Braze, Inc.

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 $190.8 million and $152.1 million in the three months ended October 31, 2025, and 2024, respectively, representing year-over-year growth of 25.5%, and $533.0 million and $433.0 million in the nine months ended October 31, 2025 and 2024, respectively. We had net losses of $35.8 million and $28.1 million in the three months ended October 31, 2025 and 2024, respectively, and $99.2 million and $87.0 million in the nine months ended October 31, 2025 and 2024, respectively. We had net cash provided by operating activities of $52.1 million in the nine months ended October 31, 2025 and net cash provided by operating activities of $19.6 million in the nine months ended October 31, 2024, respectively. Our Non-GAAP free cash flow was $44.2 million and $4.4 million in the nine months ended October 31, 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.

Current wording

We have grown significantly in recent periods. We generated revenue of $211.0 million in the three months ended April 30, 2026, representing year-over-year growth of 30.2% from the three months ended April 30, 2025. We had net losses of $25.5 million and $35.6 million in the three months ended April 30, 2026 and 2025, respectively. We had net cash provided by operating activities of $28.1 million in the three months ended April 30, 2026 and net cash provided by operating activities of $24.1 million in the three months ended April 30, 2025. Our Non-GAAP free cash flow was $26.8 million and $22.9 million in the three months ended April 30, 2026 and 2025, 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 October 31, 2025, we had 2,528 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 April 30, 2026, we had 2,713 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 October 31, 2025, we had approximately 7.8 billion monthly active users, up from approximately 7.2 billion monthly active users as of January 31, 2025.

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 April 30, 2026, we had approximately 8.5 billion monthly active users, up from the approximately 8.0 billion monthly active users as of January 31, 2026.

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 October 31, 2025 and October 31, 2024 was 108% and 113%, respectively, for all our customers, and 110% and

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 April 30, 2026 and April 30, 2025 was 110% and 109%, respectively, for all our customers, and 111% and 112%, respectively, for our customers with ARR of $500,000 or more. In addition, 349 and 262 of our customers had ARR of $500,000 or more as of April 30, 2026 and April 30, 2025, 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 nine months ended October 31, 2025 and 2024, approximately 45% and 45% 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 three months ended April 30, 2026 and 2025, approximately 45% and 46% 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 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

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 Pillar Two. 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 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 wording

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.

Previous wording

Our operating expenses consist of sales and marketing, research and development and general and administrative expenses. Personnel costs, including salaries, cash-based performance compensation, benefits and stock-based compensation, are the most significant component of operating expenses. Operating expenses also include allocated overhead costs, which include rent, utilities, depreciation, information technology costs and certain administrative personnel costs. As we continue to expand our operations, we expect an increase in personnel headcount and expansion of our global footprint.

Current wording

Our operating expenses consist of sales and marketing, research and development and general and administrative expenses. Personnel costs, including salaries, cash-based performance compensation, benefits and stock-based compensation, are the most significant component of operating expenses. Operating expenses also include allocated overhead costs, which include rent, utilities, depreciation, amortization related to the amortization of acquired intangibles, information technology costs and certain administrative personnel costs. As we continue to expand our operations, we expect an increase in personnel headcount and expansion of our global footprint.

Previous wording

Benefit from and Provision for Income Taxes

Current wording

Provision for Income Taxes

Previous wording

The benefit from and 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 the Company conducts 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.

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 $16.7 million, or 36.4%, for the three months ended October 31, 2025, compared to the three months ended October 31, 2024, was primarily driven by an increase of $5.4 million in hosting, infrastructure, and other third-party fees associated with delivering our platform and an $8.9 million increase in third-party messaging fees associated with growth in premium messaging channels. In addition, we had a net increase of $2.1 million in personnel costs, other overheads, and amortization expenses. The increased infrastructure, messaging, and personnel costs were incurred to support overall revenue growth.

