Braze, Inc.

Previous 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.

Current wording

We have grown significantly in recent periods. We generated revenue of $227.2 million and $180.1 million in the three months ended July 31, 2026, and 2025, respectively, representing year-over-year growth of 26.2%, and $438.2 million and $342.2 million in the six months ended July 31, 2026 and 2025, respectively. We had net losses of $18.3 million and $27.8 million in the three months ended July 31, 2026 and 2025, respectively, and $43.8 million and $63.4 million in the six months ended July 31, 2026 and 2025, respectively. We had net cash provided by operating activities of $52.3 million in the six months ended July 31, 2026 and net cash provided by operating activities of $31.1 million in the six months ended July 31, 2025, respectively. Our Non-GAAP free cash flow was $48.5 million and $26.4 million in the six months ended July 31, 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 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.

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 July 31, 2026, we had 2,789 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 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.

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 July 31, 2026, we had approximately 9.0 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 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.

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 July 31, 2026 and July 31, 2025 was 110% and 108%, respectively, for all our customers, and 112% and 111%, respectively, for our customers with ARR of $500,000 or more. In addition, 361 and 282 of our customers had ARR of $500,000 or more as of July 31, 2026 and July 31, 2025, respectively.

Previous wording

Our dollar-based net retention rate is influenced by macroeconomic factors that impact our customers’ purchasing decisions, which may impact the revenue attributable to such customers. The decline in our trailing 12-month dollar-based net retention rate was primarily due to customer turnover and renewals at lower subscription levels. In particular, we have observed that customer renewals in the current uncertain macroeconomic environment and high interest rate climate have led customers to renew their contracts at levels more closely aligned with their current needs, rather than opting for larger commitments based on anticipated future demand.

Current wording

Our dollar-based net retention rate is influenced by macroeconomic factors that impact our customers’ purchasing decisions, which may impact the revenue attributable to such customers.

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 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.

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 six months ended July 31, 2026 and 2025, 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 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

Revenue increased by $48.9 million, or 30.2%, for the three months ended April 30, 2026 compared to the three months ended April 30, 2025. Approximately 55.9% of the increase in revenue was attributable to the growth from existing customers and the remaining 44.1% was attributable to growth from new customers.

Current wording

Revenue increased by $47.1 million, or 26.2%, for the three months ended July 31, 2026, compared to the three months ended July 31, 2025. Approximately 55.3% of the increase in revenue was attributable to the growth from existing customers and the remaining 44.7% was attributable to new customers.

Previous 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.

Current wording

Cost of revenue increased by $17.2 million, or 29.5%, for the three months ended July 31, 2026, compared to the three months ended July 31, 2025. This increase was primarily driven by a $7.4 million increase in third-party messaging fees associated with growth in premium messaging channels and an increase of $5.2 million in hosting, infrastructure, and other third-party fees associated with delivering our platform and services. In addition, we had an increase of $4.3 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 $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.

Current wording

Our gross profit increased $30.0 million, or 24.6%, in the three months ended July 31, 2026, compared to the three months ended July 31, 2025, and our gross margin decreased 0.9% to 66.8% in the three months ended July 31, 2026 from 67.7% in the three months ended July 31, 2025. The decrease was primarily driven by personnel costs related to the acquired workforce and amortization expense of acquired technology, offset by efficiencies realized in the costs related to our tech stack.

Previous wording

Research and development expense increased by $9.3 million, or 25.3%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. This increase was primarily due to an increase of $7.5 million in personnel and allocated overhead costs, for our research and development organization as a result of increased headcount.

Current wording

Research and development expense increased by $4.0 million, or 9.8%, for the three months ended July 31, 2026, compared to the three months ended July 31, 2025. This increase was primarily due to an increase of $2.5 million in personnel and allocated overhead costs, for our research and development organization as a result of increased headcount. Additionally, software services increased by $1.3 million.

Previous 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.

Current wording

The decrease in other income, net of $1.7 million, or 42.3%, for the three months ended July 31, 2026, compared to the three months ended July 31, 2025, was attributable to a $1.7 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

Sales and marketing expense increased by $15.1 million, or 20.3%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. This increase was primarily due to an increase of $9.9 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 $3.7 million.

