Braze (BRZE) AI Stock Analysis

• Market Cap: $3.11B
• Dividend Yield: N/A
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• 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: 1,529,967
• 30 Day Avg. Volume: 2,050,977
• 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: $43.53
• Price Target Upside: 55.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 61 Neutral
• Price Target: $29.00 ▲(3.76% Upside)

Braze's overall stock score is driven by strong revenue growth and positive earnings call highlights, including customer expansion and AI integration. However, challenges with profitability, cash flow, and valuation weigh on the score. Technical indicators suggest mixed momentum, further moderating the overall outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective customer engagement strategies, supporting long-term business expansion.

Customer Expansion

Growing customer base enhances revenue stability and market presence, providing a solid foundation for future growth and competitive advantage.

AI and Technology Advancements

Investments in AI and technology advancements position Braze to improve service offerings and maintain competitive edge in the evolving marketing tech landscape.

Negative Factors

Profitability Challenges

Ongoing operational losses and negative margins may hinder long-term financial sustainability, requiring strategic adjustments to achieve profitability.

Cash Flow Generation

Limited cash generation relative to net losses could constrain investment capacity and operational flexibility, impacting future growth initiatives.

Decrease in Gross Margin

Declining gross margins may pressure profitability, necessitating cost management improvements to sustain financial health and competitive pricing.

Braze Business Overview & Revenue Model

Company Description

Braze, Inc. operates a customer engagement platform that provides interactions between consumers and brands worldwide. It offers data ingestion products, such as Braze software development kits that automatically manage data ingestion and the delivery of mobile and web notifications, in-application/in-browser interstitial messages, and content cards, as well as can be integrated into a range of digital interfaces and application development frameworks; REST API that can be used to import or export data or to trigger workflows between Braze and brands' existing technology stacks; and partner cohort syncing, which allow brands to sync user cohorts from partners. The company also offers classification products, including segmentation that can define reusable segments of consumers based upon attributes, events, or predictive propensity scores; segment insights, which allows customers to analyze how segments are performing relative to each other across a set of pre-selected key performance indicators, and helps to understand the factors that determine which consumers belong to a particular segment; and predictive suite that allows customers to identify groups of consumers that are of critical business value. In addition, it provides personalization and action products; and orchestration products, which include Canvas, an orchestration tool that allows customers to create journeys, mapping out multi-steps, and cross-channel messaging experiences, which include onboarding flows, nurture campaigns, win-back strategies, and others; campaigns, which allow customers to send one set of single-channel or multi-channel messages to be delivered to customers in a particular user segment; event and API triggering; frequency capping and rate limiting; intelligent selection; and reporting and analytics. The company was formerly known as Appboy, Inc. and changed its name to Braze, Inc. in November 2017. Braze, Inc. was incorporated in 2011 and is headquartered in New York, New York.

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: 27.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 27.95 is above the 20-day moving average (MA) of 27.44, below the 50-day MA of 28.69, and below the 200-day MA of 32.30, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 43.48 is Neutral, neither overbought nor oversold. The STOCH value of 59.41 is Neutral, 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	―	$3.29B	―	-5.23%	―	19.78%	47.51%
GTM	―	$3.59B	43.03	5.22%	―	-0.54%	626.94%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NCNO	―	$3.11B	―	-3.15%	―	13.24%	-12.97%
BRZE	―	$3.11B	―	-20.67%	―	22.16%	11.65%
VERX	―	$4.00B	―	-20.95%	―	15.00%	-349.61%
ASAN	―	$3.37B	―	-80.55%	―	9.74%	22.36%

Braze Corporate Events

Braze, Inc. Reports Strong Q2 2026 Growth and Optimism

The recent earnings call for Braze, Inc. painted a picture of robust growth and strategic advancements, despite some challenges. The sentiment was largely positive, driven by strong revenue growth, positive operating income, and successful expansions in both customer base and product offerings. The integration of OfferFit and advancements in AI technology were highlighted as key contributors to the company’s optimistic outlook, despite a slight decrease in gross margin and moderate net retention rate.

Braze, Inc. Reports Strong Q2 2026 Financial Results

Braze, Inc. is a leading customer engagement platform that enables brands to creatively engage with customers in real-time across multiple channels, primarily serving the marketing technology sector. The company is known for its AI-powered solutions that enhance customer interactions and foster brand loyalty.