Current wording

Cost of revenue increased by $21.5 million, or 42.2%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. This increase was primarily driven by a $9.2 million increase in third-party messaging fees associated with growth in premium messaging channels and an increase of $5.7 million in hosting, infrastructure and other third-party fees associated with delivering our platform and services. In addition, we had an increase of $6.6 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

Our gross profit increased $22.1 million, or 20.8%, in the three months ended October 31, 2025, compared to the three months ended October 31, 2024, and our gross margin decreased 2.6% to 67.2% in the three months ended October 31, 2025 from 69.8% in the three months ended October 31, 2024. The decrease was primarily due to expenses resulting from the acquisition of OfferFit, including personnel costs of acquired workforce and amortization expense of acquired technology, in addition to, increased costs related to our tech stack.

Current wording

Our gross profit increased $27.5 million, or 24.7%, in the three months ended April 30, 2026, compared to the three months ended April 30, 2025, and our gross margin decreased 2.9% to 65.7% in the three months ended April 30, 2026 from 68.6% in the three months ended April 30, 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.

Previous wording

The decrease in other income, net of $1.9 million, or 35.7%, for the three months ended October 31, 2025, compared to the three months ended October 31, 2024, was attributable to a $2.0 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.

Current wording

The decrease in other income, net of $2.2 million, or 39.0%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025, was attributable to a $1.5 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 October 31, 2025, our principal source of liquidity was cash, cash equivalents, and marketable securities of $387.3 million. Our cash and cash equivalents consist of deposit accounts, interest-bearing money market accounts, and U.S. government and corporate securities that are stated at fair value. Our marketable securities positions consist 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 April 30, 2026, our principal source of liquidity was cash, cash equivalents, and marketable securities of $391.5 million. Our cash and cash equivalents consist of deposit accounts, interest-bearing money market accounts and U.S. government and corporate securities that are stated at fair value. Our marketable securities positions consist 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 $686.5 million as of October 31, 2025. We had cash flows provided by operating activities for the nine months ended October 31, 2025 of $52.1 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 $744.7 million as of April 30, 2026. We had cash flows provided by operating activities for the three months ended April 30, 2026 of $28.1 million.

Previous wording

A substantial source of our cash provided by operating activities is our deferred revenue, which is included on the 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 October 31, 2025, we had total deferred revenue of $271.5 million, of which, $271.4 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 the 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 April 30, 2026, we had total deferred revenue of $342.5 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 nine months ended October 31, 2024, net cash provided by operating activities was $19.6 million, primarily due to a net loss of $87.0 million, adjusted for non-cash charges of $123.3 million, and net changes in our operating assets and liabilities of $16.7 million. The non-cash adjustments primarily relate to stock-based compensation of $87.2 million, amortization of deferred contract costs of $26.0 million. The cash inflow from changes in our operating assets and liabilities were primarily due to an increase in deferred revenue of $19.5 million as a result of billings for new bookings and renewals. The cash inflow was offset by cash outflows primarily from an increase in deferred contract costs of $34.8 million as a result of commissions on new bookings and renewals.

Current wording

For the three months ended April 30, 2026, net cash provided by operating activities was $28.1 million, primarily due to a net loss of $25.5 million adjusted for non-cash charges of $54.7 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 $35.8 million and amortization of deferred contract costs of $12.3 million. The cash inflow from changes in our operating assets and liabilities were primarily due to a decrease in accounts receivable of $3.8 million and increase in deferred revenue of $38.2 million as a result of billings for new bookings and renewals. The cash inflow was offset by cash outflows primarily from an increase in deferred contract costs of $15.3 million as a result of commissions on new bookings and renewals.

