Braze Reports 25.5% Revenue Growth to $190.8 Million in Q3 Fiscal 2025

Braze, Inc. reported significant financial results for the third quarter of fiscal 2025, with revenues reaching $190.8 million, a 25.5% increase from $152.1 million in the same period last year. For the nine months ending October 31, 2025, total revenue was $533.0 million, up 23.1% from $433.0 million in the prior year. Despite this growth, the company recorded a net loss of $35.8 million for the quarter, compared to a loss of $28.1 million in the previous year, and a net loss of $99.2 million for the nine-month period, up from $87.0 million in the same timeframe last year.

The increase in revenue was primarily driven by a substantial rise in subscription services, which accounted for $181.7 million of the total revenue, reflecting a 24.2% increase year-over-year. The company also saw a notable rise in professional services revenue, which increased by 58.4% to $9.2 million, attributed to enhanced deliverability services and onboarding support. Braze's customer base expanded to 2,528 as of October 31, 2025, up from 2,211 a year earlier, indicating a growing demand for its customer engagement platform.

Operationally, Braze has made strategic moves, including the acquisition of OfferFit, Inc. for approximately $302.9 million, aimed at enhancing its platform capabilities. This acquisition contributed to a significant increase in goodwill, which rose to $266.9 million as of October 31, 2025. The company also reported a total of 7.8 billion monthly active users, an increase from 7.2 billion, reflecting higher engagement levels across its platform. Additionally, Braze's international revenue grew by $16.7 million, highlighting its expanding market presence outside the United States.

Despite the growth, Braze's operating expenses increased, with total operating expenses for the quarter reaching $165.8 million, up from $138.7 million a year prior. This rise was driven by higher sales and marketing costs, which increased by 18.7% to $88.6 million, and research and development expenses, which rose by 34.1% to $44.1 million. The company continues to invest in its infrastructure and product development to support its growth strategy.

Looking ahead, Braze remains optimistic about its growth trajectory, emphasizing its commitment to expanding its customer base and enhancing its platform. The company plans to continue investing in research and development, particularly in artificial intelligence capabilities, to maintain its competitive edge. However, it also acknowledges potential challenges posed by macroeconomic conditions, which could impact customer spending and overall business performance.