounts payable $ 5,628 $ 8,339 Accounts payable - related party — 180 Accrued trade payables 1,528 22,838 Accrued expenses and other current liabilities 9,988 7,344 Accrued expenses - related party — 331 Working capital loan - related party — 1,500 Advances from related party — 2,857 Unissued shares of common stock for related party settlement 2,760 — Total current liabilities 19,904 43,389 Other earnout shares 5,163 6,745 Earnout shares - related party 1,664 2,184 Polar warrants 7,969 8,813 Other liabilities 2,024 2,080 Total liabilities 36,724 63,211 Commitments and contingencies Stockholders’ equity: Common stock - $ 0.0001 par value; 600,000,000 and 600,000,000 shares authorized as of June 30, 2026 and December 31, 2025, respectively, and 142,778,075 and 122,043,966 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 14 12 Additional paid-in capital 729,903 675,143 Accumulated other comprehensive income 490 — Accumulated deficit ( 687,617 ) ( 636,155 ) Total stockholders’ equity 42,790 39,000 Total liabilities and stockholders’ equity $ 79,514 $ 102,211 See accompanying notes to condensed consolidated financial statements 1 Table of Contents BLAIZE HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (Amounts in thousands, except shares and per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue Products: Hardware revenue - related party $ 28 $ 1,362 $ 2,206 $ 1,362 Hardware revenue 11,956 57 12,098 1,064 Software revenue - related party 1 263 419 263 Software revenue — 300 — 300 Total revenue 11,985 1,982 14,723 2,989 Cost of revenue 11,067 804 12,229 1,131 Gross profit 918 1,178 2,494 1,858 Operating expenses Research and development 10,480 9,613 20,155 22,731 Selling, general and administrative 18,029 12,965 33,095 26,082 Selling, general and administrative - related party 2,794 27 2,831 267 Depreciation 219 456 405 647 Transaction costs — — — 12,035 Total operating expenses 31,522 23,061 56,486 61,762 Loss from operations ( 30,604 ) ( 21,883 ) ( 53,992 ) ( 59,904 ) Other income (expense), net Change in fair value of Legacy Blaize convertible notes and warrants — — — ( 226,048 ) Change in fair value of Polar warrants 2,344 — 2,813 — Change in fair value of earnout shares 1,573 ( 7,257 ) 2,131 109,261 Change in fair value of unissued shares of common stock — ( 300 ) — ( 300 ) Financing charge on Polar warrants modification ( 1,969 ) — ( 1,969 ) — Other, net 115 ( 110 ) ( 78 ) ( 158 ) Total other income (expense), net 2,063 ( 7,667 ) 2,897 ( 117,245 ) Loss before income taxes ( 28,541 ) ( 29,550 ) ( 51,095 ) ( 177,149 ) Provision for income taxes 268 39 367 201 Net loss ( 28,809 ) ( 29,589 ) ( 51,462 ) ( 177,350 ) Change in foreign currency translation adjustments, net 365 — 490 — Other comprehensive income 365 — 490 — Comprehensive loss $ ( 28,444 ) $ ( 29,589 ) $ ( 50,972 ) $ ( 177,350 ) Net loss per share - basic and diluted $ ( 0.21 ) $ ( 0.28 ) $ ( 0.40 ) $ ( 1.80 ) Weighted average shares outstanding - basic and diluted 134,813,711 104,588,373 128,627,046 98,374,632 See accompanying notes to condensed consolidated financial statements 2 Table of Contents BLAIZE HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited) (Amounts in thousands, except shares) Stockholders’ Equity Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income Accumulated Deficit Total Stockholders’ Equity Shares Amount Balance as of April 1, 2026 122,746,757 $ 12 $ 684,108 $ 125 $ ( 658,808 ) $ 25,437 Exercise of stock options 681,481 — 401 — — 401 Release of restricted stock units 457,908 — — — — — Withholding taxes on release of restricted stock units ( 26,989 ) — ( 47 ) — — ( 47 ) Issuance of common stock in public offering, net of expenses 18,918,918 2 32,572 — — 32,574 Release of related party liabilities - non-cash — — 4,180 — — 4,180 Stock-based compensation — — 8,689 — — 8,689 Change in foreign currency translation adjustments, net — — — 365 — 365 Net loss — — — — ( 28,809 ) ( 28,809 ) Balance as of June 30, 2026 142,778,075 $ 14 $ 729,903 $ 490 $ ( 687,617 ) $ 42,790 Common Stock Subject to Possible Redemption Stockholders’ Equity (Deficit) Common Stock Additional Paid-in Capital Accumulated Deficit Total Stockholders’ Equity (Deficit) Shares Amount Shares Amount Balance as of April 1, 2025 2,854,242 $ 33,061 98,818,874 $ 10 $ 593,712 $ ( 577,012 ) $ 16,710 Issuance of common stock to advisors — — 9,306 — — — — Increase in redemption value — 603 — — — — — Redemption of common stock subject to possible redemption ( 2,800,489 ) ( 33,157 ) — — — — — Lapse of redemption ( 53,753 ) ( 507 ) 53,753 — 503 — 503 Stock-based compensation — — — — 7,566 — 7,566 Net loss — — — — — ( 29,589 ) ( 29,589 ) Balance as of June 30, 2025 — $ — 98,881,933 $ 10 $ 601,781 $ ( 606,601 ) $ ( 4,810 ) See accompanying notes to condensed consolidated financial statements 3 Table of Contents BLAIZE HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited) (Amounts in thousands, except shares) Stockholders’ Equity Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income Accumulated Deficit Total Stockholders’ Equity Shares Amount Balance as of January 1, 2026 122,043,966 $ 12 $ 675,143 $ — $ ( 636,155 ) $ 39,000 Exercise of stock options 730,683 — 447 — — 447 Release of restricted stock units 1,111,497 — — — — — Withholding taxes on release of restricted stock units ( 26,989 ) — ( 47 ) — — ( 47 ) Reclassification of earnout awards to liability — — ( 29 ) — — ( 29 ) Issuance of common stock in public offering, net of expenses 18,918,918 2 32,572 — — 32,574 Release of related party liabilities - non-cash — — 4,180 — — 4,180 Stock-based compensation — — 17,637 — — 17,637 Change in foreign currency translation adjustments, net — — — 490 — 490 Net loss — — — — ( 51,462 ) ( 51,462 ) Balance as of June 30, 2026 142,778,075 $ 14 $ 729,903 $ 490 $ ( 687,617 ) $ 42,790 Common Stock Subject to Possible Redemption Stockholders’ Deficit Common Stock Additional Paid-in Capital Accumulated Deficit Total Stockholders’ Deficit Shares Amount Shares Amount Balance as of January 1, 2025 — $ — 48,376,052 $ 5 $ 318,783 $ ( 429,251 ) $ ( 110,463 ) Conversion of Legacy Blaize convertible notes — — 31,433,259 3 314,331 — 314,334 Net exercise of Legacy Blaize warrants — — 7,505,657 1 75,056 — 75,057 Merger and PIPE financing 2,854,242 33,061 11,408,957 1 ( 126,165 ) — ( 126,164 ) Payment on shareholder note receivable — — — — 200 — 200 Issuance of common stock to advisors — — 104,255 — 300 — 300 Issuance of common stock warrants to advisor — — — — 167 — 167 Increase in redemption value — 603 — — — — — Redemption of common stock subject to possible redemption ( 2,800,489 ) ( 33,157 ) — — — — — Lapse of redemption ( 53,753 ) ( 507 ) 53,753 — 503 — 503 Stock-based compensation — — — — 18,606 — 18,606 Net loss — — — — — ( 177,350 ) ( 177,350 ) Balance as of June 30, 2025 — $ — 98,881,933 $ 10 $ 601,781 $ ( 606,601 ) $ ( 4,810 ) See accompanying notes to condensed consolidated financial statements 4 Table of Contents BLAIZE HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Amounts in thousands) Six Months Ended June 30, 2026 2025 Net cash used in operating activities $ ( 41,297 ) $ ( 32,373 ) Cash flows from investing activities: Purchases of property and equipment ( 639 ) ( 681 ) Net cash used in investing activities ( 639 ) ( 681 ) Cash flows from financing activities: Merger and PIPE financing, net of transaction costs — 15,874 Proceeds from issuance of common stock in public offering, net of expenses 32,825 — Additional expenses of issuance of stock in public offering ( 239 ) — Payment of deferred offering costs — ( 4,332 ) Repurchase of shares to satisfy employee tax withholdings ( 47 ) — Proceeds from exercise of stock options 447 — Repayment of advances from related party ( 357 ) ( 114 ) Net cash provided by financing activities 32,629 11,428 Effect of exchange rate changes on cash, cash equivalents and restricted cash 369 — Net change in cash, cash equivalents and restricted cash ( 8,938 ) ( 21,626 ) Cash, cash equivalents and restricted cash at beginning of period 46,050 50,488 Cash, cash equivalents and restricted cash at end of period $ 37,112 $ 28,862 Components of cash, cash equivalents and restricted cash: Cash and cash equivalents $ 36,847 $ 28,588 Restricted cash (included within other assets) 265 274 Total cash, cash equivalents and restricted cash $ 37,112 $ 28,862 Supplemental