Brex (Brex Inc., now Brex LLC, a Capital One company) — research brief (BMC #053)

Prepared 2026-10-08. Labels: FACT = stated by Brex itself (CEO posts on the Brex Journal and X, Brex pricing/about/support pages) or by Capital One in SEC filings and press releases (8-K, Q2 2026 Form 10-Q, earnings releases); SECONDARY = news reports, call transcripts and third-party research; INFERENCE = reasoning or computation by this project. Brex was private until Capital One completed its acquisition on April 7, 2026; Brex never published audited financials and Capital One says it does not intend to give separate Brex metrics. The only revenue figure on the canvas is Brex's own CEO statement (total annualized revenue, unaudited). Third-party revenue estimates (e.g. Sacra) are not used.

Sources (all accessed 2026-10-08)

Capital One Form 10-Q for Q2 2026 (filed Jul 28, 2026), Note 2 Business Combinations — Brex acquisition: https://www.sec.gov/Archives/edgar/data/927628/000092762826000089/cof-20260630.htm
Capital One 8-K Ex. 99.1, "Capital One to Acquire Brex" (Jan 22, 2026): https://www.sec.gov/Archives/edgar/data/927628/000119312526019543/d97758dex991.htm
Capital One newsroom, "Capital One completes acquisition of Brex" (Apr 7, 2026): https://www.capitalone.com/about/newsroom/capital-one-completes-acquisition-of-brex/
Capital One Q2 2026 earnings release (8-K Ex. 99.1, Jul 21, 2026): https://www.sec.gov/Archives/edgar/data/927628/000092762826000083/ex991q22026earningsrelease.htm
Capital One Q4 2025 earnings release (8-K Ex. 99.1, Jan 22, 2026): https://www.sec.gov/Archives/edgar/data/927628/000119312526019444/d45426dex991.htm
Capital One Q4 2025 earnings presentation (Jan 22, 2026; Brex appendix slides): https://investor.capitalone.com/static-files/0f5f3bba-b1f9-42c7-8c20-de9c73876ac6 (site blocks automated download; slide text read via search index)
Pedro Franceschi on X, $700M annualized revenue (Sep 4, 2025): https://x.com/pedroh96/status/1963648791384305894
Brex Journal, Pedro Franceschi, "The turnaround is over; the compounding begins" (Oct 2, 2025): https://www.brex.com/journal/the-turnaround-is-over
Brex Journal, Pedro Franceschi, "Brex is joining forces with Capital One" (Jan 22, 2026): https://www.brex.com/journal/brex-and-capital-one-join-forces
Brex Journal, Pedro Franceschi, "How Brex + Capital One will accelerate how we serve startups" (Jan 29, 2026): https://www.brex.com/journal/brex-and-capital-one-great-for-startups
Brex Journal, Pedro Franceschi, "How Brex is doing, 10 months into founder mode" (Dec 5, 2024): https://www.brex.com/journal/brex-in-founder-mode
Brex Journal, Camilla Matias Morais (COO), "The road to AAA: What we learned building credit at Brex" (May 14, 2025): https://www.brex.com/journal/road-to-aaa
Brex Journal, "How we're building AI-native operations at Brex" (Aug 11, 2025): https://www.brex.com/journal/brex-ai-native-operations
Brex Journal, "Stablecoins are coming to Brex" (Sep 30, 2025): https://www.brex.com/journal/building-brex/stablecoins-early-access
Brex Journal, "Brex and Stifel Bank partnership": https://www.brex.com/journal/articles/brex-and-stifel-bank-partnership
Brex Journal, "Why we built Tekion Spend" (2026, post-acquisition): https://www.brex.com/journal/brex-for-tekion
Brex Journal, "Brex in ChatGPT" and "Brex in Claude": https://www.brex.com/journal/brex-in-chatgpt · https://www.brex.com/journal/brex-connector-for-claude
Brex pricing page: https://www.brex.com/pricing
Brex About page: https://www.brex.com/about
Brex corporate card page: https://www.brex.com/product/credit-card
Brex support, "Cost of Brex services" (incl. "How Brex earns money"): https://www.brex.com/support/cost-of-brex-services
SECONDARY: American Banker, "Capital One closes Brex acquisition" (Apr 8, 2026): https://www.americanbanker.com/payments/news/capital-one-closes-brex-acquisition
SECONDARY: Capital One Q4 2025 earnings call transcript (Jan 22, 2026), Motley Fool: https://www.fool.com/earnings/call-transcripts/2026/01/22/capital-one-cof-q4-2025-earnings-call-transcript/

Teaching arc

Give the card and basic software away, get paid when the card is swiped → Brex issues no-personal-guarantee corporate cards (limits based on cash/revenue/dollars raised) plus spend-management software that is free on Essentials and $12/user/month on Premium → it earns "a percentage of the interchange fee" on every transaction, plus software seats, FX markups (up to 3%) and business-account economics → after a 2024 reset ("Brex 3.0": layoffs, leadership change, focus on startups + enterprise) revenue reaccelerated to $700M total annualized, +50% (Sep 2025), and Brex was operating-cash-flow positive for the first time in Aug 2025 → credit funded off balance sheet through a securitization master trust whose senior bonds reached AAA (avg monthly net charge-off 0.114%, payment rate >99%) → Capital One agreed to buy it for a headline $5.15B (Jan 22, 2026), closed Apr 7, 2026 at a $4.5B fair value, paid off Brex's $1.1B of debt, booked $3.1B of goodwill and now funds the card book from its own balance sheet while Brex keeps its brand and CEO.

