Braze (BRZE) Q3 2026: Robust Revenue Growth vs. Persistent Losses Tests Bullish Narrative

Braze (BRZE) just posted its Q3 2026 numbers with investors zeroing in on how its recent top line near $180 million and ongoing negative EPS compare with the company’s still sizeably negative net income profile. The company has seen quarterly revenue move from about $135 million in Q1 2025 to roughly $180 million by Q2 2026, while basic EPS has stayed in the red, ranging between about -$0.17 and -$0.35 over that stretch. This underscores how growth is still bumping up against stubborn losses. With revenue traction set against widening past losses, the focus this quarter is on whether Braze can eventually turn those expanding customer dollars into healthier margins rather than just bigger deficits.

See our full analysis for Braze.

With the latest numbers on the table, the next step is to see how this mix of solid top line momentum and fragile margins lines up with the prevailing growth narrative and the more cautious profit outlook that many investors already have in mind.

See what the community is saying about Braze

Losses Stay Above $100 Million Over Last Year

• On a trailing twelve month basis, Braze booked about $654.6 million of revenue but still recorded roughly $108.8 million of net losses, meaning growth has not yet translated into positive earnings.
• Consensus narrative highlights AI driven upgrades like OfferFit and Project Catalyst as potential margin boosters, yet:
  • Five year trends show losses growing around 15.9% per year, which challenges the idea that new products alone will quickly fix profitability.
  • Analysts still do not expect Braze to reach profitability within the next three years, so any margin benefit from these initiatives is likely to be gradual rather than immediate.

13.9% Growth Targets Versus Profit Drag

• Revenue is forecast to grow about 13.9% per year, while the latest trailing twelve month net loss sits near $108.8 million, underscoring that expected growth is starting from a still meaningfully loss making base.
• Supporters of the bullish view point to geographic expansion and large customer additions as engines of durable growth, but:
  • Recent quarterly data shows revenue moving from about $135.5 million in Q1 2025 to roughly $180.1 million in Q2 2026, while EPS over that span remained negative between about minus 0.17 and minus 0.35 dollars.
  • Forecasts that Braze will remain loss making for at least three years mean bulls need confidence that these customers will eventually lift margins, not just the top line.

🐂 Braze Bull Case

Valuation Caught Between DCF And Targets

• With the stock at $36.19, it trades on a price to sales ratio of 6.2 times versus 6.9 times for peers and 5.0 times for the wider US software group, while a DCF fair value of about $29.30 sits below the current price.
• Bears focus on the gap between valuation and profitability, and the numbers give them several talking points:
  • The DCF fair value of roughly $29.30 is below the market price of $36.19, even though Braze is still generating about $108.8 million of trailing twelve month losses.
  • Significant insider selling over the last three months adds to caution for investors who already see a company valued above its DCF estimate while remaining unprofitable.

🐻 Braze Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Braze on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your Braze research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Explore Alternatives

Braze is still wrestling with sizeable losses, a questionable valuation versus its DCF estimate, and notable insider selling despite strong revenue momentum.

If you want ideas where price better reflects fundamentals and insiders are signaling confidence instead of cashing out fast, use these 905 undervalued stocks based on cash flows to look for candidates with potentially more compelling upside and fewer valuation red flags.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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