Braze has gotten torched over the last six months - since September 2025, its stock price has dropped 40.2% to $19.11 per share. This might have investors contemplating their next move.

Following the drawdown, is this a buying opportunity for BRZE? Find out in our full research report, it’s free.

Why Does Braze Spark Debate?

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.

Two Things to Like:

1. Skyrocketing Revenue Shows Strong Momentum

A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Luckily, Braze’s sales grew at an exceptional 38.4% compounded annual growth rate over the last five years. Its growth beat the average software company and shows its offerings resonate with customers.

2. Billings Surge, Boosting Cash On Hand

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 $200.1 million in Q3, and over the last four quarters, its year-on-year growth averaged 22.4%. This performance was impressive, indicating robust customer demand. The high level of cash collected from customers also enhances liquidity and provides a solid foundation for future investments and growth.

One Reason to be Careful:

Customer Retention Numbers Lag Behind Peers

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 Q3. This means Braze would’ve grown its revenue by 9% even if it didn’t win any new customers over the last 12 months.

Despite falling over the last year, Braze still 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.

Final Judgment

Braze has huge potential even though it has some open questions. With the recent decline, the stock trades at 2.4× forward price-to-sales (or $19.11 per share). Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

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