Delivers 28% revenue growth in the fourth quarter, 24% for the full fiscal year 2026
Trailing twelve month dollar-based net retention rises to 109% in the fourth quarter
Announces a $100 million share repurchase authorization including a $50 million accelerated buyback
Realizes strong operating leverage in the fourth quarter and fiscal 2026
NEW YORK--(BUSINESS WIRE)--March 24, 2026--
Braze (Nasdaq: BRZE), the leading customer engagement platform that empowers brands to Be Absolutely Engaging$(TM)$, today announced results for its fiscal year ended January 31, 2026.
"We finished the fiscal year with an exceptional Q4, accelerating year-over-year organic revenue growth for the third straight quarter while continuing to drive strong operating leverage across our global business. In addition, we achieved an over 50% year-over-year increase in quarterly bookings, driven by significant strength in our enterprise segment and underscoring a fundamental market shift: the world's largest and most sophisticated brands are choosing Braze as a foundational partner to drive their AI transformation during this period of intense disruption and opportunity," said Bill Magnuson, Cofounder and CEO of Braze. "We begin this fiscal year with strong commercial momentum and the fastest pace of new product delivery in our history as BrazeAI Decisioning Studio(TM) continues to scale rapidly and both BrazeAI Agent Console(TM) and BrazeAI Operator(TM) were made generally available in February, months ahead of schedule."
Fiscal Fourth Quarter 2026 Financial Highlights
-- Revenue was $205.2 million compared to $160.4 million in the fourth
quarter of the fiscal year ended January 31, 2025, up 27.9% year-over
year, driven primarily by new customers, upsells, and renewals.
-- Subscription revenue in the quarter was $193.5 million compared to
$153.9 million in the fourth quarter of the fiscal year ended January 31,
2025, and professional services and other revenue was $11.7 million
compared to $6.5 million in the fourth quarter of the fiscal year ended
January 31, 2025.
-- Remaining performance obligations as of January 31, 2026 was $1.0
billion, of which $642.1 million is current, which the company defines as
less than one year.
-- GAAP gross margin was 65.5% compared to 69.3% in the fourth quarter of
the fiscal year ended January 31, 2025.
-- Non-GAAP gross margin was 67.2% compared to 69.9% in the fourth quarter
of the fiscal year ended January 31, 2025.
-- Dollar-based net retention for all customers for the trailing 12 months
ended January 31, 2026 and January 31, 2025 was 109% and 111%,
respectively; dollar-based net retention for customers with annual
recurring revenue $(ARR)$ of $500,000 or more was 110% compared to 114% in
the fiscal year ended January 31, 2025.
-- Total customers increased to 2,609 as of January 31, 2026 from 2,296 as
of January 31, 2025; 333 of our customers had ARR of $500,000 or more as
of January 31, 2026, compared to 247 customers as of January 31, 2025.
-- GAAP operating loss was $28.2 million compared to an operating loss of
$21.6 million in the fourth quarter of the fiscal year ended January 31,
2025. A primary contributor to the operating loss in the quarter included
$37.3 million of stock-based compensation expense.
-- Non-GAAP operating income was $14.5 million compared to $7.9 million in
the fourth quarter of the fiscal year ended January 31, 2025.
-- GAAP net loss per share attributable to Braze common stockholders,
basic and diluted, of $0.29 based on 108.5 million weighted average
shares outstanding in the fourth quarter of the fiscal year ended January
31, 2026, compared to GAAP net loss per share attributable to Braze
common stockholders, basic and diluted, of $0.17, based on 102.9 million
weighted average shares outstanding in the fourth quarter of the fiscal
year ended January 31, 2025.
-- Non-GAAP net income per share attributable to Braze common stockholders,
diluted, was $0.10 based on 111.4 million weighted average shares
outstanding in the fourth quarter of the fiscal year ended January 31,
2026, compared to non-GAAP net income per share attributable to Braze
common stockholders, diluted, of $0.12 based on 107.0 million weighted
average shares outstanding in the fourth quarter of the fiscal year ended
January 31, 2025.
-- Net cash provided by operating activities was $19.4 million compared to
net cash provided by operating activities of $17.1 million in the fourth
quarter of the fiscal year ended January 31, 2025.
-- Free cash flow was $13.9 million compared to $15.2 million in the
fourth quarter of the fiscal year ended January 31, 2025.
