Nasdaq:BRZE
Braze, Inc.
Braze empowers global enterprises with AI-driven mobile personalization tools to increase customer engagement and retention.
Key Metrics
Investment Thesis
Bull Case
Investors may find value in Braze due to its accelerating revenue growth trajectory from $355.4M in 2023 to $593.4M in 2025, indicating strong product-market fit. The company's leadership position in the mobile engagement space and high customer retention rates suggest a potential path to profitability as scale effects kick in. A robust balance sheet with $83.6M in cash allows the firm to weather current losses while executing its growth strategy.
Bear Case
The persistent net loss of -$104.0M combined with operating expenses exceeding revenue creates significant downside risk for shareholders seeking stable returns. High marketing spend of $282.3M relative to revenue suggests an expensive customer acquisition model that may not be sustainable without immediate profit improvement. Investors should exercise caution given the dilution risks associated with funding ongoing losses and potential margin compression from competitive pressures.
About Braze, Inc.
Braze (BRZE) is a mobile-first customer engagement platform that provides data-driven tools to help companies personalize experiences across channels like app push, email, SMS, and in-app messaging. Serving clients globally in industries such as gaming, retail, media, and travel, the company leverages its proprietary AI engine to drive growth for enterprise customers. With revenue reaching $593.4M in 2025, Braze continues to expand its market presence despite ongoing operating losses.
Analysis
Management Discussion
While revenue grew significantly to $593.4M in 2025, the company continues to report a net loss of -$104.0M, reflecting heavy investment in R&D at $134.0M and marketing expenses of $282.3M. Operating profit remained negative at -$122.2M, suggesting that current growth strategies prioritize market expansion over immediate profitability. The strong cash position of $83.6M provides runway to navigate these losses while scaling operations.
Industry Overview
The mobile engagement software market is rapidly evolving as enterprises seek AI-powered solutions to personalize customer journeys across multiple touchpoints. Competitors are intensifying efforts to capture this addressable market, leading to a crowded landscape where differentiation through technology and data becomes critical. Consolidation trends are emerging as smaller players struggle to compete with the scale and resources of established vendors.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $355.4M | $471.8M | $593.4M |
| Cost of Revenue | $115.8M | $147.5M | $183.2M |
| Gross Profit | $239.6M | $324.3M | $410.2M |
| Operating Expenses | $387.7M | $469.0M | $532.4M |
| Operating Income | $-148.1M | $-144.7M | $-122.2M |
| R&D | $97.3M | $119.9M | $134.0M |
| G&A | $88.8M | $102.0M | $116.1M |
| Marketing | $201.7M | $247.1M | $282.3M |
| Stock-Based Comp | $72.2M | $97.2M | $115.1M |
| D&A | $4.6M | $7.0M | $10.1M |
| Depreciation | $3.4M | $5.5M | $10.0M |
| Amortization | — | $600.0K | $600.0K |
| Other OpEx | $0 | $0 | $0 |
| Non-Operating Income | $8.0M | $16.2M | $21.6M |
| Pre-Tax Income | $-140.2M | $-128.5M | $-100.6M |
| Income Tax | $583.0K | $2.0M | $3.4M |
| Continuing Ops | $-140.7M | $-130.4M | $-104.0M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-140.7M | $-130.4M | $-104.0M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-140.7M | $-130.4M | $-104.0M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $583.2M | $601.1M | $644.0M |
| Cash & Equivalents | $68.6M | $68.2M | $83.1M |
| Accounts Receivable | $78.3M | $92.3M | $95.2M |
| Prepaid Expenses | $26.2M | $29.4M | $35.3M |
| Other Current Assets | $410.1M | $411.3M | $430.5M |
| Long-Term Assets | $122.2M | $209.8M | $227.0M |
| PP&E (Net) | $20.3M | $29.4M | $38.5M |
| Intangibles | — | $3.7M | $3.1M |
| Goodwill | — | $28.4M | $28.4M |
| Operating Leases | $46.3M | $81.2M | $76.1M |
| Other LT Assets | $55.6M | $67.2M | $80.7M |
| Total Assets | $705.4M | $810.9M | $871.0M |
| Current Liabilities | $217.3M | $289.4M | $324.5M |
| Accounts Payable | $3.1M | $6.3M | $2.1M |
| Current Leases | $10.7M | $15.6M | $18.2M |
| Deferred Revenue | $166.1M | $204.3M | $240.0M |
| Taxes Payable | $2.2M | $9.0M | $8.8M |
| Other Current Liab | $35.3M | $54.2M | $55.3M |
| Long-Term Liabilities | $41.3M | $77.1M | $71.8M |
| LT Operating Leases | $40.6M | $75.0M | $69.3M |
| Other LT Liab | $755.0K | $2.0M | $2.5M |
| Total Liabilities | $258.6M | $366.5M | $396.2M |
| Shareholders' Equity | $446.8M | $444.2M | $474.9M |
| Paid-In Capital | $806.0M | $928.5M | $1.06B |
| Retained Earnings | $-353.9M | $-483.1M | $-586.8M |
| AOCI | $-6.8M | $-1.2M | $-926.0K |
| Total L&E | $705.4M | $810.9M | $871.0M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $-140.7M | $-130.4M | $-104.0M |
| Non-Cash Adjustments | $63.2M | $61.0M | $93.1M |
| Working Capital Changes | $55.2M | $76.3M | $47.6M |
| Cash from Operations | $-22.3M | $6.8M | $36.7M |
| Capital Expenditures | $15.4M | $9.8M | $13.2M |
| Cash from Investing | $-398.5M | $-20.0M | $-36.5M |
| Share Buybacks | $0 | $165.0K | — |
| Cash from Financing | $11.3M | $13.1M | $11.7M |
| FX Effect | $-855.0K | $-475.0K | $-444.0K |
| Net Change in Cash | $-410.4M | $-492.0K | $11.5M |
| Beginning Cash | $483.0M | $72.6M | $72.1M |
| Ending Cash | $72.6M | $72.1M | $83.6M |
Frequently Asked Questions
How does Braze, Inc. make money?
The company's revenue streams are driven primarily by its core Customer Engagement Platform which includes messaging services, analytics, and automation features. Additional segments include professional services for implementation and support, as well as emerging revenue from data monetization and marketplace offerings within the platform ecosystem.
What are the main risks for BRZE?
The company faces persistent profitability challenges with net income remaining negative at -$104.0M in 2025, raising concerns about long-term cash burn sustainability. Intense competition from larger tech giants like Salesforce and Adobe threatens market share and pricing power. High customer acquisition costs and rapid scaling requirements could further compress margins if growth slows.
What is BRZE's competitive advantage?
Braze possesses a massive installed base of customers generating high switching costs due to deep integration into client operations. Its proprietary AI technology enables hyper-personalization at scale, creating a significant moat against smaller competitors. The company benefits from strong network effects as more customer data improves the accuracy of its predictive models.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.