Braze, Inc.
For the period ended Jan 31, 2026. Filed Mar 25, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2026 · Filed Mar 25, 2026
BRZE$45.79-0.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2025-01-31; filed 2025-03-31.
0001676238-25-000054
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2026-01-31; filed 2026-03-25.
0001676238-26-000013
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 108 previous paragraphs and 105 current paragraphs.
79 unchanged; 20 reworded; 6 added; 9 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
Tax legislation continues to evolve globally with new laws and regulations that create uncertainty in the global economy. The Organization for Economic Cooperation and Development reached agreement among over 140 countries to implement a minimum 15% tax rate on certain multinational enterprises, commonly referred to as the Pillar Two framework. Many countries continue to announce changes in their tax laws and regulations based on the Pillar Two framework. Additionally, the U.S Congress enacted the One Big Beautiful Bill Act, or the OBBBA, which includes significant provisions, including tax cut extensions and modifications to the international tax framework. While we continue to evaluate the impact of these legislative changes as additional guidance becomes available, uncertainty remains regarding the timing and interpretation by tax authorities in affected jurisdictions. These legislative changes could have an adverse impact on our future effective tax rate, tax liabilities, and cash tax.
Current report
Revenue increased by $144.8 million, or 24.4%, for the fiscal year ended January 31, 2026 compared to the fiscal year ended January 31, 2025. Approximately 65.5% of the increase in revenue was attributable to growth from existing customers, and the remaining 34.5% was attributable to growth from new customers.
Current report
Our gross profit increased $85.4 million, or 20.8%, in the fiscal year ended January 31, 2026, compared to the fiscal year ended January 31, 2025, and our gross margin decreased by 2.0% to 67.1% in the fiscal year ended January 31, 2026, from 69.1% in the fiscal year ended January 31, 2025. The decrease was primarily due to acquisition related operating costs, including personnel costs of acquired workforce and amortization expense of acquired technology, in addition to increased costs related to our tech stack.
Current report
Sales and marketing expense increased by $44.7 million, or 15.8%, for the fiscal year ended January 31, 2026, compared to the fiscal year ended January 31, 2025. This increase was primarily due to an increase of $34.3 million in personnel costs and allocated overhead costs, for our sales and marketing organization as a result of increased headcount and increased variable compensation for our sales personnel. Additionally, advertising, sales, marketing and promotional activities increased by $6.6 million.
Current report
Research and development expense increased by $33.2 million, or 24.8%, for the fiscal year ended January 31, 2026, compared to the fiscal year ended January 31, 2025. This increase was primarily due to an increase of $28.2 million in personnel costs and allocated overhead costs, for our research and development organization as a result of increased headcount.
Current report
General and administrative expense increased by $30.2 million, or 26.0%, for the fiscal year ended January 31, 2026, compared to the fiscal year ended January 31, 2025. This increase was primarily due to an increase of $17.1 million in personnel costs and allocated overhead costs, for our general and administrative organization as a result of increased headcount and an increase of $12.6 million in professional services and legal costs primarily associated with acquisition-related expenses.
Removed paragraphs (9)
Previous report
The increase in revenue of $121.6 million, or 25.8%, for the fiscal year ended January 31, 2025 compared to the fiscal year ended January 31, 2024 was primarily driven by an $119.2 million, or 26.4%, increase in subscription revenue. Approximately 73.8% of the increase in subscription revenue was attributable to the growth from existing customers increase in monthly active users, expansion across channels and committed entitlements and features, and the remaining 26.2% was attributable to new customers. Total customers grew to 2,296 as of January 31, 2025 from 2,044 as of January 31, 2024. Professional services revenue increased $2.4 million, or 11.6%, due to an increase in deliverability services, technical account management, and support engagement services. These increases were partially offset by the decline in onboarding revenue as a result of the continued engagement of new customers with third-party partner-led onboarding. Additionally, in the fiscal year ended January 31, 2025, our international revenue increased by $62.4 million as we continued to expand market penetration in regions such as Europe and the Asia-Pacific region.
