Braze reported solid top-line growth in the fiscal first quarter of 2026, delivering $162.1 million in revenue, up approximately 20% year over year. Management highlighted efficiency gains that expanded non-GAAP operating margins by over 900 basis points YoY and achieved a fourth straight quarter of non-GAAP net income profitability, with over $7 million of net income and roughly $23 million of free cash flow in the quarter. The quarter benefited from a diversified booking mix, healthy ARR dynamics, and ongoing expansion outside the U.S., reinforcing Braze’s position as a leading customer engagement platform.
In June 2025 Braze closed the acquisition of OfferFit, a reinforcement-learning–driven AI decisioning company. Management outlined a multi-year integration plan designed to lift deal sizes and broaden AI-driven optimization capabilities across the Braze platform, with near-term upside from cross-sell and better monetization of AI-enabled offerings. The company guided for Q2 revenue of $171-172 million (about 18% YoY at the midpoint) and full-year 2026 revenue of $702-706 million, including approximately $11-12 million from OfferFit. While OfferFit will temper near-term margins, Braze expects to return to a broader operating-margin framework by fiscal 2027.
Key balance-sheet and cash-flow metrics remained healthy, with roughly $540 million of cash, cash equivalents, restricted cash and marketable securities at quarter-end and $24 million of cash provided by operations. The quarterly free cash flow was $23 million, aided by approximately $6 million in vendor payments related to the OfferFit acquisition. Together, these factors support a constructive growth-and-margin trajectory, contingent on successful integration and continued expansion across channels, verticals, and geographies.