OfferFit's most prominent partner, nearly one third of current OfferFit customers use Braze as their primary customer engagement platform.
— William (Bill) Magnuson
03Detailed Report
BRZE
Company BRZE
Period
Q4 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 17, 2026
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Executive Summary
Braze delivered a robust Q4 2025 performance, underscoring the ongoing strength of the company’s customer engagement platform and the accelerating move by brands to first-party data and AI-driven personalization. Revenue rose 22% year over year to $160.4 million, with non-GAAP operating income of $8.0 million and non-GAAP net income of $12.0 million, marking Braze’s third straight quarter of non-GAAP profitability. Free cash flow totaled $15.0 million, and the company ended the quarter with a solid balance sheet and a large pool of remaining performance obligations. Management highlighted continued expansion through legacy vendor consolidation, cross‑channel capabilities, and a deliberate vertical focus, notably retail and consumer goods, where Braze is enhancing e-commerce features and Shopify integration to shorten time-to-value for large brands.
A pivotal development is Braze’s definitive agreement to acquire OfferFit for $325 million (cash and stock, 42% equity). Management framed OfferFit as a reinforcement-learning AI decisioning engine that complements BrazeAI and Project Catalyst, with expectant benefits including larger deal sizes, expanded optimization capabilities, and accelerated time-to-value for enterprise clients. The acquisition is expected to add approximately 2 percentage points to year-over-year revenue growth in the near term and be modestly dilutive to non-GAAP operating income margins in fiscal year 2026, with a smoother margin trajectory anticipated thereafter. The guidance for Q1 2026 and the full year 2026 excludes OfferFit, with updated guidance to be issued post-close.
Looking forward, Braze sees a long‑term growth runway driven by increased emphasis on first‑party data, AI-enabled personalization, and multi‑channel orchestration across verticals, starting with a concentrated push into retail and consumer goods. The company remains confident in its ability to sustain profitable growth while reinvesting to expand product capabilities, data infrastructure, and geographic reach.
Key Performance Indicators
Revenue
Increasing
160.40M
QoQ: 5.49% | YoY: 22.48%
Gross Profit
Increasing
111.09M
69.26% margin
QoQ: 4.66% | YoY: 26.29%
Operating Income
Increasing
-21.56M
QoQ: 33.81% | YoY: 30.28%
Net Income
Increasing
-17.19M
QoQ: 38.40% | YoY: 39.20%
EPS
Increasing
-0.17
QoQ: 37.04% | YoY: 41.38%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $160.4 million in Q4 2025, +22.0% YoY and +5.0% QoQ.
Gross profit: $111.087 million; gross margin 69.26% (non-GAAP gross profit of $112.0 million and non-GAAP gross margin 69.9%).
Operating performance (GAAP): Operating income -$21.559 million; EBITDA -$18.812 million; net income -$17.192 million; EPS -$0.17.
Non-GAAP metrics: Non-GAAP operating income $8.0 million (5% of revenue); non-GAAP net income $12.0 million; non-GAAP EPS $0.12.
Liquidity and balance sheet: Total cash, cash equivalents, restricted cash and marketable securities about $513.5 million; cash and cash equivalents $83.6 million; total assets $871.0 million; total liabilities $396.2 million; total stockholders’ equity $474.9 million; net debt approx. -$4.38 million (net cash).
Cash flow: Net cash provided by operating activities $17.0 million; free cash flow $15.0 million; operating cash flow $17.0 million.
RPO and backlog: Remaining performance obligation (RPO) $793.0 million, up 24% YoY; current RPO $505.0 million, up 23% YoY; dollar-weighted contract length just over 2 years.
Customer momentum: Total customers 2,296, up 252 YoY; large customers (>$0.5M ARR) 247, up 22% YoY; large-customer ARR contributes ~62% of total ARR.
Retention and expansion: Dollar-based net retention (DBNR) 111% overall; DBNR for large customers 114%.
Guidance (pre-OfferFit): Q1 2026 revenue guidance of $158–$159 million (~+17% YoY midpoint); Q1 non-GAAP operating income $0–$1 million; Q1 non-GAAP net income $4.5–$5.5 million; Q1 non-GAAP EPS $0.04–$0.05 (104 million weighted-average diluted shares).
Full-year 2026 guidance (pre-OfferFit): Revenue $686–$691 million (~+16% YoY midpoint); non-GAAP operating income $25.5–$29.5 million; non-GAAP net income $34–$38 million; non-GAAP EPS $0.31–$0.35.
Key strategic development: OfferFit acquisition announced (cash and stock, $325 million); expected to close in Q2 2026, with an anticipated 2 percentage points of additional revenue growth and modest dilution to non-GAAP operating income margins for 2026.
Notes: Guidance excludesOfferFit; update guidance after close.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
160.40M
22.48%
5.49%
Gross Profit
111.09M
26.29%
4.66%
Operating Income
-21.56M
30.28%
33.81%
Net Income
-17.19M
39.20%
38.40%
EPS
-0.17
41.38%
37.04%
Key Financial Ratios
Gross Profit Margin
Excellent
69.30%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Weak
-0.13%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.11%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.02%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.04%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.99
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
0.18
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-68.81x
Negative earnings make P/E ratio not meaningful
Price to Book
High Premium
9.97x
Very high premium suggests asset-light business model or lofty expectations
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