non-cash disclosures: Conversion of Legacy Blaize convertible notes to common stock $ — $ 314,334 Net exercise of Legacy Blaize warrants for common stock — 75,056 Issuance of warrants for professional services — 167 Issuance of common stock for shareholder note receivable — 8,753 Operating lease asset obtained in exchange for new operating lease liabilities 229 — Release of liabilities to Sponsor 4,180 — Liability to issue shares of common stock in related party settlement 2,760 — Non-cash warrant modification expense 1,969 — Capitalized deferred offering costs included in accounts payable and accrued expenses and other liabilities — 380 Redemption of common shares with cash held in escrow — 33,157 See accompanying notes to condensed consolidated financial statements 5 Table of Contents BLAIZE HOLDINGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1. Organization and Description of Business Organization and Description of Business Blaize Holdings, Inc. (together with its subsidiaries, “Blaize,” or the “Company”) is headquartered in El Dorado Hills, California. The condensed consolidated financial statements of the Company include the accounts of the Company and its wholly owned subsidiaries. The Company provides purpose-built, transformative artificial intelligence (“AI”)-enabled edge computing solutions comprised of both its proprietary hardware and software, and complementary third-party hardware solutions, as further described below. In addition to its internally developed products, the Company also delivers third-party hardware solutions that complement and enhance its core offerings. These third-party hardware solutions typically are substantially comprised of servers, which are selected to ensure optimal compatibility and performance with the Company’s products and AI-enabled platforms. The Company’s portfolio includes highly efficient programmable AI processors in a broad range of form factors, deployable across several verticals, including smart city, defense, retail and enterprise markets. The Company’s accelerated AI computing platforms enable applications such as computer vision, advanced video analytics, and AI inference, and the Company’s software tools allow non-expert practitioners to deploy existing and novel AI applications on the Company’s hardware without the need for customers to learn or use source code. Merger and Reverse Recapitalization and Accounting for the Merger The Merger and reverse recapitalization, the accounting for the transaction, and the defined terms used herein are described in Note 1 — “Organization and Description of Business” of the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “Annual Report on Form 10-K”). Interim Financial Statements The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Securities and Exchange Commission (“SEC”), Regulation S-X. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation of results of operations and financial position, have been included. The results for the interim periods presented are not necessarily indicative of the results expected for any future period. The following information should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company’s management to make estimates based on assumptions about current and, for some estimates, future economic and market conditions, which affect reported amounts and related disclosures in the Company’s condensed consolidated financial statements. Although current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from management’s expectations, which could materially affect the Company’s results of operations and financial position. Updates to Significant Accounting Policies Foreign Currency and Functional Currency The U.S. dollar is the functional currency of the Company and substantially all of its subsidiaries. In 2026, the Company’s newly-formed, wholly owned Chinese subsidiary adopted the Chinese renminbi (RMB/CNY) as its functional currency, reflecting that the primary economic environment in which that subsidiary operates is within China. Assets and liabilities of the Chinese subsidiary are translated into U.S. dollars at the exchange rate in effect at the balance sheet date. Revenues and expenses are translated at average exchange rates in effect during the period. The resulting 6 Table of Contents BLAIZE HOLDINGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (cont.) (Unaudited) foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Transactions denominated in currencies other than an entity’s functional currency are remeasured at the exchange rate in effect at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are remeasured at period-end exchange rates, and the resulting gains and losses are recognized in “Other, net” in the condensed consolidated statements of operations and comprehensive loss. Stockholders’ equity accounts are translated at the historical exchange rates in effect at the dates the underlying equity transactions occurred. Retained earnings (accumulated deficit) is translated at historical rates, with current-period activity reflecting net income (loss) translated at average exchange rates for the period. The adoption of the renminbi as the functional currency of the Company’s Chinese subsidiary at the subsidiary’s inception resulted in foreign currency translation adjustments of $ 0.5 million being recorded in accumulated other comprehensive income on the Company’s condensed consolidated balance sheet as of June 30, 2026, and $ 0.4 million and $ 0.5 million, respectively, recorded as “other comprehensive income” on the Company’s condensed consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2026. Accounts Receivable Accounts receivable represent the Company’s unconditional right to consideration under contracts with customers, where only the passage of time is required before payment becomes due. Accounts receivable include receivables for which the Company has issued a commercial invoice and has satisfied its performance obligation and has an unconditional right to consideration, but for which the official tax invoice (“ fapiao ”) has not yet been issued. These receivables relate to sales by the Company’s subsidiary in China, formed in 2026, where, consistent with local business practice, the fapiao is issued upon receipt of final payment rather than upon shipment or delivery of goods. Prior to the Company’s formation of this subsidiary, accounts receivable that had arisen from sales in China were due to the Company’s operating subsidiary in the United States, which issued invoices immediately upon unconditional transfer of goods. Because the Company’s right to payment for these sales is unconditional upon transfer of control of the goods, such amounts are classified within accounts receivable rather than as contract assets. As of June 30, 2026, the amount of such receivables included within accounts receivable, prior to allowance for credit losses, was $ 13.3 million, which was the result of a sale in the second quarter of 2026. Accounts receivable are recorded at the invoiced or invoiceable amount, do not bear interest, and are presented net of an allowance for credit losses estimated in accordance with ASC 326, Financial Instruments — Credit Losses . Newly Adopted Accounting Standards The Company did not adopt any new accounting standards during the three and six months ended June 30, 2026. Recent Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). Since the issuance of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, there have been no material updates to the recent accounting pronouncement previously disclosed. Note 2. Liquidity and Going Concern Liquidity As of June 30, 2026, the Company had cash and cash equivalents on hand of $ 36.8 million, of which approximately $ 12.4 million, or approximately 34 %, of the balance is located in Chinese banks and subject to currency controls that may delay any requested repatriation, and the remainder is held in accounts either in the United States or in countries that do not have strict currency controls. 