Braze, Inc.

Braze reported second-quarter revenue of $227 million, up 26% year over year and 8% sequentially. Non-GAAP gross profit was $156 million, with non-GAAP gross margin of 68.6%, versus $125 million and 69.3% a year ago. Non-GAAP operating income was $22 million, or 9.7% of revenue, versus $6 million, or 3.4%, in the prior-year quarter. Non-GAAP net income attributable to Braze shareholders was $21 million, or $0.19 per share, versus $17 million, or $0.15 per share. Free cash flow was a record $22 million, versus $4 million last year, and cash from operations was $24 million versus $7 million. For Q3, management guided revenue to $229 million to $230 million, non-GAAP operating income to $16 million to $17 million, and non-GAAP EPS to $0.13 to $0.14. For fiscal 2027, it guided revenue to $910 million to $913 million, non-GAAP operating income to $75.5 million to $76.5 million, and non-GAAP EPS to $0.64 to $0.65.

Bill Magnuson framed the quarter as evidence that Braze is combining product capability and ease of use, especially through Operator, Agent Console, Content Optimizer and Decisioning Studio. He said AI adoption is helping customers build and launch campaigns faster while also increasing monetization for Braze as usage shifts toward more advanced features. His tone was upbeat and product-focused, with repeated emphasis on the company’s ‘Agentic Harness’ thesis, broader market replacement opportunities, and a strong setup for the back half of the year.

Pankaj Malik highlighted that revenue growth was driven by renewals, expansions and new business, while Decisioning Studio contributed $6.6 million of revenue in the quarter. He said non-GAAP gross margin was 68.6%, down from 69.3% a year ago mainly because of high premium messaging volumes and Decisioning Studio headcount in cost of revenue. He also pointed to strong cash generation, with $24 million in operating cash flow, $22 million in free cash flow, and about $414 million of cash, cash equivalents, restricted cash and marketable securities. On capital allocation, he noted completion of the $50 million accelerated share repurchase in August and said about $50 million remains on the authorization.

Analysts focused on cRPO moderation, AI monetization, AWS distribution, and whether strong AI adoption is expanding core platform usage. Management said cRPO seasonality and the OfferFit acquisition affected the metric, but bookings remained strong and pipeline is healthy; it also said AI is showing up in every RFP and that customers are increasingly using Braze for legacy replacement and AI-driven workflows. On AWS, management said the new three-year collaboration formalizes an already strong marketplace motion and should accelerate global distribution. On adoption, Bill said Operator is becoming habit-forming quickly, while newer products like Content Optimizer and Decisioning Studio Go should broaden usage across the customer base.