Previous report
Our gross profit increased $85.9 million, or 26.5%, in the fiscal year ended January 31, 2025 compared to the fiscal year ended January 31, 2024, and our gross margin increased by 0.4% to 69.1% in the fiscal year ended January 31, 2025 from 68.7% in the fiscal year ended January 31, 2024. These increases were due primarily to improved personnel efficiencies, economies of scale, and the optimization of costs of our tech stack as our infrastructure costs to support our revenue growth did not increase at the same pace as our revenue.
Previous report
The increase in sales and marketing expense of $35.2 million, or 14.2%, for the fiscal year ended January 31, 2025 compared to the fiscal year ended January 31, 2024, was primarily driven by an increase in personnel and overhead costs of $22.9 million, which included $7.0 million of stock-based compensation costs. Additionally, the increase was driven in part by an increase of $6.4 million in promotional and product marketing, primarily related to the hosting of regional customer events, our annual customer conference, and other sales related events, an increase of $3.7 million in software costs, and an increase of $2.5 million in deferred contract costs as a result of sales growth.
Previous report
The increase in research and development expense of $14.1 million, or 11.8%, for the fiscal year ended January 31, 2025 compared to the fiscal year ended January 31, 2024, was primarily driven by an increase in personnel and overhead costs of $11.7 million, which included $4.0 million of stock-based compensation costs, an increase of $1.6 million in software costs, and an increase in professional services of $0.7 million. These increases were primarily due to a period-over-period increase in headcount to support our continued investment in the features and functionality of our platform.
Previous report
The increase in general and administrative expenses of $14.1 million, or 13.8%, for the fiscal year ended January 31, 2025 compared to the fiscal year ended January 31, 2024 was primarily driven by an increase in personnel and overhead costs of $13.2 million, which included $5.6 million of stock-based compensation costs and $2.3 million of depreciation expense, primarily related to the winding down of our old office as we moved to our new headquarters in the fiscal year. The increases were primarily due to investments in our finance and administrative functions to continue to scale our processes, systems, and controls, to enable our ongoing compliance with public company legal and regulatory requirements. The increases in expenses were partially offset by a decrease in professional services costs of $0.5 million related to the acquisition of North Star in the fiscal year ended January 31, 2024.
Previous report
The investment income increase was driven primarily by the graded maturation of the portfolio positions at higher interest rates and the reinvestment of proceeds in a high interest rate environment.
Previous report
Cost to Obtain a Contract with a Customer
Previous report
We capitalize incremental costs of obtaining revenue contracts, which primarily consist of internal sales commissions and agent commissions. We amortize these commissions on a systematic basis, consistent with the pattern of transfer of the expected benefit period or services to which the contract relates, generally up to four years. Four years represents the estimated benefit period of the customer relationship taking into account factors such as peer estimates of technology lives and customer lives as well as our own historical data. Commissions paid for contract renewals are amortized over the renewal period.
Previous report
Contract costs are amortized on a straight-line basis over up to four years, which reflects the expected period of benefit of the performance obligation, and may be longer than the initial contract period. We determine the estimated benefit period by considering both qualitative and quantitative factors, including the length of the subscription terms in our customer contracts and the anticipated life of our technology, among other factors.
Reworded paragraphs (20)
Previous wording
Braze is a leading customer engagement platform that empowers brands to Be Absolutely Engaging. Our platform empowers brands to listen to their customers better, understand them more deeply, and act on that understanding in a way that is human and personal. Using our platform, brands ingest and process customer data in real time, orchestrate and optimize contextually relevant, marketing campaigns across multiple channels. Our platform is designed so that interactions between brands and consumers have the same relevance and cross-channel continuity as human interactions.
