Braze (BRZE)
NASDAQ:BRZE
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Braze
(NASDAQ:BRZE)
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Rating:63Neutral
Price Target:
$22.00
▼(-2.91% Downside)
Action:ReiteratedDate:03/27/26
The score is driven primarily by solid financial execution (rapid revenue growth and improving free cash flow) but held back by continued GAAP losses. Earnings-call guidance and momentum (improving non-GAAP profitability outlook, strong bookings, and share repurchase authorization) provide a positive offset, while technicals are mixed with short-term strength but a still-weaker long-term trend; valuation remains constrained by negative earnings and no dividend.
Positive Factors
Large recurring revenue base (ARR / RPO)
A >$800M ARR and >$1B RPO establish a durable subscription revenue footprint, improving predictability and visibility into future cash flows. Large, contract-backed backlog supports renewal-driven growth, land-and-expand economics, and reduces reliance on one-time sales for topline stability over coming quarters.
Negative Factors
Ongoing GAAP losses and negative returns
Persistent GAAP net losses and a negative ROE indicate the company has not yet delivered sustained accounting profitability. This constrains long-term shareholder returns and could limit strategic flexibility if operating improvements stall, requiring sustained execution to convert strong topline and margins into GAAP profits.
Read all positive and negative factors
Positive Factors
Negative Factors
Large recurring revenue base (ARR / RPO)
A >$800M ARR and >$1B RPO establish a durable subscription revenue footprint, improving predictability and visibility into future cash flows. Large, contract-backed backlog supports renewal-driven growth, land-and-expand economics, and reduces reliance on one-time sales for topline stability over coming quarters.
Read all positive factors
Braze (BRZE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.74B
Dividend YieldN/A
Average Volume (3M)3.41M
Price to Earnings (P/E)―
Beta (1Y)1.10
Revenue Growth24.40%
EPS Growth-20.43%
CountryUS
Employees1,699
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-1.22
Shares Outstanding113,448,700
10 Day Avg. Volume3,743,849
30 Day Avg. Volume3,412,282
Financial Highlights & Ratios
PEG Ratio-0.87
Price to Book (P/B)3.60
Price to Sales (P/S)3.04
P/FCF Ratio36.32
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue3.68
Enterprise Value/Gross Profit5.48
Enterprise Value/Ebitda-22.60
Forecast
1Y Price Target
$35.94Price Target Upside58.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)0.63
Revenue Forecast (FY)$887.98M
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 deli...
How the Company Makes Money
Braze primarily makes money by selling subscriptions to its SaaS customer engagement platform. Customers pay recurring fees (typically under annual or multi-year contracts) for access to the platform, with pricing generally tied to factors such as...
Braze Key Performance Indicators (KPIs)
Any
Dollar-Based Net Retention Rate
Measures revenue growth from existing customers, showing how effectively the company retains and expands within its customer base, crucial for long-term growth.
Measures revenue growth from existing customers, showing how effectively the company retains and expands within its customer base, crucial for long-term growth.
Data provided by:
The Fly
The FlyBraze Earnings Call Summary
Earnings Call Date:Mar 24, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jun 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and commercial momentum: accelerating organic growth, robust bookings (particularly in enterprise), major platform scale metrics, and rapid adoption of AI products (Operator, Agent Console, Decisioning Studio). Management also delivered improved profitability (expanded operating margins FY2026) and a confident FY2027 guide with an increased operating margin target. Near-term margin pressure from premium messaging, OfferFit integration costs, and some free cash flow variability were acknowledged, but management presented clear plans (self-service tiers, sales productivity gains, disciplined OpEx) to manage these. Overall, the positive revenue and product momentum plus sizable milestones (ARR, RPO, share repurchase) outweigh the manageable near-term margin and mix headwinds.Positive Updates
Strong Q4 Revenue Growth
Reported Q4 revenue of $205,000,000, up 28% year-over-year and 8% sequentially, demonstrating accelerated organic growth for a third straight quarter.
Negative Updates
Gross Margin Pressure
Q4 non-GAAP gross margin decreased to 67.2% from 69.9% year-over-year, primarily due to higher premium messaging volumes and increased hosting costs, creating near-term margin headwinds.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Q4 Revenue Growth
Reported Q4 revenue of $205,000,000, up 28% year-over-year and 8% sequentially, demonstrating accelerated organic growth for a third straight quarter.
