We achieved our strongest quarter of customer additions in 3 years, adding 106 sequentially and 317 year-over-year to 2,528 up 14%.
— William Magnuson
03Detailed Report
BRZE
Company BRZE
Period
Q3 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 17, 2026
Swipe to view all report sections
Executive Summary
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.
Key Performance Indicators
Revenue
Increasing
190.84M
QoQ: 5.96% | YoY: 25.51%
Gross Profit
Increasing
128.21M
67.18% margin
QoQ: 5.19% | YoY: 20.79%
Operating Income
Decreasing
-37.55M
QoQ: 3.12% | YoY: -15.27%
Net Income
Decreasing
-35.80M
QoQ: -28.32% | YoY: -28.26%
EPS
Decreasing
-0.33
QoQ: -26.92% | YoY: -22.22%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $190.842 million, +25.5% YoY, +6.0% QoQ.
- Gross profit: $128.211 million; gross margin 67.18%.
- Non-GAAP gross profit: $132.0 million; non-GAAP gross margin 69.1%.
- Operating income (GAAP): $(37.545) million; operating margin (GAAP) −19.67%.
- EBITDA: $(37.545) million; EBITDA margin −19.67%.
- Non-GAAP operating income: $5.0 million; non-GAAP operating margin 2.7%.
- Non-GAAP net income: $7.0 million; non-GAAP EPS $0.06.
- Net income (GAAP): $(35.8) million; net income margin −18.76%.
- EPS (GAAP): $(0.33); diluted EPS $(0.33).
- Free cash flow: $18.0 million; CFO: $20.97 million; capex: $(1.94) million.
- Cash and equivalents: $97.8 million; short-term investments: $285.5 million; total cash & short-term investments: $383.3 million.
- Remaining performance obligation (RPO): $891 million, up 24% YoY and 3% QoQ; current RPO: $573 million, up 25% YoY and 3% QoQ.
- Dollar-based net retention (DBNRR): 108% overall; large customers DBNRR: 110%.
- International revenue: 45% of total.
- Guidance: Q4 revenue guidance of $197.5–$198.5 million; Q4 non-GAAP op income $12–$13 million; Q4 non-GAAP net income $15–$16 million; full-year 2026 revenue guidance of $730.5–$731.5 million; non-GAAP net income $46–$47 million; non-GAAP EPS $0.42–$0.43; target 8% non-GAAP operating margin in FY2027.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
190.84M
25.51%
5.96%
Gross Profit
128.21M
20.79%
5.19%
Operating Income
-37.55M
-15.27%
3.12%
Net Income
-35.80M
-28.26%
-28.32%
EPS
-0.33
-22.22%
-26.92%
Key Financial Ratios
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.