How did Braze's revenue and expenses trend in Q4 2025?

Braze's revenue and expenses in Q4 2025 showed strong revenue growth and strategic expense management.

1. Revenue Growth: Braze reported a 22.5% year-over-year increase in revenue for Q4 2025, reaching $160.4 million. This growth was driven by new customer acquisitions and upsells, contributing to the company's strong fiscal year 2025 revenue of $593.4 million, an increase of 25.8% from the previous year.
2. Net Income Profitability: Braze achieved its third consecutive quarter of non-GAAP net income profitability, generating over $12 million in net income. This profitability is a testament to Braze's effective cost management and operational efficiency.
3. Gross Margin Improvement: The company's non-GAAP gross margin improved to 69.9% in Q4 2025, up from 67.9% in the same quarter last year. This indicates better profitability on the revenue generated, reflecting Braze's focus on optimizing its service offerings.
4. Free Cash Flow: Braze reported a significant improvement in free cash flow, generating $15.2 million in Q4 2025, compared to a negative $3.5 million in the prior year. This positive trend suggests Braze's ability to generate sufficient cash to support its business operations and growth initiatives.

Overall, Braze's Q4 2025 financial performance highlights its strong revenue growth and effective cost management, leading to improved profitability and cash flow.