Braze Earnings On Deck – (BRZE) Stock Under Pressure YTD

Shares of Braze Inc. (NASDAQ: BRZE) are trading at $30.48 ahead of its Q3 earnings release, scheduled after market close today. A 1.52% gain for BRZE builds on a bullish month for the stock, up 8.26% on the period, after a difficult year.

The stock has faced headwinds over the past year, reflected in its 29.78% decline since the turn of 2025. Improvement is expected, but whether it is enough to satisfy markets is another thing entirely.

Analysts are projecting an earnings per share (EPS) of $0.07 for the quarter, a healthy improvement on the 2c per share delivered this time last year. Revenue is expected to come in at $184.08 million for a 21% Y/Y gain.

Braze is set to host a webcast conference call at 4:30 pm ET today to discuss the results. The call will provide an opportunity for investors and analysts to gain deeper insights into the company's performance and future strategies.

Ahead of the earnings release, Braze has been active on several fronts. On December 3, the company launched its BrazeAI Decisioning Studio™ on the Google Cloud Marketplace. This offering allows customers to integrate autonomous, individualized decision-making into their Google Cloud environments, potentially enhancing personalized customer engagement.

Braze also recently announced its support for the AWS for Advertising & Marketing initiative. This collaboration leverages AWS solutions to optimize personalized advertising, improve performance, and refine audience segmentation. Braze processes over half a trillion data points monthly, aiming to drive sustainable revenue growth through enhanced customer engagement.

In September, Braze reported its Q2 fiscal 2026 results, revealing a 23.8% year-over-year revenue increase to $180.1 million. This figure surpassed both company guidance and analyst expectations. Non-GAAP EPS reached $0.15, also exceeding management's prior outlook. However, the company noted a decline in free cash flow and net retention rates, indicating some operational challenges that investors will be watching for improvement.

Braze's ongoing initiatives, such as the Tech for an Equitable Future product grant program, showcase its commitment to supporting underrepresented entrepreneurs. This program provides free access to Braze technology and resources, valued at tens of thousands of dollars per company. While this initiative may not have a direct impact on immediate financial results, it reflects the company's broader social responsibility efforts.

The focus for investors will be on whether Braze can sustain its revenue growth trajectory while addressing the concerns around free cash flow and net retention rates. The company's ability to effectively leverage its new product offerings and partnerships will be crucial in driving future performance.

Analysts will be particularly interested in management's commentary on the competitive landscape and the company's strategies for gaining market share. Any updates on customer acquisition costs and lifetime value will also be closely scrutinized.

Markets are pricing in a significant move in BRZE's share price following the earnings release, with an implied swing of approximately 14.9%. Buckle up, this one could be volatile.