Braze, Inc.

What they do

Braze sells subscriptions to its customer engagement platform, which ingests and processes first-party customer data in real time and orchestrates marketing, transactional and product messaging across channels. Subscription fees are based primarily on messaging volumes, monthly active users, platform access and add-on products. The company also provides professional services for onboarding and premium support such as email deliverability. As of July 31, 2026, Braze had 2,789 customers.

Revenue drivers

• Subscription revenue — Generated $207.7 million in the quarter ended July 31, 2026, about 91% of total revenue, from platform access, messaging volumes, monthly active users and add-on products under upfront customer commitments.
• Professional services and other — Generated $19.6 million in the quarter ended July 31, 2026, about 9% of total revenue, from onboarding, email deliverability support and dedicated technical support services.
• Large customer expansion — Customers with annual recurring revenue of $500,000 or more grew to 361 as of July 31, 2026 from 282 a year earlier, with dollar-based net retention of 112% for that cohort.
• AI products — Management cited accelerating adoption of BrazeAI Operator, BrazeAI Agent Console and BrazeAI Decisioning Studio as contributing to demand, though no separate revenue figures were disclosed.

Recent performance

For the quarter ended July 31, 2026, revenue was $227.2 million, up 26.2% from $180.1 million a year earlier, driven primarily by new customers, upsells and renewals. GAAP gross margin was 66.8%, down from 67.7%, and GAAP operating loss was $18.1 million, including $35.7 million of stock-based compensation, versus a $38.8 million operating loss a year earlier. GAAP net loss per share was $0.17 versus $0.26, while non-GAAP operating income was $22.0 million versus $6.0 million. Net cash provided by operating activities was $24.2 million and free cash flow was $21.7 million, both quarterly records for a second quarter. Remaining performance obligations were $1,092.5 million, of which $691.1 million is current.

Strategy

Braze operates a land-and-expand model, growing within existing customers as they add channels, products, engagement strategies, business units and geographies, with pricing tied to end users reached and message volumes. The company intends to expand its customer base in verticals where it is already strong, such as retail and consumer goods, media and entertainment, and financial services, and to increase presence in verticals where it is less represented. It is investing in AI capabilities, including BrazeAI Operator, Agent Console and Decisioning Studio, and positions these as central to converting engagement into measurable ROI. The company plans to host its Braze Forge 2026 customer conference September 28-30 in Las Vegas.

Risks

• History of operating losses — Braze has never been profitable on a GAAP basis, with net losses of $131.3 million in fiscal 2026 and $18.3 million in the quarter ended July 31, 2026, and may not achieve or sustain profitability.
• Intense competition — The company faces competition from well-established companies offering competing customer engagement products, which could pressure pricing and customer acquisition.
• Revenue growth sustainability — Braze cautions that its rapid historical revenue growth may not be indicative of future growth, and its limited history at current scale makes results difficult to forecast.
• Macroeconomic conditions — Unstable market and economic conditions could have serious adverse consequences for Braze's business, financial condition and share price.

Outlook

Management did not provide specific financial guidance in the excerpted materials. CEO Bill Magnuson said second quarter results reflected improving operating leverage and record second quarter free cash flow, and that adoption of the company's AI solutions is accelerating. The company pointed to demand for proof of ROI across customers of every size, industry and region, and highlighted the upcoming Braze Forge 2026 conference as a near-term priority.