Braze Reports 23.8% Revenue Growth to $180.1 Million in Q2 FY 2025

Braze, Inc. reported significant financial results for the second quarter of fiscal year 2025, with revenues reaching $180.1 million, a 23.8% increase from $145.5 million in the same period last year. For the six months ending July 31, 2025, total revenue was $342.2 million, up from $281.0 million in the prior year, reflecting a year-over-year growth of 21.8%. Despite this revenue growth, the company recorded a net loss of $27.9 million for the quarter, compared to a loss of $23.0 million in the same quarter of the previous year. The net loss for the six months was $63.7 million, compared to $58.6 million in the prior year.

The increase in revenue was primarily driven by a substantial rise in subscription services, which accounted for $171.8 million of the total revenue, marking a 22.7% increase year-over-year. The company also saw a notable increase in professional services revenue, which rose by 50.6% to $8.3 million, attributed to enhanced deliverability services and technical support. Braze's customer base expanded to 2,422 as of July 31, 2025, up from 2,163 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 $304 million, aimed at enhancing its platform's capabilities. This acquisition contributed to a significant increase in goodwill, which rose to $267.8 million as of July 31, 2025. The company also reported a dollar-based net retention rate of 108% for the trailing twelve months, down from 114% in the previous year, reflecting challenges in customer renewals amid a fluctuating economic environment.

In terms of cash flow, Braze generated $31.1 million from operating activities in the first half of the fiscal year, consistent with the $31.0 million generated in the same period last year. The company reported a free cash flow of $26.4 million, an increase from $18.7 million in the prior year, indicating improved cash generation capabilities. As of July 31, 2025, Braze held $368.3 million in cash, cash equivalents, and marketable securities, which the company believes will be sufficient to meet its operational needs for at least the next 12 months.

Looking ahead, Braze aims to continue expanding its customer base and enhancing its product offerings, particularly in international markets. The company is focused on leveraging its platform's capabilities to drive customer engagement and retention, despite the ongoing macroeconomic challenges that may impact its growth trajectory.