Braze reported a solid QQ3 2026 close to fiscal year planning, with revenue of $190.8 million, up 25.5% year-over-year and 6% quarter-over-quarter. Non-GAAP operating income reached $5.0 million (2.7% of revenue), and free cash flow stood at $18.0 million, underscoring improving profitability as the company continues reinvesting in growth initiatives. The quarter featured meaningful AI-driven momentum, highlighted by Braze AI decisioning Studio contributing $4.8 million in revenue, and the company reinforcing its AI-centric roadmap across data platforms, agent orchestration, and multilingual cross-channel capabilities. Management reiterated ambitious long-term targets, including returning to an 8% non-GAAP operating margin in fiscal 2027, with the AI initiatives expected to add approximately 2 percentage points to annual revenue in 2026 and to drive further profitability over time.
Strategically, Braze is expanding beyond traditional marketing automation into a broader, first-party data-driven engagement platform powered by AI. The company highlighted strong customer acquisition momentum (106 net new customers sequentially; 2,528 total customers; 303 large customers >$500k ARR) and a robust renewal/bookings cadence across geographies and verticals. The mix shift toward premium channels (SMS/WhatsApp) and high-velocity AI-enabled workflows during Cyber Week demonstrated the platform’s scale and reliability. Nonetheless, Braze continues to operate with negative GAAP earnings as it executes on a long-range profitability plan, and near-term execution will hinge on sustaining high-yield AI-driven monetization while managing cost discipline.