Braze (BRZE) AI Stock Analysis

• Market Cap: $1.94B
• Dividend Yield: N/A
• Average Volume (3M): 3.36M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• 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: 102,267,365
• 10 Day Avg. Volume: 3,242,193
• 30 Day Avg. Volume: 3,360,687
• 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: 0.95
• Enterprise Value/Revenue: 2.67
• Enterprise Value/Gross Profit: 3.91
• Enterprise Value/Ebitda: -15.71
• 1Y Price Target: $42.73
• Price Target Upside: 146.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 0.63
• Revenue Forecast (FY): $858.38M

• Rating: 60 Neutral
• Price Target: $18.00 ▲(3.93% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is anchored by improving fundamentals and a strong earnings-call update (revenue growth, margin improvement, and better free cash flow), but it is held back materially by very weak technicals (sharp downtrend and bearish momentum) and the lack of profitability implied by the negative P/E.

Positive Factors

Recurring SaaS revenue & customer expansion

Braze's core subscription model produced durable top-line growth ($191M, +25.5% YoY) and material customer expansion (2,528 total, +14%). Recurring contracts and steady account adds support predictable revenue streams and long-term expansion via upsells and cross-sell into existing accounts.

Improving cash generation & margins

Significant operating-margin improvement and a meaningful move to positive free cash flow ($18M, TTM FCF growth +113.8%) strengthen financial durability. Better cash generation reduces financing needs, funds product investment, and increases resilience through cycles versus pure growth-at-all-costs models.

Product differentiation via AI & large-account expansion

AI capabilities are driving measurable revenue and engagement gains (Braze AI $4.8M), while growth in high-value customers (303 accounts >$500k) and premium messaging adoption create higher lifetime value and stickiness, strengthening competitive positioning and revenue per account.

Negative Factors

Persistent unprofitability metrics

Despite margin and cash improvements, the company remains unprofitable at the net level with a substantially negative ROE. Continued operating losses constrain retained earnings, limit flexibility for dividends or buybacks, and mean profitability must be sustained over multiple quarters to fully de-risk the business.

Gross margin pressure from messaging & hosting

Rising use of premium messaging channels and higher hosting costs have compressed gross margins. If higher-cost message volumes and cloud expenses persist, margin sustainability will be challenged, limiting the long-term operating leverage typical of successful SaaS businesses.

Enterprise switching friction

High switching costs for enterprise clients slow large account acquisition and migration, lengthening sales cycles and making expansion reliant on existing customers. Structural switching friction can cap market share gains and increases the importance of account retention and expansion execution.

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, 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

Solid balance sheet (low leverage with 0.14 debt-to-equity) and sharply improving cash flow (TTM free cash flow growth 113.84%) offset by ongoing unprofitability (net margin -16.62% and negative ROE -21.69%).

Income Statement

Braze has demonstrated consistent revenue growth, with a TTM growth rate of 5.93% and a strong gross profit margin of 68.79%. However, the company is still operating at a net loss, with a net profit margin of -16.62% and negative EBIT and EBITDA margins, indicating ongoing profitability challenges.

Balance Sheet

The balance sheet shows a healthy debt-to-equity ratio of 0.14, suggesting low leverage. However, the return on equity is negative at -21.69%, reflecting the company's current unprofitability. The equity ratio is robust, indicating a solid equity base relative to total assets.

Cash Flow

Braze's cash flow position has improved significantly, with a free cash flow growth rate of 113.84% in the TTM. The operating cash flow to net income ratio is positive, indicating better cash generation relative to net income, although the free cash flow to net income ratio remains below 1.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	693.41M	593.41M	471.80M	355.43M	238.03M	150.19M
Gross Profit	472.39M	410.22M	324.27M	239.61M	159.52M	95.68M
EBITDA	-117.68M	-112.04M	-137.73M	-143.52M	-75.56M	-30.56M
Net Income	-116.88M	-103.74M	-129.17M	-140.75M	-78.17M	-31.97M
Balance Sheet
Total Assets	1.04B	871.00M	810.94M	705.41M	666.26M	171.39M
Cash, Cash Equivalents and Short-Term Investments	383.27M	513.52M	476.13M	478.67M	514.09M	86.51M
Total Debt	147.94M	87.44M	90.61M	51.28M	0.00	0.00
Total Liabilities	438.89M	396.25M	366.52M	258.65M	161.44M	277.67M
Stockholders Equity	602.03M	474.86M	444.23M	445.30M	501.58M	-108.51M
Cash Flow
Free Cash Flow	62.50M	23.45M	-6.49M	-39.01M	-39.77M	-10.43M
Operating Cash Flow	69.15M	36.68M	6.85M	-22.31M	-35.40M	-6.08M
Investing Cash Flow	-44.28M	-36.47M	-19.98M	-398.52M	18.04M	22.47M
Financing Cash Flow	15.34M	11.70M	13.11M	11.33M	467.91M	4.87M

Braze Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.32
• 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 Negative. The current price of 17.32 is below the 20-day moving average (MA) of 18.46, below the 50-day MA of 25.89, and below the 200-day MA of 28.38, indicating a bearish trend. The MACD of -2.39 indicates Negative momentum. The RSI at 35.33 is Neutral, neither overbought nor oversold. The STOCH value of 45.54 is Neutral, 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
FRSH	73 Outperform	$2.02B	11.19	16.93%	―	18.18%	70.94%
GTM	66 Neutral	$1.83B	15.84	7.76%	―	1.47%	1077.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BRZE	60 Neutral	$1.94B	-15.92	-22.05%	―	22.95%	3.12%
NCNO	59 Neutral	$1.76B	-83.70	-2.04%	―	12.14%	-19.29%
VERX	56 Neutral	$2.12B	308.53	3.29%	―	13.83%	-273.23%
ASAN	46 Neutral	$1.66B	-7.68	-102.48%	―	9.47%	16.97%

Braze Corporate Events

Braze Eliminates Dual-Class Structure Through Share Conversion

On January 30, 2026, Braze, Inc. completed an automatic conversion of all outstanding shares of its high-vote Class B common stock into an equivalent number of single-vote Class A common shares, after the Class B float fell below 10% of total outstanding common stock on October 21, 2025, in line with its certificate of incorporation. The move eliminated the dual-class voting structure, reduced former Class B holders’ voting power to one vote per share without changing their economic rights, left the total number of outstanding shares unchanged, and resulted in the retirement and de-authorization of the former Class B shares through a Certificate of Retirement filed in Delaware, while Class A stock continues to trade on Nasdaq under the BRZE symbol with the same CUSIP.

The most recent analyst rating on (BRZE) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Braze stock, see the BRZE Stock Forecast page.

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.

The most recent analyst rating on (BRZE) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Braze stock, see the BRZE Stock Forecast page.