Current wording
Braze is a leading customer engagement platform that empowers brands to Be Absolutely Engaging. Our platform brings together rich, first-party context, transforms that context with composable intelligence (models, agents, and operators), and delivers continuous, and personally relevant interactions across channels. Using our platform, brands ingest and process customer data in real time, orchestrate and optimize contextually relevant marketing campaigns across multiple channels. Our platform is designed so that interactions between brands and consumers have the same relevance and cross-channel continuity as human interactions.
Previous wording
Our customers include many established global enterprises and leading technology innovators, and span a wide variety of sizes and industries, including retail and consumer goods, media and entertainment, telecommunications, restaurants and on-demand services, healthcare and life sciences, technology, manufacturing, education, government and public services, and financial services.
Current wording
Our customers include many established global enterprises and leading technology innovators, and span a wide variety of sizes and industries, including retail and consumer goods, media and entertainment, gaming, sports, restaurants and on-demand services, healthcare and life sciences, technology, and financial services.
Previous wording
We have grown significantly in recent periods. We generated revenue of $593.4 million, $471.8 million, and $355.4 million in the fiscal years ended January 31, 2025, 2024, and 2023, respectively, representing year-over-year growth of 25.8% from the fiscal years ended January 31, 2024 to January 31, 2025 and 32.7% from the fiscal year ended January 31, 2023 to January 31, 2024. We had net losses of $104.0 million, $130.4 million and $140.7 million, in the fiscal years ended January 31, 2025, 2024, and 2023, respectively. We had net cash provided by operating activities of $36.7 million in the fiscal year ended January 31, 2025. We had net cash provided by operating activities of $6.9 million and net cash used in operating activities of $22.3 million in the fiscal years ended January 31, 2024 and 2023, respectively. Our Non-GAAP free cash flow was $19.6 million, $(6.5) million and $(39.0) million in the fiscal years ended January 31, 2025, 2024, and 2023, respectively. See the section titled “— Non-GAAP Free Cash Flow” for additional information about how we calculate free cash flow, a non-GAAP financial metric, and a reconciliation to net cash provided by operating activities, the most directly comparable measure calculated in accordance with accounting principles generally accepted in the United States, or U.S. GAAP.
Current wording
We have grown significantly in recent periods. We generated revenue of $738.2 million, $593.4 million, and $471.8 million in the fiscal years ended January 31, 2026, 2025, and 2024, respectively, representing year-over-year growth of 24.4% from the fiscal years ended January 31, 2025 to January 31, 2026 and 25.8% from the fiscal year ended January 31, 2024 to January 31, 2025. We had net losses of $130.8 million, $104.0 million and $130.4 million, in the fiscal years ended January 31, 2026, 2025, and 2024, respectively. We had net cash provided by operating activities of $71.4 million, $36.7 million, and $6.9 million in the fiscal years ended January 31, 2026, 2025, and 2024, respectively. Our non-GAAP free cash flow was $58.1 million, $19.6 million and $(6.5) million in the fiscal years ended January 31, 2026, 2025, and 2024, respectively. See the section titled “— Non-GAAP Free Cash Flow” for additional information about how we calculate free cash flow, a non-GAAP financial metric, and a reconciliation to net cash provided by operating activities, the most directly comparable measure calculated in accordance with accounting principles generally accepted in the United States, or U.S. GAAP.
Previous wording
We believe there is substantial opportunity to continue to grow our customer base. We intend to continue to expand our customer base in verticals where we already have a strong presence, such as retail and consumer goods, media and entertainment, telecommunications, restaurants and on-demand services, healthcare and life sciences, technology, manufacturing, education, government and public services, and financial services — and to increase our presence in verticals where we are not yet strongly represented. Through our sales and marketing efforts, we also plan to capitalize on industries subject to ongoing digital transformation and where direct-to-consumer relationships are accelerating, to further propel adoption of our technology. As of January 31, 2025, we had 2,296 customers across a broad range of sizes and industries. Our ability to attract new customers will depend on a number of factors, including the quality and pricing of our products, offerings of our competitors and the effectiveness of our marketing efforts.