7 Table of Contents BLAIZE HOLDINGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (cont.) (Unaudited) As of June 30, 2026, the Company’s near-term assets and liabilities included accounts receivable less allowance for credit losses of $ 13.9 million, which resulted from sales in China and for which the associated cash is substantially receivable by the Company’s wholly owned Chinese subsidiary; while accounts payable, accrued expenses and other current liabilities, and accrued trade payables totaled $ 17.1 million, which obligations are primarily owed outside of China. Going Concern The Company’s condensed consolidated financial statements have been prepared on a “going concern basis,” which assumes that it will be able to meet its obligations and continue its operations during the twelve months following the issuance of these condensed consolidated financial statements. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. Historically, the Company has funded its operations by using cash generated from financing activities and at the same time, has incurred negative cash flows from operations. Initial net proceeds of approximately $ 32.8 million in cash provided by financing activities, net of underwriting discounts and offering expenses, were provided by an equity raise during the second quarter of 2026, which was the result of the sole capital raising activity during the six months ended June 30, 2026. Cash used in operations for the six months ended June 30, 2026 was $ 41.3 million. The Company is party to a committed equity facility with a remaining available capacity of approximately $ 15.5 million; however, under the terms of the facility, the Company may not effect sales thereunder while the market price of its common stock is below $1.00 per share. Because the Company’s common stock has recently begun trading below $1.00 per share, the facility may not currently represent a readily available source of liquidity to the Company. The Company’s ability to continue to meet its obligations, to achieve its business objectives, and continue as a going concern is dependent upon several factors, including its revenue growth rate, cash collections of its accounts receivable, and the timing and extent of spending to support further sales and marketing and research and development efforts. Given the Company’s liquidity condition, as described above, the Company will be unable to continue to operate as a going concern and continue its operations unless it raises additional financing, if such financing is available at all. As a result of the above, in connection with its assessment of going concern considerations in accordance with FASB Accounting Standards Codification (“ASC”) 205-40-50 — “Going Concern — Disclosure,” management has determined that the Company’s liquidity condition raises substantial doubt about its ability to continue as a going concern through one year from the date that these condensed consolidated financial statements have been issued. Note 3. Revenue and Accounts Receivable Revenue The following table sets forth the Company’s revenue disaggregated by geographical location, determined by reference to the customer’s shipping location for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, (Amounts in thousands, except for percentages) 2026 % * 2025 % * China $ 11,941 99.6 % $ 6 0.3 % United States 28 0.2 % 1,974 99.6 % Other 16 0.1 % 2 0.1 % Total revenue $ 11,985 $ 1,982 8 Table of Contents BLAIZE HOLDINGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (cont.) (Unaudited) Six Months Ended June 30, (Amounts in thousands, except for percentages) 2026 % * 2025 % * China $ 11,941 81.1 % $ 966 32.3 % United States 2,625 17.8 % 1,974 66.0 % Other 157 1.1 % 49 1.6 % Total revenue $ 14,723 $ 2,989 *Percentages may not total to 100% due to rounding. For the three and six months ended June 30, 2026 and 2025, the Company’s revenue recognition method was substantially at a “point in time,” with no material revenue recognized over time. Customer concentrations in revenue The following table sets forth a summary of the Company’s revenue concentration by customer for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, (Amounts in thousands, except for percentages) 2026 % 2025 % Customer A (1) $ 28 0.2 % $ 1,625 82.0 % Customer D 11,941 99.6 % 300 15.1 % Others (2) 16 0.1 % 57 2.9 % Total revenue $ 11,985 $ 1,982 Customers B and C were not customers for the three months ended June 30, 2026 and 2025, and are intentionally omitted. Six Months Ended June 30, (Amounts in thousands, except for percentages) 2026 % 2025 % Customer A (1) $ 2,625 17.8 % $ 1,625 54.4 % Customer B — — % 960 32.1 % Customer D 11,941 81.1 % 300 10.0 % Others (2) 157 1.1 % 104 3.5 % Total revenue $ 14,723 $ 2,989 (1) Customer A is a related party. (2) Each of the customers within “Others” comprised less than 10% of revenue each. Customer C was not a customer for the six months ended June 30, 2026 and 2025, and is intentionally omitted. Constrained revenue and variable consideration During each of the three and six months ended June 30, 2026 and 2025, the Company had no revenue that was subject to constraint or variable consideration. Other revenue-related matters There were no contract assets (where right to payment would be conditional) and no material contract liabilities (deferred revenue) as of June 30, 2026 and December 31, 2025. The Company did not have any outstanding or unsatisfied performance obligations as of June 30, 2026 and December 31, 2025. The Company did not have material costs related to obtaining a contract, or fulfilling a contract that are not addressed by other accounting standards, with amortization periods greater than one year as of June 30, 2026 and December 31, 2025. 9 Table of Contents BLAIZE HOLDINGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (cont.) (Unaudited) Accounts Receivable, net Normal credit terms for the Company’s accounts receivable are generally up to net 30 days, although credit terms for one customer for sales that occurred in the fourth quarter of 2025 and the second quarter of 2026 included repayment terms up to 90 days. As of June 30, 2026, the Company’s accounts receivable before allowance for credit losses were 57 % current and 43 % over 90 days past due, with no amounts between 1 - 90 days past due, under the credit terms of the applicable customer agreement. The Company had no accounts receivable due from related parties as of June 30, 2026. The balances and activity within the Company’s provision for credit losses as of and for the six months ended June 30, 2026 and as of and for the year ended December 31, 2025 are set forth as follows: (Amounts in thousands) Balance, January 1, 2025 $ 420 Additions to provision for credit losses 523 Additions to provision for credit losses - related party 34 Write-off activity ( 420 ) Balance, December 31, 2025 557 Reversal of provision due to collection of full balance ( 34 ) Additions to provision for credit losses 1,907 Balance, March 31, 2026 2,430 Additions to provision for credit losses 7,838 Estimated recoveries ( 720 ) Balance, June 30, 2026 $ 9,548 Net additions to the provision for credit losses for the six months ended June 30, 2026 of $ 9.0 million, included within “selling, general and administrative” expense on the Company’s condensed consolidated statements of operations and comprehensive loss, were substantially comprised of the full credit loss reserve for Customer C, along with “Day 1” credit losses recorded at the inception of an account receivable, net of reversal of the provision due to collections and estimated recoveries. Customer concentration of accounts receivable The following table sets forth the summary of the Company’s concentration of accounts receivable by customer as of June 30, 2026 (1) : As of June 30, 2026 (Amounts in thousands, except for percentages) $ % Customer C (2) $ 8,844 37.8 % Customer D (2) 13,272 56.7 % Others (3) 1,292 5.5 % Total accounts receivable 23,408 Less: provision for credit losses: ( 9,548 ) Accounts receivable, net $ 13,860 (1) There were no accounts receivable due from related parties as of June 30, 2026. (2) The geographic concentration of these accounts receivable is in China. Customer C’s account receivable arose in the third quarter of 2025, and has been fully reserved as of June 30, 2026. The receivable for Customer D includes value-added tax (“VAT”) while the revenue recognized from Customer D excludes VAT. 10 Table of Contents BLAIZE HOLDINGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (cont.) (Unaudited) (3) Each customer within “Others” individually comprised less than 10% each of the Company’s accounts