Braze (BRZE) AI Stock Analysis

• Market Cap: $2.94B
• Dividend Yield: N/A
• Average Volume (3M): 1.95M
• 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: 90
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 97,998,410
• 10 Day Avg. Volume: 1,332,983
• 30 Day Avg. Volume: 1,947,936
• PEG Ratio: 0.00
• Price to Book (P/B): -97.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -857.31
• Enterprise Value/Market Cap: 2.89
• Enterprise Value/Revenue: 3.67
• Enterprise Value/Gross Profit: 19.74
• Enterprise Value/Ebitda: -17.97
• 1Y Price Target: $44.11
• Price Target Upside: 66.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 63 Neutral
• Price Target: $32.00 ▲(20.89%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

Acquisition Strategy

The acquisition of OfferFit is expected to enhance Braze's offerings with AI-driven suggestions, making campaigns more effective and aligning well with Braze's enterprise orientation.

Financial Performance

Braze reported a solid 1Q with beats across the board as key customer metrics remained stable vs recent trends.

Market Position

Braze continues to be a key beneficiary of the increasing use of first-party data to engage customers and drive incremental revenue for businesses.

Negative Factors

Customer Switching Costs

High switching costs are still holding some customers back from upgrading to Braze.

Revenue Growth

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

Stock Valuation

BRZE shares are currently trading below high-growth software peers due to decelerating growth and a tough macroeconomic environment.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	620.01M	593.41M	471.80M	355.43M	238.03M	150.19M
Gross Profit	430.51M	410.22M	324.27M	239.61M	159.52M	95.68M
EBITDA	-111.71M	-112.04M	-137.73M	-143.52M	-75.56M	-30.56M
Net Income	-103.89M	-103.74M	-129.17M	-140.75M	-78.17M	-31.97M
Balance Sheet
Total Assets	889.13M	871.00M	810.94M	705.41M	666.26M	171.39M
Cash, Cash Equivalents and Short-Term Investments	539.29M	513.52M	476.13M	478.67M	514.09M	86.51M
Total Debt	87.31M	87.44M	90.61M	51.28M	0.00	0.00
Total Liabilities	414.68M	396.25M	366.52M	258.65M	161.44M	277.67M
Stockholders Equity	474.43M	474.86M	444.23M	445.30M	501.58M	-108.51M
Cash Flow
Free Cash Flow	31.06M	23.45M	-6.49M	-39.01M	-39.77M	-10.43M
Operating Cash Flow	41.43M	36.68M	6.85M	-22.31M	-35.40M	-6.08M
Investing Cash Flow	96.97M	-36.47M	-19.98M	-398.52M	18.04M	22.47M
Financing Cash Flow	14.18M	11.70M	13.11M	11.33M	467.91M	4.87M

Braze Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.47
• 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 26.47 is below the 20-day moving average (MA) of 27.45, below the 50-day MA of 31.47, and below the 200-day MA of 35.60, indicating a bearish trend. The MACD of -0.97 indicates Negative momentum. The RSI at 34.70 is Neutral, neither overbought nor oversold. The STOCH value of 46.69 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
CXM	78 Outperform	$2.34B	20.79	17.50%	―	6.75%	97.06%
FRSH	72 Outperform	$4.14B	―	-6.85%	―	20.46%	39.37%
SPT	64 Neutral	$1.10B	―	-36.95%	―	17.79%	16.49%
ASAN	64 Neutral	$3.27B	―	-83.36%	―	9.84%	13.74%
Sector *	63 Neutral	$33.92B	6.00	-11.84%	1.85%	5.31%	-18.34%
BRZE	63 Neutral	$2.94B	―	-22.82%	―	22.66%	21.20%
GBTG	58 Neutral	$3.07B	―	-3.84%	―	4.82%	73.90%

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.