Current wording
We believe there is substantial opportunity to continue to grow our customer base. We intend to continue to expand our customer base in verticals where we already have a strong presence, such as retail and consumer goods, media and entertainment, telecommunications, restaurants and on-demand services, healthcare and life sciences, technology, manufacturing, education, government and public services, and financial services — and to increase our presence in verticals where we are not yet strongly represented. Through our sales and marketing efforts, we also plan to capitalize on industries subject to ongoing digital transformation and where direct-to-consumer relationships are accelerating, to further propel adoption of our technology. As of January 31, 2026, we had 2,609 customers across a broad range of sizes and industries. Our ability to attract new customers will depend on a number of factors, including the quality and pricing of our products, offerings of our competitors and the effectiveness of our marketing efforts.
Previous wording
Historically, we have experienced significant expansion within a customer’s business once our platform is deployed, with customers typically increasing the number of monthly active users, channels and use cases, as well as purchasing additional products. A monthly active user is an end user of a customer who has engaged with the customer’s applications and websites in the previous thirty-day period. We include each distinguishable end user in our calculation of monthly active users, even though some users may access our customers’ applications and websites using more than one device, and multiple users may gain access using the same device. As of January 31, 2025, we had approximately 7.2 billion monthly active users, up from approximately 6.2 billion monthly active users as of January 31, 2024.
Current wording
Historically, we have experienced significant expansion within a customer’s business once our platform is deployed, with customers typically increasing the number of monthly active users, channels and use cases, as well as purchasing additional products. A monthly active user is an end user of a customer who has engaged with the customer’s applications and websites in the previous thirty-day period. We include each distinguishable end user in our calculation of monthly active users, even though some users may access our customers’ applications and websites using more than one device, and multiple users may gain access using the same device. As of January 31, 2026, we had approximately 8.0 billion monthly active users, up from approximately 7.2 billion monthly active users as of January 31, 2025.
Previous wording
A further indication of the propensity of our customer relationships to expand over time is our dollar-based net retention rate. We calculate our dollar-based net retention rate as of a period end by starting with the ARR from the cohort of all customers as of 12 months prior to such period-end, or the Prior Period ARR. We then calculate the ARR from these same customers as of the current period-end, or the Current Period ARR. Current Period ARR includes any expansion and is net of contraction or attrition over the last 12 months but excludes ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the point-in-time dollar-based net retention rate. We then calculate the weighted average point-in-time dollar-based net retention rates as of the last day of each month in the current trailing 12-month period to arrive at the dollar-based net retention rate. Our dollar-based net retention rate for the trailing 12 months ended January 31, 2025, 2024, and 2023, was 111%, 117%, and 124% respectively, for all our customers, and 114%, 120%, and 126%, respectively, for our customers with ARR of $500,000 or more. In addition, 247, 202, and 156 of our customers had ARR of $500,000 or more as of January 31, 2025, 2024, and 2023, respectively.
Current wording
A further indication of the propensity of our customer relationships to expand over time is our dollar-based net retention rate. We calculate our dollar-based net retention rate as of a period end by starting with the ARR from the cohort of all customers as of 12 months prior to such period-end, or the Prior Period ARR. We then calculate the ARR from these same customers as of the current period-end, or the Current Period ARR. Current Period ARR includes any expansion and is net of contraction or attrition over the last 12 months but excludes ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the point-in-time dollar-based net retention rate. We then calculate the weighted average point-in-time dollar-based net retention rates as of the last day of each month in the current trailing 12-month period to arrive at the dollar-based net retention rate. Our dollar-based net retention rate for the trailing 12 months ended January 31, 2026, 2025, and 2024, was 109%, 111%, and 117% respectively, for all our customers, and 110%, 114%, and 120%, respectively, for our customers with ARR of $500,000 or more. In addition, 333, 247, and 202 of our customers had ARR of $500,000 or more as of January 31, 2026, 2025, and 2024, respectively.