receivable balance, but is primarily within China. The following table sets forth the summary of the Company’s concentration of accounts receivable by customer as of December 31, 2025: As of December 31, 2025 (Amounts in thousands, except for percentages) $ % Customer C (1) $ 8,844 23.7 % Customer D (1) (2) 23,750 63.8 % Others (3) (4) 4,656 12.5 % Total accounts receivable, including due from related party $ 37,250 Less: provision for credit losses: ( 557 ) Accounts receivable, net, including due from related party $ 36,693 (1) The geographic concentration of these accounts receivable is from customers located in China. Customer C’s account receivable arose in the third quarter of 2025. (2) Subsequent to December 31, 2025, and as of June 30, 2026, the customer paid this balance of $ 23.8 million in full. (3) Each customer within “Others” individually comprised less than 10% each of the Company’s accounts receivable balance, but is substantially due from a related party located within the United States. (4) Includes receivable due from a related party of $ 3.4 million, which was paid in full subsequent to December 31, 2025. Note 4. Fair Value Measurements and Derivative Instruments The Company uses a fair value hierarchy established by GAAP that is used to determine the fair value of financial instruments. This hierarchy prioritizes relevant market inputs in order to determine an “exit price” at the measurement date, or the price at which an asset could be sold or a liability could be transferred in an orderly process that is not a forced liquidation or distressed sale. Level 1 inputs are observable inputs that reflect quoted prices for identical assets or liabilities in active markets. Level 2 inputs are observable inputs other than quoted prices for an asset or liability that are obtained through corroboration with observable market data. Level 3 inputs are unobservable inputs (e.g., the Company’s own data or assumptions) that are used when there is little, if any, relevant market activity for the asset or liability required to be measured at fair value. In certain cases, inputs used to measure fair value fall into different levels of the fair value hierarchy. In such cases, the level at which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input requires judgment and considers factors specific to the asset or liability being measured. As of June 30, 2026, the Company’s valuation policy and processes had not changed from those described in its consolidated financial statements for the year ended December 31, 2025 included in the Annual Report on Form 10-K. Included in Note 5 — “Fair Value Measurements and Derivative Instruments” to the Consolidated Financial Statements for the year ended December 31, 2025 in the Annual Report on Form 10-K is a detailed description of the Company’s financial instruments measured at fair value and their significant inputs, as well as the classification of such instruments pursuant to the Level 1, Level 2, and Level 3 valuation hierarchy. Carrying amounts that approximate fair value The carrying amounts of cash, accounts receivable (including from related parties), prepaid expenses and other current assets, deferred tax assets, operating lease right-of-use assets, other assets, accounts payable, accrued trade payables, accrued expenses and other current liabilities (including to related parties), working capital loan - related party, and advances from related party all approximate their fair values due to their short-term maturities. 11 Table of Contents BLAIZE HOLDINGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (cont.) (Unaudited) Description of the Company’s financial instruments measured at fair value The following table sets forth information about the Company’s financial assets and liabilities measured at fair value as of June 30, 2026 and December 31, 2025: As of June 30, 2026 (Amounts in thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds $ 17,289 $ — $ — $ 17,289 Total assets, measured at fair value $ 17,289 $ — $ — $ 17,289 Liabilities: Polar warrants (1) $ — $ — $ 7,969 $ 7,969 Earnout shares (2) — — 6,827 6,827 Unissued shares of common stock - related party (3) — 2,760 — 2,760 Total liabilities, measured at fair value $ — $ 2,760 $ 14,796 $ 17,556 (1) On May 5, 2026, the Polar warrant exercise price was reduced from $ 5.00 per warrant to $ 3.00 per warrant, as described in Note 6 — Common Stock and Contingently Issuable Common Stock and Preferred Stock . The effect of the price reduction is described below in the table that sets forth information regarding the Company’s significant Level 3 inputs. (2) Includes $ 1.7 million in earnout shares - related party. (3) During the quarter ended and as of June 30, 2026, the Company’s disinterested directors resolved to issue 2,000,000 shares of the Company’s common stock to Bess Ventures and Advisory LLC, an entity whose owner-manager is Lane M. Bess, chair of the Company’s Board of Directors, in order to resolve a potential disagreement with Mr. Bess by means of a future settlement agreement. The liability represents the fair value of 2,000,000 shares of the Company’s common stock expected to be issued but not yet issued as of June 30, 2026. The fair value of this obligation was determined using the closing price of the Company’s common stock as of June 30, 2026, as quoted on the Nasdaq, an active market. The obligation is classified as a Level 2 measurement within the fair value hierarchy, as the liability is not itself quoted in an active market, but its fair value is derived directly from the observable quoted price of an identical instrument — the Company’s common stock — traded on Nasdaq. The shares were subsequently issued on July 7, 2026, and this liability settled in full. As of December 31, 2025 (Amounts in thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds $ 19,103 $ — $ — $ 19,103 Total assets, measured at fair value $ 19,103 $ — $ — $ 19,103 Liabilities: Polar warrants $ — $ — $ 8,813 $ 8,813 Earnout shares (1) — — 8,929 8,929 Total liabilities, measured at fair value $ — $ — $ 17,742 $ 17,742 (1) Includes $ 2.2 million in earnout shares - related party. There were no transfers between Level 1, Level 2, or Level 3 of the fair value hierarchy during the three and six months ended June 30, 2026 and 2025. 12 Table of Contents BLAIZE HOLDINGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (cont.) (Unaudited) The following table presents additional information as of and for the prior year and as of and for the six months ended June 30, 2026 about the Company’s Level 3 liabilities measured at fair value on a recurring basis: (Amounts in thousands) Balance as of January 1, 2025 $ 163,340 Change in fair value - Legacy Blaize convertible notes 165,703 Change in fair value - Legacy Blaize warrants 60,345 Conversion of Legacy Blaize convertible notes and exercise of Legacy Blaize warrants ( 389,387 ) Fair value on date of issuance - other earnout shares 126,042 Change in fair value - other earnout shares ( 117,113 ) Fair value on date of issuance - Polar warrants 12,937 Change in fair value - Polar warrants ( 4,125 ) Balance as of December 31, 2025 $ 17,742 Reclassification of equity-based shares to liabilities (1) 29 Change in fair value - earnout shares ( 2,131 ) Change in fair value - Polar warrants ( 2,813 ) Financing charge - Polar warrants 1,969 Balance as of June 30, 2026 $ 14,796 (1) Due to employee forfeitures. The following table sets forth information regarding the Company’s significant Level 3 inputs as of June 30, 2026 and December 31, 2025: Instrument valued using Level 3 methods As of June 30, As of December 31, Valuation Method Input 2026 2025 Polar warrants Black-Scholes Stock price $ 1.38 $ 1.95 Exercise price $ 3.00 $ 5.00 Dividend yield — — Volatility 100.90 % 81.30 % Risk-free rate 4.13 % 3.68 % Term 4.37 years 4.87 years Earnout shares Monte Carlo Simulation Stock price $ 1.38 $ 1.95 Dividend yield (continuous) — — Volatility (interpolated) 100.40 % 81.60 % Risk-free rate (continuous) 4.12 % 3.61 % Term 3.54 years 4.04 years Derivative Instruments The Company does not use derivatives to manage financial risks or as an economic hedge. The essential characteristics inherent in a derivative instrument are that the instrument is issued for no or nominal consideration, and also include the aspects of an