Braze, Inc. (BRZE) saw its stock plummet by 5.19% intraday, as investors reacted to the company's latest financial performance, which highlighted robust revenue growth but persistent losses.
The customer engagement platform reported strong revenue growth, with quarterly revenue increasing from approximately $135 million in Q1 2025 to around $180 million by Q2 2026. However, the company's basic EPS remained in the red, ranging between -$0.17 and -$0.35 over the same period. This has raised concerns about Braze's ability to translate top-line growth into profitability, especially as analysts do not expect the company to reach profitability within the next three years.
Investors are particularly wary of the company's valuation, which trades at a price-to-sales ratio of 6.2 times, above its DCF fair value estimate of $29.30. The combination of widening losses and insider selling has further dampened sentiment, leading to the stock's sharp decline.
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