Previous wording
We believe there is a significant opportunity to continue to expand our presence in international markets we have already penetrated and by entering markets we have not yet penetrated. For the fiscal years ended January 31, 2025, 2024, and 2023, approximately 45%, 43%, and 42%, of our revenue was generated outside of the United States, respectively. We expect to increase market penetration in regions including Europe and Asia-Pacific and to further capitalize on the greenfield opportunity in regions such as Latin America. Although these investments in geographic regions may negatively affect our operating results in the near term, we believe that they will contribute to our long-term growth.
Current wording
We believe there is a significant opportunity to continue to expand our presence in international markets we have already penetrated and by entering markets we have not yet penetrated. For the fiscal years ended January 31, 2026, 2025, and 2024, approximately 45%, 45%, and 43%, of our revenue was generated outside of the United States, respectively. We expect to increase market penetration in regions including Europe and Asia-Pacific and to further capitalize on greenfield opportunities globally. Although these investments in geographic regions may negatively affect our operating results in the near term, we believe that they will contribute to our long-term growth.
Previous wording
Cost of revenue consists of direct costs related to providing platform access to our customers and to performing onboarding and professional services including consulting services. These costs primarily include payments to third-party cloud infrastructure providers for hosting software solutions, costs associated with application service providers utilized to deliver the platform, personnel-related costs, including salaries, cash-based performance compensation, benefits and stock-based compensation, and overhead cost allocations, including rent, utilities, depreciation, information technology costs, amortization of internal use software and certain administrative personnel costs.
Current wording
Cost of revenue consists of direct costs related to providing platform access to our customers and to performing onboarding and professional services including consulting services. These costs primarily include payments to third-party cloud infrastructure providers for hosting software solutions, costs associated with application service providers utilized to deliver the platform, personnel-related costs, including salaries, cash-based performance compensation, benefits and stock-based compensation, and overhead cost allocations, including rent, utilities, information technology costs, depreciation and amortization related to the amortization of acquired intangibles and internal use software and certain administrative personnel costs.
Previous wording
Provision for income taxes consists of state income taxes and income taxes in certain foreign jurisdictions in which we conduct business. We maintain a full valuation allowance in jurisdictions where we had net deferred tax assets as we have concluded that it is not more likely than not that the deferred tax assets will be realized.
Current wording
The provision for income taxes consist of the release of the valuation allowance due to the acquisition of Offerfit and income taxes in state and foreign jurisdictions in which we conduct business. We maintain a valuation allowance in jurisdictions where we had net deferred tax assets as we have concluded that it is not more likely than not that the deferred tax assets will be realized.
Previous wording
The increase in cost of revenue of $35.7 million, or 24.2%, for the fiscal year ended January 31, 2025 compared to the fiscal year ended January 31, 2024 was primarily driven by an increase of $7.5 million in hosting, infrastructure, and other third-party fees associated with delivering our platform and a $24.0 million increase in third-party messaging fees associated with growth in premium messaging channels. In addition, we had an increase in personnel and overhead costs of $3.2 million. The increased infrastructure, messaging, and personnel costs were incurred to support overall revenue growth.
Current wording
Cost of revenue increased by $59.3 million, or 32.4%, for the fiscal year ended January 31, 2026 compared to the fiscal year ended January 31, 2025. This increase was primarily driven by a $25.2 million increase in third-party messaging fees associated with growth in premium messaging channels and an increase of $17.9 million in hosting, infrastructure, and other third-party fees associated with delivering our platform and services. In addition, we had a net increase of $16.2 million in personnel costs, other overhead, and amortization expenses. The increased infrastructure, messaging, and personnel costs were incurred to support overall revenue growth.
Previous wording
The increase in other income, net of $5.3 million, or 32.9%, for the fiscal year ended January 31, 2025, compared to the fiscal year ended January 31, 2024, was attributable to a $5.2 million increase in investment income from marketable securities.
