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Braze
(NASDAQ:BRZE)
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Rating:69Neutral
Price Target:
$29.00
▲(33.27% Upside)
Action:Reiterated
Date:07/03/26
BRZE scores well on improving fundamentals and a strong, upbeat earnings outlook (accelerating growth, rising RPO, better retention, and growing non-GAAP profitability), which are the biggest positives. The score is held back by mixed technicals (below the 200-day average and negative MACD) and limited valuation support given ongoing GAAP losses and no dividend yield provided.
Positive Factors
Cash generation
Positive trailing‑twelve‑month operating cash flow (~$75M) and free cash flow (~$66M) indicate the business is converting revenue into cash despite GAAP losses. Durable cash generation reduces financing dependency, funds product and sales investment, and supports scaled growth over the next several quarters.
Negative Factors
Ongoing GAAP losses
Despite improving margins, trailing net losses (~-15.5% TTM) and negative returns on equity indicate the business has not yet reached sustainable GAAP profitability. Persistent losses can erode equity, constrain strategic flexibility, and may require continued disciplined cash allocation or capital raises if improvement stalls.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Positive trailing‑twelve‑month operating cash flow (~$75M) and free cash flow (~$66M) indicate the business is converting revenue into cash despite GAAP losses. Durable cash generation reduces financing dependency, funds product and sales investment, and supports scaled growth over the next several quarters.
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
$2.81B
Dividend YieldN/A
Average Volume (3M)2.29M
Price to Earnings (P/E)―
Beta (1Y)1.21
Revenue Growth26.95%
EPS Growth-11.66%
CountryUS
Employees1,988
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-1.12
Shares Outstanding112,631,670
10 Day Avg. Volume2,312,777
30 Day Avg. Volume2,293,088
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$35.20Price Target Upside61.76% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)0.63
Revenue Forecast (FY)$898.52M
Braze Business Overview & Revenue Model
Company Description
Braze, Inc. (BRZE) is a customer engagement software company that provides a cloud-based platform to help brands deliver personalized, cross-channel marketing and lifecycle messaging. Operating in the enterprise software/SaaS sector, Braze enables...
How the Company Makes Money
Braze primarily makes money by selling subscriptions to its customer engagement platform as software-as-a-service (SaaS). Customers (typically mid-market to large enterprises and digital-first brands) pay recurring fees to access the platform’s to...
Braze Earnings Call Summary
Earnings Call Date:May 27, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Sep 03, 2026
Earnings Call Sentiment Positive
The call painted a distinctly positive operational and commercial picture: strong top‑line growth (30% YoY), improving profitability metrics, record free cash flow, robust customer expansion and notable AI product traction with measurable customer outcomes. Headwinds were localized—gross margin pressure from premium messaging and earlier Decisioning Studio supply constraints—and management is addressing them with hiring, product self‑service improvements and pricing/operational adjustments. The positives (revenue acceleration, retention improvement, cash generation, AI adoption and raised guidance) substantially outweigh the manageable execution and margin challenges.Positive Updates
Strong Revenue Growth
Revenue of $211 million in Q1 FY27, up 30% year-over-year and up 3% sequentially; fourth straight quarter of organic and total revenue growth acceleration.
Negative Updates
Gross Margin Pressure
Non‑GAAP gross margin declined to 67.4% in Q1 from 69.3% year‑ago, primarily due to higher premium messaging volumes and additional Decisioning Studio headcount tied to Core.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong Revenue Growth
Revenue of $211 million in Q1 FY27, up 30% year-over-year and up 3% sequentially; fourth straight quarter of organic and total revenue growth acceleration.
