A Spot of Bother with Braze

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Now, one gathers that Battery Management Corp., a fund of no small repute, has seen fit to increase its holdings in a company called Braze. A rather substantial increase, in fact – 839,864 shares, to be precise, representing a transaction valued at approximately $24.88 million. One might say they’ve doubled down, though ‘doubled down’ sounds rather terribly decisive, and these things are seldom so clear-cut. The fund’s position in Braze has blossomed to a sum of $42.99 million, a figure reflecting both the boldness of the purchase and, shall we say, the vagaries of the market.

A Curious Situation

It appears that Braze now constitutes a rather hefty 17.98% of Battery Management Corp.’s 13F AUM. A considerable slice of the pie, wouldn’t you agree? One pictures the portfolio manager, a chap named Featherstonehaugh, perhaps, surveying his holdings with a slightly anxious expression. The top holdings, for those keeping score, are as follows: TTAN leading the charge at $351.44 million, followed by KDK at $124.01 million, then our friend Braze at $111.95 million. CXM and CSBR bring up the rear, but with considerably less fanfare.

Now, here’s where things become a trifle unsettling. As of February 17th, 2026, Braze shares were trading at a mere $16.93 – a precipitous drop of 60% year-over-year. A dashedly unfortunate state of affairs, and a performance that leaves the S&P 500 looking positively sprightly with its 13% gain. One suspects a spot of bother has descended upon the company.

A Glimpse Behind the Curtain

Let us delve into the particulars. Braze, it seems, is a purveyor of customer engagement platforms – a rather grand title, wouldn’t you say? They offer data ingestion, messaging, segmentation, and all sorts of technological wizardry to help brands connect with their customers. Based in New York City, they are, in essence, digital matchmakers, attempting to unite commerce with contentment. A noble pursuit, to be sure.

Metric Value
Price (as of market close 2/17/26) $16.93
Market capitalization $1.73 billion
Revenue (TTM) $693.41 million
Net income (TTM) ($116.68 million)

What Does it All Mean?

One observes that Battery Management Corp.’s rather substantial commitment to Braze isn’t merely a trade; it’s a thesis. A rather bold one, given the circumstances. Braze recently reported 25.5% year-over-year revenue growth, reaching $190.8 million, with subscription revenue at $181.6 million and free cash flow of $17.8 million. Large customers are multiplying, with 303 accounts generating at least $500,000 in ARR, up from 234 a year ago. Dollar-based net retention has stabilized at 108% – a comforting sign, wouldn’t you agree?

However, a shadow lingers. GAAP operating losses persist, and stock-based compensation remains a considerable expense at $37.6 million for the quarter. This is a business still striving for equilibrium, balancing ambition with profitability. The share price, alas, has taken a tumble in recent weeks, halving in value since December. A most unfortunate turn of events.

Within a portfolio already leaning towards high-growth software and AI, increasing the position in Braze signals a clear preference for platforms with expanding free cash flow and improving operating leverage. Long-term investors, the sensible sort, should focus on retention, large customer growth, and sustained cash generation. If those hold firm, today’s multiple may appear remarkably different in five years. One suspects, with a touch of optimism, that a spot of sunshine may yet break through the clouds. It’s a gamble, naturally, but a chap must have a little faith in the future, mustn’t he?

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2026-02-20 19:35