Scale and financial disclosures

FACT (CEO, X, Sep 4, 2025): "Brex has reached $700M in total annualized revenue, growing 50%, and is on track to profitability." Unaudited; "total/gross" revenue (likely before interchange sharing — INFERENCE).
FACT (CEO email, Oct 2, 2025): "This August Brex grew 49% and was operating cash flow positive for the first time in history"; ~1,000-person company; "We're still 1% of the market" in a market "98% dominated by incumbent banks".
FACT (Dec 5, 2024): 2024 revenue growth accelerated almost 3x; net revenue retention up >15 points; burn down almost 70%; enterprise business grew 91% with NRR >130%; >150 public companies on Brex; expected 2025 to be the last year Brex burns money; scaled 0→$100M ARR in 16 months in the early days.
FACT (Jan 22, 2026 Capital One release): "Over 25,000" companies run their finances on Brex, in more than 50 countries (DoorDash, TikTok, Anthropic, Robinhood, CrowdStrike, Zoom, Plaid, Intel, SeatGeek, Boston Celtics). Brex About page and Stifel post say "more than 35,000 companies" use Brex (different counting basis, not reconciled — both shown as stated).
FACT (Jan 22, 2026 Brex post): "1 in 3 startups in the US", "over 300+ public companies".

Acquisition by Capital One (FACT, SEC filings unless noted)

Announced Jan 22, 2026: "stock and cash transaction valued at $5.15 billion", ~50% cash/50% stock (8-K Ex. 99.1; Q4 2025 earnings release).
Closed Apr 7, 2026. 10-Q Q2 2026: total consideration ~$4.5B fair value = $2.630B cash + 10.6M COF shares with fair value $1.891B (total $4.521B). Capital One paid off Brex's outstanding debt of $1.1B immediately after closing (securitized debt obligations).
Assets recognized ~$5.8B: $3.1B goodwill, $815M loans, $725M cash, $510M developed technology (5-yr amortization), $432M customer relationships/other intangibles (10–12 yrs). Goodwill allocated Credit Card $2.4B / Consumer Banking $710M. Not tax-deductible (nontaxable reorganization).
Brex results sit in Domestic Card (Credit Card segment) from Q2 2026; $96M Brex integration expenses in Q2 2026 (salaries/benefits, professional services).
Q4 2025 presentation: ~$950M transaction-related costs (deal costs, integration, retention compensation) over the next 3 years. Brex's CEO (Jan 29, 2026) describes "Capital One is also investing $950 million into Brex" and Startups team headcount +50% through 2026 — same order of magnitude, framed differently (INFERENCE: likely the same figure).
SECONDARY (call transcript): Fairbank: "in isolation, Brex will result in earnings dilution initially... a growth rate that is multiples of industry growth rates"; consideration ~3.5% of COF market cap; COF will not provide separate Brex metrics.
Capital One scale (FACT): $669.0B total assets, $475.8B deposits at Dec 31, 2025. Brex CEO cites ~$900B annual card GMV, $6B marketing and $6B R&D budgets at Capital One (FACT as stated by Brex).
Brex LLC "is a wholly owned subsidiary of Capital One, N.A." (Brex site footer).

Products and pricing (FACT, Brex pricing/card/support pages)

Essentials $0/user/month (card, bill pay, reimbursements, travel booking, accounting integrations, API); Premium $12/user/month (multi-entity, custom policies, AI compliance audit, live budgets, ERP/HRIS integrations); Enterprise custom (unlimited entities, local card issuance, named account manager, implementation); Smart Card custom (procurement).
Software billed per user (recurring commitment + overages), separately from card statements.
Cards on Mastercard, accepted in 210+ countries; local-currency cards and billing in 50+ countries; up to 7x back; limits based on revenue or dollars raised; no personal guarantee; "up to 30x higher limits".
Card FX markup "up to 3%" on international transactions; no Brex fees on wires/ACH/checks.
"How Brex earns money: For every transaction made on a Brex card, Brex makes a percentage of the interchange fee which is also split with the card network."
Business account = Checking via Column N.A. (FDIC), Treasury via Brex Treasury LLC (money-market fund sweep, BNY Dreyfus DGVXX + Brex additional return), Vault via program banks.
AI: AI-native operations (KYC/AML first pass by AI), Brex in ChatGPT and Claude connectors, MCP; stablecoin acceptance/payouts (early access, Sep 2025).

