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Braze (BRZE) AI Stock Analysis
Braze
(NASDAQ:BRZE)
The score is driven primarily by improving fundamentals (strong growth, healthy gross margins, low leverage, and a meaningful swing to positive free cash flow) and a very constructive earnings outlook with raised guidance and expanding non-GAAP profitability. Offsetting factors include stretched technical conditions (overbought RSI/Stoch) and limited traditional valuation support due to ongoing GAAP losses (negative P/E, no dividend). The announced all-cash acquisition adds a strong positive overlay to the risk/reward profile.
Braze Key Performance Indicators (KPIs)
Dollar-Based Net Retention RateMeasures revenue growth from existing customers, showing how effectively the company retains and expands within its customer base, crucial for long-term growth.
DBNR has declined from its peak into only modest expansion territory, but a recent sequential uptick shows stabilization. That means Braze still grows revenue inside its base, yet each customer is contributing less incremental spend than in prior years. The uptick aligns with Decisioning Studio/AI traction, larger enterprise deals and rising RPO—so upside exists—but realizing it depends on successful scaling of delivery and sales amid margin pressure from premium messaging and rapid hiring risks.
The FlyBraze (BRZE) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $5.20B
- Dividend Yield
- ―
- Average Volume (3M)
- 4.47M
- Price to Earnings (P/E)
- -44.8
- Beta (1Y)
- 1.04
- Revenue Growth
- 27.44%
- EPS Growth
- 0.82%
- Country
- US
- Employees
- 1,988
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Software - Application
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 development...
How the Company Makes Money
Braze primarily makes money by selling subscriptions to its cloud-based customer engagement platform (software-as-a-service). Customers typically pay recurring fees to access the platform’s capabilities, with contract value generally influenced by fa...
Braze Earnings Call Summary
The call was strongly positive overall. Braze reported 26% year-over-year revenue growth, improving operating efficiency, record second-quarter free cash flow, healthy large-customer retention, strong bookings and accelerating adoption of its AI products. Management raised third-quarter and full-year revenue guidance and full-year operating income guidance. The main challenges were lower gross margin due to premium messaging and Decisioning Studio headcount, expected third-quarter margin pressure from Forge and events, cRPO moderation from seasonality and ongoing customer migration to new pricing packages. The stated achievements and growth trends significantly outweighed the disclosed challenges.
Q2-2027 Updates
Positive Updates
Negative Updates
Company Guidance
For the third quarter of fiscal 2027, Braze expects revenue to be in the range of $229 million to $230 million, representing a year-over-year growth rate of approximately 20% at the midpoint; third quarter non-GAAP operating income is expected to be in the range of $16 million to $17 million at the midpoint, implying a non-GAAP operating margin of approximately 7%, while third quarter non-GAAP net income is expected to be $15 million to $16 million and third quarter non-GAAP net income per share in the range of $0.13 to $0.14 per share based on approximately 114.5 million weighted average diluted shares outstanding during the period. For the full fiscal year 2027, total revenue is expected to be in the range of $910 million to $913 million, representing a year-over-year growth rate of approximately 23% at the midpoint; non-GAAP operating income is expected to be in the range of $75.5 million to $76.5 million, implying a non-GAAP operating margin of 8% at the midpoint, non-GAAP net income is expected to be in the range of $72.5 million to $73.5 million, and net income per share is expected to be $0.64 to $0.65 per share based on a full year weighted average diluted share count of approximately 114 million shares; professional services contribution is expected to range between 9% to 10% moving forward, with about 80% of the remaining customer base expected to migrate into the new packages over the next 6 quarters.
Braze Financial Statement Overview
Summary
Financials are improving but not fully profitable yet. Revenue growth is very strong with healthy ~66–69% gross margin, and losses have narrowed materially (TTM net margin ~-13.6% vs ~-39.6% in 2023). Balance sheet leverage is conservative (debt-to-equity ~0.16). Cash generation is a key strength with positive and growing TTM free cash flow ($83.6M), though shareholder returns remain negative (TTM ROE ~-18.8%).
Income Statement
62PositiveBalance Sheet
74PositiveCash Flow
80Positive| 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 | -86.90M | -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 |
| 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
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRZE, the sentiment is Positive. The current price of 46.10 is above the 20-day moving average (MA) of 39.15, above the 50-day MA of 32.09, and above the 200-day MA of 24.93, indicating a bullish trend. The MACD of 4.87 indicates Negative momentum. The RSI at 83.61 is Negative, neither overbought nor oversold. The STOCH value of 63.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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.
Latest Risks Added
2 New RisksBraze Peers Comparison
Overall Rating
FRSH82Outperform- BRZE73Outperform
KVYO72Outperform
SPT69Neutral
AMPL61Neutral
CXM60Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| FRSH | 82Outperform | $3.66B | 17.85 | 19.50% | ― | 15.24% | ― |
| BRZE | 73Outperform | $5.20B | -44.76 | -18.78% | ― | 27.44% | 0.82% |
| KVYO | 72Outperform | $6.07B | 840.75 | 0.61% | ― | 28.89% | ― |
| SPT | 69Neutral | $723.34M | -23.95 | -14.05% | ― | 10.73% | 44.80% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| AMPL | 61Neutral | $2.10B | -22.62 | -46.24% | ― | 18.26% | -0.63% |
| CXM | 60Neutral | $1.56B | 71.47 | 4.29% | ― | 6.35% | -79.74% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| BRZE | Braze, Inc. | 46.10 | 18.86 | 69.24% | |
| SPT | Sprout Social Inc Class A | 10.78 | 0.91 | 9.22% | |
| CXM | Sprinklr, Inc. | 6.84 | -0.68 | -9.04% | |
| FRSH | Freshworks, Inc. Class A | 13.26 | 2.41 | 22.21% | |
| AMPL | Amplitude Inc Class A | 17.19 | 7.28 | 73.46% | |
| KVYO | Klaviyo, Inc. Class A | 21.36 | -7.44 | -25.83% |
Braze Corporate Events
Braze to be acquired by Salesforce in cash deal
PositiveOn October 19, 2026, Braze agreed to be acquired by Salesforce in an all-cash merger that will see Braze become a wholly owned subsidiary through the combination with Banff Acquisition Sub Inc., with each outstanding share of Class A common stock con...
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.
Date of analysis: Oct 21, 2026