Previous wording

For the nine months ended October 31, 2025, net cash provided by operating activities was $52.1 million, primarily due to a net loss of $99.2 million, adjusted for non-cash charges of $151.5 million, and net changes in our operating assets and liabilities of $0.3 million. The non-cash adjustments primarily relate to stock-based compensation of $106.0 million and amortization of deferred contract costs of $29.9 million. The cash inflow from changes in our operating assets and liabilities were primarily due to an increase in deferred revenue of $24.0 million as a result of billings for new bookings and renewals, as well as a decrease in accounts receivable of $9.5 million and a decrease in accrued expenses of $5.9 million. The cash inflow was offset by cash outflows primarily from an increase in deferred contract costs of $39.2 million as a result of commissions on new bookings and renewals.

Current wording

For the three months ended April 30, 2025, net cash provided by operating activities was $24.1 million, primarily due to a net loss of $35.6 million adjusted for non-cash charges of $43.8 million and net changes in our operating assets and liabilities of $15.9 million. The non-cash adjustments primarily relate to stock-based compensation of $30.6 million and amortization of deferred contract costs of $9.4 million. The cash inflow from changes in our operating assets and liabilities were primarily due to a decrease in accounts receivable of $9.1 million and increase in deferred revenue of $24.5 million as a result of billings for new bookings and renewals. The cash inflow was offset by cash outflows primarily from an increase in deferred contract costs of $11.9 million as a result of commissions on new bookings and renewals.

Previous wording

Net cash used in investing activities was $35.6 million for the nine months ended October 31, 2024, primarily consisting of purchases of marketable securities of $179.5 million, purchases of property and equipment of $12.1 million, and capitalization of internal-use software costs of $3.0 million, partially offset by maturities of marketable securities of $159.1 million.

Current wording

Net cash provided by investing activities was $42.8 million for the three months ended April 30, 2026, primarily consisting of the return of principal on marketable securities of $34.9 million and maturities of marketable securities of $35.9 million, partially offset by purchases of marketable securities of $26.7 million.

Previous wording

Net cash provided by financing activities was $5.5 million for the nine months ended October 31, 2024, primarily consisting of proceeds from the exercise of common stock options of $3.7 million and proceeds from stock purchases associated with the employee stock purchase plan of $4.8 million, partially offset by payments of deferred purchase consideration related to the acquisition of North Star of $2.9 million.

Current wording

Net cash used in financing activities was $49.7 million for the three months ended April 30, 2026, consisting primarily of cash outflow to fund the accelerated stock repurchase transaction of $50.0 million offset partially by proceeds from the exercise of common stock options of $0.3 million.

Previous wording

Net cash provided by financing activities was $9.2 million for the nine months ended October 31, 2025, consisting of proceeds from the exercise of common stock options of $4.3 million and proceeds from stock purchases associated with the employee stock purchase plan of $4.9 million.

Current wording

Net cash provided by financing activities was $0.6 million for the three months ended April 30, 2025, consisting of proceeds from the exercise of common stock options of $0.6 million.

Previous wording

Our free cash flow increased for the nine months ended October 31, 2025 from the nine months ended October 31, 2024, primarily due to higher collections as a result of an increase in billings that are aligned with new contracts and contract renewals. We expect our free cash flow to fluctuate in future periods with changes in our operating expenses and as we continue to invest in our growth. Additionally, our free cash flow may be influenced by macroeconomic factors that impact our collection efforts for customer payments. If we experience collection pressure it may lengthen the time to collect on accounts receivable and increase our bad debt expense, either of which could negatively impact our free cash flow.

Current wording

Our free cash flow increased for the three months ended April 30, 2026 from the three months ended April 30, 2025, primarily due to higher collections as a result of an increase in billings that are aligned with new contracts and contract renewals. We expect our free cash flow to fluctuate in future periods with changes in our operating expenses and as we continue to invest in our growth. Additionally, our free cash flow may be influenced by macroeconomic factors that impact our collection efforts for customer payments. If we experience collection pressure it may lengthen the time to collect on accounts receivable and increase our bad debt expense, either of which could negatively impact our free cash flow.

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 $134.1 million and $84.1 million, respectively, as of October 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.