# Braze (BRZE.US)

Canonical: https://gigainvestors.com/s/BRZE

Analysis as of: 2026-10-16T07:27:05.927Z. Financial observations: FY2020–FY2027.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $30.38 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- Financial history: 8 years

- Years with declining revenue: 0

- Years with a net loss: 8

- Operating margin variation: 0.33×

Chart: Operating margin; fiscal year observations.

- FY2020: -0.35×

- FY2021: -0.21×

- FY2022: -0.33×

- FY2023: -0.42×

- FY2024: -0.31×

- FY2025: -0.21×

- FY2026: -0.20×

- LTM to Jul 2026: -0.13×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -350.3%

- ROIC, second-lowest year: -474.6%

- Typical minus recent gross margin: 0.0 pp

- Typical gross margin (annual median): 67.1%

- Recent gross margin (lower of latest and 3-year median): 67.1%

- Years with nonpositive capital: 3

- Capital spending / revenue: 2.2%

- ROIC including acquisitions, ten-year median: -180.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2020: 0.0%

- FY2021: 0.0%

- FY2022: -12.3%

- FY2023: -653.1%

- FY2024: -377.6%

- FY2025: -474.6%

- FY2026: -350.3%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$574M

- Net income, five-year total: -$580M

- Return on incremental invested capital: -77.8%

- Working capital / revenue, annual change: -3.0 pp

Chart: Owner earnings · five years; fiscal year observations.

- FY2022: -$77M

- FY2023: -$143M

- FY2024: -$129M

- FY2025: -$104M

- FY2026: -$122M

### management: fail

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 0.0% vs -377.6%

- Per-share earnings: -1.96 to -1.22 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 43.1%

- Diluted shares, 5-year annual growth: 43.1%

- Per-share value change: $0.75

- Per-share value, starting three-year median: -$1.96

- Per-share value, ending three-year median: -$1.22

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.0%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- ROIC, first three-year median: 0.0%

- ROIC, last three-year median: -377.6%

Chart: Earnings per share; fiscal year observations.

- FY2020: -$1.96

- FY2021: -$1.78

- FY2022: -$2.20

- FY2023: -$1.47

- FY2024: -$1.32

- FY2025: -$1.02

- FY2026: -$1.22

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -18.2%

- Receivables to sales index (DSRI): 1.04×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 201.2%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.52×

Chart: Sloan accruals; fiscal year observations.

- FY2020: -16.0%

- FY2021: -15.1%

- FY2022: -6.2%

- FY2023: -16.5%

- FY2024: -16.8%

- FY2025: -16.1%

- FY2026: -18.2%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Dennis Hong](https://gigainvestors.com/SP): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 61% since Dec 2021 · "Braze Sinks 12% as Soft Earnings Guide Overshadows Beat and Raise; Klaviyo Advances 3%" (finance.yahoo.com, Sep 2026) · sales +13%

Story as of 2026-10-16T09:58:25.973Z; price observation 2026-10-15.

- 2025-06-06: Braze falls on underwhelming Q1 revenue, analysts optimistic on OfferFit acquisition ([seekingalpha.com](https://seekingalpha.com/news/4456174-braze-falls-on-underwhelming-q1-revenue-analysts-optimistic-on-offerfit-acquisition?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-12-10: Update: Braze Fiscal Q3 Non-GAAP Earnings, Sales Surge; Lifts FY2026 Outlook; Shares Soar Premarket ([finance.yahoo.com](https://finance.yahoo.com/news/braze-fiscal-q3-non-gaap-105941717.html))

- 2026-03-25: BRZE Q4 Deep Dive: AI-Fueled Product Expansion and Strong Enterprise Demand ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/brze-q4-deep-dive-ai-071330770.html))

- 2026-05-28: BRZE Q1 Deep Dive: AI Product Adoption Drives Growth, Margin Gains, and Customer Expansion ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/brze-q1-deep-dive-ai-091827605.html))

- 2026-07-01: Braze (BRZE) Is Up 12.6% After Accelerating AI Adoption Strengthens Its Core Platform Role ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/braze-brze-12-6-accelerating-121640326.html))

- 2026-09-09: Braze Sinks 12% as Soft Earnings Guide Overshadows Beat and Raise; Klaviyo Advances 3% ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/braze-sinks-12-soft-earnings-132707466.html))

### Sales · FY2026–2027

sales +13%; source https://www.sec.gov/Archives/edgar/data/1676238/000167623826000013/brze-20260131.htm; observed 2026-03-25.

- FY2020: $96M 

- FY2021: $150M 

- FY2022: $238M 

- FY2023: $355M 

- FY2024: $472M 

- FY2025: $593M 

- FY2026: $738M 

- FY2027: $834M 

### Gross margin · FY2026

gross margin 67.1%; source https://www.sec.gov/Archives/edgar/data/1676238/000167623826000013/brze-20260131.htm; observed 2026-03-25.

- FY2020: 63.0% 

- FY2021: 63.7% 

- FY2022: 67.0% 

- FY2023: 67.4% 

- FY2024: 68.7% 

- FY2025: 69.1% 

- FY2026: 67.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are USD 738.2 million.

