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Braze
(NASDAQ:BRZE)
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Rating:66Neutral
Price Target:
$26.00
▼(-15.58% Downside)
Action:Downgraded
Date:09/10/26
The score is led by improving fundamentals (strong revenue growth, positive and rising free cash flow, and low leverage) and reinforced by a positive earnings call with upbeat guidance and improving retention. Offsetting these strengths, the stock’s technical picture is weak (trading below major moving averages) and valuation is constrained by ongoing GAAP losses and no dividend support.
Positive Factors
Recurring revenue and customer expansion
Braze’s predominantly recurring subscription model supports durable revenue visibility, while improving net retention indicates customers are expanding usage over time. This combination can compound revenue within the installed base and reduce reliance on continual new-customer acquisition.
Negative Factors
Persistent GAAP losses
Braze has not yet converted strong revenue growth and healthy gross margins into GAAP operating or net profitability. Continued losses can limit capital allocation flexibility and leave execution dependent on maintaining growth while controlling expenses and improving the cost structure.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue and customer expansion
Braze’s predominantly recurring subscription model supports durable revenue visibility, while improving net retention indicates customers are expanding usage over time. This combination can compound revenue within the installed base and reduce reliance on continual new-customer acquisition.
Read all positive factors
Braze Key Performance Indicators (KPIs)
Any
Dollar-Based Net Retention Rate
Measures revenue growth from existing customers, showing how effectively the company retains and expands within its customer base, crucial for long-term growth.
Measures revenue growth from existing customers, showing how effectively the company retains and expands within its customer base, crucial for long-term growth.
Data provided by:
The Fly
The FlyBraze (BRZE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.67B
Dividend YieldN/A
Average Volume (3M)2.46M
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth27.44%
EPS Growth0.82%
CountryUS
Employees1,988
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-1.03
Shares Outstanding112,631,670
10 Day Avg. Volume2,337,238
30 Day Avg. Volume2,460,333
Financial Highlights & Ratios
PEG Ratio-0.87
Price to Book (P/B)3.60
Price to Sales (P/S)3.04
P/FCF Ratio36.32
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$36.69Price Target Upside19.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)0.63
Revenue Forecast (FY)$898.07M
Braze Business Overview & Revenue Model
Company Description
Braze, Inc. operates a global customer engagement platform designed to foster meaningful interactions between consumers and brands. Its comprehensive suite of tools includes robust data ingestion capabilities. These feature Braze software developm...
How the Company Makes Money
Braze primarily makes money by selling subscriptions to its customer engagement platform as software-as-a-service (SaaS). Customers (typically mid-market to large enterprises and digital-first brands) pay recurring fees to access the platform’s to...
Braze Earnings Call Summary
Earnings Call Date:May 27, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 15, 2026
Earnings Call Sentiment Positive
The call painted a distinctly positive operational and commercial picture: strong top‑line growth (30% YoY), improving profitability metrics, record free cash flow, robust customer expansion and notable AI product traction with measurable customer outcomes. Headwinds were localized—gross margin pressure from premium messaging and earlier Decisioning Studio supply constraints—and management is addressing them with hiring, product self‑service improvements and pricing/operational adjustments. The positives (revenue acceleration, retention improvement, cash generation, AI adoption and raised guidance) substantially outweigh the manageable execution and margin challenges.Positive Updates
Strong Revenue Growth
Revenue of $211 million in Q1 FY27, up 30% year-over-year and up 3% sequentially; fourth straight quarter of organic and total revenue growth acceleration.
Negative Updates
Gross Margin Pressure
Non‑GAAP gross margin declined to 67.4% in Q1 from 69.3% year‑ago, primarily due to higher premium messaging volumes and additional Decisioning Studio headcount tied to Core.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong Revenue Growth
Revenue of $211 million in Q1 FY27, up 30% year-over-year and up 3% sequentially; fourth straight quarter of organic and total revenue growth acceleration.