underlying security, a notional amount, and a mechanism for net settlement. None of the Company’s derivative instruments are classified as hedging instruments, and all are marked to fair value at each quarterly period. After the Merger and during the six months ended June 30, 2026, the Company’s derivatives were comprised of: • The Company’s liability-classified Earnout Shares, representing a freestanding structured forward contract; • The Polar warrants, representing a freestanding liability-classified derivative instrument; and 13 Table of Contents BLAIZE HOLDINGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (cont.) (Unaudited) • The Committed Equity Facility, which upon execution on July 14, 2025, was considered a freestanding purchased put right, which put right was subsequently considered nominal and marked to zero during 2025. Each draw on the Committed Equity Facility is considered an embedded forward contract. No draws on the Committed Equity Facility were outstanding as of June 30, 2026 or December 31, 2025. Note 5. Financial Statement Details Inventories, net The ending balances of “inventories, net” are set forth on the table below: As of: (Amounts in thousands) June 30, 2026 December 31, 2025 Raw materials $ 6,525 $ 6,414 Work in progress 2,111 1,536 Finished goods - manufactured 508 548 Total manufactured inventories $ 9,144 $ 8,498 As of and for the fiscal periods ended June 30, 2026 December 31, 2025 Beginning balance - finished goods - resale (1) $ 1,632 $ 110 Purchase of finished goods - resale (2) 11,066 33,189 Sale of finished goods - resale ( 11,815 ) ( 31,667 ) Ending balance - finished goods - resale $ 883 $ 1,632 Total inventories $ 10,027 $ 10,130 (1) Finished goods - resale is comprised of purchased hardware, primarily servers, for resale or integration with manufactured inventories. (2) Supplier concentration for “Purchase of finished goods - resale” was concentrated between two suppliers located in China in 2025, and one supplier located in China in 2026. The Company’s manufactured inventories are produced by a third party contract manufacturer. Details of the Company’s cost of revenue for the three and six months ended June 30, 2026 and 2025 are set forth below: (Amounts in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Purchased goods - resale $ 11,066 $ 440 $ 11,815 $ 440 Other cost of revenue (1) 1 364 414 691 Total cost of revenue $ 11,067 $ 804 $ 12,229 $ 1,131 (1) “Other cost of revenue” is substantially comprised of the cost of goods for the Company’s manufactured inventory. Prepaid expenses and other current assets Prepaid expenses were primarily comprised of vendor deposits for raw materials for manufactured inventories as of June 30, 2026 and December 31, 2025. 14 Table of Contents BLAIZE HOLDINGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (cont.) (Unaudited) Note 6. Common Stock and Contingently Issuable Common Stock and Preferred Stock Common stock The Company has authorized 600 million shares of common stock with a par value of $ 0.0001 per share. The Company has only one class of common stock authorized and issued. Holders of the Company’s common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders and there are no cumulative voting rights. The Company’s common stock has no preemptive, redemption, conversion, or subscription rights. The Company has not previously paid cash dividends on its common stock. Any future dividend payments are subject to the discretion of the Company’s board of directors (the “Board” or “Board of Directors”). On May 5, 2026, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Northland Securities, Inc., as representative of the several underwriters named therein (the “Underwriters”), relating to the May 6, 2026 issuance and sale (the “Offering”) of 18,918,918 shares (the “Base Shares”) of the Company’s common stock to the public at a price of $ 1.85 per share. Pursuant to the Underwriting Agreement, the Company granted the Underwriters a 30-day option to purchase up to 2,837,837 additional shares of common stock (the “Option Shares” and, together with the Base Shares, the “Shares”) at the public offering price. The net proceeds to the Company from the Offering for the Base Shares were approximately $ 32.8 million after deducting underwriting discounts and offering expenses paid by the Company. The Option Shares expired, unexercised. The following table sets forth the changes in shares of the Company’s common stock from December 31, 2025 through June 30, 2026: Common stock outstanding as of December 31, 2025 122,043,966 Release of restricted stock units, net of shares withheld for taxes 1,084,508 Exercise of stock options 730,683 Issuance of common stock in public offering 18,918,918 Common stock outstanding as of June 30, 2026 142,778,075 Stockholder Rights Plan On April 22, 2026, the Company entered into a Rights Agreement (the “Rights Agreement”) with Continental Stock Transfer & Trust Company, as rights agent, which had been previously approved by the Board. In connection with the adoption of the Rights Agreement, the Board declared a dividend of one preferred stock purchase right (each, a “Right”) for each share of the Company’s common stock, par value $ 0.0001 per share, outstanding at the close of business on May 6, 2026 (the “Record Date”). One Right will also attach to each share of common stock issued after the Record Date and prior to the Distribution Date (as defined in the Rights Agreement). Each Right, when exercisable, entitles the registered holder to purchase from the Company one one-hundredth of a share of Series A Junior Participating Preferred Stock, par value $ 0.0001 per share (the “Series A Preferred Stock”), at an exercise price of $ 11.00 per Right, subject to adjustment. The Company has reserved 6,000,000 shares of Series A Preferred Stock for issuance upon exercise of the Rights. The Rights are not presently exercisable and trade with, and are inseparable from, the common stock. No separate rights certificates have been issued. The Rights become exercisable only if a person or group acquires beneficial ownership (including certain synthetic or derivative ownership positions) of 10 % or more of the Company’s outstanding common stock (an “Acquiring Person”). In that event, each Right (other than Rights held by the Acquiring Person, which become void) will entitle its holder to purchase, at the exercise price, shares of common stock having a market value of twice the exercise price. In addition, the Board may, at its option, exchange each outstanding Right (other than Rights held by the Acquiring Person) for one share of common stock. Persons who beneficially owned 10 % or more of the outstanding common stock immediately prior to the first public announcement of the Rights Agreement are not deemed Acquiring Persons unless they acquire additional shares, subject to certain exceptions. 15 Table of Contents BLAIZE HOLDINGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (cont.) (Unaudited) The Board may redeem the Rights, in whole but not in part, at a price of $ 0.01 per Right at any time prior to the time the Rights become exercisable. The Rights will expire on April 21, 2027, unless earlier redeemed or exchanged by the Company. The Rights have no dilutive effect on earnings per share until they become exercisable, and because the Rights were determined to have only nominal value at the date of declaration, the declaration and distribution of the Rights had no impact on the Company’s condensed consolidated balance sheet or condensed consolidated statement of operations and comprehensive loss as of June 30, 2026 and for the three and six months ended June 30, 2026. Currently Outstanding Warrants to Purchase Common Stock Polar warrants On November 10, 2025, the Company issued 9,375,000 freestanding warrants (the “Polar warrants”), each Polar warrant exercisable for one whole share of the Company’s common stock, in connection with its issuance of common stock to Polar. The Company determined that the Polar warrants were considered to be freestanding instruments, did not exhibit any of the characteristics in ASC 480 that would require liability classification, however, were precluded from equity classification under ASC 815, because these warrants met the definition of a derivative instrument in that they were issued for no initial