Read all positive updates
Company Guidance
Braze guided Q2 FY27 revenue of $219.5M–$220.5M (≈22% y/y growth at the midpoint) with Q2 non‑GAAP operating income of $17M–$18M (implying roughly an 8% non‑GAAP operating margin at the midpoint), non‑GAAP net income of $17M–$18M and non‑GAAP EPS of $0.15–$0.16 based on ≈114M diluted shares; they guided full‑year FY27 revenue of $895M–$899M (≈22% y/y at midpoint) with full‑year non‑GAAP operating income and non‑GAAP net income both $70M–$74M (≈8% margin at midpoint) and FY non‑GAAP EPS of $0.61–$0.65 on ≈114M shares, and said Decisioning Studio revenue (Q1 was $5.7M) is expected to grow 15%–20% sequentially in Q2.Braze Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 787.12M | 738.18M | 593.41M | 471.80M | 355.43M | 238.03M |
| Gross Profit | 523.12M | 495.66M | 410.22M | 324.27M | 239.61M | 159.52M |
| EBITDA | -105.25M | -125.43M | -112.04M | -137.73M | -143.52M | -75.56M |
| Net Income | -122.09M | -131.29M | -103.74M | -129.17M | -138.97M | -76.72M |
Balance Sheet | ||||||
| Total Assets | 1.09B | 1.11B | 871.00M | 810.94M | 705.41M | 666.26M |
| Cash, Cash Equivalents and Short-Term Investments | 387.52M | 411.92M | 513.52M | 476.13M | 478.67M | 514.09M |
| Total Debt | 81.46M | 82.65M | 87.44M | 90.61M | 51.28M | 0.00 |
| Total Liabilities | 507.88M | 489.60M | 396.25M | 366.52M | 258.65M | 161.44M |
| Stockholders Equity | 581.67M | 623.77M | 474.86M | 444.23M | 445.30M | 501.58M |
Cash Flow | ||||||
| Free Cash Flow | 65.94M | 61.85M | 23.45M | -2.91M | -39.01M | -39.77M |
| Operating Cash Flow | 75.42M | 71.44M | 36.68M | 6.85M | -22.31M | -35.40M |
| Investing Cash Flow | -130.95M | -50.91M | -36.47M | -19.98M | -398.52M | 18.04M |
| Financing Cash Flow | -27.34M | 22.96M | 11.70M | 13.11M | 11.33M | 467.91M |
Braze Technical Analysis
Positive
21.76
Price Trends
23.52
Positive
22.59
Positive
24.45
Positive
Market Momentum
0.64
Negative
58.88
Neutral
80.12
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 21.76 is below the 20-day moving average (MA) of 24.95, below the 50-day MA of 23.52, and below the 200-day MA of 24.45, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 58.88 is Neutral, neither overbought nor oversold. The STOCH value of 80.12 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 | $3.26B | 17.72 | 19.50% | ― | 15.92% | ― | |
69 Neutral | $2.81B | -22.25 | -20.29% | ― | 26.95% | -11.66% | |
67 Neutral | $2.02B | 142.00 | 1.29% | ― | 9.58% | ― | |
66 Neutral | $2.09B | -369.91 | 1.41% | ― | 11.79% | 85.70% | |
62 Neutral | $972.57M | 8.44 | 8.36% | ― | 3.64% | 230.24% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $1.92B | -12.05 | -92.84% | ― | 9.47% | 31.43% |
* Technology Sector Average
BRZE
Braze
26.22
-1.07
-3.92%
GTM
ZoomInfo Technologies
3.66
-6.53
-64.08%
NCNO
nCino
19.23
-7.72
-28.65%
VERX
Vertex
11.80
-15.30
-56.46%
ASAN
Asana
8.88
-5.78
-39.43%
FRSH
Freshworks
11.52
-1.80
-13.51%
Braze Corporate Events
Executive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Braze updates governance with new director elections
Positive
Jul 2, 2026
On June 30, 2026, Braze held its Annual Meeting of Stockholders, where investors elected Neeraj Agrawal and Yvonne Wassenaar as Class II directors to serve until the 2029 annual meeting, approved on an advisory basis the compensation of the compan...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Braze Posts Strong Growth and Appoints Interim CFO
Positive
May 27, 2026
On May 25, 2026, Braze’s board appointed Chief Accounting Officer Pankaj Malik as interim chief financial officer, effective May 29, 2026, with a new compensation package while he retains his accounting role. The company also strengthened it...
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.