Financial Analysis

Business Combination Acquisition of OfferFit, Inc. On June 2, 2025 the Company acquired OfferFit, Inc. The acquisition aims to deepen the integration of OfferFits multi-agent decisioning engine into Brazes Customer Engagement Platform. The total preliminary purchase price consideration of $302.9 million consisted of cash payments of $195.3 million, and $107.6 million in issuances of Braze Class A common stock. As of October 31, 2025, total adjusted purchase price consideration totaled $303.2 million due to measurement period adjustments totaling $0.8 million. The preliminary purchase price was allocated to the assets acquired and liabilities assumed based on the Companys best estimate of the fair value at the acquisition date. The Company recognized the estimated fair value of $(1.9) million of net tangible assets. The preliminary purchase price was allocated to intangible assets in the amount of $66.6 million and goodwill in the amount of $238.5 million based on the respective estimated fair values. The intangible assets acquired in the business combination were developed technology, $56.7 million, customer relationships, $9.0 million, and trademarks, $0.9 million. The developed technology was valued using an excess earnings method and the key assumptions include the estimates of forecasted sales to be generated from the acquired business, expected obsolescence rate, and technology related expenses. The Company began amortizing the acquired technology on the date of acquisit …

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Commitments and Contingencies Indirect Taxes We are subject to indirect taxation in some, but not all, of the various U.S. states and foreign jurisdictions in which we conduct business. Therefore, we have an obligation to charge, collect and remit Value Added Tax (VAT) or Goods and Services Tax (GST) in connection with certain of our foreign sales transactions and sales and use tax in connection with eligible sales to subscribers in certain U.S. states. On June 21, 2018, the U.S. Supreme Court issued an opinion in South Dakota v. Wayfair. The State of South Dakota alleged that U.S. constitutional law should be revised to permit South Dakota to require remote sellers to collect and remit sales tax in South Dakota in accordance with South Dakotas sales tax statute. Under the U.S. Supreme Courts ruling, the longstanding Quill Corp v. North Dakota sales tax case was overruled, and states may now require remote sellers to collect sales tax under certain circumstances. We began collecting sales tax in relevant jurisdictions for the fiscal year ended January 31, 2019. As a result of this ruling and given the scope of our operations, taxing authorities continue to provide regulations that increase the complexity and risks to comply with such laws and could result in substantial liabilities, prospectively as well as retrospectively. Based on the information available, we continue to evaluate and assess the jurisdictions in which indirect tax nexus exists and believe that the indirect …

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The following table presents total revenue by type (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2025 2024 2025 2024 Subscription $ 181,663 $ 146,256 $ 508,337 $ 416,364 Professional services and other 9,179 5,796 24,675 16,646 Total $ 190,842 $ 152,052 $ 533,012 $ 433,010

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Employee Stock Plans We have historically issued equity awards under our Amended and Restated 2011 Equity Incentive Plan (the 2011 Plan) and our 2021 Equity Incentive Plan (the 2021 Plan). Amended and Restated 2011 Equity Incentive Plan Our 2011 Plan provides for the award of stock options and restricted stock units (RSUs) to employees, officers, directors, advisors and other service providers of Braze. The terms of each award and the exercise price of awards under the 2011 Plan are determined by our board of directors. Following effectiveness of the 2021 Plan in connection with our initial public offering, no further awards were made under the 2011 Plan. 2021 Equity Incentive Plan In November 2021, our board of directors and our stockholders approved the 2021 Plan, which became effective on November 16, 2021. No grants were made under the 2021 Plan prior to its effectiveness. No further grants will be made under the 2011 Plan. At effectiveness, we reserved 25,660,249 shares of our Class A common stock to be issued under the 2021 Plan. In addition, the number of shares of our Class A common stock reserved for issuance under the 2021 Plan will automatically increase on February 1 of each year for a period of ten years, beginning on February 1, 2022 and continuing through February 1, 2031, in an amount equal to (1) 5% of the total number of shares of our common stock (both Class A and Class B) outstanding on the preceding January 31, or (2) a lesser number of shares determined …