investment, have the derivative characteristics of an underlying (the value and settlement based on the Company’s common stock), notional (the number of shares deliverable), and mechanism for net settlement (cashless exercise) while at the same time did not qualify for a derivative scope exception of both being indexed to the Company’s own stock and not permitting or requiring net cash settlement in a manner outside the Company’s control. In this case, the Polar warrants permit the counterparty to require net cash settlement in specified circumstances. At initial recognition, the warrants were recorded at their estimated fair value calculated using the Black-Scholes-Merton (“Black-Scholes”) option pricing model. The liability associated with these warrants is subject to fair value remeasurement at each balance sheet date using the Black-Scholes option pricing model, with changes in fair value recorded as a change in the fair value of warrant liabilities in the condensed consolidated statements of operations and comprehensive loss. The warrants will continue to be remeasured until the earlier of the exercise during the warrant term or the automatic exercise on a cashless basis at the end of the warrant term of five years, or November 10, 2030. The Polar warrants are considered long-term liabilities, due to the warrants being out-of-the-money, although they are immediately exercisable. At the earlier of the date of the warrants being unexercised but in-the-money, or one year from the date of termination with automatic cashless exercise, the Company will reclassify the liability to a short-term liability until the warrants are exercised, whether by Polar or by means of cashless exercise, at which point they will become reclassified to equity. The Polar warrants had an initial exercise price of $ 5.00 per share. During the quarter ended June 30, 2026, the Company amended the outstanding Polar warrants to adjust the exercise price from $ 5.00 per share to $ 3.00 per share, recognizing the difference between the fair value of the warrants immediately prior to the amendment and immediately after the amendment as a financing charge in the condensed consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2026. BZAI warrants Upon the consummation of the Merger, the total of 29,648,250 warrants outstanding immediately prior to the Merger became warrants to purchase the Company’s common stock (the “BZAI warrants”). The Company determined that these warrants should be accounted for as equity rather than a liability at the inception date, and thus recognized the BZAI warrants in equity as an increase in additional paid-in-capital. Each BZAI warrant entitles the holder to purchase one share of common stock at a price of $ 11.50 per share, subject to adjustments for stock splits, stock dividends, reorganizations, recapitalizations and similar corporate actions. The warrants expire on January 13, 2030, unless earlier redeemed by the Company. If the Company calls the warrants for redemption, management will have the option to require all holders that wish to exercise warrants to do so on a cashless basis. 16 Table of Contents BLAIZE HOLDINGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (cont.) (Unaudited) Warrants issued to an advisor In connection with the Merger, the Company issued, to an advisor, warrants to purchase 50,000 shares of common stock at $ 11.50 per share (the “advisor warrants”), which expire after a term of five years , on February 10, 2030. The Company deemed these warrants to be equity rather than a liability at the inception date, and thus recognized the advisor warrants in equity as an increase in additional paid-in-capital. Earnout Shares In connection with the Merger, Legacy Blaize stockholders and employee equity award holders (including holders of stock options and RSUs) are entitled to receive up to 15,000,000 shares of common stock and Burkhan has the right to receive up to 2,600,000 shares of common stock (collectively, the “Earnout Shares”). Earnout Shares issued to eligible Legacy Blaize employee equity award holders (“Employee Earnout Shares”) are considered a compensatory award and are accounted for under ASC 718 — “Share-Based Compensation” (“ASC 718”). Further, these Employee Earnout Shares have been determined to be equity classified and accordingly, are not remeasured unless an employee departs from the Company, which is considered a modification of an equity-based award. Earnout Shares issued to Burkhan and Legacy Blaize stockholders that are not within the scope of ASC 718 (the “Other Earnout Shares”), were evaluated by management under ASC 480 — “Distinguishing Liabilities from Equity” (“ASC 480”), and ASC 815. The Company determined that the Other Earnout Shares are a derivative liability and remeasures the Other Earnout Shares at each reporting date, with changes in the fair value recorded in the condensed consolidated statements of operations. Legacy Blaize stockholders, Legacy Blaize employee equity award holders, and Burkhan are entitled to Earnout Shares in four tranches upon the occurrence of four separate events (each a “Triggering Event” and collectively, the “Triggering Events”), if they occur between the Merger date and January 13, 2030. The Triggering Event thresholds are described in the Company’s Annual Report on Form 10-K. Employee Earnout Shares During the three and six months ended June 30, 2026 and 2025, the Company recorded $ 4.1 million and $ 8.0 million, and $ 4.1 million and $ 7.6 million, respectively, in stock-based compensation expense related to the Employee Earnout Shares. As of June 30, 2026, there was $ 57.7 million of total unrecognized compensation cost related to the Employee Earnout Shares. Other Earnout Shares The fair value of the derivative liability associated with the Other Earnout Shares is described in Note 4 — “Fair Value Measurements and Derivative Instruments”. Note 7. Net Loss Per Share of Common Stock Basic net loss per share is calculated by dividing the net loss attributable to common stockholders by the weighted average number of common stock outstanding during the period, without consideration of potentially dilutive securities. The Company uses the treasury stock method to determine the dilutive effect of potentially dilutive securities, and the if-converted method to determine the dilutive effect of any potentially dilutive convertible securities, as the Company’s only participating securities are shares of the Company’s common stock, and any dividends declared on the common stock would be forfeitable if not vested. There were no potentially dilutive securities included in the Company’s diluted net loss per share calculation for the three and six months ended June 30, 2026 and 2025, as the effect of any potentially dilutive security would have been anti-dilutive due to the net losses in those periods. 17 Table of Contents BLAIZE HOLDINGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (cont.) (Unaudited) The table below sets forth the computation of basic and diluted net loss per share: (Amounts in thousands, except share and per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Numerator Net loss $ ( 28,809 ) $ ( 29,589 ) $ ( 51,462 ) $ ( 177,350 ) Denominator: Weighted-average shares outstanding, basic and diluted 134,813,711 104,588,373 128,627,046 98,374,632 Net loss per share, basic and diluted $ ( 0.21 ) $ ( 0.28 ) $ ( 0.40 ) $ ( 1.80 ) The table below sets forth a listing of potentially dilutive securities that were excluded from the calculation of diluted net loss per share attributable to common stockholders because the impact of including them would have been anti-dilutive or out-of-the-money: As of June 30, 2026 2025 Stock options 29,785,144 28,011,982 RSUs 8,628,534 9,124,212 Earnout shares 17,600,000 17,600,000 Warrants issued to an advisor 50,000 50,000 Polar warrants (1) 9,375,000 — BZAI warrants 29,648,250 29,648,250 ESPP (2) 3,047,669 3,047,669 Total 98,134,597 87,482,113 (1) The Polar warrants were issued in November 2025. (2) The ESPP has not yet commenced. Note 8. Segment Reporting The Company operates as a single operating and reportable segment. “Operating segments” are defined as components of the Company that engage in business activities with distinct financial information that is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. The