The quarter cleared the market’s bar on both major metrics. Revenue reached $227.2 million versus published expectations of roughly $220.3 million, while diluted non-GAAP EPS was $0.19 versus about $0.16 consensus. The filing reports 26.2% year-over-year revenue growth and $21.2 million of non-GAAP net income.
| Metric | Q2 FY27 | Prior-year Q2 | Market comparison |
|---|---|---|---|
| Revenue | $227.2M (Financial statements) | $180.1M | ~$220.3M consensus |
| Diluted non-GAAP EPS | $0.19 (Non-GAAP Net Income reconciliation) | $0.15 | ~$0.16 consensus |
| Non-GAAP operating income | $22.0M (Operating Income reconciliation) | $6.0M | — |
| Non-GAAP free cash flow | $21.7M (Free Cash Flow reconciliation) | $3.5M | — |
The more important surprise was the outlook reset. FY27 revenue guidance moved to $910 million-$913 million from the previous $895 million-$899 million range, while diluted non-GAAP EPS guidance rose to $0.64-$0.65 from $0.61-$0.65. That puts the new revenue midpoint about 1.6% above the prior midpoint and the EPS midpoint modestly higher; published FY27 consensus before the release was approximately $898.7 million of revenue and $0.63 of EPS.
Profitability and cash generation made the beat higher quality. Non-GAAP operating margin expanded to 9.7% from 3.4% a year earlier, and six-month operating cash flow rose to $52.3 million from $31.1 million. The filing also shows a $50 million share repurchase during the first six months.
The remaining caveat is that GAAP profitability has not arrived yet. Braze still posted an $18.9 million net loss attributable to the company, and stock-based compensation was $35.7 million in the quarter, so the adjusted profit story remains materially dependent on exclusions. Even so, the combination of a revenue and EPS beat, stronger operating leverage, better free cash flow, and raised full-year guidance makes this a clear beat rather than a headline-only improvement.
Read the original 8-K on SEC EDGAR ↗