Read all positive updates
Company Guidance
Braze guided Q1 FY2027 revenue of $204.5M–$205.5M (≈26% YoY at the midpoint; Q1 has three fewer days), non‑GAAP operating income of $10M–$11M (implying ~5% non‑GAAP operating margin at the midpoint), non‑GAAP net income of $11M–$12M and non‑GAAP EPS of $0.10–$0.11 based on ~112M weighted‑average diluted shares (guidance for share count and EPS reflects only the estimated impact of a $50M ASR). For full FY2027 the company guided revenue of $884M–$889M (≈20% YoY at the midpoint), non‑GAAP operating income of $69M–$73M (≈8% operating margin at the midpoint, >400 bps improvement vs FY2026), non‑GAAP net income of $69M–$73M and non‑GAAP EPS of $0.61–$0.65 based on ~113M diluted shares; the Board also authorized a $100M share repurchase program that includes a $50M accelerated share repurchase to be entered into before the end of Q1.Braze Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
72
Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 738.18M | 593.41M | 471.80M | 355.43M | 238.03M |
| Gross Profit | 495.66M | 410.22M | 324.27M | 239.61M | 159.52M |
| EBITDA | -113.43M | -112.04M | -137.73M | -143.52M | -75.56M |
| Net Income | -131.29M | -103.74M | -129.17M | -138.97M | -76.72M |
Balance Sheet | |||||
| Total Assets | 1.11B | 871.00M | 810.94M | 705.41M | 666.26M |
| Cash, Cash Equivalents and Short-Term Investments | 411.92M | 513.52M | 476.13M | 478.67M | 514.09M |
| Total Debt | 82.65M | 87.44M | 90.61M | 51.28M | 0.00 |
| Total Liabilities | 489.60M | 396.25M | 366.52M | 258.65M | 161.44M |
| Stockholders Equity | 623.77M | 474.86M | 444.23M | 445.30M | 501.58M |
Cash Flow | |||||
| Free Cash Flow | 61.85M | 23.45M | -2.91M | -39.01M | -39.77M |
| Operating Cash Flow | 71.44M | 36.68M | 6.85M | -22.31M | -35.40M |
| Investing Cash Flow | -50.91M | -36.47M | -19.98M | -398.52M | 18.04M |
| Financing Cash Flow | 22.96M | 11.70M | 13.11M | 11.33M | 467.91M |
Braze Technical Analysis
Positive
22.66
Price Trends
19.70
Positive
24.55
Negative
26.33
Negative
Market Momentum
0.47
Negative
56.73
Neutral
77.79
Neutral
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 22.66 is above the 20-day moving average (MA) of 21.68, above the 50-day MA of 19.70, and below the 200-day MA of 26.33, indicating a neutral trend. The MACD of 0.47 indicates Negative momentum. The RSI at 56.73 is Neutral, neither overbought nor oversold. The STOCH value of 77.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRZE.
Braze Risk Analysis
Braze disclosed 61 risk factors in its most recent earnings report. Braze reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Braze Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.51B | 4.52 | 18.70% | ― | 16.43% | ― | |
68 Neutral | $2.06B | 72.83 | 0.49% | ― | 10.01% | ― | |
66 Neutral | $1.94B | 23.63 | 7.96% | ― | 2.90% | 361.26% | |
63 Neutral | $2.74B | -17.88 | -22.84% | ― | 24.40% | -20.43% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $2.13B | -124.81 | 2.97% | ― | 12.25% | ― | |
57 Neutral | $1.72B | -18.96 | -94.12% | ― | 9.25% | 28.34% |
* Technology Sector Average
BRZE
Braze
24.17
-7.26
-23.10%
GTM
ZoomInfo Technologies
6.52
-2.37
-26.66%
NCNO
nCino
17.99
-4.16
-18.78%
VERX
Vertex
13.34
-25.36
-65.53%
ASAN
Asana
7.22
-9.19
-56.00%
FRSH
Freshworks
8.98
-5.30
-37.11%
Braze Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Braze Eliminates Dual-Class Structure Through Share Conversion
Neutral
Feb 2, 2026
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 outs...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.