Current wording
The decrease in other income, net of $5.0 million, or 23.0%, for the fiscal year ended January 31, 2026, compared to the fiscal year ended January 31, 2025, was attributable to a $4.7 million decrease in investment income from marketable securities. The investment income decrease was driven primarily by the decrease in the marketable securities balance period-over-period to fund acquisition activities.
Previous wording
As of January 31, 2025, our principal source of liquidity was cash, cash equivalents, and marketable securities of $514.0 million. Our cash and cash equivalents consist of deposit accounts, interest-bearing money market accounts, U.S. government, and corporate securities that are stated at fair value. Our marketable securities positions consists mostly of highly liquid short-term investments. The investment income that we generate on these investments is not material to our overall cash balance, but may be adversely affected due to volatility in interest rates.
Current wording
As of January 31, 2026, our principal source of liquidity was cash, cash equivalents, and marketable securities of $415.9 million. Our cash and cash equivalents consist of deposit accounts, interest-bearing money market accounts, and U.S. government securities that are stated at fair value. Our marketable securities positions consists mostly of highly liquid short- term investments. The investment income that we generate on these investments is not material to our overall cash balance, but may be adversely affected due to volatility in interest rates.
Previous wording
Since our inception, we have financed our operations primarily through the net proceeds received from the sales of equity securities and cash generated from the sale of subscriptions to our platform. We have generated losses from our operations as reflected in our accumulated deficit of $586.8 million as of January 31, 2025. We had cash flows provided by operating activities for the fiscal year ended January 31, 2025 of $36.7 million.
Current wording
Since our inception, we have financed our operations primarily through the net proceeds received from the sales of equity securities and cash generated from the sale of subscriptions to our platform. We have generated losses from our operations as reflected in our accumulated deficit of $718.1 million as of January 31, 2026. We had cash flows provided by operating activities for the fiscal year ended January 31, 2026 of $71.4 million.
Previous wording
A substantial source of our cash provided by operating activities is our deferred revenue, which is included on our consolidated balance sheets as a liability. Deferred revenue consists of the unearned portion of billed fees for our subscriptions, which is recorded as revenue over the term of the subscription agreement. As of January 31, 2025, we had total deferred revenue of $240.3 million, of which $240.0 million was recorded as a current liability. Deferred revenue will be recognized as revenue when all of the revenue recognition criteria are met.
Current wording
A substantial source of our cash provided by operating activities is our deferred revenue, which is included on our consolidated balance sheets as a liability. Deferred revenue consists of the unearned portion of billed fees for our subscriptions, which is recorded as revenue over the term of the subscription agreement. As of January 31, 2026, we had total deferred revenue of $304.6 million, recorded as a current liability. Deferred revenue will be recognized as revenue when all of the revenue recognition criteria are met.
Previous wording
For the fiscal year ended January 31, 2024, net cash provided by operating activities was $6.9 million, primarily due to a net loss of $130.4 million adjusted for non-cash charges of $136.2 million and net changes in our operating assets and liabilities of $1.1 million. The non-cash adjustments primarily relate to stock-based compensation of $97.2 million, amortization of deferred contract costs of $29.8 million, depreciation and amortization expense of $7.0 million, and expense associated with the donation of our Class A common stock to a charitable donor-advised fund of $3.8 million. The cash inflows from changes in our operating assets and liabilities were primarily due to an increase in deferred revenue of $34.1 million as a result of increased billings driven by timing of subscriptions and renewals. The cash inflows were offset by cash outflows primarily from an increase in deferred contract costs of $45.1 million as a result of commissions on new bookings and renewals.
