Why Braze (BRZE) Stock Is Trading Lower Today

What Happened?

Shares of customer engagement software provider Braze (NASDAQ:BRZE) fell 17.2% in the afternoon session after the company reported mixed first quarter 2025 (fiscal 2026) results: its full-year EPS guidance missed and its EPS guidance for next quarter fell short of Wall Street's estimates. 

The sales strength, however, was notable as full-year and next-quarter sales guidance came in above consensus, reflecting continued demand across its customer base. Still, this quarter could have been better.

The shares closed the day at $29.70, down 17.8% from previous close.

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What The Market Is Telling Us

Braze’s shares are very volatile and have had 25 moves greater than 5% over the last year. But moves this big are rare even for Braze and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 9 months ago when the stock dropped 20.6% on the news that the company reported weak second-quarter 2024 earnings. Its billings unfortunately missed, and its net revenue retention decreased. 

On the other hand, Braze's revenue, adjusted operating income, and EPS outperformed Wall Street's estimates. It was also good to see its full-year revenue and EPS guidance top expectations. Overall, this was a weaker quarter for the company.

Braze is down 31.1% since the beginning of the year, and at $29.90 per share, it is trading 36.7% below its 52-week high of $47.22 from January 2025. Investors who bought $1,000 worth of Braze’s shares at the IPO in November 2021 would now be looking at an investment worth $320.12.

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