Braze, Inc. (BRZE) Cash Flow Statement

The gap between net income and operating cash flow is almost entirely explained by the substantial add-back of stock-based compensation, which was $35.7M in 2027Q2 versus an operating loss of $18.9M. This suggests the business generates cash from operations but its GAAP profitability is heavily diluted by non-cash equity compensation, a critical factor for investors assessing true economic earnings.

The FCF trajectory mirrors the improvement in operating leverage noted in the income statement analysis, moving from cash burn to consistent generation. This suggests the company's scaling efforts are beginning to yield cash returns, though the margin expansion is driven more by operational efficiency than by gross margin improvement, which remains under pressure.

The large negative swings in working capital, particularly the -$25.8M in 2025Q3 and -$18.5M in 2026Q2, suggest lumpy payments or collection cycles that can materially obscure the underlying operating cash flow trend. Investors should monitor whether these are timing issues related to large enterprise contracts or indicative of less efficient working capital management as the business grows.

The extremely low capital intensity implies that nearly all operating cash flow converts to free cash flow after minimal reinvestment needs. This structure supports the FCF improvement trend but also underscores that the company's competitive moat, as described in the architecture, is built on intellectual property and software rather than physical assets, requiring continued high R&D spending to maintain.