# Braze (BRZE) Q2 2026 Financial Results Summary
Braze (Nasdaq: BRZE), the leading customer engagement platform, announced its fiscal second quarter results for the period ended July 31, 2025, on September 4, 2025.
## Fiscal Second Quarter 2026 Financial Highlights
– **Revenue:**
– Reported at **$180.1 million**, an increase from **$145.5 million** in the same quarter of the previous year, marking a growth of **23.8%** year-over-year.
– Revenue breakdown includes:
– **Subscription revenue:** $171.8 million (up from $140.0 million year-over-year).
– **Professional services and other revenue:** $8.3 million (up from $5.5 million year-over-year).
– **Remaining Performance Obligations:**
– Total of **$862.2 million** as of July 31, 2025, with **$558.2 million** classified as current (expected to be recognized as revenue within one year).
– **GAAP Gross Margin:**
– Listed at **67.7%**, down from **70.2%** year-over-year.
– **Non-GAAP Gross Margin:**
– Reported at **69.3%**, a slight decrease from **70.9%** year-over-year.
– **Dollar-Based Net Retention Rate:**
– Overall customers: **108%** for the trailing 12 months, down from **114%** year-over-year.
– Customers with ARR of $500,000 or more: **111%**, compared to **117%** in the same quarter last year.
– **Total Customers:**
– Increased to **2,422** from **2,163** year-over-year.
– Notably, customers with ARR over $500,000 rose to **282** from **222**.
– **Operating Loss:**
– GAAP operating loss stood at **$38.8 million**, worsening from a loss of **$28.0 million** year-over-year.
– Contributing factor included **$39.5 million** in stock-based compensation expenses.
– **Non-GAAP Operating Income:**
– Reported at **$6.0 million**, up from **$4.2 million** year-over-year.
– **Net Loss per Share:**
– GAAP net loss per share attributable to common stockholders was **$0.26**, compared to **$0.23** the previous year.
– Non-GAAP net income per share was **$0.15**, an increase from **$0.09** year-over-year.
– **Cash Flows:**
– Net cash provided by operating activities was **$7.0 million**, down from **$11.6 million** the previous year.
– Free cash flow was **$3.5 million**, down from **$7.2 million** year-over-year.
– As of July 31, 2025, total cash and cash equivalents were **$368.3 million**, down from **$514.0 million** as of January 31, 2025.
## Recent Business Highlights
– Noteworthy new business wins and customer expansions included partnerships with **DocMorris, Fogo de Chão, Gopuff, Kleinanzeigen, Laundryheap, Little Caesars, Metcash, Saily, Sweetgreen**, and **Wix**.
– The introduction of the **Braze Model Context Protocol (MCP) Server**, facilitating connections between large language models (LLMs) and Braze’s data.
– Released the **2025 Environmental, Social, and Governance (ESG) Report**, highlighting the company’s commitment to customer relationship management.
## Financial Outlook
Braze has provided guidance for the upcoming fiscal third quarter (ending October 31, 2025) and updated its forecasts for the fiscal year ending January 31, 2026:
– **FY 2026 Q3 Guidance:**
– Revenue: **$183.5 – $184.5 million**
– Non-GAAP operating income: **$3.5 – 4.5 million**
– Non-GAAP net income: **$6.5 – 7.5 million**
– Non-GAAP net income per share (diluted): **$0.06 – $0.07**
– **FY 2026 Guidance:**
– Revenue: **$717.0 – 720.0 million**
– Non-GAAP operating income: **$24.5 – 25.5 million**
– Non-GAAP net income: **$45.5 – 46.5 million**
– Non-GAAP net income per share (diluted): **$0.41 – 0.42**
## Dividend and Share Repurchase
– The quarter result announcement does not mention any declared dividends or share repurchase activities.
This summary provides a comprehensive overview of Braze’s financial performance for the second quarter of fiscal year 2026, reflecting growth in revenue and ongoing challenges in profitability.
