Braze, Inc. is a customer engagement platform based in New York that helps brands enhance their interactions with consumers through various channels. The company reported robust financial performance for its fiscal first quarter of 2026, reflecting a continued upward trajectory in revenue and profitability.

For the first quarter ended April 30, 2025, Braze generated $162.1 million in revenue, representing a year-over-year increase of 19.6% from $135.5 million in the same quarter of the previous fiscal year. Subscription revenue accounted for $154.9 million, while professional services contributed $7.2 million. The total customer count rose to 2,342, an increase of 11% year-over-year.

Braze achieved a non-GAAP operating income of $2.8 million, contrasting with a loss of $10 million in the prior year quarter. The non-GAAP net income for the quarter was $7 million, or $0.07 per share, compared to a loss of $6 million, or $0.05 per share, in the same quarter last year. The company recorded a non-GAAP gross margin of 69.3%, up from 67.9% in the previous year.

The company anticipates continued growth, expecting revenue for the second quarter of fiscal 2026 to range between $171 million and $172 million, representing a year-over-year growth rate of approximately 18% at the midpoint. For the full fiscal year 2026, Braze guides total revenue to be in the range of $702 million to $706 million, with a net income expectation of $17 million to $21 million for the full year.

The management highlighted that the dollar-based net retention rate stood at 109% for all customers and 112% for larger customers with annual recurring revenue (ARR) of $500,000 or more. Remaining performance obligations amounted to $829.3 million, a 26% increase from the prior year.

Braze’s operational efficiency improved significantly, with non-GAAP operating margin climbing over 900 basis points year-over-year. Additionally, the first quarter saw free cash flow reach approximately $23 million, compared to $11 million in the prior year period. The acquisition of AI decisioning company OfferFit was completed on June 2, 2025, which is expected to contribute approximately $11 million to the revenue growth for fiscal year 2026.

Overall, Braze’s fundamentals indicate a stable upward trend, with significant enhancements in revenue growth, profitability, and operational efficiencies as it continues to expand its customer engagement solutions globally.