Braze 2026 Q2 Earnings Widening Losses Despite Strong Revenue Growth

Braze (BRZE) reported its Q2 2026 earnings on September 5, 2025. Despite a significant 23.8% year-over-year revenue increase, the company’s losses expanded, reflecting ongoing financial challenges.

Braze’s revenue for Q2 2026 reached $180.11 million, a substantial jump from $145.50 million in the same period last year. The company's Subscription segment was the primary driver, contributing $171.77 million, while Professional services and other segments added $8.34 million.

However, the company’s earnings performance was weak. Braze’s net loss widened to $27.76 million, up 19.9% year-over-year from $23.15 million. On a per-share basis, the loss increased to $0.26, a 13.0% deterioration compared to the previous year. These results reflect a continued pattern of losses over the last five years, signaling persistent financial headwinds.

The stock price of Braze dropped 3.84% during the latest trading day but saw a strong rebound, rising 14.67% during the most recent full trading week and surging 16.46% month-to-date.

Following the earnings report, Braze’s CEO, William Magnuson, highlighted the company’s strong Q2 performance, noting a 24% year-over-year and 11% quarter-over-quarter revenue increase to $180 million. He emphasized the company’s continued efficiency, achieving $6 million in non-GAAP operating income and $4 million in free cash flow. Magnuson also pointed to 27% YoY growth in $500K+ ARR customers, reaching 282, and the company’s competitive strengths in legacy marketing cloud displacement and vendor consolidation. He underscored Braze’s AI roadmap, including the merger with OfferFit to enhance autonomous personalization and machine learning capabilities, and expressed optimism about leveraging AI and first-party data to transform customer engagement.

For Q3 2026, Braze expects revenue of $183.5–$184.5 million, up approximately 21% year-over-year at the midpoint, with non-GAAP operating income of $3.5–$4.5 million and net income of $6.5–$7.5 million. The company forecasts full-year 2026 revenue of $717–$720 million, up roughly 21% year-over-year, with non-GAAP operating income of $24.5–$25.5 million and net income of $45.5–$46.5 million. OfferFit is expected to contribute approximately 2% to annual revenue growth.

Despite the revenue beat, the significant widening of the net loss highlights ongoing profitability challenges for the company. The EPS decline reflects a continued drag on investor confidence despite top-line growth.

The stock price experienced volatile movement post-earnings, with a 3.84% drop on the latest trading day but a strong 14.67% rebound during the most recent full week of trading and a 16.46% gain month-to-date. These mixed signals suggest a cautious but optimistic investor sentiment, particularly over the short to medium term.

William Magnuson, Co-Founder, Chairman, and CEO, highlighted the company’s strong Q2 performance, emphasizing both revenue growth and operational efficiency. He noted the 27% YoY increase in $500K+ ARR customers to 282 and the company’s continued momentum in key areas such as vendor consolidation and legacy marketing cloud displacement. Magnuson also underscored Braze’s AI roadmap and the strategic merger with OfferFit, which he said will enhance autonomous personalization and machine learning capabilities. He expressed confidence in the company’s ability to leverage AI and first-party data to transform customer engagement, with more details expected at the upcoming Forge event.

For Q3 2026, Braze provided revenue guidance of $183.5–$184.5 million, representing a roughly 21% year-over-year increase at the midpoint. The company also projected non-GAAP operating income of $3.5–$4.5 million and net income of $6.5–$7.5 million. Looking ahead, the company expects full-year 2026 revenue of $717–$720 million, up 21% year-over-year, with non-GAAP operating income of $24.5–$25.5 million and net income of $45.5–$46.5 million. Magnuson noted that OfferFit is expected to contribute approximately 2% to annual revenue growth.

Additional News

In the three weeks following Braze’s earnings report, several noteworthy news items emerged, though none directly related to mergers, acquisitions, or executive changes. Nigeria’s President Bola Tinubu embarked on a two-nation trip to Japan and Brazil on August 13, 2025, with a stopover in Dubai. This diplomatic journey was a significant political event within Nigeria.

In a separate development, the Awujale of Ijebuland, Oba Sikiru Kayode Adetona, passed away at the age of 91 on July 13, 2025. His death marked the loss of a respected cultural and political figure in Nigeria.

Another notable event involved a harrowing account from a returnee who described being raped by border police en route to Libya, highlighting ongoing security and human rights concerns in the region. This report, published on June 28, 2025, brought attention to the dangers faced by migrants and asylum seekers.

These developments, while not directly tied to Braze’s financial report, reflect broader geopolitical and social trends in Nigeria during the period.