Revenue growth has re-accelerated to 30.2% in 2027Q1, yet gross margins have compressed from 70.2% in 2025Q2 to 65.7%, reflecting potential headwinds from rising cloud costs or product mix shifts.
| Sales/Revenue | 787.12M | 738.18M | 593.41M | 471.8M | 355.43M | 238.03M | 150.19M | 96.36M |
| Revenue Growth % | 26.95% | 24.4% | 25.78% | 32.74% | 49.32% | 58.49% | 55.86% | - |
| Cost of Goods Sold | 264M | 242.53M | 183.19M | 147.53M | 115.82M | 78.51M | 54.51M | 35.69M |
| COGS % of Revenue | - | 32.85% | 30.87% | 31.27% | 32.59% | 32.98% | 36.29% | 37.03% |
| Gross Profit | 523.12M | 495.66M | 410.22M | 324.27M | 239.61M | 159.52M | 95.68M | 60.68M |
| Gross Margin % | 66.46% | 67.15% | 69.13% | 68.73% | 67.41% | 67.02% | 63.71% | 62.97% |
| Gross Profit Growth % | - | 20.83% | 26.5% | 35.33% | 50.2% | 66.73% | 57.68% | - |
| Operating Expenses | 655.17M | 640.41M | 532.38M | 468.96M | 387.75M | 237.74M | 127.83M | 94.21M |
| OpEx % of Revenue | - | 86.76% | 89.72% | 99.4% | 109.09% | 99.87% | 85.11% | 97.77% |
| Selling, General & Admin | 478.72M | 473.27M | 398.41M | 349.1M | 290.45M | 178.7M | 98.62M | 73.87M |
| SG&A % of Revenue | - | 64.11% | 67.14% | 73.99% | 81.72% | 75.07% | 65.66% | 76.66% |
| Research & Development | 176.45M | 167.14M | 133.97M | 119.86M | 97.29M | 59.03M | 29.21M | 20.34M |
| R&D % of Revenue | - | 22.64% | 22.58% | 25.41% | 27.37% | 24.8% | 19.45% | 21.11% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 48K |
| Operating Income | -132.05M | -144.76M | -122.16M | -144.69M | -148.14M | -78.21M | -32.15M | -33.53M |
| Operating Margin % | -16.78% | -19.61% | -20.59% | -30.67% | -41.68% | -32.86% | -21.41% | -34.8% |
| Operating Income Growth % | - | -18.5% | 15.57% | 2.33% | -89.41% | -143.25% | 4.12% | - |
| EBITDA | -109.24M | -125.43M | -112.04M | -137.73M | -143.52M | -75.44M | -30.56M | -32.89M |
| EBITDA Margin % | -13.88% | -16.99% | -18.88% | -29.19% | -40.38% | -31.69% | -20.35% | -34.13% |
| EBITDA Growth % | 2.21% | -11.95% | 18.65% | 4.04% | -90.25% | -146.83% | 7.07% | - |
| D&A (Non-Cash Add-back) | 22.81M | 19.33M | 10.12M | 6.96M | 4.62M | 2.77M | 1.59M | 645K |
| EBIT | -128.07M | -144.76M | -122.16M | -144.69M | -148.14M | -78.21M | -32.15M | -33.53M |
| Net Interest Income | 7.07M | 0 | 20.19M | 0 | 8.73M | 137K | 840K | 2.13M |
| Interest Income | 7.07M | 0 | 20.19M | 0 | 8.73M | 506K | 1.19M | 2.13M |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 369K | 345K | 0 |
| Other Income/Expense | 14.39M | 16.6M | 21.56M | 16.22M | 7.98M | -121K | 720K | 2.17M |
| Pretax Income | -117.66M | -128.16M | -100.6M | -128.47M | -140.16M | -78.33M | -31.43M | -31.36M |
| Pretax Margin % | -14.95% | -17.36% | -16.95% | -27.23% | -39.44% | -32.91% | -20.93% | -32.54% |
| Income Tax | 2.98M | 2.63M | 3.44M | 1.96M | 583K | -165K | 537K | 452K |
| Effective Tax Rate % | -2.53% | -2.05% | -3.42% | -1.52% | -0.42% | 0.21% | -1.71% | -1.44% |
| Net Income | -122.09M | -131.29M | -103.74M | -129.17M | -138.97M | -76.72M | -31.97M | -31.81M |
| Net Margin % | -15.51% | -17.79% | -17.48% | -27.38% | -39.1% | -32.23% | -21.29% | -33.01% |
| Net Income Growth % | -17.52% | -26.55% | 19.68% | 7.05% | -81.14% | -139.98% | -0.5% | - |
| Net Income (Continuing) | -120.64M | -130.79M | -104.05M | -130.43M | -140.75M | -78.17M | -31.97M | -31.81M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.49M | 389K | -112K | 192K | 1.46M | 3.23M | 2.23M | 0 |
| EPS (Diluted) | -1.10 | -1.22 | -1.02 | -1.32 | -1.47 | -0.83 | -0.35 | -1.87 |
| EPS Growth % | -10.89% | -19.61% | 22.73% | 10.2% | -77.11% | -137.14% | 81.28% | - |
| EPS (Basic) | - | -1.22 | -1.02 | -1.32 | -1.47 | -0.83 | -0.35 | -1.87 |
| Diluted Shares Outstanding | 110.8M | 107.91M | 102.19M | 98.1M | 94.57M | 92.97M | 92.11M | 17.02M |
| Basic Shares Outstanding | 110.8M | 107.91M | 102.19M | 98.1M | 94.57M | 92.97M | 92.11M | 17.02M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
High Customer Acquisition Costs
