Revenue

+22.5%; increased from $130,957K to $160,400K

The revenue growth can be attributed to an expanding customer base and strong recurring subscription revenues, building on the improvements seen in earlier quarters where customer acquisition and upsell efforts drove similar growth. " "

Gross Profit

+26% increase; from $87,965K to $111,087K

The more pronounced growth in gross profit relative to revenue indicates enhanced operational efficiencies and a higher share of high-margin subscription revenue, consistent with prior period trends where cost optimization played a significant role. " "

Net Loss

Narrowed from ($28,578K) to ($17,064K)

Improvements in operating performance and better expense management—including improved gross margins and controlled operating costs—have reduced net loss substantially. This mirrors earlier period trends where efficiency measures began offsetting high operating expenses. " "

Sales and Marketing Expenses

+10% increase; from $63,051K to $69,262K

The moderate rise results from higher personnel, event‑related, and associated overhead costs. Although expenses increased (similar to previous periods where headcount and marketing initiatives drove costs upward), the rise is efficient relative to the significant revenue gains. " "

Cash and Cash Equivalents

+21.7% increase; from $68,228K to $83,062K

Cash reserves improved significantly, likely due to enhanced cash management and stronger financing or operating inflows. This increase builds on trends observed in earlier periods where strategic cash management contributed positively to the liquidity profile. " "

Total Current Assets

+7% increase; from $601,121K to $644,026K

The growth in total current assets is driven chiefly by a rise in marketable securities and higher prepaid expense balances. Although cash levels saw a modest decline, these asset categories more than offset the decrease, reflecting a balanced evolution noted in previous periods. " "

Current Liabilities

+12% increase; from $289,439K to $324,477K

The increase is mainly due to higher deferred revenue (indicating more upfront customer commitments) and increased current operating lease liabilities. This pattern is consistent with earlier quarter dynamics where growth in contract-based revenues resulted in higher recorded liabilities. " "

Revenue ($USD Millions)

Q1 FY 2026

no prior guidance

$158 million to $159 million, 17% YoY

no prior guidance

Non-GAAP Operating Income ($USD Millions)

Q1 FY 2026

no prior guidance

$0 to $1 million

no prior guidance

Non-GAAP Net Income ($USD Millions)

Q1 FY 2026

no prior guidance

$4.5 million to $5.5 million

no prior guidance

Non-GAAP Net Income Per Share ($USD)

Q1 FY 2026

no prior guidance

$0.04 to $0.05

no prior guidance

Total Revenue ($USD Millions)

FY 2026

no prior guidance

$686 million to $691 million, 16% YoY

no prior guidance

Non-GAAP Operating Income ($USD Millions)

FY 2026

no prior guidance

$25.5 million to $29.5 million, 4% margin at midpoint

no prior guidance

Non-GAAP Net Income ($USD Millions)

FY 2026

no prior guidance

$34 million to $38 million

no prior guidance

Non-GAAP Net Income Per Share ($USD)

FY 2026

no prior guidance

$0.31 to $0.35

no prior guidance

Customer Acquisition and Growth

In Q1–Q3, Braze repeatedly highlighted strong customer count growth, enterprise wins, vendor consolidation trends, new business wins replacing legacy systems and enhanced retention metrics

Q4 saw robust revenue and customer growth, with diversified new wins across industries and geographies and an emphasis on improving retention through stabilization of at‐risk accounts

Consistent robust growth with increasing diversification and refined retention strategies.

Churn and Net Retention Challenges

Across Q1–Q3, executives discussed persistent churn pressures, contract rightsizing, and pressures on dollar‐based net retention—with newer customer cohorts showing better expansion in parts but overall challenges remained

In Q4, while churn remains a challenge—with ongoing efforts to stabilize smaller, at‐risk accounts and slightly better performance among newer cohorts, DBNR metrics continued at 111% overall and 114% for large customers

Persistent challenges with gradual improvements in newer cohorts and cautious optimism.

Enterprise Deal Cycle Complexity

Q1 and Q2 discussions focused on long evaluation cycles, increased stakeholder involvement, macroeconomic scrutiny, and complexity tied to customer size and incumbent advantages

Q4 executives emphasized even more the “stickier and longer term” nature of enterprise cycles, with formal RFP processes and customers’ reluctance for overlapping contracts, underscoring the high‐complexity environment

A consistently challenging area now articulated with greater detail in Q4.

