NASDAQ$BRZE

Braze Inc · Q3 2025 earnings

Q3 2025 earnings · · Investor relations

Briefing

Reported strong revenue growth and operating leverage while maintaining steady investment.

Braze reported strong third-quarter results with revenue reaching $152.1 million, a 22.7% increase year-over-year. The company is on track to meet profitability targets for fiscal year 2025.

  • Revenue was $152.1 million, up 22.7% year-over-year.
  • Subscription revenue reached $146.3 million.
  • Total customers increased to 2,211.
  • Dollar-based net retention for customers with ARR of $500,000 or more was 116%.

Headline financials

Total Revenue

$152M

Previous: $124M+22.7%
EPS

-$0.27

Previous: -$0.05-440.0%
Stock Comp. Expense

$28.3M

No prior period
Non-GAAP Gross Margin

70.5%

No prior period
GAAP Gross Margin

69.8%

No prior period
Non-GAAP Operating Margin

-1.4%

No prior period
Customers $500k+ ARR

234

No prior period
Capital Expenditures

-$12.1M

Previous: -$3.44M-253.2%
Free Cash Flow

-$40.1M

Previous: -$34.2M-17.2%
Net Income

-$27.9M

Previous: -$30.7M+9.2%
Operating Income

-$32.6M

Previous: -$35.1M+7.3%
Gross Profit

$106M

Previous: $87.6M+21.2%
R&D Expense

$32.9M

Previous: $29.9M+10.0%
Stock-Based Comp

$28.4M

Previous: $24M+18.7%

Revenue & EPS history

Braze · Revenue · Quarterly

$152M

Q3 2025+22.7%vs Q3 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 fourth quarter ending January 31, 2025 and updating guidance for the fiscal year ending January 31, 2025.

Tailwinds

  • Revenue $155.0 - 156.0 million for Q4 2025
  • Revenue $588.0 - 589.0 million for FY 2025
  • Non-GAAP operating income $2.0 - 3.0 million for Q4 2025
  • Non-GAAP operating income $(5.0) - (6.0) million for FY 2025
  • Non-GAAP net income per share, diluted $0.05 - 0.06 for Q4 2025

Headwinds

  • Weighted average common shares used in computing non-GAAP net income per share, diluted ~107.5 for Q4 2025
  • Non-GAAP net income $5.0 - 6.0 million for Q4 2025
  • Non-GAAP net income $11.0 - 12.0 million for FY 2025
  • Non-GAAP net income per share, diluted $0.10 - 0.11 for FY 2025
  • Weighted average common shares used in computing non-GAAP net income per share, diluted ~107.0 for FY 2025

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 Q3 2025

Historical avgQ3 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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