Key Highlights

  • Braze reported second-quarter fiscal 2027 Revenue of $227.2 million, up 26% from $180.1 million.
  • The company raised fiscal 2027 revenue guidance to $910 million to $913 million and non-GAAP Operating Income guidance to $75.5 million to $76.5 million.
  • Free Cash Flow was $21.7 million, which the company described as the highest for any second quarter.

Results and a raised outlook

Braze, Inc. (NASDAQ:BRZE), the customer-engagement software company, reported second-quarter fiscal 2027 results after the market close on 8 September 2026, for the quarter ended 31 July. Revenue was $227.2 million, up 26% from $180.1 million a year earlier. Annual revenue run-rate was $909 million, and subscription revenue made up 91% of the total.

The company raised its guidance. For the third quarter it expects revenue of $229 million to $230 million and non-GAAP operating income of $16 million to $17 million. For fiscal 2027 it expects revenue of $910 million to $913 million, non-GAAP operating income of $75.5 million to $76.5 million, and non-GAAP Earnings Per Share of $0.64 to $0.65. These are company expectations, not reported results.

Profit and cash flow

The GAAP operating loss narrowed to $18.1 million from $38.8 million, and the GAAP net loss per share was $0.17 against $0.26. Non-GAAP operating income was $22.0 million, up from $6.0 million, and non-GAAP earnings per share were $0.19 against $0.15.

Operating cash flow was $24.2 million and free cash flow was $21.7 million, which the company described as the highest for any second quarter. Non-GAAP Operating Margin rose to roughly 9.7% from 3.4%.

Non-GAAP gross margin declined to 68.6% from 69.3%, which management attributed to higher premium messaging volumes and hiring at Decisioning Studio.

Customers and retention

Braze had 2,789 customers at the quarter end, up from 2,422 a year earlier. Customers with annual Recurring Revenue of at least $500,000 increased to 361 from 282. Enterprise growth was 28%, and the trailing twelve-month dollar-based net retention rate was 110%, compared with 108% a year earlier. Retention among large accounts was 112%, against 111% a year earlier.

Concentration can add stability, but it can also increase dependence on a smaller number of contracts.

Product and customer updates

Chief executive Bill Magnuson pointed to 26% revenue growth, improved Operating Leverage and second-quarter free cash flow that was the highest for that quarter. He said customers of all sizes, industries and regions increasingly want proof of return on investment, which he linked to adoption of the company's AI products.

The release listed enhancements to BrazeAI Operator and to Braze Surveys, a no-code survey feature, a three-year strategic collaboration agreement with Amazon Web Services, and an expanded bidirectional integration with Databricks. Pearce Dolan became chief product officer on 24 August 2026.

Named new or expanded customers included Chime, Foxtel Group, Insurify, Property Finder and Wilson Sporting Goods. Those announcements show commercial activity but carry no disclosed financial terms.

What to watch

The next Quarterly Report will show whether revenue lands in the guided range, whether gross margin stabilises, and whether free cash flow remains positive. Customer and retention trends, the pace of enterprise expansion, and the contribution of AI-related products are also relevant.