Braze (BRZE) AI Stock Analysis

• Market Cap: $3.12B
• Dividend Yield: N/A
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: 22.66%
• EPS Growth: 21.20%
• Country: US
• Employees: 1,699
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 91,844,315
• 10 Day Avg. Volume: 1,639,450
• 30 Day Avg. Volume: 1,133,316
• PEG Ratio: -2.80
• Price to Book (P/B): 6.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 158.81
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 1.42
• Enterprise Value/Gross Profit: 7.61
• Enterprise Value/Ebitda: -6.30
• 1Y Price Target: $45.70
• Price Target Upside: 49.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21

• Rating: 63 Neutral
• Price Target: $32.00 ▲(4.40%Upside)

Braze's overall stock score is primarily driven by robust growth and strategic positioning highlighted in the earnings call and recent corporate activities. However, the stock is currently undervalued due to ongoing profitability challenges and bearish technical indicators, which weigh down the score.

Positive Factors

Acquisition and Expansion

Braze closed its acquisition of OfferFit, adding AI decisioning capabilities and a new cross-sell opportunity.

Customer Growth

Total customer count expanded to 2,296, a net addition of 85 sequentially that was larger than last 4Q’s +33; management noted it was not due to any specific changes in incentive structures but was rather due to strength in core business performance.

Earnings Performance

Braze beat expectations nicely across all key metrics, with revenue growth above expectations.

Negative Factors

Pricing and Valuation

The price target for Braze, Inc. has been lowered from $47.00 to $43.00.

Revenue Concerns

The $1mm Q1 Q/Q subscription revenue increase was underwhelming and the lowest since the IPO.

Valuation Scrutiny

The Street is expected to scrutinize the ~23x revenue valuation multiple until it sees appropriate bookings benefits.

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 shows strong revenue growth and a healthy cash position, but continues to face challenges with profitability due to negative net income and margins. Improvements in cash flow indicate better operational efficiency, though net losses pose risks to long-term financial stability.

Income Statement

Braze's revenue has shown a strong growth trajectory, increasing from $96.36 million in 2020 to $593.41 million in 2025, representing a substantial growth rate over the years. However, the company continues to operate at a loss with negative EBIT and net income, although there is a trend of decreasing losses. The gross profit margin remains healthy, indicating efficient cost management at the production level, but the net profit margin is negative due to significant operating expenses.

Balance Sheet

The balance sheet reflects moderate financial stability with a strong cash position and increasing stockholders' equity, reaching $474.86 million in 2025. The debt-to-equity ratio is low, suggesting manageable leverage levels. However, the company has negative net income impacting the return on equity, which is negative, indicating inefficiency in generating returns from shareholders' equity. The equity ratio is strong, indicating a solid base of equity financing.

Cash Flow

Braze has improved its free cash flow position, turning positive in 2025 after negative figures in earlier years, indicating better cash management and operational efficiency. The operating cash flow has also improved significantly, suggesting better alignment between operating profits and cash generation. However, the free cash flow to net income ratio is not favorable due to continuing net losses, which poses a risk to sustainable cash flow generation.

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
	EBIT
-122.16M	-144.69M	-148.14M	-78.21M	-32.15M
	EBITDA
-112.04M	-137.73M	-143.52M	-75.56M	-30.56M
	Net Income Common Stockholders
-103.74M	-129.17M	-140.75M	-78.17M	-31.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
513.52M	476.13M	478.67M	514.09M	86.51M
	Total Assets
871.00M	810.94M	705.41M	666.26M	171.39M
	Total Debt
87.44M	90.61M	51.28M	0.00	0.00
	Net Debt
4.38M	22.38M	-17.30M	-478.94M	-28.51M
	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: 30.65
• 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 30.65 is below the 20-day moving average (MA) of 35.10, below the 50-day MA of 32.89, and below the 200-day MA of 36.88, indicating a bearish trend. The MACD of -0.46 indicates Positive momentum. The RSI at 31.75 is Neutral, neither overbought nor oversold. The STOCH value of 5.71 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	80 Outperform	$2.27B	21.20	17.50%	―	6.75%	97.06%
FRSH	71 Outperform	$4.63B	―	-6.85%	―	20.46%	39.37%
SPT	66 Neutral	$1.26B	―	-36.95%	―	17.79%	16.49%
BRZE	63 Neutral	$3.12B	―	-22.82%	―	22.66%	21.20%
Sector *	62 Neutral	$11.80B	10.31	-7.45%	2.91%	7.43%	-7.78%
GBTG	58 Neutral	$3.14B	―	-3.84%	―	4.82%	73.90%
ASAN	58 Neutral	$3.50B	―	-83.36%	―	9.84%	13.74%

Braze Corporate Events

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.

Braze Announces Acquisition of OfferFit for $325 Million

On March 27, 2025, Braze announced its intent to acquire OfferFit, a company specializing in AI decisioning technology, for $325 million. This acquisition is expected to enhance Braze’s capabilities in providing personalized customer journeys at scale. The announcement follows a strong fiscal year for Braze, which saw a 26% increase in revenue, driven by new customer acquisitions, upsells, and renewals. The acquisition is anticipated to further solidify Braze’s position in the customer engagement industry by integrating advanced AI technologies. The transaction is expected to close by the end of Braze’s fiscal quarter ending July 31, 2025, subject to customary closing conditions.