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Apr 30
Braze Q1 2026 Earnings Report
Braze reported strong revenue growth and achieved its first quarter of positive non-GAAP operating income.
Key Takeaways
Braze delivered $162.1 million in revenue in Q1 FY26, with a non-GAAP EPS of $0.07 and positive non-GAAP operating income of $2.8 million. Despite a GAAP net loss of $35.8 million, the company generated significant free cash flow and completed a strategic acquisition.
Revenue reached $162.1 million, driven by customer growth and renewals.
Non-GAAP operating income turned positive at $2.8 million.
Net loss narrowed to $35.8 million with GAAP EPS of -$0.34.
Free cash flow more than doubled to $22.9 million.
Braze
Braze
Braze Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
Braze expects revenue to reach $171–172 million in Q2 FY26 with modest non-GAAP profitability, reaffirming its FY26 growth trajectory.
Positive Outlook
- Q2 FY26 revenue guidance set at $171M–$172M.
- Full-year FY26 revenue guided at $702M–$706M.
- Non-GAAP EPS projected to be $0.02–$0.03 for Q2.
- Free cash flow momentum supports financial flexibility.
- Guidance includes integration of OfferFit acquisition.
Challenges Ahead
- GAAP net loss is still expected despite growth.
- Operating income margin remains low even on a non-GAAP basis.
- Dollar-based net retention rates declined YoY.
- Stock-based compensation remains high at over $30M.
- Customer concentration in high-ARR accounts may pose risk.
Revenue & Expenses
Visualization of income flow from segment revenue to net income