Braze (BRZE) AI Stock Analysis

• Market Cap: $3.09B
• Dividend Yield: N/A
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: 22.66%
• EPS Growth: 21.20%
• Country: US
• Employees: 1,699
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 97,998,410
• 10 Day Avg. Volume: 1,268,883
• 30 Day Avg. Volume: 1,487,693
• 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: 0.91
• Enterprise Value/Revenue: 4.52
• Enterprise Value/Gross Profit: 6.51
• Enterprise Value/Ebitda: -25.10
• 1Y Price Target: $43.89
• Price Target Upside: 67.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

• Rating: 63 Neutral
• Price Target: $32.00 ▲(22.14%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 Strategy

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

Competitive Advantage

Management views the competitive landscape as the most attractive it's been in BRZE's history and remains confident in its data advantage and ability to displace vendors over time.

Market Positioning

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

Negative Factors

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.

Subscription Revenue

The $1mm Q/Q subscription revenue increase was underwhelming and the lowest since the IPO.

Braze Business Overview & Revenue Model

Company Description

Braze (BRZE) is a leading customer engagement platform that specializes in creating personalized, multi-channel marketing experiences. The company operates within the technology and marketing sectors, offering a range of products and services designed to help businesses effectively engage with their customers. Braze's core offerings include tools for email, mobile, in-app messaging, and web push notifications, enabling brands to deliver relevant and timely messaging across various channels. The platform leverages real-time data and machine learning to optimize customer interactions and enhance loyalty.

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: Negative
• Last Price: 26.20
• 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 26.2 is below the 20-day moving average (MA) of 28.18, below the 50-day MA of 29.70, and below the 200-day MA of 35.34, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 36.09 is Neutral, neither overbought nor oversold. The STOCH value of 16.22 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
CXM	78 Outperform	$2.22B	20.91	17.50%	―	6.75%	97.06%
FRSH	66 Neutral	$3.70B	―	-5.23%	―	19.78%	47.51%
BRZE	63 Neutral	$3.09B	―	-22.82%	―	22.66%	21.20%
SPT	63 Neutral	$962.89M	―	-36.95%	―	17.79%	16.49%
GBTG	62 Neutral	$2.92B	―	-3.84%	―	4.82%	73.90%
Sector *	62 Neutral	$34.81B	6.83	-11.82%	2.06%	6.36%	-8.52%
ASAN	61 Neutral	$3.30B	―	-83.36%	―	9.84%	13.74%

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.

The most recent analyst rating on (BRZE) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Braze stock, see the BRZE Stock Forecast page.

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.

The most recent analyst rating on (BRZE) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Braze stock, see the BRZE Stock Forecast page.