Revenue growth is decelerating to 26.2% in 2027Q2, while gross margin has compressed to 66.8% from 70.2% in 2025Q2, yet the operating loss is narrowing, suggesting early-stage operating leverage.
Braze, Inc. (BRZE) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 |
|---|
| Sales/Revenue | 834.24M | 738.18M | 593.41M | 471.8M | 355.43M | 238.03M | 150.19M | 96.36M |
| Revenue Growth % | 27.44% | 24.4% | 25.78% | 32.74% | 49.32% | 58.49% | 55.86% | - |
| Cost of Goods Sold | 281.16M | 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 | 553.08M | 495.66M | 410.22M | 324.27M | 239.61M | 159.52M | 95.68M | 60.68M |
| Gross Margin % | 66.3% | 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 | 664.5M | 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 | 484.03M | 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 | 180.47M | 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 | -111.42M | -144.76M | -122.16M | -144.69M | -148.14M | -78.21M | -32.15M | -33.53M |
| Operating Margin % | -13.36% | -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 | -86.9M | -125.43M | -112.04M | -137.73M | -143.52M | -75.44M | -30.56M | -32.89M |
| EBITDA Margin % | -10.42% | -16.99% | -18.88% | -29.19% | -40.38% | -31.69% | -20.35% | -34.13% |
| EBITDA Growth % | 27.8% | -11.95% | 18.65% | 4.04% | -90.25% | -146.83% | 7.07% | - |
| D&A (Non-Cash Add-back) | 24.52M | 19.33M | 10.12M | 6.96M | 4.62M | 2.77M | 1.59M | 645K |
| EBIT | -111.42M | -144.76M | -122.16M | -144.69M | -148.14M | -78.21M | -32.15M | -33.53M |
| Net Interest Income | 5.87M | 0 | 20.19M | 0 | 8.73M | 137K | 840K | 2.13M |
| Interest Income | 5.87M | 0 | 20.19M | 0 | 8.73M | 506K | 1.19M | 2.13M |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 369K | 345K | 0 |
| Other Income/Expense | 12.71M | 16.6M | 21.56M | 16.22M | 7.98M | -121K | 720K | 2.17M |
| Pretax Income | -98.71M | -128.16M | -100.6M | -128.47M | -140.16M | -78.33M | -31.43M | -31.36M |
| Pretax Margin % | -11.83% | -17.36% | -16.95% | -27.23% | -39.44% | -32.91% | -20.93% | -32.54% |
| Income Tax | 12.47M | 2.63M | 3.44M | 1.96M | 583K | -165K | 537K | 452K |
| Effective Tax Rate % | -12.64% | -2.05% | -3.42% | -1.52% | -0.42% | 0.21% | -1.71% | -1.44% |
| Net Income | -113.05M | -131.29M | -103.74M | -129.17M | -138.97M | -76.72M | -31.97M | -31.81M |
| Net Margin % | -13.55% | -17.79% | -17.48% | -27.38% | -39.1% | -32.23% | -21.29% | -33.01% |
| Net Income Growth % | -3.91% | -26.55% | 19.68% | 7.05% | -81.14% | -139.98% | -0.5% | - |
| Net Income (Continuing) | -111.18M | -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 | 2.03M | 389K | -112K | 192K | 1.46M | 3.23M | 2.23M | 0 |
| EPS (Diluted) | -1.02 | -1.22 | -1.02 | -1.32 | -1.47 | -0.83 | -0.35 | -1.87 |
| EPS Growth % | 0.96% | -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 | 111.25M | 107.91M | 102.19M | 98.1M | 94.57M | 92.97M | 92.11M | 17.02M |
| Basic Shares Outstanding | 111.25M | 107.91M | 102.19M | 98.1M | 94.57M | 92.97M | 92.11M | 17.02M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Negative GAAP operating margins
Metrics are mathematically derived from official filings.
Growth Decelerates as Scale Expands
Braze's year-over-year revenue growth has decelerated from 33.1% in 2025Q1 to 26.2% in 2027Q2, indicating the law of large numbers is beginning to apply as the company scales its enterprise base.
This consistent deceleration in top-line growth suggests the company is transitioning from a hyper-growth phase to a more mature, though still robust, growth trajectory. The trend appears structural rather than cyclical, implying that while demand for its platform remains strong, the addressable enterprise market is becoming incrementally harder to penetrate at prior growth rates.
Gross Margin Compression vs. Operating Improvement
Braze's gross margin has compressed from 70.2% in 2025Q2 to 66.8% in 2027Q2, likely due to the scaling of higher-cost messaging channels like SMS, even as operating leverage improves.
The margin erosion on a gross level is a key watchpoint, as it may indicate that revenue growth is increasingly driven by lower-margin usage-based channels. However, the simultaneous improvement in operating margin from -19.2% to -8.0% suggests management is achieving meaningful operating leverage through cost control, particularly in R&D spending relative to revenue growth.
Emerging Operating Leverage from Cost Discipline
As reported in financial statements, the operating loss narrowed from $40.1 million in 2025Q1 to $18.1 million in 2027Q2, demonstrating the first meaningful signs of operating leverage as the company scales.
The improvement in operating margin despite continued high S&M expenses indicates that R&D and G&A costs are not scaling linearly with revenue. This inflection toward better cost efficiency is a critical development for the profitability narrative, though the company remains firmly in a loss-making position on a GAAP basis.
Path to Profitability Hinges on Margin Mix
The simultaneous decline in gross margin and rise in stock-based compensation suggests that expanding into higher-volume, lower-margin messaging channels could pressure the timeline to sustainable profitability.
Short-sellers would focus on the concerning trend of gross margin erosion coinciding with high SBC, which averaged over $35 million per quarter in recent periods. If Braze's growth increasingly relies on SMS and other third-party messaging costs, the improved operating leverage may be offset by a less favorable revenue mix, making the path to net income breakeven longer and more uncertain.
The Operating Leverage Inflection Point
The period between 2026Q2 and 2026Q3 appears to mark a pivotal inflection, where the operating loss began to narrow structurally despite decelerating revenue growth.
This inflection suggests management successfully implemented cost discipline after a period of heavy investment. The lasting impact is a more sustainable cost base that should allow the company to benefit from future revenue growth, though it remains to be seen if this leverage can be maintained as competitive pressures evolve.
Stock-Based Compensation Dilutes True Profitability
Based on EDBL's reported figures, Braze's SBC expense was $35.7M in 2027Q2, representing over 15% of revenue and significantly impacting the quality of its GAAP net loss.
The high level of SBC is a major non-cash charge that inflates the cash burn picture and dilutes shareholders. While adjusting for SBC paints a better picture of underlying cash generation, investors should monitor whether this expense is stabilizing as a percentage of revenue, as a failure to do so would imply persistent equity dilution to fund operations.