Braze (BRZE) AI Stock Analysis

• Market Cap: $2.86B
• Dividend Yield: N/A
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: 22.66%
• EPS Growth: 21.20%
• Country: US
• Employees: 1,699
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 97,998,410
• 10 Day Avg. Volume: 1,069,918
• 30 Day Avg. Volume: 1,196,936
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 4.52
• Enterprise Value/Gross Profit: 6.51
• Enterprise Value/Ebitda: -25.10
• 1Y Price Target: $43.11
• Price Target Upside: 61.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 63 Neutral
• Price Target: $32.00 ▲(20.17% Upside)

Braze's strong earnings performance and strategic acquisitions drive a positive outlook, but profitability challenges and bearish technical indicators weigh on the stock's overall score. Continued revenue growth and operational improvements are key to enhancing valuation and investor confidence.

Positive Factors

AI Capabilities

Braze is well positioned to drive near-term growth through a multi-pronged AI-led strategy, including Sage AI, Project Catalyst, and OfferFit, which enable real-time personalization, autonomous journey orchestration, and reinforcement learning.

Competitive Advantage

The competitive environment is becoming more favorable for Braze and its win rates continue to improve.

Market Positioning

Braze offers a best-in-class customer engagement platform purpose-built for real-time, personalized messaging across channels.

Negative Factors

Customer Retention

High switching costs are still holding some customers back from upgrading to Braze.

Growth Challenges

BRZE shares are currently trading below high-growth software peers due to decelerating growth and a tough macroeconomic environment.

Stock Performance

Despite superior growth, Braze trades well below peers due to near-term dilution from OfferFit.

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. Businesses pay for access to Braze's comprehensive suite of customer engagement tools, which are priced based on the volume of users and the extent of services utilized. Key revenue streams include subscription fees for platform usage, and potentially additional fees for premium features or services such as advanced analytics and personalized support. Significant partnerships with other technology companies and marketing platforms enhance Braze's ecosystem, allowing integrations that can drive customer acquisition and retention. As a SaaS provider, Braze benefits from recurring revenue streams and opportunities for upselling as clients expand their use of the platform.

Braze Financial Statement Overview

Summary

Braze has demonstrated strong revenue growth and effective cost management, although it continues to face profitability challenges. The balance sheet is stable with a solid equity base, but improving cash flows and achieving positive net income are critical for long-term success.

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

Braze Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 26.63
• 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 Neutral. The current price of 26.63 is above the 20-day moving average (MA) of 25.93, below the 50-day MA of 27.08, and below the 200-day MA of 34.85, indicating a neutral trend. The MACD of -0.46 indicates Negative momentum. The RSI at 50.51 is Neutral, neither overbought nor oversold. The STOCH value of 71.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BRZE.

Braze Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	75 Outperform	$2.17B	20.40	17.50%	―	6.75%	97.06%
FRSH	68 Neutral	$3.84B	―	-5.23%	―	19.78%	47.51%
GBTG	64 Neutral	$3.91B	―	-4.72%	―	3.61%	-44.99%
BRZE	63 Neutral	$2.86B	―	-22.82%	―	22.66%	21.20%
SPT	62 Neutral	$885.38M	―	-32.50%	―	14.79%	27.52%
ASAN	62 Neutral	$3.30B	―	-83.36%	―	9.84%	13.74%
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%

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.

Braze Reports Q1 2026 Revenue Growth and Leadership Change

Braze announced its fiscal first quarter 2026 results, highlighting a 19.6% year-over-year revenue increase to $162.1 million, driven by new customers and renewals. The company also completed the acquisition of OfferFit, an AI decisioning company, and introduced new messaging channels to enhance customer journeys. Additionally, Braze appointed Ed McDonnell as Chief Revenue Officer to further strengthen its market position.