Braze (BRZE) AI Stock Analysis

• Market Cap: $3.08B
• Dividend Yield: N/A
• Average Volume (3M): 2.49M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• Revenue Growth: 22.16%
• EPS Growth: 11.65%
• Country: US
• Employees: 1,699
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.15
• Shares Outstanding: 99,079,820
• 10 Day Avg. Volume: 2,459,436
• 30 Day Avg. Volume: 2,492,797
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 4.12
• Enterprise Value/Gross Profit: 5.99
• Enterprise Value/Ebitda: -22.26
• 1Y Price Target: $42.69
• Price Target Upside: 50.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 59 Neutral
• Price Target: $30.00 ▲(5.56% Upside)

Braze's overall stock score is driven by its strong earnings call performance, highlighting revenue growth and strategic advancements in AI. However, financial performance challenges, particularly in profitability and cash flow, along with valuation concerns, weigh down the score. Technical indicators suggest potential bearish momentum, further impacting the overall assessment.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Braze's services and successful market penetration, supporting long-term business expansion.

AI and Technology Advancements

The launch of AI-driven products enhances Braze's competitive edge, offering advanced solutions that can drive customer engagement and retention.

Customer Expansion

Expanding customer base, especially large clients, strengthens Braze's market position and provides a stable revenue stream for future growth.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder Braze's ability to reinvest in growth and innovation, impacting long-term financial health.

Cash Flow Generation

Declining free cash flow growth could limit Braze's operational flexibility and ability to fund strategic initiatives, affecting future performance.

Decrease in Gross Margin

A decrease in gross margin suggests rising costs or pricing pressures, which could erode profitability if not managed effectively.

Braze Business Overview & Revenue Model

Company Description

Braze (BRZE) is a leading customer engagement platform that specializes in providing businesses with tools to deliver personalized and targeted messaging across various channels, including mobile, web, email, and SMS. The company operates within the marketing technology sector, focusing on enhancing customer experiences through data-driven insights and automated communication strategies. Braze's core services include customer analytics, user engagement solutions, and campaign management, enabling brands to cultivate deeper relationships with their customers.

How the Company Makes Money

Braze generates revenue primarily through a subscription-based model, offering tiered pricing plans based on the volume of customer interactions and features utilized by clients. This model includes different packages that cater to varying business sizes and engagement needs. Key revenue streams come from monthly or annual subscriptions, which are charged based on the number of active users and the level of service provided. The company also benefits from upselling premium features and services, such as advanced analytics and additional integrations. Significant partnerships with other technology platforms enhance Braze's value proposition, allowing for seamless integration into broader marketing stacks, which can drive additional revenue through increased customer acquisition and retention.

Braze Financial Statement Overview

Summary

Braze demonstrates strong revenue growth and effective cost management, but faces challenges in profitability. The balance sheet is solid with low leverage, yet negative net income impacts return on equity. Improved cash flow management is evident, but achieving positive net income remains crucial.

Income Statement

Braze has shown strong revenue growth with a TTM revenue of $620 million, up from $593 million in the previous year, indicating a positive growth trajectory. However, the company is still operating at a loss, with a negative EBIT and net income, which suggests ongoing challenges in achieving profitability. The gross profit margin remains healthy, signifying efficient cost management in production.

Balance Sheet

The balance sheet shows a solid equity base with stockholders' equity surpassing liabilities, indicating financial stability. The debt-to-equity ratio is low, reflecting prudent leverage management. However, the negative net income affects the return on equity, highlighting a need for improved profitability to enhance shareholder returns.

Cash Flow

Braze has improved its free cash flow in the TTM period compared to the previous year, suggesting better cash management. The operating cash flow to net income ratio is positive, indicating that the company is generating cash, although net income remains negative. Continued focus on cash flow improvement will be essential to sustain operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	654.62M	593.41M	471.80M	355.43M	238.03M	150.19M
Gross Profit	450.32M	410.22M	324.27M	239.61M	159.52M	95.68M
EBITDA	-121.13M	-112.04M	-137.73M	-143.52M	-75.56M	-30.56M
Net Income	-108.79M	-103.74M	-129.17M	-140.75M	-78.17M	-31.97M
Balance Sheet
Total Assets	1.02B	871.00M	810.94M	705.41M	666.26M	171.39M
Cash, Cash Equivalents and Short-Term Investments	363.61M	513.52M	476.13M	478.67M	514.09M	86.51M
Total Debt	84.42M	87.44M	90.61M	51.28M	0.00	0.00
Total Liabilities	423.49M	396.25M	366.52M	258.65M	161.44M	277.67M
Stockholders Equity	598.88M	474.86M	444.23M	445.30M	501.58M	-108.51M
Cash Flow
Free Cash Flow	29.23M	23.45M	-6.49M	-39.01M	-39.77M	-10.43M
Operating Cash Flow	36.77M	36.68M	6.85M	-22.31M	-35.40M	-6.08M
Investing Cash Flow	-46.75M	-36.47M	-19.98M	-398.52M	18.04M	22.47M
Financing Cash Flow	15.74M	11.70M	13.11M	11.33M	467.91M	4.87M

Braze Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 28.42 is below the 20-day moving average (MA) of 30.86, below the 50-day MA of 28.43, and below the 200-day MA of 33.76, indicating a bearish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 43.75 is Neutral, neither overbought nor oversold. The STOCH value of 8.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRZE.

Braze Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRSH	67 Neutral	$3.36B	―	-5.23%	―	19.78%	47.51%
NCNO	64 Neutral	$3.04B	―	-3.15%	―	13.24%	-12.97%
GTM	63 Neutral	$3.32B	39.84	5.22%	―	-0.54%	626.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BRZE	59 Neutral	$3.08B	―	-20.67%	―	22.16%	11.65%
VERX	52 Neutral	$4.00B	235.54	-20.95%	―	15.00%	-349.61%
ASAN	51 Neutral	$3.22B	―	-80.55%	―	9.74%	22.36%

Braze Corporate Events

Braze Holds Annual Stockholders Meeting, Elects Directors

On June 26, 2025, Braze, Inc. held its Annual Meeting of Stockholders where stockholders voted on three proposals. Phillip Fernandez and Fernando Machado were elected as Class I directors, the compensation of named executive officers was approved on an advisory basis, and Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending January 31, 2026.