Braze (NASDAQ:BRZE) Announces Quarterly Earnings Results

Braze (NASDAQ:BRZE) posted its earnings results on Tuesday. The company reported $0.10 earnings per share for the quarter, missing analysts’ consensus estimates of $0.14 by ($0.04), FiscalAI reports. Braze had a negative return on equity of 17.87% and a negative net margin of 16.85%.The firm had revenue of $205.17 million for the quarter, compared to analysts’ expectations of $198.23 million. During the same quarter last year, the company posted $0.12 EPS. The firm’s revenue was up 27.9% on a year-over-year basis.

Here are the key takeaways from Braze’s conference call:

• Q4 revenue was $205.2M (+28% YoY) and FY2026 revenue grew 24% as Braze passed $800M ARR and exceeded $1B in remaining performance obligations, signaling strong demand and multiyear customer commitments.
• Braze’s AI strategy is accelerating adoption — Decisioning Studio (OfferFit) contributed $5.7M in Q4, and both Agent Console and BrazeAI Operator reached GA ahead of schedule with rapid uptake, supporting >50% bookings growth and increased large-enterprise deal velocity.
• The company is improving profitability and returning capital — FY2026 non-GAAP operating income was $28M with margin expansion, FY2027 guidance targets ~20% revenue growth and ~8% non-GAAP operating margin, and the board authorized a $100M share repurchase (including a $50M ASR).
• Gross margin pressures and one-time items — non-GAAP gross margin declined to 67.2% (from 69.9%) due mainly to higher premium messaging and hosting costs, and non-GAAP net income was reduced by a $5M OfferFit deferred-tax purchase accounting adjustment.
• Customer and retention strength — trailing 12-month dollar-based net retention improved to 109%, customers spending ≥$500K grew 35% YoY to 333 (now ~64% of ARR), and multiple large legacy-platform migrations point to continued enterprise stickiness.

Braze Trading Down 4.8%

Shares of NASDAQ:BRZE opened at $18.02 on Wednesday. The stock has a fifty day simple moving average of $19.95 and a two-hundred day simple moving average of $26.57. Braze has a 12-month low of $15.26 and a 12-month high of $43.89. The stock has a market capitalization of $2.02 billion, a price-to-earnings ratio of -16.38 and a beta of 1.08.

Insider Transactions at Braze

In related news, General Counsel Susan Wiseman sold 4,167 shares of the company’s stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $17.03, for a total value of $70,964.01. Following the transaction, the general counsel owned 209,864 shares in the company, valued at $3,573,983.92. The trade was a 1.95% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Pankaj Malik sold 2,893 shares of the stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $16.93, for a total transaction of $48,978.49. Following the sale, the chief accounting officer directly owned 50,679 shares in the company, valued at $857,995.47. This trade represents a 5.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 60,676 shares of company stock valued at $1,027,661. 18.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Gotham Asset Management LLC bought a new stake in shares of Braze during the fourth quarter valued at approximately $323,000. Prudential Financial Inc. purchased a new stake in Braze during the 2nd quarter valued at $272,000. FORA Capital LLC purchased a new stake in Braze during the 3rd quarter valued at $263,000. Occudo Quantitative Strategies LP bought a new stake in shares of Braze in the 2nd quarter worth $255,000. Finally, Sender Co & Partners Inc. bought a new stake in shares of Braze in the 2nd quarter worth $248,000. 90.47% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research analysts have recently commented on the company. Cantor Fitzgerald restated an “overweight” rating and issued a $38.00 target price on shares of Braze in a research note on Wednesday, December 10th. Citizens Jmp decreased their price objective on Braze from $68.00 to $35.00 and set a “market outperform” rating for the company in a report on Wednesday. Mizuho boosted their target price on shares of Braze from $45.00 to $50.00 and gave the company an “outperform” rating in a report on Wednesday, December 10th. Stifel Nicolaus set a $40.00 price target on shares of Braze in a research note on Monday, February 9th. Finally, Piper Sandler decreased their price target on shares of Braze from $30.00 to $27.00 and set an “overweight” rating for the company in a research note on Wednesday. Twenty-two equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $39.76.

Braze News Roundup

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Revenue beat and bullish outlook: Braze posted revenue of $205.2M (+27.9% YoY), topping consensus and gave a strong revenue outlook that management tied to AI-driven product momentum and improved operating leverage. This is the main driver cited for the intraday rally. Read More.
• Positive Sentiment: Analyst upgrade with a high price target: Canaccord Genuity increased its stance to a Buy and set a $43 target, signaling sizable upside from current levels and likely supporting demand. Read More.
• Positive Sentiment: Management emphasizes AI-driven growth on the earnings call: Executives highlighted AI features and customer traction as secular revenue drivers, which investors view as a multi-quarter growth catalyst. Read More.
• Neutral Sentiment: Full call transcript and slide deck available for deeper diligence — useful for institutional buyers and analysts validating the growth narrative. Read More.
• Neutral Sentiment: Short‑interest reporting appears anomalous in some feeds (entries showing 0 shares/NaN); treat those data points as unreliable until exchanges confirm.
• Negative Sentiment: EPS miss and continued unprofitability: Braze reported $0.10 EPS vs. $0.14 consensus and still shows negative net margin and ROE, which leaves the valuation sensitive to execution and margin improvement. Read More.

About Braze

Braze, Inc is a publicly traded software company (NASDAQ: BRZE) that offers a customer engagement platform designed to help brands build personalized relationships with their users. Founded in 2011 as Appboy by Bill Magnuson, Jon Hyman and Mark Ghermezian, the company adopted the Braze name in 2017 to underscore its focus on fostering strong connections between businesses and consumers. Its cloud-based platform consolidates messaging channels including push notifications, in-app messages, email and SMS, enabling companies to deliver timely, context-driven communications at scale.

The core functionality of Braze’s platform centers on data-driven segmentation, customer journey orchestration and real-time analytics.