Current wording

Sales and marketing expense increased by $25.3 million, or 16.2%, for the six months ended July 31, 2026, compared to the six months ended July 31, 2025. This increase was primarily due to an increase of $19.0 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 $3.9 million.

Previous wording

General and administrative expense decreased by $9.6 million, or 23.7%, for the three months ended April 30, 2026, compared to the three months ended April 30, 2025. This decrease was primarily due to a reduction of $9.7 million in professional services and legal costs primarily associated with prior period acquisition-related expenses, offset in part by an increase of $0.7 million in personnel and allocated overhead costs.

Current wording

General and administrative expense decreased by $14.6 million, or 18.9%, for the six months ended July 31, 2026, compared to the six months ended July 31, 2025. This decrease was primarily due to a reduction of $10.3 million in professional services and legal costs primarily associated with prior period acquisition-related expenses, in addition to a decrease of $3.7 million in personnel and allocated overhead costs.

Previous 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.

Current wording

As of July 31, 2026, our principal source of liquidity was cash, cash equivalents, and marketable securities of $413.9 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 $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.

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 $763.6 million as of July 31, 2026. We had cash flows provided by operating activities for the six months ended July 31, 2026 of $52.3 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 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.

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 July 31, 2026, we had total deferred revenue of $346.7 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 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.

Current wording

For the six months ended July 31, 2026, net cash provided by operating activities was $52.3 million, primarily due to a net loss of $43.8 million, adjusted for non-cash charges of $109.9 million, and net changes in our operating assets and liabilities of $13.8 million. The non-cash adjustments primarily relate to stock-based compensation of $71.5 million and amortization of deferred contract costs of $25.1 million. The cash inflow from changes in our operating assets and liabilities were primarily due to a decrease in accounts receivable of $9.9 million and increase in deferred revenue of $42.5 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 $31.3 million as a result of commissions on new bookings and renewals.

Previous 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.

Current wording

For the six months ended July 31, 2025, net cash provided by operating activities was $31.1 million, primarily due to a net loss of $63.4 million, adjusted for non-cash charges of $97.1 million, and net changes in our operating assets and liabilities of $2.6 million. The non-cash adjustments primarily relate to stock-based compensation of $68.2 million and amortization of deferred contract costs of $19.5 million. The cash inflow from changes in our operating assets and liabilities were primarily due to a decrease in accounts receivable of $11.5 million and increase in deferred revenue of $14.5 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 $24.8 million as a result of commissions on new bookings and renewals.

Previous 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.

Current wording

Net cash provided by investing activities was $38.8 million for the six months ended July 31, 2026, primarily consisting of the return of principal on marketable securities of $41.7 million and maturities of marketable securities of $58.9 million, partially offset by purchase of marketable securities of $58.0 million.

Previous wording

Net cash provided by investing activities was $122.8 million for the three months ended April 30, 2025, primarily consisting of the return of principal on marketable securities of $113.3 million and maturities of marketable securities of $63.2 million, partially offset by purchases of marketable securities of $52.4 million.

Current wording

Net cash used in investing activities was $37.7 million for the six months ended July 31, 2025, primarily consisting of cash paid for the acquisition of OfferFit, net of cash acquired of $181.2 million, purchases of marketable securities of $75.1 million, purchases of property and equipment of $2.8 million, and capitalization of internal-use software costs of $1.9 million, offset by return of principal on marketable securities of $120.8 million and maturities of marketable securities of $102.5 million.

Previous 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.

Current wording

Net cash used in financing activities was $48.1 million for the six months ended July 31, 2026, consisting primarily of cash outflow to fund the accelerated stock repurchase transaction of $50.0 million offset partially by proceeds from stock purchases associated with our employee stock purchase plan of $4.7 million.

Previous 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.

Current wording

Net cash provided by financing activities was $8.1 million for the six months ended July 31, 2025, consisting of proceeds from the exercise of common stock options of $3.2 million and proceeds from stock associated with the employee stock purchase plan of $4.9 million.

Previous 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.

Current wording

Our free cash flow increased for the six months ended July 31, 2026 from the six months ended July 31, 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.