“We delivered great second quarter results, generating $180 million of revenue, up 24% year-over-year and 11% from the prior quarter.”
— William Magnuson
03Detailed Report
BRZE
Company BRZE
Period
Q2 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 19, 2026
Swipe to view all report sections
Executive Summary
Braze logged a solid QQ2 2026 performance, delivering 24% year-over-year revenue growth to $180.1 million and 11% sequential growth, supported by continued renewals, expansions, and the meaningful contribution from the OfferFit acquisition. Management highlighted robust late-stage pipeline, historically high competitive win rates, and a stabilization in downsell dynamics, contributing to better profitability as the year progresses. The combination of Braze's core platform with OfferFit’s AI-driven decisioning is positioned to accelerate one-to-one personalization at scale, with AI-driven capabilities expected to become increasingly accessible to broader customer segments. Near-term guidance was raised for QQ3 and full-year 2026, reflecting confidence in topline growth and incremental margin expansion as OfferFit scales. The company also signaled a strategic emphasis on AI–data unification, Canvas orchestration, and composable intelligence, with Forge as a key event to showcase the AI roadmap. Key risks include macro demand volatility, integration execution, and the challenge of sustaining high DBNR in a evolving AI-enabled landscape.
Key Performance Indicators
Revenue
Increasing
180.11M
QoQ: 11.14% | YoY: 23.79%
Gross Profit
Increasing
121.89M
67.67% margin
QoQ: 9.61% | YoY: 19.41%
Operating Income
Decreasing
-36.60M
QoQ: 9.01% | YoY: -30.94%
Net Income
Decreasing
-27.90M
QoQ: 22.04% | YoY: -21.31%
EPS
Decreasing
-0.26
QoQ: 23.53% | YoY: -13.04%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability
- Revenue: $180.11 million, up 24% YoY and 11% QoQ. Organic revenue (excluding OfferFit) was $177 million for the quarter, up 22% YoY.
- Gross profit: $121.89 million, gross margin 0.6767. Non-GAAP gross profit $125.0 million with a non-GAAP gross margin of 69.3% (versus 70.9% in the prior-year quarter). Key driver of margin pressure was higher premium messaging volumes; offset by cost optimization in the tech stack and personnel efficiencies.
- Operating and net income: Non-GAAP operating income $6.0 million (3.4% of revenue). Non-GAAP net income $17.0 million. GAAP net income was negative at $27.9 million due to standard non-cash and accounting effects; EPS (non-GAAP) $0.15.
- Cash flow: Free cash flow $4.0 million; cash from operations $7.0 million. Ending cash and equivalents, restricted cash and marketable securities approximately $368 million, including ~$181 million cash portion of the OfferFit acquisition.
- Customer and ARR metrics: Total customers 2,422, up 12% YoY and 80 sequentially; large customers (>$500k ARR) 282, up 27% YoY. 62% of ARR contributed by customers spending $500k+ annually. Committed ARR surpassed $700 million.
- RPO and deployment: Remaining performance obligation (RPO) $862 million (up 25% YoY, up 4% QoQ). Current RPO $558 million (up 27% YoY, up 7% QoQ). About $12 million of RPO and $10.5 million of CRPO derived from OfferFit. Dollar-weighted contract length remains just over 2 years.
- Product mix and AI: Subscription revenue ~95% of top line; AI roadmap and OfferFit integration are key growth levers. Management underscored AI-driven personalization and composable intelligence to elevate customer experiences while maintaining data-context integrity.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
180.11M
23.79%
11.14%
Gross Profit
121.89M
19.41%
9.61%
Operating Income
-36.60M
-30.94%
9.01%
Net Income
-27.90M
-21.31%
22.04%
EPS
-0.26
-13.04%
23.53%
Key Financial Ratios
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.