Braze Reports 24.4% Revenue Growth to $738.2 Million in Fiscal Year 2026

Braze, Inc. reported significant financial growth in its fiscal year ending January 31, 2026, with total revenue reaching $738.2 million, a 24.4% increase from $593.4 million in the previous year. The company continues to operate at a loss, posting a net loss of $130.8 million, compared to a loss of $104.0 million in fiscal 2025. Despite the losses, Braze's cash flow from operations improved, generating $71.4 million, up from $36.7 million the previous year, indicating a positive trend in operational efficiency.

The company experienced a notable increase in its customer base, reaching 2,609 customers globally, and facilitating interactions with approximately 8.0 billion monthly active users, up from 7.2 billion the previous year. This growth was attributed to both existing customers expanding their usage and new customer acquisitions. Braze's dollar-based net retention rate was 109% for the trailing twelve months, reflecting a slight decline from 111% in the previous year, primarily due to customer turnover and renewals at lower subscription levels amid a challenging macroeconomic environment.

Strategically, Braze completed the acquisition of OfferFit, Inc. in June 2025 for approximately $303.2 million, aimed at enhancing its customer engagement platform with advanced decisioning capabilities. The acquisition is expected to contribute to Braze's long-term growth, although it has also led to increased operating expenses, particularly in research and development, which rose by 24.8% to $167.1 million. The company is focused on expanding its product offerings and enhancing its technology infrastructure to maintain its competitive edge.

Operationally, Braze's cost of revenue increased by 32.4% to $242.5 million, driven by higher third-party messaging fees and infrastructure costs. The gross margin decreased slightly to 67.1% from 69.1% the previous year, reflecting the impact of acquisition-related costs. The company continues to invest in its sales and marketing efforts, with expenses rising by 15.8% to $327.0 million, as it aims to drive customer acquisition and retention.

Looking ahead, Braze remains optimistic about its growth trajectory, emphasizing its commitment to innovation and geographic expansion. The company plans to leverage its existing customer relationships while exploring new markets, particularly in Europe and Asia-Pacific, where it sees significant opportunities for growth. However, it acknowledges the potential impact of macroeconomic factors on customer spending and revenue growth, which could influence its financial performance in the coming periods.