Customer engagement platform Braze (NASDAQ:BRZE) reported Q4 CY2025 results exceeding the market’s revenue expectations , with sales up 27.9% year on year to $205.2 million. On top of that, next quarter’s revenue guidance ($205 million at the midpoint) was surprisingly good and 3.9% above what analysts were expecting. Its non-GAAP profit of $0.10 per share was 27.5% below analysts’ consensus estimates.

Is now the time to buy Braze? Find out in our full research report.

Revenue: $205.2 million vs analyst estimates of $198.3 million (27.9% year-on-year growth, 3.5% beat)

Adjusted EPS: $0.10 vs analyst expectations of $0.14 (27.5% miss)

Adjusted Operating Income: $14.51 million vs analyst estimates of $12.56 million (7.1% margin, 15.5% beat)

Revenue Guidance for Q1 CY2026 is $205 million at the midpoint, above analyst estimates of $197.3 million

Adjusted EPS guidance for the upcoming financial year 2027 is $0.63 at the midpoint, missing analyst estimates by 0.9%

Operating Margin: -13.8%, in line with the same quarter last year

Free Cash Flow Margin: 6.8%, down from 9.3% in the previous quarter

Customers: 2,609, up from 2,528 in the previous quarter

Net Revenue Retention Rate: 109%, up from 108% in the previous quarter

Billings: $238.3 million at quarter end, up 34.9% year on year

Market Capitalization: $2.13 billion

With its technology powering interactions with 6.2 billion monthly active users across the digital landscape, Braze (NASDAQ:BRZE) provides a platform that helps brands build and maintain direct relationships with their customers through personalized, cross-channel messaging and engagement.

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, Braze’s 37.5% annualized revenue growth over the last five years was exceptional. Its growth beat the average software company and shows its offerings resonate with customers, a helpful starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. Braze’s annualized revenue growth of 25.1% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.

This quarter, Braze reported robust year-on-year revenue growth of 27.9%, and its $205.2 million of revenue topped Wall Street estimates by 3.5%. Company management is currently guiding for a 26.5% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 16.2% over the next 12 months, a deceleration versus the last two years. Still, this projection is above the sector average and indicates the market is forecasting some success for its newer products and services.

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Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.

Braze’s billings punched in at $238.3 million in Q4, and over the last four quarters, its growth was fantastic as it averaged 28% year-on-year increases. This alternate topline metric grew faster than total sales, meaning the company collects cash upfront and then recognizes the revenue over the length of its contracts - a boost for its liquidity and future revenue prospects.

One of the best parts about the software-as-a-service business model (and a reason why they trade at high valuation multiples) is that customers typically spend more on a company’s products and services over time.

Braze’s net revenue retention rate, a key performance metric measuring how much money existing customers from a year ago are spending today, was 109% in Q4. This means Braze would’ve grown its revenue by 8.5% even if it didn’t win any new customers over the last 12 months.

Braze has a decent net retention rate, showing us that its customers not only tend to stick around but also get increasing value from its software over time.

We were impressed by how significantly Braze blew past analysts’ billings expectations this quarter. We were also glad its revenue guidance for next quarter exceeded Wall Street’s estimates. On the other hand, its EPS guidance for next quarter missed and its customer growth decelerated. Overall, this print was mixed but still had some key positives. The stock traded up 11.5% to $20.34 immediately following the results.

Big picture, is Braze a buy here and now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.