Company’s CODM is its chief executive officer, who regularly reviews financial information presented on a consolidated basis for the purpose of making decisions and assessing financial performance, as the Company’s products and services have similar economic characteristics. The financial information received by the CODM focuses primarily on total available cash and cash equivalents, total revenue, significant expenses, net loss, and earnings before interest, tax, depreciation and amortization (“EBITDA”), and EBITDA as further adjusted for certain non-cash items and other adjustments that the CODM does not consider in their evaluation of ongoing operating performance from period to period (“Adjusted EBITDA”), to make decisions regarding the Company’s strategy, including the allocation of resources, as well as the Company’s assessment of operating performance. As the Company operates as a single operating segment, the measures of total available cash and cash equivalents, total revenue and net loss, as reviewed by the CODM, are set forth on the condensed consolidated financial statements, as well as in certain notes to the condensed consolidated financial statements. See Note 4 — Fair Value Measurements and Derivative Instruments for details regarding the Company’s cash equivalents. See Note 3 — Revenue and Accounts Receivable for details regarding the Company’s total revenue disaggregated by customer geographical location and the major customer concentrations of the Company’s total revenue and accounts receivable balances. 18 Table of Contents BLAIZE HOLDINGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (cont.) (Unaudited) Similarly, as the Company operates in a single segment, the condensed consolidated statements of operations provide one view of the Company’s significant expenses. Additional to the condensed consolidated statements of operations, the CODM regularly reviews the significant expense categories in the calculation of net loss, set forth as follows: Three Months Ended June 30, Six Months Ended June 30, (Amounts in thousands) 2026 2025 2026 2025 Revenue $ 11,985 $ 1,982 $ 14,723 $ 2,989 Cost of revenue ( 11,067 ) ( 804 ) ( 12,229 ) ( 1,131 ) Employee costs ( 17,126 ) ( 15,242 ) ( 34,621 ) ( 34,323 ) Technology costs ( 2,269 ) ( 1,276 ) ( 3,665 ) ( 3,693 ) Depreciation ( 219 ) ( 456 ) ( 405 ) ( 647 ) Interest income, net 183 314 362 713 Fair value changes and financing charges 1,948 ( 7,557 ) 2,975 ( 117,087 ) Other items (1) ( 12,244 ) ( 6,550 ) ( 18,602 ) ( 24,171 ) Net loss $ ( 28,809 ) $ ( 29,589 ) $ ( 51,462 ) $ ( 177,350 ) (1) “Other items” includes marketing expenses, professional fees, facilities costs, foreign exchange gains and losses, credit loss estimates, income taxes, and other overhead expenses. The following table sets forth the Company’s reconciliation of net loss to EBITDA and Adjusted EBITDA: Three Months Ended June 30, Six Months Ended June 30, (Amounts in thousands) 2026 2025 2026 2025 Net loss $ ( 28,809 ) $ ( 29,589 ) $ ( 51,462 ) $ ( 177,350 ) Depreciation 219 456 405 647 Provision for income taxes 268 39 367 201 Interest income, net ( 183 ) ( 314 ) ( 362 ) ( 713 ) EBITDA ( 28,505 ) ( 29,408 ) ( 51,052 ) ( 177,215 ) Stock-based compensation 8,689 7,566 17,637 18,606 Fair value changes and financing charges ( 1,948 ) 7,557 ( 2,975 ) 117,087 Transaction costs — — — 12,035 Related party settlement expense 2,760 — 2,760 — Non-cash inventory cost realignment adjustments ( 572 ) 81 ( 466 ) ( 544 ) Other adjustments (1) ( 1,287 ) 1,271 ( 693 ) 1,710 Adjusted EBITDA $ ( 20,863 ) $ ( 12,933 ) $ ( 34,789 ) $ ( 28,321 ) (1) “Other adjustments” includes, but is not limited to, other non-cash expenses, including foreign exchange gains and losses, and income and expenses that are not expected to be ongoing, including litigation expenses, financing advisory fees, and fines and penalties (or the recoveries and reversals of such). The Company believes that these items are not reflective of its ongoing operating performance and excluding these items provides a more meaningful comparison of its results of operations over comparative periods. 19 Table of Contents BLAIZE HOLDINGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (cont.) (Unaudited) Note 9. Related Party Transactions and Balances Transactions with the Sponsor and its affiliates Sales Partner Referral Agreement On June 30, 2025, the Company entered into a Sales Partner Referral Agreement (the “Referral Agreement”) with Burkhan LLC (the “Sales Partner”), an affiliate of BurTech LP, LLC (the “Sponsor”). The Referral Agreement designated BurTech Systems Tech LLC (“BST”), an affiliate of the Sales Partner, as the initial approved customer. The Referral Agreement provided for the purchase of the Company’s products by BST on behalf of a certain unaffiliated end user, subject to BST’s issuance of purchase orders. The Company received a single hardware purchase order in the second quarter of 2025 from BST for $ 6.3 million. A portion of the hardware purchase order was fulfilled in the second and third quarters of 2025, remaining unpaid as of December 31, 2025, resulting in a gross accounts receivable - related party as of December 31, 2025 of $ 3.4 million. The remainder of the hardware purchase order was fulfilled in the first quarter of 2026. BST paid the purchase order amount in full in the first quarter of 2026, relieving the accounts receivable balance and resulting in immediate hardware revenue recognition for the first quarter of 2026 (on transfer of control), with an immaterial amount of support revenue being recognized over time, including for the three and six months ended June 30, 2026. The Company has not received any further purchase orders from BST. The Sales Partner is entitled to receive a commission from the Company of up to 10 %, depending on the Company’s gross margins under the associated purchase orders. The sales commission is payable in cash, or, partially, at the Company’s discretion, in shares of the Company’s common stock. The commission became payable to the Sales Partner upon the Company’s receipt of cash from these sales. The Company paid the sales commissions due to the Sales Partner in cash in the first quarter of 2026. During the six months ended June 30, 2026, the Company recognized $ 2.6 million in revenue from the Referral Agreement, which was substantially recognized in the first quarter of 2026. Sales commissions of $ 0.3 million were reported as a reduction of revenue in the period. During the three and six months ended June 30, 2025, the Company recognized $ 1.6 million in revenue from the Referral Agreement. Sales commissions of $ 0.2 million were reported as a reduction of revenue in the period. Earnout shares - related party A portion of the earnout shares were issued to an affiliate of the Sponsor at the time of the Merger. See Note 6 — Common Stock and Contingently Issuable Common Stock and Preferred Stock . The fair value of these earnout shares - related party as of June 30, 2026 and December 31, 2025 was $ 1.7 million and $ 2.2 million, respectively, as set forth on the Company’s condensed consolidated balance sheets as of each period. Transactions arising from the Merger having been repaid or deemed to have been repaid by the Company and release of shareholder note receivable The following table sets forth a summary of activity regarding the Company’s liabilities due to the Sponsor resulting from the Merger, and the release of those activities during the quarter ended June 30, 2026: 20 Table of Contents BLAIZE HOLDINGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (cont.) (Unaudited) (Amounts in thousands) Activity recorded at the Merger: Working capital loan - related party (1) $ 1,500 Advances from related party (2) 2,857 Accounts payable - related party (3) 180 Balance as of December 31, 2025 4,537 Activity during the period ended March 31, 2026 — Balance as of March 31, 2026 4,537 Activity during the period ended June 30, 2026: Cash payment to related party ( 357 ) Release of accounts payable - related party (4) ( 180 ) Release of related party liabilities ( 4,000 ) Balance as of June 30, 2026 $ — (1) Simultaneous with the Merger, the Company issued an unsecured promissory note (the “working capital loan”) to the Sponsor, regarding a borrowing for general corporate purposes. (2) Simultaneous with the