Braze, Inc.BRZE

Braze, Inc. Fair Value Disclosure

10-KFiled Mar 25, 20263 min read
Fair Value Measurements
The following table sets forth our financial instruments that were measured at fair value on a recurring basis at the periods indicated below, by level within the fair value hierarchy (in thousands):
January 31, 2026
Level 1Level 2Level 3Total
Financial assets:
Cash equivalents
Money market funds$39,538 $— $— $39,538 
U.S. government securities3,000 — — 3,000 
Total cash equivalents42,538 — — 42,538 
Marketable securities
U.S. government securities189,238 — — 189,238 
Corporate debt securities— 98,342 — 98,342 
Total marketable securities189,238 98,342 — 287,580 
Derivative Instruments
Cash flow hedges— 409 — 409 
Total financial assets$231,776 $98,751 $— $330,527 
Liabilities:
Derivative Instruments
Cash flow hedges$— $(25)$— $(25)
Total liabilities
$— $(25)$— $(25)

January 31, 2025
Level 1Level 2Level 3Total
Financial assets:
Cash equivalents
Money market funds$20,487 $— $— $20,487 
U.S. government securities4,998 — — 4,998 
Total cash equivalents25,485 — — 25,485 
Marketable securities
U.S. government securities$317,649 $— $— $317,649 
Corporate debt securities— 112,808 — 112,808 
Total marketable securities317,649 112,808 — 430,457 
Total financial assets$343,134 $112,808 $— $455,942 

Our money market funds and financial instruments are classified as Level 1 within the fair value hierarchy, because they are valued using quoted prices in active markets as of January 31, 2026 and January 31, 2025. Financial instruments, including derivative instruments, classified as Level 2 within our fair value hierarchy are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services. Prices of these securities are obtained through independent, third-party pricing services and include market quotations that may include both observable and unobservable inputs. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices and market transactions in comparable investments and various relationships between investments.
The fair value of our contingent consideration is estimated using Level 3 unobservable inputs. The estimates of fair value are based upon assumptions believed to be reasonable but which are uncertain, and involve significant judgments by management. The Company reduced the contingent consideration liability related to the acquisition of North Star Y, Pty Ltd to zero as it was determined that the sellers did not satisfy the earn-out qualifications.

There were no transfers of financial instruments among Level 1, Level 2, and Level 3 during the periods presented.

The following table summarizes the fair value changes in the contingent consideration liability in connection with the acquisition of North Star Y, Pty Ltd (in thousands):

Fiscal Years Ended January 31,
20262025
Beginning fair value $— $223 
Additions (1) / (adjustments) in the period
— (223)
Ending fair value$— $— 

(1) Includes measurement period adjustments related to the Company’s preliminary fair values of the assets acquired and liabilities assumed in business combinations, which did not have a material impact on goodwill.

Historical Timeline

Fiscal YearFiled
2026Mar 25, 2026Showing above
2025Mar 31, 2025
2024Apr 1, 2024
2023Mar 31, 2023
2022Mar 31, 2022

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

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