| Three Months Ended | Six Months Ended | |||
|---|---|---|---|---|
| July 31, 2025 | July 31, 2024 | July 31, 2025 | July 31, 2024 | |
| Revenue | $ 180,111 | $ 145,499 | $ 342,170 | $ 280,958 |
| Cost of revenue(1)(2)(5) | 58,221 | 43,420 | 109,078 | 87,968 |
| Gross profit | 121,890 | 102,079 | 233,092 | 192,990 |
| Operating expenses: | ||||
| Sales and marketing(1)(2)(5) | 82,599 | 68,569 | 156,726 | 138,396 |
| Research and development(1)(2) | 41,250 | 33,141 | 78,047 | 67,514 |
| General and administrative(1)(2)(3)(4)(5)(6) | 36,794 | 28,319 | 77,294 | 55,110 |
| Total operating expenses | 160,643 | 130,029 | 312,067 | 261,020 |
| Loss from operations | -38,753 | -27,950 | -78,975 | -68,030 |
| Other income, net | 3,983 | 5,503 | 9,635 | 10,674 |
| Loss before provision for income taxes | -34,770 | -22,447 | -69,340 | -57,356 |
| (Benefit from) provision for income taxes | -7,007 | 702 | -5,936 | 1,500 |
| Net loss | -27,763 | -23,149 | -63,404 | -58,856 |
| Net income (loss) attributable to | 136 | -150 | 281 | -216 |
| redeemable non-controlling interest | ||||
| Net loss attributable to Braze, Inc. | $ -27,899 | $ -22,999 | $ -63,685 | $ -58,640 |
| Net loss per share attributable to | ||||
| Braze, Inc. common stockholders, basic and diluted | $ -0.26 | $ -0.23 | $ -0.60 | $ -0.58 |
| Weighted-average shares used to compute | ||||
| net loss per share attributable to | 106,807 | 101,449 | 105,858 | 101,239 |
| Braze, Inc. common stockholders, basic | ||||
| and diluted |
(1) Includes stock-based compensation as follows:
(2) Includes employer taxes related to stock-based compensation as follows:
(3) Includes 1% Pledge charitable donation expense as follows:
(4) Includes acquisition related expense as follows:
(5) Includes amortization of intangible assets acquired in the acquisition expense as follows:
(6) Includes adjustment to the fair value of the contingent consideration liability as follows:
| July 31, 2025 | January 31, 2025 | |
|---|---|---|
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $ 80,979 | $ 83,062 |
| Restricted cash, current | 1,291 | — |
| Accounts receivable, net of allowance of | ||
| $1,850 and $2,563 at July 31, 2025 and | 88,224 | 95,234 |
| January 31, 2025, respectively | ||
| Marketable securities | 282,626 | 430,457 |
| Prepaid expenses and other current | 31,385 | 35,273 |
| assets | ||
| Total current assets | 484,505 | 644,026 |
| Restricted cash, noncurrent | 3,430 | 530 |
| Property and equipment, net | 40,089 | 38,550 |
| Operating lease right-of-use assets | 73,119 | 76,147 |
| Deferred contract costs | 82,168 | 76,766 |
| Goodwill | 267,778 | 28,448 |
| Intangible assets, net | 67,643 | 3,130 |
| Other assets | 3,805 | 3,401 |
| TOTAL ASSETS | $ 1,022,537 | $ 870,998 |
| LIABILITIES, REDEEMABLE NON-CONTROLLING | ||
| INTEREST, AND STOCKHOLDERS’ EQUITY | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | $ 1,114 | $ 2,150 |
| Accrued expenses and other current | 70,424 | 64,189 |
| liabilities | ||
| Deferred revenue | 262,113 | 239,976 |
| Operating lease liabilities, current | 20,010 | 18,162 |
| Total current liabilities | 353,661 | 324,477 |
| Operating lease liabilities, noncurrent | 64,413 | 69,278 |
| Other long-term liabilities | 5,413 | 2,494 |
| TOTAL LIABILITIES | 423,487 | 396,249 |
| COMMITMENTS AND CONTINGENCIES (Note 13) | ||
| Redeemable non-controlling interest | 169 | -112 |
| (Note 4) | ||
| STOCKHOLDERS’ EQUITY | ||
| Class A common stock, $0.0001 par value; | ||
| 2,000,000,000 and 2,000,000,000 shares | ||
| authorized as of July 31, 2025 and | 10 | 8 |
| January 31, 2025, respectively; | ||
| 98,350,038 and 87,934,059 shares issued | ||
| and outstanding as of July 31, 2025 and | ||
| January 31, 2025, respectively | ||
| Class B common stock, $0.0001 par value; | ||
| 110,000,000 and 110,000,000 shares | ||
| authorized as of July 31, 2025 and | 1 | 2 |
| January 31, 2025, respectively; | ||
| 12,070,535 and 16,017,314 shares issued | ||
| and outstanding as of July 31, 2025 and | ||
| January 31, 2025, respectively | ||
| Additional paid-in capital | 1,249,495 | 1,062,613 |
| Accumulated other comprehensive loss | -104 | -926 |
| Accumulated deficit | -650,521 | -586,836 |
| TOTAL STOCKHOLDERS’ EQUITY | 598,881 | 474,861 |
| TOTAL LIABILITIES, REDEEMABLE | ||
| NON-CONTROLLING INTEREST, AND | $ 1,022,537 | $ 870,998 |
| STOCKHOLDERS’ EQUITY |
