10-Q · May 27, 2026
Braze, Inc. reported solid Q1 results for FY27, with revenue of $211 million, exceeding consensus estimates and representing a 30% increase from the prior year. The company recorded a non-GAAP EPS of $0.10, reflecting…
Earnings analysis · 10-Q
BRZE earnings analysis
Filed September 8, 2026 · Our reading of the company's report
The latest report
Braze delivered a strong quarterly beat, with revenue of $227.2 million, non-GAAP diluted EPS of $0.19 and free cash flow of $21.7 million, and management raised Q3 and full-year FY2027 outlook. Six-month revenue…
Read full summary
Braze delivered a strong quarterly beat, with revenue of $227.2 million, non-GAAP diluted EPS of $0.19 and free cash flow of $21.7 million, and management raised Q3 and full-year FY2027 outlook. Six-month revenue increased to $438.2 million from $342.2 million, while the six-month net loss narrowed to $43.8 million from $63.4 million. Offsetting positives are the unresolved ITGC material weakness, the $763.6 million accumulated deficit and continued reliance on non-GAAP profitability and cash resources.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.19
What stood out
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Revenue materially exceeded consensus
Revenue was $227.2 million, $7.0 million above the $220.25 million consensus estimate. Six-month revenue was $438.2 million versus $342.2 million in the prior-year period, an increase of approximately 28.1%.
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Adjusted profitability beat estimates
Non-GAAP diluted EPS was $0.19 versus the $0.08 consensus estimate, while non-GAAP operating income reached $22.0 million.
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Positive free cash flow
Free cash flow was $21.7 million for the quarter, supporting liquidity despite continued GAAP losses.
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Strong liquidity position
Cash, cash equivalents and marketable securities totaled $413.9 million as of July 31, 2026, including $243.1 million invested in government and corporate debt securities.
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Losses narrowed year over year
The company reported a six-month net loss of $43.8 million, improving from a $63.4 million net loss in the prior-year period by $19.6 million, or approximately 30.9%.
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Control remediation is progressing
Management expects to complete remediation of the IT general-controls weakness during the fiscal year ending January 31, 2027, although it stated that the timing cannot be guaranteed.
What to watch
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Material weakness remains unresolved
The company concluded that disclosure controls were ineffective as of July 31, 2026 because of one material weakness involving IT general controls over user access and program change management. Management stated that remediation may not be completed by January 31, 2027.
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Persistent losses and capital needs
The company had an accumulated deficit of $763.6 million as of July 31, 2026 and recorded a six-month net loss of $43.8 million. Management also stated that it may require additional debt or equity financing if operating cash generation is insufficient, creating potential dilution or higher financing costs.
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Repurchase program reduces flexibility
The company authorized a $100.0 million share-repurchase program and entered into a $50.0 million accelerated share-repurchase agreement, but no shares were delivered under the agreement during the three months ended July 31, 2026. Repurchases could reduce cash available for acquisitions or other strategic investments.
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Investment portfolio rate exposure
A hypothetical 10% change in interest rates was not material to the consolidated financial statements, but $243.1 million of the company's $413.9 million liquidity portfolio was invested in government and corporate debt securities and remains exposed to changes in market values and interest income.
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Limited patent portfolio
The company had 30 granted patents and one U.S. patent application pending as of July 31, 2026, leaving intellectual-property protection dependent on a relatively limited patent portfolio and continued enforceability of its rights.
Management's outlook
Management raised Q3 FY2027 revenue guidance to $229.0 million-$230.0 million from $219.5 million-$220.5 million. FY2027 guidance is $910.0 million-$913.0 million of revenue and $0.64-$0.65 of non-GAAP diluted EPS.
Earlier filings 4
10-K · March 25, 2026
Braze positions itself as an AI-first, end-to-end customer engagement platform (BrazeAI, Canvas, Braze Data Platform) focused on real‑time, cross‑channel personalization. The company reported a Q4 revenue beat of…
10-Q · December 10, 2025
Braze reported quarterly revenue of $190,842,000 for the three months ended October 31, 2025, up $38,790,000 or 25.5% versus $152,052,000 in the year-ago quarter. Gross margin compressed to 67.2% from 69.8% (a ~260 bp…
10-Q · September 5, 2025
Braze reported quarterly revenue of $180,111,000 for the three months ended July 31, 2025, up $34,612,000 or 23.8% versus $145,499,000 in the prior-year quarter, but profitability weakened: gross margin fell to 67.7%…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.