Merger, the Sponsor provided the Company with certain working capital advances (the “advances from related party”), which were non-interest bearing and payable on demand. (3) The Company recorded the management fees due to the Sponsor as an assumed liability at the Merger of “accounts payable - related party”. (4) The release of “accounts payable - related party” was recorded as an addition to “additional paid-in capital” on the Company’s condensed consolidated balance sheet as of June 30, 2026. The Company has received no further demands from the Sponsor regarding the release of liabilities, and considers the matter closed. Immediately prior to the consummation of the Merger, the Sponsor issued a secured promissory note and pledge agreement (the “shareholder note receivable”) to the Company, which was set to decrease when the Sponsor repaid the Company for certain transaction costs that the Company assumed from the Sponsor during the Merger. Immediately after the Merger, the Company recorded the shareholder note receivable as a deduction from additional paid-in capital. The following table sets forth a summary of activity regarding the Company’s receivables from the Sponsor resulting from the Merger, and the net release of the shareholder note receivable during the quarter ended June 30, 2026: (Amounts in thousands) Activity recorded during the year ended December 31, 2025: Shareholder note receivable from Sponsor recorded at the Merger $ 8,753 Payment made by Sponsor ( 200 ) Payment made by Company to third party for Merger transaction costs (1) ( 3,000 ) Balance as of December 31, 2025 5,553 Activity during the period ended March 31, 2026 — Balance as of March 31, 2026 5,553 Activity during the period ended June 30, 2026: Payment made by Company to third party for Merger transaction costs (1) ( 1,000 ) Release of shareholder note receivable (2) ( 4,553 ) Balance as of June 30, 2026 $ — (1) Payments made by the Company to third parties were recorded as reductions of cash with an offsetting charge to the income statement on the Company’s condensed consolidated statements of operations and comprehensive loss in the periods in which the payments were made, and did not offset the shareholder note receivable, as the payments were made by the Company and not the Sponsor. 21 Table of Contents BLAIZE HOLDINGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (cont.) (Unaudited) (2) The release of the shareholder note receivable resulted in a transfer between “additional paid-in capital” accounts within the Company’s subledger of additional paid-in capital accounts. The shareholder note receivable was secured by collateral of 2,000,000 shares of the Company’s common stock owned by the Sponsor. During the quarter ended June 30, 2026, the Company released the restrictive legend on these shares, which allowed the shares to be released directly to the Sponsor. No new shares of common stock were issued to the Sponsor as a result of the release of the shareholder note receivable. Liability to issue stock to related party, and subsequent settlement During the quarter ended and as of June 30, 2026, the Company’s disinterested directors resolved to issue 2,000,000 shares of the Company’s common stock to Bess Ventures and Advisory LLC, an entity whose owner-manager is Lane M. Bess, Chair of the Company’s Board of Directors, in order to resolve a potential disagreement with Mr. Bess by means of a future settlement agreement. The liability recorded on the Company’s condensed consolidated balance sheet as of June 30, 2026 of $ 2.8 million and the corresponding expense recorded on the Company’s condensed consolidated statement of operations and comprehensive loss for the three and six months ended June 30, 2026 included within “selling, general, and administrative - related party” expense represents the fair value of 2,000,000 shares of the Company’s common stock expected to be issued but not yet issued as of June 30, 2026. The shares were subsequently issued on July 7, 2026, and this liability settled in full. Transactions with other related parties Transactions with other related parties for marketing services and a related party employed by the Company are set forth in the table below: Three Months Ended June 30, Six Months Ended June 30, (Amounts in thousands) 2026 2025 2026 2025 Expenses incurred with other related parties: Marketing services (1) $ — $ — $ — $ 205 Compensation received by related party employee (2) 34 27 71 62 Total expenses incurred with related parties (3) $ 34 $ 27 $ 71 $ 267 (1) A company owned by a direct family member of Mr. Lane M. Bess, chair of the Company’s Board, provided marketing services to the Company. (2) A relative of one of the Company’s named executive officers is employed by the Company. (3) Included in “selling, general and administrative - related party” expense on the Company’s condensed consolidated statements of operations. Note 10. Commitments and Contingencies Legal Proceedings From time to time, the Company may become subject to various legal proceedings, lawsuits, disputes and claims arising in the ordinary course of business. On August 4, 2026, a class action complaint was filed against the Company and certain current officers of the Company in the United States District Court for the Central District of California, captioned Daniel v. Blaize Holdings, Inc., et al., Case No. 2:26-cv-08563. The complaint alleges, among other things, that the Company and the individual defendants made false and misleading statements or omissions regarding the Company’s contracts with Starshine and NeoTensr. The complaint seeks an order certifying the class; awarding compensatory damages, interest, costs, attorney’s and expert fees; and granting other unspecified relief. The complaint alleges causes of action under Sections 10(b) and 20(a) of the Exchange Act, on behalf of a putative class of investors who purchased the Company’s common stock between July 18, 2025 and April 28, 2026, inclusive. The case is at a preliminary stage. The Company is in the process of evaluating the effects of the foregoing events and cannot make a reasonable estimate of any outcome, recovery, or loss at this time. 22 Table of Contents BLAIZE HOLDINGS, INC. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (cont.) (Unaudited) Purchase Commitments The Company primarily relies on a single contract manufacturer to manufacture most of its proprietary hardware products. The Company received notice from this primary contract manufacturer of its intent to terminate the Company’s contract manufacturing agreement within six months of the contract manufacturer’s notice to the Company, by December 14, 2026. The Company had purchase commitments for raw materials for its manufactured inventories of $ 10.8 million and purchase commitments for finished goods for resale of $ 1.9 million as of June 30, 2026. Certain of these purchase commitments for raw materials for inventory manufacture, in the amount of $ 5.4 million, require prepayment in advance from the Company in order for the vendor to be obligated to the Company’s purchase commitment. Purchase commitments for finished goods held for resale are generally made when a customer has issued a purchase order. Note 11. Subsequent Events On July 7, 2026, a subsidiary of the Company, Blaize, Inc., entered into a settlement agreement (the “Settlement Agreement”) with Bess Ventures and Advisory LLC (“Bess Ventures”), an entity whose owner-manager is Lane M. Bess, chair of the Board, to resolve certain disagreements between the parties relating to a letter agreement dated February 15, 2024 and matters arising thereunder. Pursuant to the Settlement Agreement, the Company issued 2,000,000 shares of the Company’s common stock to Bess Ventures in consideration for the mutual covenants and releases set forth therein. See Note 9 — Related Party Transactions and Balances for details regarding the liability to issue stock to related party as of June 30, 2026, and the subsequent settlement on July 7, 2026. On August 4, 2026, a class action complaint was filed against the Company and certain current officers of the Company in the United States District Court for the Central District of California, captioned Daniel v. Blaize Holdings, Inc., et al., Case No. 2:26-cv-08563. See Note 10 — Commitments and Contingencies . 23 Table of Contents