Braze sold a lot more software, and still lost money.

Revenue rose 30.2% to $211.0 million in the three months ended April 30, while the net loss narrowed from $35.8 million to $26.6 million. Operating cash flow reached $28.1 million, up from $24.1 million, so the business is producing cash even as its income statement remains in the red.

Another detail is that growth did not arrive with the same margin profile. Gross profit rose 24.7%, slower than revenue, pulling gross margin down from 68.6% to 65.7%. Accounts receivable rose 37.6% to $118.5 million, also ahead of sales growth, while cash fell from $231.5 million to $145.3 million.

Braze connects the operating cash inflow to billing activity around new bookings and renewals:

"The cash inflow from changes in our operating assets and liabilities were primarily due to a decrease in accounts receivable of $3.8 million and increase in deferred revenue of $38.2 million as a result of billings for new bookings and renewals."

Braze 10-Q, May 28, 2026

That gives the cash number a business explanation for this period: deferred revenue added $38.2 million as billing rose, more than offsetting the receivables movement. It does not erase the balance-sheet comparison. The receivables balance still grew much faster than revenue year over year.

The cost base is doing its own growing. Research and development rose 25.3% to $46.1 million, and Braze said sales and marketing personnel and overhead costs increased by $9.9 million because of higher headcount and variable compensation. Diluted shares also rose 6.0% in the latest three-month comparison, even as losses narrowed.

Braze’s explanation for the weaker gross margin points to spending inside the platform and to acquisition-related costs:

"The decrease was primarily due to acquisition related operating costs, including personnel costs of acquired workforce and amortization expense of acquired technology, in addition to increased costs related to our tech stack."

Braze 10-Q, May 28, 2026

That is the filing’s central trade-off in plain numbers: sales grew faster than the loss shrank, while the spending lines also increased. Operating margin improved from negative 24.8% to negative 13.0%, yet gross margin moved the other way.

The pattern is not entirely new. Braze’s annual revenue rose 24.4% in the year ended January 31, 2026, while diluted shares increased 5.6%. At the latest close, the stock was $30.34, down 5.1% on September 8, after gaining 51.6% over six months. Those market figures add context, not a causal explanation for the move.

Braze’s next 10-Q will put the unresolved pieces in the same frame again: whether receivables continue to outpace revenue and whether gross margin recovers as acquisition and tech-stack costs change. For now, the quarter can be read in one line: more software sold, more cash generated, and a little less of each dollar kept.

Source: Braze’s 10-Q filed May 28, 2026, for the three months ended April 30, 2026.