Braze, the customer engagement powerhouse, is entering fiscal year 2026 with a sharp uptick in revenue, positive free cash flow, and a reinforced C-suite. The company reported a 19.6% year-over-year increase in quarterly revenue, hitting $162.1 million, driven by a healthy mix of new customers, renewals, and upsells. Non-GAAP profitability also made its debut this quarter, with $2.8 million in operating income.

Braze is also betting big on leadership and product evolution to sustain its momentum. The company will welcome Ed McDonnell in July as its new Chief Revenue Officer—an industry veteran with a track record of scaling SaaS revenue engines. And with the recent acquisition of AI decisioning platform OfferFit, Braze is signaling an aggressive push toward personalized, machine-driven customer journeys.

Financial Highlights: Growth Meets Discipline

• Total revenue: $162.1 million (up from $135.5 million YoY)

• Subscription revenue: $154.9 million

• Non-GAAP net income per share: $0.07

• Free cash flow: $22.9 million, nearly doubling from $11.4 million YoY

• Total customers: 2,342, with 262 generating over $500K in ARR

While GAAP net loss stood at $0.34 per share—reflecting $30.4 million in stock-based compensation—non-GAAP metrics showed a clear turnaround, with positive operating income and net income.

Dollar-based net retention, a key SaaS health metric, softened slightly to 109% (down from 117% YoY), and even more notably among large customers (ARR $500K+), which dropped to 112% from 119%. Still, overall customer count rose by 11% year-over-year.

Product & Platform: The OfferFit Advantage

Perhaps more telling than the financials is Braze's recent acquisition of OfferFit, a next-gen AI decisioning engine. This move reflects an industry-wide trend: automation and real-time personalization are no longer optional—they’re mission-critical. Integrating OfferFit allows Braze to expand beyond orchestration and messaging into machine learning-led decisioning, helping marketers optimize what, when, and how they communicate at scale.

Also fresh on the product front are new messaging capabilities, including RCS (Rich Communication Services), in-app Banners, and enhancements to its Canvas journey builder—all designed to help brands create more responsive and immersive experiences.

Sustainability and Staffing: Building for the Future

The company isn’t just investing in tech. Braze continues to build its bench with McDonnell joining to steer global revenue operations, a strategic addition aimed at accelerating go-to-market alignment. On the ESG side, Braze’s carbon emissions targets were approved by the Science Based Targets initiative (SBTi), reinforcing its commitment to sustainability.

Outlook: What’s Next

Braze projects Q2 revenue in the range of $171M to $172M and full-year revenue of up to $706M. Non-GAAP net income for FY2026 is forecasted between $17M and $21M.

That’s a bold outlook, but not without challenges. Economic headwinds, tightening marketing budgets, and increasing competition in the customer engagement space (think: Salesforce Marketing Cloud, Iterable, Twilio Segment) will test Braze’s ability to deliver. Still, with a solid product foundation, strategic AI plays, and financial discipline, Braze is clearly positioning itself to do more than keep pace—it’s aiming to lead.

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