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Fair Value Measurements The following table sets forth our financial instruments that were measured at fair value on a recurring basis at the periods indicated below, by level within the fair value hierarchy (in thousands): October 31, 2025 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents Money market funds $ 21,792 $ $ $ 21,792 Commercial paper 2,999 2,999 Total cash equivalents 24,791 24,791 Marketable securities U.S. government securities $ 216,682 $ $ $ 216,682 Corporate debt securities 68,769 68,769 Total marketable securities 216,682 68,769 285,451 Derivative Instruments Cash flow hedges $ $ 103 $ $ 103 Total financial assets $ 241,473 $ 68,872 $ $ 310,345 Liabilities: Derivative Instruments Cash flow hedges $ $ (531) $ $ (531) Total liabilities $ $ (531) $ $ (531) January 31, 2025 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents Money market funds $ 20,487 $ $ $ 20,487 U.S. government securities 4,998 4,998 Total cash equivalents 25,485 25,485 Marketable securities U.S. government securities $ 317,649 $ $ $ 317,649 Corporate debt securities 112,808 112,808 Total marketable securities 317,649 112,808 430,457 Total financial assets $ 343,134 $ 112,808 $ $ 455,942 Our money market funds and financial instruments are classified as Level 1 within the fair value hierarchy, because they are valued using quoted prices in active markets as of October 31, 2025 and January 31, 2025. Financial instruments, including derivative instruments, are class …

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Income Taxes The Company computes its provision for interim periods by applying an estimated annual effective tax rate to anticipated annual pretax income or loss as directed by ASC 740. The estimated annual effective tax rate is applied to the Companys year-to-date income or loss, and is adjusted for discrete items recorded in the period. The Company recorded an income tax expense of $1.7 million and $0.9 million for the three months ended October 31, 2025 and 2024, respectively. The effective tax rate for the three months ended October 31, 2025 and 2024 was (4.9)% and (3.1)%, respectively. The effective tax rate for the nine months ended October 31, 2025 and 2024 was 4.1% and (2.8)%, respectively. The change in the effective tax rate was primarily due to the impact related to the release of the valuation allowance from the acquisition of OfferFit. The provision for income taxes recorded for the three months ended October 31, 2025 consists of income taxes in state jurisdictions and foreign jurisdictions in which the Company conducts business. The primary difference between the effective tax rate and the statutory rate is the change in the valuation allowance recorded. The Company continues to maintain a valuation allowance against its net deferred tax assets as we have concluded that it is not more likely than not that the deferred tax assets will be realized. When the Company determines that it will be able to realize some portion or all of its deferred tax assets, an adjus …

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Leases Leases The Companys lease portfolio consists solely of office space with lease terms ranging from approximately one to ten years. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments. The components of lease cost reflected on the consolidated statements of operations were as follows (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2025 2024 2025 2024 Operating lease cost $ 4,806 $ 4,519 $ 13,995 $ 14,355 Variable lease cost 1,029 898 2,991 1,768 Short-term lease cost 301 239 872 470 Total net lease cost $ 6,136 $ 5,656 $ 17,858 $ 16,593 The future maturities of the Companys operating lease liabilities by fiscal year are as follows (in thousands): Amount Remainder of 2026 $ 4,126 2027 19,748 2028 15,588 2029 14,084 2030 13,790 Thereafter 40,690 Total future undiscounted lease payments $ 108,026 Less: imputed interest (24,080) Total reported lease liability $ 83,946 The Company's lease terms and discount rates are as follows: October 31, 2025 2024 Weighted-average remaining lease term (years) 6.6 7.4 Weighted-average discount rate 7.3 % 7.3 % Other information for the Company's leases is as follows (in thousands): Nine Months Ended October 31, 2025 2024 Cash paid for amounts included in the measurement of lease liabilities $ 14,603 $ 12,124 Operating lease right-of-use assets obtained in exchange for new …

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In December 2023, the Financial Accounting Standards Board issued Accounting Standards Update No. 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures, (ASU 2023-09), which requires public business entities on an annual basis to disclose specific categories in a tabular rate reconciliation and provide additional information for reconciling items that meet a five percent quantitative threshold. Additionally, the ASU requires all entities to disclose the amount of income taxes paid disaggregated by federal, state, and foreign taxes, as well as individual jurisdictions where income taxes paid are equal to or greater than five percent of total income taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted and the updated should be applied on a prospective basis, with a retrospective application permitted in the financial statements. The Company is currently evaluating the impact of the new standard on its consolidated financial statements and related disclosures. In November 2024, the Financial Accounting Standards Board issued Accounting Standards Update No. 2024-03 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, (ASU 2024-03), which is intended to provide enhanced transparency into the nature of expenses and requires more detailed information on specific expense categories included in certain ex …

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Employee Benefit Plans We sponsor a 401(k) defined contribution plan covering all eligible U.S. employees. Contributions to the 401(k) plan are discretionary. Matching contributions under the plan were $0.6 million and $0.6 million for the three months ended October 31, 2025 and 2024, respectively, and $4.2 million and $4.3 million during the nine months ended October 31, 2025 and 2024, respectively.

