NASDAQ$BRZE

Braze Inc · Q2 2025 earnings

Q2 2025 earnings · · Investor relations

Briefing

Delivered strong top-line growth and achieved non-GAAP profitability.

Braze reported a strong second quarter with revenue of $145.5 million, up 26.4% year-over-year. The company achieved its first quarter of non-GAAP operating income and net income profitability.

  • Revenue increased by 26.4% year-over-year to $145.5 million.
  • GAAP gross margin was 70.2%, while non-GAAP gross margin was 70.9%.
  • Non-GAAP operating income reached $4.2 million, compared to a loss of $7.6 million in the prior year.
  • Free cash flow was $7.2 million, an improvement from $(18.7) million in the prior year.

Headline financials

Total Revenue

$145M

Previous: $115M+26.4%
EPS

-$0.23

Previous: -$0.04-475.0%
Stock Comp. Expense

$29.8M

No prior period
Non-GAAP Gross Margin

70.9%

No prior period
GAAP Gross Margin

70.2%

No prior period
Non-GAAP Operating Margin

2.9%

No prior period
Customers $500k+ ARR

222

No prior period
Capital Expenditures

-$10.2M

Previous: -$427K-2294.4%
Free Cash Flow

-$33.2M

Previous: -$32.1M-3.4%
Net Income

-$23M

Previous: -$31.7M+27.4%
Operating Income

-$28M

Previous: -$35.4M+21.0%
Gross Profit

$102M

Previous: $79.6M+28.2%
R&D Expense

$33.1M

No prior period
Stock-Based Comp

$30.1M

Previous: $24.8M+21.4%

Revenue & EPS history

Braze · Revenue · Quarterly

$145M

Q2 2025+26.4%vs Q2 2024
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Braze · $124M total across 2 segments · Q3 2024

  • Subscription
    $118M+33.0%
  • Professional Services
    $5.6M+36.6%

Forward guidance

Braze is initiating guidance for the fiscal third quarter ending October 31, 2024, and updating guidance for the fiscal year ending January 31, 2025.

Tailwinds

  • Revenue Q3 2025 Guidance: $147.5 - 148.5 million
  • Revenue FY 2025 Guidance: $582.5 - 585.5 million
  • Non-GAAP net income (loss) FY 2025 Guidance: $6.5 - 7.5 million
  • Non-GAAP net income (loss) per share, diluted FY 2025 Guidance: $0.06 - 0.07
  • Weighted average common shares used in computing non-GAAP net loss per share ~108.0

Headwinds

  • Non-GAAP operating loss Q3 2025 Guidance: $(3.5) - (4.5) million
  • Non-GAAP operating loss FY 2025 Guidance: $(7.5) - (8.5) million
  • Non-GAAP net income (loss) Q3 2025 Guidance: $(0.5) - (1.5) million
  • Non-GAAP net income (loss) per share, diluted Q3 2025 Guidance: $0.00 - (0.01)
  • Weighted average common shares used in computing non-GAAP net loss per share ~102.0

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

+1.1%

Avg return

Earnings day

-0.0%

Avg return

5 days after

-4.7%

Avg return

30 days after

50%

12 / 24 earnings

Positive

+22.1%

Q3 2022

Best reaction

-18.8%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-1.3%-9.8%
Q1 2027-4.8%+4.4%
Q3 2026+17.7%+8.1%-1.9%
Q2 2026+13.5%+8.7%+2.7%
Q1 2026-17.7%-21.2%-20.3%
Q4 2025+2.2%-1.1%-14.9%
Q3 2025-1.2%+0.4%+6.5%
Q2 2025-17.6%-20.6%-28.0%
Q1 2025+1.7%+0.5%+8.3%
Q4 2024-10.4%-13.3%-15.6%
Q3 2024-4.6%-5.5%-16.4%
Q2 2024+3.0%-0.9%-0.5%
Q1 2024+16.0%+22.2%+22.7%
Q4 2023+9.6%+12.7%-6.8%
Q3 2023+0.2%-2.7%+2.3%
Q2 2022-16.7%-19.3%-32.3%
Q2 2023-18.8%-18.8%-28.6%
Q1 2022+14.5%+12.9%+43.5%
Q1 2023-2.1%+1.4%+29.8%
Q4 2020-7.1%-13.0%-7.8%
Q4 2022-11.8%-13.9%-14.5%
Q4 2021+16.9%+19.9%-14.2%
Q3 2021+22.1%+24.1%-8.4%
Q3 2022+22.1%+24.1%-8.4%
Q2 2021
Q1 2021

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