- Source: https://www.sec.gov/Archives/edgar/data/1676238/000167623826000013/brze-20260131.htm (filed 2026-03-25); FY2026: revenue 738182000; grossProfit 495657000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BRZE.US: Braze, Inc. operates a customer engagement platform that provides interactions between consumers and brands worldwide. It offers Braze software development kits that automatically manage data ingestion and deliver mobile and web notifications, in-application/in-browser interstitial messages, and content cards; REST API to import or export data or to trigger workflows between Braze and brands' existing technology stacks; Partner Data Integrations, that allow brands to sync user cohorts from partners; Data Transformation, in which brands can programmatically sync and transform user data; Braze Cloud Data Ingestion that offers direct connections to cloud services and data warehouses, marketing, product, and growth teams; Braze Currents to stream data in real time; and Snowflake Data Sharing to track and store data. It also provides segmentation that define reusable segments of consumers based upon attributes, events, or predictive propensity scores; segment insights, which allows customers to analyze how segments are performing relative to each other across a set of pre-selected key performance indicators; and predictive suite that allows customers to identify groups of consumers that are of critical business value. In addition, the company offers Canvas, an orchestration tool; campaigns, which allows customers; event and API triggering; marketing pressure management; and reporting and analytics, as well as content generation and quality assurance platform, content management, catalogs, templating language, connected content, and intelligent timing and channel products. Further, it provides decisioning studio; agent console; liquid assistant and AI copywriter; personalized variant; AI item recommendations; and MCP Servers. The company was formerly known as Appboy, Inc. and changed its name to Braze, Inc. in November 2017. Braze, Inc. was incorporated in 2011 and is headquartered in New York, New York.

### Why customers stay

Margins ranged from 67.1% to 69.1% during 2024–26.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2024: grossProfit / revenue = 68.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); FY2025: grossProfit / revenue = 69.1%.

- Source: https://www.sec.gov/Archives/edgar/data/1676238/000167623826000013/brze-20260131.htm (filed 2026-03-25); FY2026: grossProfit / revenue = 67.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); 7-year return on capital observations [[2020,0],[2021,0],[2022,-0.12318338141444188],[2023,-6.531454403393236],[2024,-3.7761117901622017],[2025,-4.746021933707092],[2026,-3.503401445989829]]; median -3.503401445989829. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 7 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); Dividend observations: [[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 14.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BRZE.US SharesStats.PercentInsiders = 14.796999999999999 percentage points; cache date 2026-10-16.

### What the price says

The price is 4.4 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-25); Closing price 30.38 USD; reporting-to-trading FX 1; FY2026 annual sales per share 6.840972698459771; price multiple 4.440888940667748. FY2026 cash earnings/share -1.126415583934165. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2021-11: $76.20 per share

- 2021-12: $77.16 per share

- 2022-01: $50.02 per share

- 2022-02: $42.19 per share

- 2022-03: $41.47 per share

- 2022-04: $40.19 per share

- 2022-05: $33.44 per share

- 2022-06: $36.23 per share

- 2022-07: $43.47 per share

- 2022-08: $41.18 per share

- 2022-09: $34.83 per share

- 2022-10: $29.61 per share

- 2022-11: $25.70 per share

- 2022-12: $27.28 per share

- 2023-01: $32.00 per share

- 2023-02: $30.70 per share

- 2023-03: $34.57 per share

- 2023-04: $29.40 per share

- 2023-05: $33.11 per share

- 2023-06: $43.79 per share

- 2023-07: $45.46 per share

- 2023-08: $46.26 per share

- 2023-09: $46.73 per share

- 2023-10: $42.58 per share

- 2023-11: $54.94 per share

- 2023-12: $53.13 per share

- 2024-01: $54.05 per share

- 2024-02: $56.90 per share

- 2024-03: $44.30 per share

- 2024-04: $41.90 per share

- 2024-05: $37.65 per share

- 2024-06: $38.84 per share

- 2024-07: $44.06 per share

- 2024-08: $44.78 per share

- 2024-09: $32.34 per share

- 2024-10: $31.46 per share

- 2024-11: $39.72 per share

- 2024-12: $41.88 per share

- 2025-01: $45.98 per share

- 2025-02: $36.98 per share

- 2025-03: $36.08 per share

- 2025-04: $31.13 per share

- 2025-05: $36.80 per share

- 2025-06: $28.10 per share

- 2025-07: $27.87 per share

- 2025-08: $27.70 per share

- 2025-09: $28.44 per share

- 2025-10: $28.66 per share

- 2025-11: $28.70 per share

- 2025-12: $34.29 per share

- 2026-01: $20.82 per share

- 2026-02: $18.99 per share

- 2026-03: $23.61 per share

- 2026-04: $22.03 per share

- 2026-05: $25.63 per share

- 2026-06: $21.69 per share

- 2026-07: $24.92 per share

- 2026-08: $34.04 per share

- 2026-09: $25.10 per share

- 2026-10: $30.38 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1676238/000167623826000013/brze-20260131.htm); period 2026-01-31, filed 2026-03-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.