According to the latest quarterly financial data, Braze's revenue growth has demonstrated a notable re-acceleration, climbing to 30.2% in 2027Q1 from a low of 19.6% in 2026Q1, suggesting that the company's enterprise-focused go-to-market strategy is successfully capturing larger, more durable contract volumes across its global footprint.
The recent uptick in top-line expansion appears to indicate that the platform's value proposition is resonating with larger organizations, potentially offsetting the cyclicality inherent in messaging-volume-based pricing. Investors should monitor whether this growth trajectory remains sustainable as the company faces tougher year-over-year comparisons in subsequent quarters.
As reported in recent income statements, Braze's gross margin has experienced a gradual contraction, falling from 70.2% in 2025Q2 to 65.7% in 2027Q1, which may indicate rising third-party cloud hosting costs or a shift in product mix toward lower-margin messaging channels like SMS and WhatsApp.
This margin erosion warrants further investigation, as it suggests that the company's variable cost structure is not yet benefiting from the economies of scale typically expected in mature SaaS models. If this trend persists, it may imply that the platform's reliance on external infrastructure providers creates a structural ceiling on profitability.
Based on the provided financial figures, Braze continues to struggle with operating leverage, as SG&A expenses remain high at $120.1M in 2027Q1, consistently consuming a significant portion of gross profit and preventing the company from achieving a positive operating margin despite steady top-line growth.
The persistent gap between revenue growth and operating income suggests that the company is still in a heavy investment phase, prioritizing market share capture over immediate bottom-line profitability. Analysts should watch for a decoupling of SG&A growth from revenue growth as a primary indicator of future operational efficiency.
Data from recent filings indicates that stock-based compensation remains a substantial non-cash expense, totaling $35.8M in 2027Q1, which significantly obscures the company's underlying cash burn and complicates the assessment of its true path toward self-sustaining GAAP profitability in the near-to-medium term.
The reliance on equity-based incentives appears to be a core component of the company's talent retention strategy, yet it creates a persistent drag on EPS that investors must adjust for when evaluating operational performance. This practice may indicate that the company's reported net losses understate the actual economic cost of its human capital.
While revenue growth is accelerating, the persistent negative operating margins, which reached -13.0% in 2027Q1, raise questions about the long-term sustainability of the current customer acquisition model, particularly if enterprise marketing budgets face increased scrutiny in a more restrictive macroeconomic environment.
Short-term growth may be masking underlying inefficiencies in the sales funnel, where the cost to acquire and support enterprise clients appears to be rising faster than the lifetime value of those accounts. Investors should be wary of the possibility that current growth rates are being artificially supported by aggressive, and potentially unsustainable, sales and marketing spend.
Quick answers to the most common questions about buying BRZE stock.
For fiscal year 2026, Braze, Inc. (BRZE) reported total revenue of $738.2M. This represents a 666.0% increase compared to $96.4M in 2020.
Braze, Inc. (BRZE) reported a net loss of $131.3M for the fiscal year ending 2026.
Braze, Inc. (BRZE) reported an operating income of $-144.8M, resulting in an operating profit margin of -19.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Braze, Inc. (BRZE) generated $495.7M in gross profit for the year, representing a gross profit margin of 67.1%. This demonstrates the company's core pricing power and production efficiency.