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Jan 31
Braze Q4 2025 Earnings Report
Braze reported strong Q4 2025 results with 22.5% revenue growth and positive non-GAAP earnings.
Key Takeaways
Braze delivered a robust performance in Q4 FY25, achieving 22.5% year-over-year revenue growth and turning profitable on a non-GAAP basis. Strong subscription revenue and improved operating efficiency contributed to positive free cash flow and margin expansion.
Revenue grew 22.5% year-over-year to $160,400,000.
Non-GAAP EPS turned positive to $0.12 from a loss of $0.04 a year ago.
Free cash flow improved to $15,205,000 compared to negative $3,539,000 last year.
Subscription revenue represented over 95% of total revenue.
Braze
Braze
Braze Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
Braze expects continued growth in FY26 with revenue guidance of $686M to $691M and positive non-GAAP income.
Positive Outlook
- Q1 FY26 revenue guidance set at $158M–$159M
- Full-year FY26 revenue expected between $686M–$691M
- Non-GAAP net income projected at $34M–$38M for FY26
- Diluted EPS guidance of $0.31–$0.35 for FY26
- Ongoing AI product expansion with OfferFit acquisition
Challenges Ahead
- Slight decline in dollar-based net retention from 117% to 111%
- Non-GAAP operating income for Q1 FY26 only $0M–$1M
- Dilution from 110M shares expected in FY26
- GAAP profitability still not achieved
- Customer expansion in higher ARR brackets slowing slightly
Revenue & Expenses
Visualization of income flow from segment revenue to net income