Free cash flow has improved to a 13.3% margin in 2027Q1, though this performance is heavily supported by $35.8M in stock-based compensation which obscures the true operational cash burn.
| Cash from Operations | 75.42M | 71.44M | 36.68M | 6.85M | -22.31M | -35.4M | -6.08M | -7.37M |
| Operating CF Margin % | - | 9.68% | 6.18% | 1.45% | -6.28% | -14.87% | -4.05% | -7.64% |
| Operating CF Growth % | 273.54% | 94.76% | 435.47% | 130.71% | 36.98% | -482.2% | 17.45% | - |
| Net Income | -122.09M | -130.79M | -104.05M | -129.17M | -140.75M | -78.17M | -31.97M | -31.81M |
| Depreciation & Amortization | 44.52M | 41.27M | 10.12M | 6.96M | 4.62M | 2.77M | 1.59M | 645K |
| Stock-Based Compensation | 148.9M | 143.74M | 115.14M | 97.23M | 72.24M | 47.18M | 7.54M | 12.41M |
| Deferred Taxes | -263K | 0 | 0 | 0 | 495K | -80K | 60K | 57K |
| Other Non-Cash Items | 24.87M | 22.13M | 38.12M | 30.77M | 31.65M | 18.55M | 12.04M | 6.12M |
| Working Capital Changes | -21.97M | -4.91M | -22.65M | 1.05M | 9.43M | -25.66M | 4.66M | 5.22M |
| Change in Receivables | -27.98M | -22.71M | -5.36M | -14.01M | -14.65M | -29.82M | -12.35M | -12.59M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 14.38M | 6.5M |
| Change in Payables | 4.21M | -601K | -3.91M | 3.42M | 906K | 1.65M | -776K | -2.55M |
| Cash from Investing | -130.95M | -50.91M | -36.47M | -19.98M | -398.52M | 18.04M | 22.47M | -87.23M |
| Capital Expenditures | -9.48M | -9.59M | -13.23M | -9.76M | -16.7M | -4.38M | -4.35M | -2.55M |
| CapEx % of Revenue | 1.2% | 1.3% | 2.23% | 2.07% | 4.7% | 1.84% | 2.9% | 2.65% |
| Acquisitions | -181.85M | -181.85M | 0 | -16.32M | 1.26M | 2.06M | 1.89M | 830K |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 38.46M | 116.97M | -3.81M | -3.57M | -1.26M | -2.06M | -1.89M | -830K |
| Cash from Financing | -27.34M | 22.96M | 11.7M | 13.11M | 11.33M | 467.91M | 4.87M | 1.26M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -27.34M | 22.96M | 11.7M | 13.11M | 11.33M | 462.26M | -214K | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -50M | 0 | 0 | 0 | 0 | -5K | -214K | -8K |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 5.65M | 5.08M | 1.26M |
| Net Change in Cash | -82.74M | 44.75M | 11.46M | -492K | -410.35M | 449.95M | 21.42M | -93.33M |
| Free Cash Flow | 65.94M | 61.85M | 23.45M | -2.91M | -39.01M | -39.77M | -10.43M | -9.92M |
| FCF Margin % | 8.38% | 8.38% | 3.95% | -0.62% | -10.98% | -16.71% | -6.95% | -10.29% |
| FCF Growth % | 112.28% | 163.8% | 905.43% | 92.54% | 1.91% | -281.26% | -5.17% | - |
| FCF per Share | 0.60 | 0.57 | 0.23 | -0.03 | -0.41 | -0.43 | -0.11 | -0.58 |
| FCF Conversion (FCF/Net Income) | -0.54x | -0.54x | -0.35x | -0.05x | 0.16x | 0.46x | 0.19x | 0.23x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 3.09M | 0 | 2.94M | 309K | 365K | 299K | 472K | 176K |
High Stock-Based Compensation Dilution
According to recent financial disclosures, Braze's operating cash flow consistently exceeds net income, with the company reporting $28.1M in operating cash flow against a $26.6M net loss in 2027Q1, largely driven by significant non-cash stock-based compensation expenses totaling $35.8M for the same period.
The persistent gap between net income and operating cash flow suggests that the company's reported cash generation is heavily reliant on non-cash accounting adjustments rather than core operational profitability. Investors should monitor whether this reliance on equity-based incentives remains sustainable as the company attempts to scale toward GAAP profitability.
As reported in quarterly filings, Braze has demonstrated a positive trajectory in free cash flow, reaching a 13.3% margin in 2027Q1 compared to a negative 2.7% margin in 2024Q4, indicating that the platform is beginning to capture operating leverage as it matures.
This shift toward positive free cash flow margins suggests that the company is successfully managing its cash burn despite ongoing heavy investment in sales and marketing. However, the sustainability of this trend may be contingent on the company's ability to maintain high retention rates without further increasing customer acquisition costs.
Based on historical cash flow statements, Braze's working capital management remains inconsistent, with quarterly changes ranging from a $15.9M inflow in 2026Q1 to an $18.5M outflow in 2026Q2, reflecting the inherent volatility in enterprise contract billing cycles and timing of collections.
The fluctuations in working capital suggest that cash flow is sensitive to the timing of large enterprise renewals and potential seasonality in messaging volume. Analysts should interpret these swings as a reflection of the company's reliance on large, multi-year contracts rather than a fundamental breakdown in collection efficiency.
Recent financial data indicates a strategic shift in capital deployment, with Braze initiating $50.0M in share repurchases during 2027Q1, marking a departure from previous periods where capital was primarily directed toward organic growth and internal infrastructure development.
The initiation of share repurchases may indicate management's confidence in the company's long-term valuation, though it warrants investigation given the company's ongoing negative GAAP profitability. This deployment strategy suggests a potential transition toward prioritizing shareholder returns, which may conflict with the capital requirements of a high-growth software firm.
Quick answers to the most common questions about buying BRZE stock.
Braze, Inc. (BRZE) generated $71.4M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Braze, Inc. (BRZE) generated $61.9M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Braze, Inc. (BRZE) spent $9.6M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.