Read all positive updates
Company Guidance
Braze guided Q2 FY27 revenue of $219.5M–$220.5M (≈22% y/y growth at the midpoint) with Q2 non‑GAAP operating income of $17M–$18M (implying roughly an 8% non‑GAAP operating margin at the midpoint), non‑GAAP net income of $17M–$18M and non‑GAAP EPS of $0.15–$0.16 based on ≈114M diluted shares; they guided full‑year FY27 revenue of $895M–$899M (≈22% y/y at midpoint) with full‑year non‑GAAP operating income and non‑GAAP net income both $70M–$74M (≈8% margin at midpoint) and FY non‑GAAP EPS of $0.61–$0.65 on ≈114M shares, and said Decisioning Studio revenue (Q1 was $5.7M) is expected to grow 15%–20% sequentially in Q2.Braze Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 834.24M | 738.18M | 593.41M | 471.80M | 355.43M | 238.03M |
| Gross Profit | 553.08M | 495.66M | 410.22M | 324.27M | 239.61M | 159.52M |
| EBITDA | -93.18M | -125.43M | -112.04M | -137.73M | -143.52M | -75.56M |
| Net Income | -113.05M | -131.29M | -103.74M | -129.17M | -138.97M | -76.72M |
Balance Sheet | ||||||
| Total Assets | 1.13B | 1.11B | 871.00M | 810.94M | 705.41M | 666.26M |
| Cash, Cash Equivalents and Short-Term Investments | 409.87M | 411.92M | 513.52M | 476.13M | 478.67M | 514.09M |
| Total Debt | 96.41M | 82.65M | 87.44M | 90.61M | 51.28M | 0.00 |
| Total Liabilities | 529.14M | 489.60M | 396.25M | 366.52M | 258.65M | 161.44M |
| Stockholders Equity | 600.20M | 623.77M | 474.86M | 444.23M | 445.30M | 501.58M |
Cash Flow | ||||||
| Free Cash Flow | 83.58M | 61.85M | 23.45M | -2.91M | -39.01M | -39.77M |
| Operating Cash Flow | 92.68M | 71.44M | 36.68M | 6.85M | -22.31M | -35.40M |
| Investing Cash Flow | 25.58M | -50.91M | -36.47M | -19.98M | -398.52M | 18.04M |
| Financing Cash Flow | -33.26M | 22.96M | 11.70M | 13.11M | 11.33M | 467.91M |
Braze Technical Analysis
Negative
30.80
Price Trends
27.41
Negative
24.88
Negative
24.72
Negative
Market Momentum
0.25
Positive
34.82
Neutral
6.89
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRZE, the sentiment is Negative. The current price of 30.8 is above the 20-day moving average (MA) of 30.66, above the 50-day MA of 27.41, and above the 200-day MA of 24.72, indicating a bearish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 34.82 is Neutral, neither overbought nor oversold. The STOCH value of 6.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRZE.
Braze Risk Analysis
Braze disclosed 61 risk factors in its most recent earnings report. Braze reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Braze Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $3.11B | 18.08 | 19.50% | ― | 15.57% | ― | |
73 Outperform | $2.30B | 69.13 | 3.36% | ― | 8.57% | ― | |
66 Neutral | $2.67B | -23.56 | -18.78% | ― | 27.44% | 0.82% | |
66 Neutral | $2.01B | 400.98 | 1.41% | ― | 10.83% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $1.89B | -12.96 | -105.68% | ― | 9.48% | 26.94% | |
52 Neutral | $1.08B | -2.03 | -40.51% | ― | 2.66% | -808.37% |
* Technology Sector Average
BRZE
Braze
24.27
-6.61
-21.42%
GTM
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3.80
-7.95
-67.66%
NCNO
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21.43
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-29.65%
VERX
Vertex
12.27
-12.06
-49.57%
ASAN
Asana
8.56
-5.24
-37.97%
FRSH
Freshworks
11.87
-1.04
-8.06%
Braze Corporate Events
Executive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Braze updates governance with new director elections
Positive
Jul 2, 2026
On June 30, 2026, Braze held its Annual Meeting of Stockholders, where investors elected Neeraj Agrawal and Yvonne Wassenaar as Class II directors to serve until the 2029 annual meeting, approved on an advisory basis the compensation of the compan...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.