Macroeconomic Demand Environment

In Q1, Braze described a challenging environment with constrained budgets and cautious buyer behavior; Q2 reinforced macro pressures affecting metrics; Q3 described a stable yet unimproved demand outlook

Q4 reaffirmed a cautious yet stable demand environment, with diversification across industries mitigating challenges, though global economic uncertainties remain a factor

Steady caution throughout with diversification offsetting persistent macro pressures.

Competitive Positioning Against Legacy Vendors

Q1–Q3 discussions emphasized strong wins replacing legacy marketing clouds, benefits from vendor consolidation, and the use of AI for differentiation over stagnant legacy players

Q4 executives stressed that legacy vendors are increasingly seen as stagnant and highlighted Braze’s focused R&D and strong enterprise replacement momentum

A consistently positive narrative that grows stronger over time.

AI Innovation and Strategic Acquisitions (OfferFit)

In Q1–Q3, the focus was almost entirely on enhancing AI capabilities—such as AI copywriting, recommendation tools, and personalized engagement—with no mention of acquisitions

Q4 introduced a major strategic acquisition of OfferFit with its reinforcement learning technology, complementing ongoing AI innovation efforts and broadening personalized engagement use cases

A new element in Q4 that builds on a longstanding focus on AI innovation.

Flexible Credit Model and Multi‑Channel Expansion

Q1 saw the initial rollout of flexible message credits to simplify global SMS and experimentation; Q2 further integrated credits for channels like RCS and WhatsApp; Q3 reported strong adoption in accelerating channel expansion

Q4 detailed planned expansion of the flexible credit model to additional channels (e.g., email content cards, banners) and reinforced multi‑channel flexibility across offerings in response to dynamic pricing and partnership shifts

A consistently expanding strategic pillar with increasing sophistication in channel integration.

International Expansion and Geo‑Diversification

Q1–Q2 discussions showcased a growing international focus with revenue contributions from outside the U.S. (around 44–45%) and investments in data centers and regional teams

Q4 maintained a solid 45% non‑U.S. revenue with further diversification evident in diverse new international wins and an expanded data center footprint (including upcoming Indonesia support)

A steady and robust focus on global diversification and expansion.

Margin and Profitability Pressures

Q1 highlighted improving gross margins and a reduction in operating losses, while Q2 delivered the first non‑GAAP operating income and Q3 acknowledged seasonality and premium channel headwinds

Q4 reported continued margin improvement with a positive non‑GAAP operating income and improved gross margin figures, although near‑term pressures from the planned OfferFit acquisition were noted

An overall upward trend in margins despite cyclical challenges and a cautious near‑term outlook.

RCS Adoption Ahead of iOS 18

Q2 and Q3 detailed enthusiastic preparations and pilots for RCS—highlighting its advantages in authentication, richer analytics, and seamless integration via the flexible credit model

Q4 did not mention RCS adoption ahead of iOS 18, indicating this topic is no longer at the forefront of the discussion [No citation]

No longer mentioned in Q4, suggesting integration into the broader messaging strategy or a temporary de‑focus.

WhatsApp Pricing Uncertainty (No Longer Mentioned)

Q1 provided detailed discussion around dynamic pricing uncertainty for WhatsApp due to Meta’s evolving model, while Q2 had limited explicit mention and Q3 touched briefly on dynamic pricing within the flexible credit context

Q4 revisited the subject with explicit mention of the uncertainty around pricing, yet noted that its impact remains modest given WhatsApp’s low overall revenue share

While always present, the focus has shifted from detailed debate to a nuanced, integrated discussion.

Strategic Partnerships and Go‑to‑Market Investments (No Longer Emphasized)

Q1 through Q3 consistently emphasized robust partnerships with agencies (Accenture, Deloitte, WPP) and significant investments in go‑to‑market initiatives—ranging from data platform integrations to global brand campaigns

Q4 continued to underscore active strategic partnerships (for example, with Shopify) and disciplined go‑to‑market investments, with no indication that these areas are de‑emphasized

A consistently integrated element of Braze’s approach, with no material reduction in emphasis over time.