Braze (BRZE) BRZE Q2 Financial Results Summary
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Braze (BRZE) Q2 2027: Revenue Growth Accelerates, Operating Loss Narrows — Positive Outlook
Braze (Nasdaq: BRZE) reported its fiscal second quarter results for 2027, showcasing a significant year-over-year revenue growth of $47.1 million or +26.2%, with total revenue reaching $227.2 million compared to $180.1 million in the same quarter last year. This performance indicates a strong demand for Braze's customer engagement solutions, driven by new customer acquisitions and upsells.
Analyst View
This quarter is a positive outcome for shareholders, reflecting Braze's ability to expand its market presence and improve operational efficiency. The notable revenue growth, coupled with a reduction in operating losses, suggests that the company is effectively leveraging its resources to enhance profitability. The increase in cash flow metrics further supports a favorable outlook for the company.
Key Financial Metrics
- Revenue: $227.2 million, up from $180.1 million (+26.2% YoY)
- Subscription Revenue: $207.7 million, compared to $171.8 million
- Professional Services and Other Revenue: $19.6 million, up from $8.3 million
- GAAP Operating Loss: $18.1 million, improved from a loss of $38.8 million
- Non-GAAP Operating Income: $22.0 million, compared to $6.0 million
- GAAP Net Loss per Share: $0.17, improved from $0.26
- Non-GAAP Net Income per Share: $0.19, up from $0.15
- Cash from Operations: $24.2 million, compared to $7.0 million
- Free Cash Flow: $21.7 million, up from $3.5 million
Dividend and Share Buyback
Braze did not announce any dividends or share buyback programs in this quarter. However, the company reported a total cash and cash equivalents balance of $413.9 million as of July 31, 2026, indicating a strong liquidity position that could support future capital allocation strategies.
Guidance Update
Looking ahead, Braze has provided guidance for the fiscal third quarter ending October 31, 2026, projecting revenue between $229.0 million and $230.0 million, and non-GAAP operating income between $16.0 million and $17.0 million. For the full fiscal year ending January 31, 2027, the company expects revenue in the range of $910.0 million to $913.0 million, with non-GAAP operating income projected at $75.5 million to $76.5 million.
Forward Catalyst
Investors should keep an eye on Braze's upcoming flagship customer engagement conference, Braze Forge 2026, scheduled for September 28-30 in Las Vegas. This event will likely showcase new product innovations and customer success stories, which could further enhance Braze's market position and drive future growth.
In summary, Braze's fiscal second quarter results demonstrate robust growth and improved operational efficiency, positioning the company favorably for continued success in the customer engagement space.
Note: All amounts in the following tables are in thousands.
| Six Months Ended | Three Months Ended | |||
|---|---|---|---|---|
| July 31, 2026 | July 31, 2025 | July 31, 2026 | July 31, 2025 | |
| Revenue | $438,229 | $342,170 | $227,230 | $180,111 |
| Cost of revenue | 75,374 | 58,221 | 75,374 | 58,221 |
| Gross Profit | 151,856 | 121,890 | 151,856 | 121,890 |
| Operating Expense | ||||
| Sales and marketing expense | 182,066 | 156,726 | 92,878 | 82,599 |
| Research and development expense | 91,375 | 78,047 | 45,275 | 41,250 |
| General and administrative expense | 62,715 | 77,294 | 31,826 | 36,794 |
| Total operating expense | 336,156 | 312,067 | 169,979 | 160,643 |
| Loss from operating | -45,637 | -78,975 | -18,123 | -38,753 |
| Other income | 5,749 | 9,635 | 2,299 | 3,983 |
| Net loss before provision | -39,888 | -69,340 | -15,824 | -34,770 |
| Provision for (benefit from) income taxes | 3,912 | -5,936 | 2,484 | -7,007 |
| Net loss | -43,800 | -63,404 | -18,308 | -27,763 |
| Net income attributable to redeemable non-controlling interest | 1,644 | 281 | 545 | 136 |
| Net loss attributable to Braze, Inc. | -45,444 | -63,685 | -18,853 | -27,899 |
| Net loss per share attributable to Braze, Inc. common stock, basic and diluted | $-0.41 | $-0.60 | $-0.17 | $-0.26 |
| Weighted shares used to compute net loss per share attributable to Braze, Inc. common stock, basic and diluted | 111,028 | 105,858 | 111,252 | 106,807 |
| July 31, 2026 | January 31, 2026 | |
|---|---|---|
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $166,770 | $124,342 |
| Restricted cash, current | 566 | 566 |
| Accounts receivable, net of allowance of $1,469 and $1,934, respectively | 112,474 | 122,350 |
| Marketable securities | 243,099 | 287,580 |
| Prepaid expenses and other current assets | 47,089 | 33,088 |
| Total current assets | 569,998 | 567,926 |
| Restricted cash, noncurrent | 3,430 | 3,430 |
| Property and equipment, net | 41,933 | 43,517 |
| Finance lease right-of-use assets | 15,213 | — |
| Operating lease right-of-use assets | 71,561 | 72,011 |
| Deferred contract costs | 106,812 | 100,738 |
| Goodwill | 262,120 | 261,857 |
| Intangible assets, net | 55,556 | 61,487 |
| Other assets | 4,742 | 2,791 |
| TOTAL ASSETS | $1,131,365 | $1,113,757 |
| LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND STOCKHOLDERS' EQUITY | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | $1,535 | $1,562 |
| Accrued expenses and other current liabilities | 79,231 | 95,023 |
| Deferred revenue | 346,716 | 304,560 |
| Finance lease liabilities, current | 4,209 | — |
| Operating lease liabilities, current | 18,722 | 19,269 |
| Total current liabilities | 450,413 | 420,414 |
| Finance lease liabilities, noncurrent | 11,053 | — |
| Operating lease liabilities, noncurrent | 62,423 | 63,385 |
| Other long-term liabilities | 5,247 | 5,802 |
| TOTAL LIABILITIES | 529,136 | 489,601 |
| COMMITMENTS AND CONTINGENCIES (Note 13) | ||
| Redeemable non-controlling interest | 2,033 | 389 |
| STOCKHOLDERS’ EQUITY | ||
| Class A common stock, $0.0001 par value; 2,000,000,000 shares authorized as of July 31, 2026 and January 31, 2026, respectively; 113,080,499 and 112,770,651 shares issued and outstanding as of July 31, 2026 and January 31, 2026, respectively | 11 | 11 |
| Additional paid-in capital | 1,364,196 | 1,340,091 |
| Accumulated other comprehensive income (loss) | -444 | 1,788 |
| Accumulated deficit | -763,567 | -718,123 |
| TOTAL STOCKHOLDERS’ EQUITY | 600,196 | 623,767 |
| TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY | $1,131,365 | $1,113,757 |
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