Braze (BRZE) AI Stock Analysis

• Market Cap: $3.41B
• Dividend Yield: N/A
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: 22.95%
• EPS Growth: 3.12%
• Country: US
• Employees: 1,699
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.06
• Shares Outstanding: 99,079,820
• 10 Day Avg. Volume: 1,634,413
• 30 Day Avg. Volume: 1,376,197
• PEG Ratio: 1.99
• Price to Book (P/B): 9.89
• Price to Sales (P/S): 7.92
• P/FCF Ratio: 200.40
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 4.02
• Enterprise Value/Gross Profit: 5.90
• Enterprise Value/Ebitda: -22.43
• 1Y Price Target: $45.31
• Price Target Upside: 29.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $41.00 ▲(17.38% Upside)

Braze's overall stock score is driven by strong technical momentum and positive earnings call outcomes, despite valuation concerns and ongoing profitability challenges. The company's strategic focus on AI and customer expansion supports a positive outlook.

Positive Factors

Revenue Growth

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

AI-Driven Innovations

Investments in AI enhance Braze's competitive edge, improving customer outcomes and driving future growth through advanced analytics and engagement.

Customer Base Expansion

Expanding customer base strengthens Braze's market position and revenue potential, reflecting successful product offerings and customer satisfaction.

Negative Factors

Profitability Challenges

Ongoing profitability challenges may limit Braze's ability to reinvest in growth and innovation, potentially impacting long-term financial health.

Decreased Gross Margin

Decreasing gross margins could pressure Braze's profitability, affecting its ability to sustain competitive pricing and invest in growth initiatives.

Enterprise Switching Costs

High switching costs for enterprise clients may slow customer acquisition and limit market penetration, impacting Braze's growth trajectory.

Braze Business Overview & Revenue Model

Company Description

Braze (BRZE) is a leading customer engagement platform that specializes in providing businesses with tools to deliver personalized and targeted messaging across various channels, including mobile, web, email, and SMS. The company operates within the marketing technology sector, focusing on enhancing customer experiences through data-driven insights and automated communication strategies. Braze's core services include customer analytics, user engagement solutions, and campaign management, enabling brands to cultivate deeper relationships with their customers.

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 shows strong revenue growth and effective cost management with a solid balance sheet. However, challenges with profitability and cash flow generation persist, impacting long-term sustainability.

Income Statement

Braze has shown consistent revenue growth, with a TTM growth rate of 5.58%. The gross profit margin remains strong at approximately 68.79%, indicating effective cost management. However, the company continues to face challenges with profitability, as evidenced by negative net profit and EBIT margins, reflecting ongoing operational losses.

Balance Sheet

The balance sheet shows a healthy debt-to-equity ratio of 0.14, suggesting low leverage and a strong equity base. However, the negative return on equity indicates that the company is not currently generating profits from its equity investments. The equity ratio is solid, reflecting a stable financial structure.

Cash Flow

Braze's cash flow statement reveals a decline in free cash flow growth, with a negative growth rate of -5.91% in the TTM. The operating cash flow to net income ratio is low, indicating limited cash generation relative to net losses. However, the free cash flow to net income ratio is relatively strong, suggesting some efficiency in cash usage despite net losses.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Positive
• Last Price: 34.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 34.93 is above the 20-day moving average (MA) of 29.22, above the 50-day MA of 28.29, and above the 200-day MA of 30.21, indicating a bullish trend. The MACD of 1.37 indicates Negative momentum. The RSI at 72.94 is Negative, neither overbought nor oversold. The STOCH value of 83.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRZE.

Braze Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRZE	76 Outperform	$3.41B	―	-22.05%	―	22.95%	3.12%
FRSH	72 Outperform	$3.79B	―	-2.98%	―	18.18%	70.94%
GTM	71 Outperform	$3.12B	31.98	6.51%	―	1.47%	1077.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NCNO	61 Neutral	$2.85B	―	-2.04%	―	12.14%	-19.29%
VERX	59 Neutral	$3.15B	―	-20.47%	―	13.83%	-273.23%
ASAN	57 Neutral	$3.02B	―	-102.48%	―	9.47%	16.97%

Braze Corporate Events

Braze Announces Q3 2026 Results with Revenue Growth

On December 9, 2025, Braze announced its fiscal third quarter 2026 results, highlighting a 25.5% revenue growth and a 14% increase in total customer count. The company introduced significant innovations in its BrazeAI platform, enhancing customer engagement capabilities, and reported a non-GAAP operating income of $5.1 million, marking a notable improvement from the previous year’s loss.