Braze Inc. Class A Common Stock (BRZE)

FairStock Score: 37/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Braze operates in customer engagement software, a business that can benefit from switching costs once brands embed its SDKs and APIs, though the supplied figures do not let me quantify a durable moat. The growth record is real: revenue rose from $471.8M in fiscal year 2024, the year ended 2024-01-31, to $593.4M in fiscal year 2025, the year ended 2025-01-31, and then to $738.2M in fiscal year 2026, the year ended 2026-01-31. In the latest filed quarter, fiscal Q2 2027 ended 2026-07-31, revenue was $227.2M and net loss was $18.9M, compared with revenue of $180.1M and net loss of $27.9M in fiscal Q2 2026 ended 2025-07-31. That loss narrowing is encouraging. Still, Graham would balk at the absence of profits. Net income was negative in fiscal year 2024 (-$129.2M), fiscal year 2025 (-$103.7M), and fiscal year 2026 (-$131.3M). The computed Lynch category is none, because the company has lost money in each of the last four years. FairStock's calculations at the 2026-10-13 close show a negative P/E of -28.09, P/B of 5.45, ROE of -18.51%, ROCE of -5.77%, and a TTM FCF yield of 2.4% on $80.2M of free cash flow. The balance sheet looks reasonably conservative with D/E of 0.16, Altman Z of 3.06, and Piotroski F-Score of 6/9. At $28.93, the $3.3B market cap already assumes substantial future improvement. The business is growing and cash-generative, but not yet proven profitable. I see a fair-to-demanding price for a company that still must show persistent earnings and stronger free cash flow. The FairStock Score of 37/100 reinforces caution.

In plain English: Braze sells software that helps companies send messages and interact with customers. Sales are growing quickly, but the company still loses money, even though it generated some cash over the last year. At the 2026-10-13 close, the price looks expensive compared with those losses and its modest cash generation.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2027 10-Q (period ended 2026-07-31) · fiscal Q1 2027 10-Q (period ended 2026-04-30) · fiscal Q3 2026 10-Q (period ended 2025-10-31) · fiscal Q2 2026 10-Q (period ended 2025-07-31) · FY2026 10-K (period ended 2026-01-31) · FY2025 10-K (period ended 2025-01-31) · FY2024 10-K (period ended 2024-01-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer