Braze (NASDAQ:BRZE) Releases Quarterly Earnings Results, Misses Expectations By $0.04 EPS

Braze (NASDAQ:BRZE) released its quarterly earnings data on Tuesday. The company reported $0.10 earnings per share for the quarter, missing the consensus estimate of $0.14 by ($0.04), FiscalAI reports. Braze had a negative net margin of 17.78% and a negative return on equity of 19.30%. The company had revenue of $205.17 million during the quarter, compared to the consensus estimate of $198.23 million. During the same quarter in the prior year, the firm earned $0.12 EPS. The business’s revenue was up 27.9% compared to the same quarter last year.

Here are the key takeaways from Braze’s conference call:

• Q4 revenue was $205.2M (+28% YoY) and FY2026 revenue grew 24% as Braze passed $800M ARR and exceeded $1B in remaining performance obligations, signaling strong demand and multiyear customer commitments.
• Braze’s AI strategy is accelerating adoption — Decisioning Studio (OfferFit) contributed $5.7M in Q4, and both Agent Console and BrazeAI Operator reached GA ahead of schedule with rapid uptake, supporting >50% bookings growth and increased large-enterprise deal velocity.
• The company is improving profitability and returning capital — FY2026 non-GAAP operating income was $28M with margin expansion, FY2027 guidance targets ~20% revenue growth and ~8% non-GAAP operating margin, and the board authorized a $100M share repurchase (including a $50M ASR).
• Gross margin pressures and one-time items — non-GAAP gross margin declined to 67.2% (from 69.9%) due mainly to higher premium messaging and hosting costs, and non-GAAP net income was reduced by a $5M OfferFit deferred-tax purchase accounting adjustment.
• Customer and retention strength — trailing 12-month dollar-based net retention improved to 109%, customers spending ≥$500K grew 35% YoY to 333 (now ~64% of ARR), and multiple large legacy-platform migrations point to continued enterprise stickiness.

Braze Price Performance

BRZE opened at $21.60 on Thursday. Braze has a 1 year low of $15.26 and a 1 year high of $43.89. The company has a market capitalization of $2.42 billion, a price-to-earnings ratio of -17.70 and a beta of 1.08. The firm’s fifty day moving average price is $19.84 and its two-hundred day moving average price is $26.53.

Key Braze News

Here are the key news stories impacting Braze this week:

• Positive Sentiment: Management said AI-powered features are driving customer adoption and expects adjusted operating profits to rise sharply next year, supporting a bullish view on durable demand and margin expansion. Why Braze Stock Surged Today
• Positive Sentiment: Q4 revenue beat expectations ($205.2M vs. ~198M est) and management reiterated growth momentum — revenue was up ~28% YoY, which reassures investors focused on top-line execution. Braze Q4 Press Release / Slide Deck
• Positive Sentiment: Braze announced a $100 million share buyback, a direct capital return that supports the stock and signals board confidence in long‑term value. These Analysts Revise Their Forecasts On Braze Following Q4 Results
• Positive Sentiment: Unusually heavy call buying was observed intraday (large increase in purchased call options), suggesting speculative bullish positioning or hedge activity ahead of/after the print. (Options volume report)
• Neutral Sentiment: Several analysts reacted post‑earnings with mixed updates: a few raised or reaffirmed overweight/buy ratings (e.g., JPMorgan, Cantor, Barclays, Needham), reflecting confidence in growth, while others adjusted models. Coverage commentary summarizes a broadly constructive but valuation‑disciplined view. 5 Wall Street Pros Weigh in on Cloud Provider Braze After Q4 Earnings
• Negative Sentiment: EPS missed expectations ($0.10 vs. ~$0.14 est) and Braze remains unprofitable on a GAAP basis (negative net margin and ROE), which keeps longer‑term profitability and cash‑flow questions on investors’ radar. Braze posted its earnings results
• Negative Sentiment: Multiple firms cut price targets (UBS, Citi, Goldman, Oppenheimer, Stifel, Mizuho, others), reflecting margin/valuation concerns and compressing expected upside despite most maintaining buy/outperform ratings — this tempers the rally and could limit short‑term multiple expansion. These Analysts Revise Their Forecasts On Braze Following Q4 Results

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on BRZE shares. UBS Group decreased their price target on shares of Braze from $43.00 to $28.00 and set a “buy” rating for the company in a research note on Wednesday. DA Davidson cut their price objective on shares of Braze from $42.00 to $30.00 and set a “buy” rating on the stock in a research report on Friday, March 20th. Mizuho dropped their price target on Braze from $50.00 to $40.00 and set an “outperform” rating on the stock in a research note on Wednesday. Oppenheimer lowered their target price on Braze from $40.00 to $30.00 and set an “outperform” rating on the stock in a research report on Wednesday. Finally, Wells Fargo & Company lifted their price target on shares of Braze from $40.00 to $45.00 and gave the company an “overweight” rating in a research report on Wednesday, December 10th. Twenty-two analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Braze presently has a consensus rating of “Moderate Buy” and a consensus price target of $36.67.

Insider Buying and Selling

In related news, CTO Jonathan Hyman sold 7,391 shares of the firm’s stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $16.93, for a total transaction of $125,129.63. Following the transaction, the chief technology officer directly owned 1,692,933 shares of the company’s stock, valued at $28,661,355.69. This trade represents a 0.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Astha Malik sold 14,049 shares of the company’s stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $16.93, for a total transaction of $237,849.57. Following the completion of the sale, the insider directly owned 205,289 shares of the company’s stock, valued at $3,475,542.77. The trade was a 6.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 60,676 shares of company stock valued at $1,027,661 over the last 90 days. 18.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Braze

Several large investors have recently made changes to their positions in the business. Alyeska Investment Group L.P. increased its holdings in Braze by 592.4% during the fourth quarter. Alyeska Investment Group L.P. now owns 2,105,024 shares of the company’s stock worth $72,181,000 after buying an additional 1,801,019 shares during the last quarter. UBS Group AG boosted its stake in Braze by 421.1% in the third quarter. UBS Group AG now owns 1,279,678 shares of the company’s stock valued at $36,394,000 after acquiring an additional 1,034,087 shares during the last quarter. Battery Management CORP. grew its position in shares of Braze by 70.2% during the 3rd quarter. Battery Management CORP. now owns 2,425,000 shares of the company’s stock valued at $68,967,000 after acquiring an additional 1,000,000 shares during the period. Bank of America Corp DE increased its stake in shares of Braze by 238.2% during the 3rd quarter. Bank of America Corp DE now owns 1,351,227 shares of the company’s stock worth $38,429,000 after purchasing an additional 951,674 shares during the last quarter. Finally, Scopia Capital Management LP purchased a new stake in shares of Braze during the 3rd quarter worth approximately $19,594,000. 90.47% of the stock is owned by hedge funds and other institutional investors.

Braze Company Profile

Braze, Inc is a publicly traded software company (NASDAQ: BRZE) that offers a customer engagement platform designed to help brands build personalized relationships with their users. Founded in 2011 as Appboy by Bill Magnuson, Jon Hyman and Mark Ghermezian, the company adopted the Braze name in 2017 to underscore its focus on fostering strong connections between businesses and consumers. Its cloud-based platform consolidates messaging channels including push notifications, in-app messages, email and SMS, enabling companies to deliver timely, context-driven communications at scale.

The core functionality of Braze’s platform centers on data-driven segmentation, customer journey orchestration and real-time analytics.