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Related Party Transactions In May 2021, the Chief Financial Officer of Datadog, Inc., one of our vendors, joined our board of directors. We have purchased services from Datadog, Inc. in the aggregate amount of approximately $1.0 million and $2.7 million during the three and nine months ended October 31, 2025, of which $1.4 million was included within accrued expenses and other current liabilities on the consolidated balance sheets. During the three and nine months ended October 31, 2024, we purchased $0.4 million and $2.2 million, respectively, of services from Datadog.

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Revenue from Contracts with Customers Disaggregated Revenue Streams The following disaggregation depicts the nature, amount, timing and uncertainty of cash flows related to the primary types of revenue from contracts with customers. The following table presents total revenue by type (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2025 2024 2025 2024 Subscription $ 181,663 $ 146,256 $ 508,337 $ 416,364 Professional services and other 9,179 5,796 24,675 16,646 Total $ 190,842 $ 152,052 $ 533,012 $ 433,010 The following table presents total revenue by geography (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2025 2024 2025 2024 United States $ 105,042 $ 82,938 $ 291,656 $ 238,810 International 85,800 69,114 241,356 194,200 Total $ 190,842 $ 152,052 $ 533,012 $ 433,010 Revenue by geography is determined based on the location of our users. Other than the United States, no other individual country accounted for 10% or more of total revenue for any of the periods presented. Unbilled Accounts Receivable Unbilled accounts receivable included in trade accounts receivable, net, which generally arise from our contractual right to bill our customers in advance of services on the contract effective date, were $2.6 million and $1.6 million as of October 31, 2025 and January 31, 2025, respectively. Contract Balances Contract Assets Contract assets as of October 31, 2025 and January 31, 2025 were $0.6 million and $0.8 million, respecti …

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Segments Operating segments are defined as components of an entity for which discrete financial information is available that is regularly reviewed by the Chief Operating Decision Maker (the CODM) in deciding how to allocate resources to an individual segment and in assessing performance. Our Chief Executive Officer is the CODM. The Company derives revenues from customers by providing cloud-based customer engagement platform subscriptions. The Company derives revenue primarily in North America and manages the business activities on a consolidated basis. As such, we have one operating segment, which is the customer engagement platform segment. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. Intra-entity activities are eliminated at the consolidated level. The Companys method for measuring performance on a single operating and reportable segment basis is net loss. Refer to the consolidated statements of operations. In assessing the performance of the business, the CODM regularly reviews consolidated expense information of both historical and forecasted periods to manage operations of the segment (i.e., the consolidated business). The CODM reviews assets for Brazes single reportable segment on a consolidated basis. Refer to the consolidated balance sheets. …

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Stockholders Equity Class A and Class B Common Stock The Company has two classes of common stock, Class A and Class B. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting, conversion and transfer rights. Each share of Class A common stock is entitled to one vote. Each share of Class B common stock is entitled to ten votes and may be converted at the option of the holder into one share of Class A common stock. In addition, all shares of Class B common stock will automatically convert into shares of Class A common stock in certain circumstances, including on the earlier of (i) the last trading day of the fiscal quarter during which the number of shares of Class B common stock then outstanding represents less than 10% of the aggregate number of shares of Class A common stock and Class B common stock then outstanding, or (ii) the last trading day of the fiscal quarter immediately following the fifth anniversary of the initial public offering. All shares of the Companys capital stock outstanding immediately prior to our initial public offering, including all shares held by its executive officers, directors and their respective affiliates, and all shares issuable upon the conversion of our then outstanding convertible preferred stock, were reclassified into shares of Class B common stock immediately prior to the completion of the initial public offering. Charitable Contributions In connection with our Pledge 1% com …

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Subsequent Events In November 2025, in connection with our Pledge 1% commitment, the Company donated 24,116 shares of Class A common stock to a charitable donor-advised fund that resulted in the recognition of approximately $0.7 million of operating expense. In November 2025, the Company granted RSUs for a total of 176,208 shares of Class A common stock to employees pursuant to the 2021 Plan. The RSUs vest over a service period of approximately four years. The grant date fair value of these awards was $4.9 million. In December 2025, the Company granted RSUs for a total of 17,901 shares of Class A common stock to employees pursuant to the 2021 Plan. The RSUs vest over a service period of approximately four years. The grant date fair value of these awards was $0.5 million.

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