Companies /Technology

Braze Inc - Class A

NASDAQ: BRZE Software - Application
$32.94
▲ $0.16 (+0.49%) today
Markets closed · 11:08pm ET

Q1 2026 Earnings

Reported Jun 5, 2025, 4:14pm ET · SEC source
$0.07
Beat +50.86%
EPS · est. $0.05
$162.1M
Beat +2.17%
Revenue · est. $158.6M
−10.6%
Trailing market
BRZE vs S&P since report
3 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−7%0+7%+14%Jun 5Jun 6report 4:14pm ETearnings+1.1%−10.2%
−7%0+7%+14%Jun 5Jun 6earnings+1.1%−10.2%
BRZE −10.2%S&P 500 +1.1%
−7%0+7%+14%Jun 5Jun 6report 4:14pm ETearnings+1.2%−10.2%
−7%0+7%+14%Jun 5Jun 6earnings+1.2%−10.2%
BRZE −10.2%NASDAQ +1.2%
−18%−9%0+9%Jun 4Jun 13report 4:14pm ETearnings+0.8%−17.0%
−18%−9%0+9%Jun 4Jun 13earnings+0.8%−17.0%
BRZE −17.0%S&P 500 +0.8%
−18%−9%0+9%Jun 4Jun 13report 4:14pm ETearnings+0.8%−17.0%
−18%−9%0+9%Jun 4Jun 13earnings+0.8%−17.0%
BRZE −17.0%NASDAQ +0.8%
−17.65%
Day of report
+3.09%
Next session
−8.14%
One week
−6.16%
30 days

S&P 500 over the same 30 days: +4.45%.

Did BRZE Beat Earnings? Q1 2026 Results

Braze posted a decisive beat across the board in fiscal Q1 2026, reporting revenue of $162.06 million, up 19.6% year-over-year and ahead of the $158.62 million consensus, while non-GAAP EPS of $0.07 cleared the $0.05 estimate by 50.86%, marking the company's first quarter of non-GAAP operating profitability. The milestone reflected a swing to $2.84 million in non-GAAP operating income from a $9.98 million loss a year earlier, a meaningful inflection driven by new customer wins, upsells, and renewals that pushed the total customer count to 2,342. The quarter also included the completed acquisition of OfferFit, an AI decisioning engine that Braze is positioning as a platform differentiator, though related expenses contributed to a GAAP operating loss of $40.22 million. Free cash flow nearly doubled to $22.87 million, adding financial credibility to the growth story. Looking ahead, Braze guided Q2 revenue of $171.00 to $172.00 million and raised full-year fiscal 2026 revenue guidance to $702.00 to $706.00 million, with non-GAAP EPS of $0.15 to $0.18.

Key Takeaways
  • 19.6% year-over-year revenue growth driven by new customers, upsells, and renewals
  • Total customer count grew to 2,342 from 2,102 year-over-year
  • Customers with ARR of $500,000 or more grew to 262 from 212 year-over-year
  • Non-GAAP gross margin improved to 69.3% from 67.9% year-over-year
  • Achieved first non-GAAP operating profitability with $2.8 million non-GAAP operating income
  • Free cash flow nearly doubled to $22.9 million from $11.4 million year-over-year

“We are off to a good start in fiscal year 2026, delivering strong revenue growth, profitability, and free cash flow in an ever-changing environment.”

Braze CEO, on the earnings call

Forward Guidance & Outlook

For fiscal Q2 2026 (ending July 31, 2025), Braze guided revenue of $171.0–$172.0 million, non-GAAP operating income of $0.5–$1.5 million, non-GAAP net income of $2.5–$3.5 million, and non-GAAP diluted EPS of $0.02–$0.03 on approximately 113.0 million weighted average diluted shares. For the full fiscal year 2026 (ending January 31, 2026), the company updated guidance to revenue of $702.0–$706.0 million, non-GAAP operating income of $5.5–$9.5 million, non-GAAP net income of $17.0–$21.0 million, and non-GAAP diluted EPS of $0.15–$0.18 on approximately 115.0 million weighted average diluted shares.

BRZE YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$60.0M$120.0M$135.5M$162.1MRevenue$90.9M$111.2MGross Profit$-40,363,271$-40,222,000Operating Income$-35,933,327$-35,786,000Net Income
$0$60.0M$120.0MRevenueGross ProfitOperating IncomeNet Income

BRZE Revenue by Segment

Subscription Revenue$154.9M
Professional Services and Other$7.2M

Figures from SEC filings and company reports. Not investment advice.