Current wording
For the fiscal year ended January 31, 2026, net cash provided by operating activities was $71.4 million, primarily due to a net loss of $130.8 million adjusted for non-cash charges of $207.1 million and net changes in our operating assets and liabilities of $4.9 million. The non-cash adjustments primarily relate to stock-based compensation of $143.7 million, amortization of deferred contract costs of $41.3 million, depreciation and amortization expense of $19.3 million, and expense associated with the donation of our Class A common stock to a charitable donor-advised fund of $3.2 million. The cash inflows from changes in our operating assets and liabilities were primarily due to an increase in deferred revenue of $57.1 million, as a result of increased billings driven by timing of subscriptions and renewals and an increase of accrued expenses and other current liabilities of $26.2 million. The cash inflows were offset by cash outflows primarily from an increase in deferred contract costs of $65.2 million as a result of commissions on new bookings and renewals and an increase in accounts receivable of $22.7 million.
Previous wording
Net cash used in investing activities was $20.0 million for the fiscal year ended January 31, 2024, primarily consisting of purchases of marketable securities of $248.1 million, cash paid for the acquisition of North Star of $16.3 million, purchases of property and equipment of $9.8 million, and capitalization of internal-use software costs of $3.6 million, partially offset by maturities of marketable securities of 257.7 million.
Current wording
Net cash used in investing activities was $50.9 million for the fiscal year ended January 31, 2026, primarily consisting of cash paid for the acquisition of OfferFit, net of cash acquired of $181.9 million, purchases of marketable securities of $151.6 million, purchases of property and equipment of $9.6 million, and capitalization of internal-use software costs of $3.8 million, partially offset by maturities of marketable securities of $175.2 million and a return of principal on marketable securities of $120.7 million.
Previous wording
Net cash used in investing activities was $36.5 million for the fiscal year ended January 31, 2025, primarily consisting of purchases of marketable securities of $218.0 million,, purchases of property and equipment of $13.2 million, and capitalization of internal-use software costs of $3.8 million, partially offset by maturities of marketable securities of $195.4 million.
Current wording
Net cash used in investing activities was $36.5 million for the fiscal year ended January 31, 2025, primarily consisting of purchases of marketable securities of $218.0 million, purchases of property and equipment of $13.2 million, and capitalization of internal-use software costs of $3.8 million, partially offset by maturities of marketable securities of 195.4 million.
Previous wording
Net cash provided by financing activities was $13.1 million for the fiscal year ended January 31, 2024, primarily consisting of proceeds from the exercise of common stock options of $7.3 million and proceeds from stock purchases associated with our employee stock purchase plan of $6.0 million, offset by payments of deferred purchase considerations related to the acquisition of North Star of $0.2 million.
Current wording
Net cash provided by financing activities was $23.0 million for the fiscal year ended January 31, 2026, consisting of proceeds from the exercise of common stock options of $15.9 million and proceeds from stock purchases associated with our employee stock purchase plan of $7.1 million.
Previous wording
Our most significant funding requirements are principally comprised of employee compensation and related taxes and benefits, non-cancelable purchase commitments, and operating lease obligations. Non-cancelable purchase commitments for business operations and operating lease obligations total $224.4 million and $114.8 million, respectively, as of January 31, 2025. Purchase commitments for business operations are predominately related to cloud hosting, infrastructure, and other software-based services and due primarily over the next three years. Our future funding requirements to settle our obligations in foreign jurisdictions are subject to fluctuations due to changes in foreign exchange rates.
Current wording
Our most significant funding requirements are principally comprised of employee compensation and related taxes and benefits, non-cancelable purchase commitments, and operating lease obligations. Purchase commitments for business operations are primarily related to cloud hosting, infrastructure, and other software-based services and due primarily over the next three years. Our future funding requirements to settle our obligations in foreign jurisdictions are subject to fluctuations due to changes in foreign exchange rates.
Previous wording
We believe that the following critical accounting policies involve a greater degree of judgement or complexity. Accordingly, these are the policies we believe are the most critical to aid in fully understanding and evaluating our consolidated financial condition and results of operations.
Current wording
We believe that the following critical accounting policies involve a greater degree of judgment or complexity. Accordingly, these are the policies we believe are the most critical to aid in fully understanding and evaluating our consolidated financial condition and results of operations.