-- Total cash and cash equivalents, restricted cash, and marketable
securities was $415.9 million as of January 31, 2026 compared to $514.0
million as of the fiscal year ended January 31, 2025.
Fiscal Year 2026 Financial Highlights
-- Revenue was $738.2 million compared to $593.4 million in the fiscal
year ended January 31, 2025, up 24.4% year-over year, driven primarily by
new customers, upsells, and renewals.
-- Subscription revenue was $701.8 million compared to $570.3 million in
the fiscal year ended January 31, 2025, and professional services and
other revenue was $36.4 million compared to $23.1 million in the fiscal
year ended January 31, 2025.
-- GAAP gross margin was 67.1% compared to 69.1% in the fiscal year ended
January 31, 2025.
-- Non-GAAP gross margin was 68.7% compared to 69.8% in the fiscal year
ended January 31, 2025.
-- GAAP operating loss was $144.8 million compared to a loss of $122.2
million in the fiscal year ended January 31, 2025. A primary contributor
to the operating loss in the fiscal year included $144.9 million of
stock-based compensation expense.
-- Non-GAAP operating income was $28.5 million compared to a loss of $0.0
million in the fiscal year ended January 31, 2025.
-- GAAP net loss per share attributable to Braze common stockholders,
basic and diluted, of $1.22 based on 107.9 million weighted average
shares outstanding in the fiscal year ended January 31, 2026, compared to
GAAP net loss per share attributable to Braze common stockholders, basis
and diluted, of $1.02, based on 102.2 million weighted average shares
outstanding in the fiscal year ended January 31, 2025.
-- Non-GAAP net income per share attributable to Braze common stockholders,
diluted, was $0.38 based on 111.1 million weighted average shares
outstanding in the fiscal year ended January 31, 2026, compared to
non-GAAP net income per share attributable to Braze common stockholders,
diluted, of $0.17 based on 107.0 million weighted average shares
outstanding in the fiscal year ended January 31, 2025.
-- Net cash provided by operating activities was $71.4 million compared to
net cash provided by operating activities of $36.7 million in the fiscal
year ended January 31, 2025.
-- Free cash flow was $58.1 million compared to $19.6 million in the
fiscal year ended January 31, 2025.
Business Highlights
-- Notable new business wins and existing customer expansions in the
quarter included Dis-Chem, Goodnotes, ID.me, King, Life360, Mytheresa,
PowerUs, realestate.co.nz, Shell Mobility & Convenience, and
ThriftBooks.
-- Published sixth annual Global Customer Engagement Review, combining
insights from 2,200+ marketing leaders, 4,000 consumers, and 6B+ data
points from over 750 brands across the Americas, EMEA, and APAC.
Innovations
-- Released BrazeAI Agent Console(TM) for general availability allowing
brands to create custom agents that bring the power of generative and
agentic AI directly into Braze Canvas and Catalogs.
-- Announced general availability and continued to drive value for
customers through BrazeAI Operator(TM), a companion that provides a
unified experience for accessing AI to build masterful campaigns, uncover
data insights, answer questions, and simplify execution.
-- During calendar year 2025, Braze powered 4.5 trillion messages and
Canvas actions, processed over 25 trillion data points, executed 3.1
trillion AI decisioning inferences, and made 8.7 trillion updates to user
profile systems of record. This execution capability provides brands with
confidence to deploy business-critical programs for entire global
audiences.
Partnerships
-- Strengthened relationship with Snowflake by deploying Cortex Code, transforming Braze's approach to agentic analytics by automating and enriching insights layers, and optimizing native understanding of datasets, schemas, and columns to produce more precise, actionable outputs, and in turn accelerate time-to-value for Braze customers. -- Enhanced our Shopify integration by incorporating custom product data for enhanced segmentation and personalization, and syncing customer engagement to provide a unified shopper view in Shopify. -- Expanded Audience Sync to The Trade Desk, enabling customers to leverage real-time, first-party data in Braze to optimize programmatic ad targeting across The Trade Desk's global inventory - including CTV, Retail Media, and the Open Web - while building a more durable, cohesive strategy across owned and paid channels. -- Also expanded Audience Sync to LinkedIn, enabling customers to enhance B2B and high-consideration B2C ad targeting - increasing return on ad
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