One-glance verdict
Within fair range
$48.52 our estimate vs market $33.69
Wall Street consensus: $36.25 (-25.3% lower than our fair-value estimate)
31% below our estimate
Fundamentals snapshot
Braze, Inc.
BRZE · NMS · Technology · Software - Application
Current price
$33.69
52-week range
$15.26 - $37.33
Market cap
$3.79B
Balance sheet
Healthy
-392.30x Concerning
Net cash $306.06M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 6.6% last year.
- Reward Free cash flow was positive in 2/10 years.
- Risk Return on equity was -22.8% last year — the company lost money on shareholders' equity.
What this company does
Braze, Inc.
Braze sells software that helps brands, like your favorite clothing store or food delivery app, communicate with you through personalized emails and app notifications. The company makes money by charging these brands a subscription fee, which provides a steady stream of recurring revenue (income that is expected to continue in the future, like a Netflix subscription). This is important because it helps businesses build loyalty with their customers, encouraging them to keep coming back.
How the company got here
Braze was founded in 2011 as Appboy by Bill Magnuson, Jon Hyman, and Mark Ghermezian. They believed that the rise of mobile phones would dramatically change how businesses interact with their customers. The company initially focused on helping brands send messages to people through mobile apps. In 2017, it changed its name to Braze to reflect its expansion into a platform that could reach customers across many channels, not just mobile. A key moment was its initial public offering (IPO) in November 2021, when it began trading on the Nasdaq stock exchange under the ticker symbol BRZE.
What it actually does
Braze operates a technology platform that helps brands like Burger King, HBO Max, and Venmo communicate with their customers in a personalized way. Think of it as a central hub for a company's marketing team to manage and send messages through email, text messages, and notifications that pop up on your phone screen from an app (called push notifications). The platform gathers information on how customers use a brand's app or website and uses that data to send the right message to the right person at the right time. For example, it can help a retail app send a special offer to a user who has frequently looked at a specific product.
Subscription
This is the main way Braze makes money, accounting for about 95% of its total revenue. Companies pay a recurring fee, typically on a monthly or annual basis, to access and use the Braze software platform. The price of the subscription often depends on the number of users the company wants to reach or the volume of messages it sends. This creates a steady stream of income for Braze, known as recurring revenue (money that is expected to continue in the future).
Professional Services
This is a smaller but growing part of the business. Sometimes, larger companies need extra help setting up the Braze platform to work with their existing technology or they want expert advice on how to best use it for their marketing campaigns. Braze offers these services for an additional fee. This segment includes things like technical consulting, training, and ongoing support to ensure customers get the most out of their subscription.
What management is betting on now
Braze is heavily focused on integrating artificial intelligence (AI) into its platform. They are developing tools, now branded as BrazeAI, that help companies automate and improve their marketing messages without needing a team of data scientists. The goal is to make the platform smarter, so it can automatically figure out the best time to send a message or what kind of offer a specific customer is most likely to respond to. Management believes that by making its platform more intelligent and easier to use, it will become an essential tool that businesses can't operate without, leading to more customers and growth.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$8.30M
FY2025 Q3
$-13.33M
FY2025 Q4
$16.00M
FY2026 Q1
$23.93M
FY2026 Q2
$4.34M
FY2026 Q3
$19.02M
FY2026 Q4
$14.55M
FY2027 Q1
$28.02M
Revenue
$211.00M
Net income
$-26.59M
Diluted EPS
-0.24
Operating cash flow
$28.13M
Free cash flow
$28.02M
Fetching…
Sources
Revenue
$205.17M
Net income
$-31.60M
Diluted EPS
-0.29
Operating cash flow
$19.38M
Free cash flow
$14.55M
Fetching…
Sources
Revenue
$190.84M
Net income
$-36.00M
Diluted EPS
-0.33
Operating cash flow
$20.97M
Free cash flow
$19.02M
Fetching…
Sources
Revenue
$180.11M
Net income
$-27.90M
Diluted EPS
-0.26
Operating cash flow
$6.95M
Free cash flow
$4.34M
Fetching…
Sources
Revenue
$162.06M
Net income
$-35.79M
Diluted EPS
-0.34
Operating cash flow
$24.14M
Free cash flow
$23.93M
Fetching…
Sources
Revenue
$160.40M
Net income
$-17.19M
Diluted EPS
-0.17
Operating cash flow
$17.08M
Free cash flow
$16.00M
Fetching…
Sources
Revenue
$152.05M
Net income
$-27.91M
Diluted EPS
-0.27
Operating cash flow
$-11.41M
Free cash flow
$-13.33M
Fetching…
Sources
Revenue
$145.50M
Net income
$-23.00M
Diluted EPS
-0.23
Operating cash flow
$11.61M
Free cash flow
$8.30M
Fetching…
Sources
Is it cheap or expensive?
Fair value $48.52 vs current price $33.69
Wall Street consensus is the average analyst price target: $36.25 (-25.3% lower than our fair-value estimate).
Our most-likely fair value is $48.52 a share — about 44.0% away from today's price of $33.69, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $306.1M - more cash than debt. Interest coverage -392.3x.
Net debt
$-306.06M
Interest coverage
-392.30x
Braze, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
BRZE
BASELINE
Braze, Inc.
Total debt $81.46M Interest coverage -392.30x This is the baseline the peer rows are being compared against.
Total debt $236.91M Interest coverage 13.03x This peer still has a real interest-payment cushion, while BRZE does not.
Total debt $3.52B Interest coverage 20.06x This peer still has a real interest-payment cushion, while BRZE does not.
Total debt $45.88M Interest coverage -17.37x Neither company has much profit cushion over interest right now.
What you should know
The case for and against BRZE
2 Rewards
1 Risk
Rewards
-
Revenue grew 6.6% last year.
-
Free cash flow was positive in 2/10 years.
Risks
-
Return on equity was -22.8% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
34.77x
P/B
6.47x
P/S
4.82x
EV/EBITDA
-31.52x
PEG ratio
1.71x
Profitability
How much profit each dollar creates
Gross margin
66.5%
Operating margin
-13.0%
Net margin
-15.5%
ROE
-22.8%
ROA
-7.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.14x
Current ratio
1.24x
Quick ratio
1.16x
Total debt
$81.46M
Total cash
$387.52M
Growth
How the business has been compounding
Revenue TTM
$787.12M
Revenue 5Y CAGR
32.7%
EPS TTM
-1.13
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$75.42M
Free CF TTM
$61.85M
FCF margin
7.9%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—