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Braze
(NASDAQ:BRZE)
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Rating:73Outperform
Price Target:
$51.00
▲(65.58% Upside)
Action:Reiterated
Date:10/21/26
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.
Positive Factors
Salesforce Acquisition
The announced Salesforce acquisition could provide Braze with greater distribution, enterprise reach, and strategic resources if it closes. Becoming part of a larger technology platform may strengthen customer access and reduce standalone execution demands, although customary closing conditions remain.
Negative Factors
Continuing GAAP Losses
Braze continues to report negative GAAP profitability despite materially narrowing losses. Until operating scale consistently converts into positive earnings, the company has less internally generated profit to reinvest and remains more exposed to execution risk around balancing growth investments with cost discipline.
Read all positive and negative factors
Positive Factors
Negative Factors
Salesforce Acquisition
The announced Salesforce acquisition could provide Braze with greater distribution, enterprise reach, and strategic resources if it closes. Becoming part of a larger technology platform may strengthen customer access and reduce standalone execution demands, although customary closing conditions remain.
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
$5.19B
Dividend YieldN/A
Average Volume (3M)4.45M
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth27.44%
EPS Growth0.82%
CountryUS
Employees1,988
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-1.03
Shares Outstanding113,584,430
10 Day Avg. Volume8,277,176
30 Day Avg. Volume4,453,400
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 Cap0.47
Enterprise Value/Revenue2.95
Enterprise Value/Gross Profit4.45
Enterprise Value/Ebitda-28.31
Forecast
1Y Price Target
$45.89Price Target Upside49.00% Upside
Rating ConsensusHold
Number of Analyst Covering21
EPS Forecast (FY)0.64
Revenue Forecast (FY)$912.37M
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 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...
Braze Earnings Call Summary
Earnings Call Date:Sep 08, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Dec 15, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Strong Second-Quarter Financial Performance
Revenue increased 26% year-over-year and 8% sequentially to $227 million. Non-GAAP operating income rose to $22 million, or 9.7% of revenue, compared with $6 million, or 3.4% of revenue, in the prior-year quarter. Non-GAAP net income attributable to Braze shareholders was $21 million, or $0.19 per share, versus $17 million, or $0.15 per share, a year ago.
Negative Updates
Year-over-Year Gross Margin Decline
Non-GAAP gross margin declined to 68.6% from 69.3% in the second quarter of the prior year. Management attributed the decrease primarily to high premium messaging volumes and the addition of Decisioning Studio headcount to cost of revenue.
Read all updates
Q2-2027 Updates
Positive
Negative
Strong Second-Quarter Financial Performance
Revenue increased 26% year-over-year and 8% sequentially to $227 million. Non-GAAP operating income rose to $22 million, or 9.7% of revenue, compared with $6 million, or 3.4% of revenue, in the prior-year quarter. Non-GAAP net income attributable to Braze shareholders was $21 million, or $0.19 per share, versus $17 million, or $0.15 per share, a year ago.
Read all positive 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
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 | -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 | 0.00 |
| 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
Positive
30.80
Price Trends
28.89
Positive
26.32
Positive
24.05
Positive
Market Momentum
3.09
Negative
84.08
Negative
93.05
Negative
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 30.8 is above the 20-day moving average (MA) of 28.89, above the 50-day MA of 28.89, and above the 200-day MA of 24.05, indicating a bullish trend. The MACD of 3.09 indicates Negative momentum. The RSI at 84.08 is Negative, neither overbought nor oversold. The STOCH value of 93.05 is Negative, 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.
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 | $3.87B | 22.58 | 19.50% | ― | 15.57% | ― | |
73 Outperform | $5.19B | -44.35 | -18.78% | ― | 27.44% | 0.82% | |
72 Outperform | $5.58B | 939.07 | 0.61% | ― | 28.89% | ― | |
70 Outperform | $760.33M | -25.40 | -14.05% | ― | 11.85% | 47.54% | |
68 Neutral | $2.06B | -22.03 | -46.24% | ― | 18.26% | -0.63% | |
64 Neutral | $1.50B | 67.08 | 4.29% | ― | 6.35% | -79.74% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
BRZE
Braze
45.68
17.55
62.39%
SPT
Sprout Social
12.70
1.30
11.40%
CXM
Sprinklr
6.42
-1.34
-17.27%
FRSH
Freshworks
14.83
3.40
29.82%
AMPL
Amplitude
16.52
6.54
65.53%
KVYO
Klaviyo, Inc. Class A
20.19
-5.96
-22.79%
Braze Corporate Events
M&A Transactions
Braze to be acquired by Salesforce in cash deal
Positive
Oct 20, 2026
On 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 ...
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.