Partners (FACT)

Card issuers: Emigrant Bank, Fifth Third Bank N.A., Airwallex (Netherlands) B.V. (Mastercard); Sutton Bank (Visa commercial card). Checking: Column N.A. Payments: Brex Payments LLC (licensed money transmitter).
Distribution/embedded: Coupa and Navan (BrexPay), Stripe Atlas (banking for startups), Tekion (Tekion Spend on Brex Embedded), Stifel Bank (venture debt referrals), accounting firms program.
Capital markets: securitization master trust; KBRA upgraded 2024 senior bond to AAA (avg monthly net charge-off 0.114%, payment rates >99%, excess spread >40%); first securitization 2021 rated A, 90%+ advance rate.
Pre-acquisition investors (About page): Greenoaks, IVP, Tiger Global, Y Combinator, Kleiner Perkins, DST Global, Max Levchin, Peter Thiel, Lone Pine, Ribbit Capital.

Costs (mostly INFERENCE; Brex publishes no cost breakdown)

Card rewards (up to 7x back) and interchange sharing with issuers/network (FACT that interchange is split; size INFERENCE).
Credit losses (low: 0.114% average monthly NCO in the master trust — FACT) and funding costs (securitization pre-close; Capital One balance sheet post-close — INFERENCE).
People (~1,000 employees, Oct 2025 — FACT), engineering and AI; sales for enterprise.
Integration/retention: $96M in Q2 2026; ~$950M over 3 years (FACT, Capital One).

What we did NOT use

Valuation history ($12.3B 2022 round) and Sacra/Contrary revenue estimates — SECONDARY, not shown as metrics.
No revenue split by stream is disclosed; canvas says so.

# Brex (Brex Inc., now Brex LLC, a Capital One company) — research brief (BMC #053) Prepared 2026-10-08. Labels: **FACT** = stated by Brex itself (CEO posts on the Brex Journal and X, Brex pricing/about/support pages) or by Capital One in SEC filings and press releases (8-K, Q2 2026 Form 10-Q, earnings releases); **SECONDARY** = news reports, call transcripts and third-party research; **INFERENCE** = reasoning or computation by this project. Brex was private until **Capital One completed its acquisition on April 7, 2026**; Brex never published audited financials and Capital One says it does not intend to give separate Brex metrics. The only revenue figure on the canvas is Brex's own CEO statement (total annualized revenue, unaudited). Third-party revenue estimates (e.g. Sacra) are **not** used. ## Sources (all accessed 2026-10-08) - Capital One Form 10-Q for Q2 2026 (filed Jul 28, 2026), Note 2 Business Combinations — Brex acquisition: https://www.sec.gov/Archives/edgar/data/927628/000092762826000089/cof-20260630.htm - Capital One 8-K Ex. 99.1, "Capital One to Acquire Brex" (Jan 22, 2026): https://www.sec.gov/Archives/edgar/data/927628/000119312526019543/d97758dex991.htm - Capital One newsroom, "Capital One completes acquisition of Brex" (Apr 7, 2026): https://www.capitalone.com/about/newsroom/capital-one-completes-acquisition-of-brex/ - Capital One Q2 2026 earnings release (8-K Ex. 99.1, Jul 21, 2026): https://www.sec.gov/Archives/edgar/data/927628/000092762826000083/ex991q22026earningsrelease.htm - Capital One Q4 2025 earnings release (8-K Ex. 99.1, Jan 22, 2026): https://www.sec.gov/Archives/edgar/data/927628/000119312526019444/d45426dex991.htm - Capital One Q4 2025 earnings presentation (Jan 22, 2026; Brex appendix slides): https://investor.capitalone.com/static-files/0f5f3bba-b1f9-42c7-8c20-de9c73876ac6 (site blocks automated download; slide text read via search index) - Pedro Franceschi on X, $700M annualized revenue (Sep 4, 2025): https://x.com/pedroh96/status/1963648791384305894 - Brex Journal, Pedro Franceschi, "The turnaround is over; the compounding begins" (Oct 2, 2025): https://www.brex.com/journal/the-turnaround-is-over - Brex Journal, Pedro Franceschi, "Brex is joining forces with Capital One" (Jan 22, 2026): https://www.brex.com/journal/brex-and-capital-one-join-forces - Brex Journal, Pedro Franceschi, "How Brex + Capital One will accelerate how we serve startups" (Jan 29, 2026): https://www.brex.com/journal/brex-and-capital-one-great-for-startups - Brex Journal, Pedro Franceschi, "How Brex is doing, 10 months into founder mode" (Dec 5, 2024): https://www.brex.com/journal/brex-in-founder-mode - Brex Journal, Camilla Matias Morais (COO), "The road to AAA: What we learned building credit at Brex" (May 14, 2025): https://www.brex.com/journal/road-to-aaa - Brex Journal, "How we're building AI-native operations at Brex" (Aug 11, 2025): https://www.brex.com/journal/brex-ai-native-operations - Brex Journal, "Stablecoins are coming to Brex" (Sep 30, 2025): https://www.brex.com/journal/building-brex/stablecoins-early-access - Brex Journal, "Brex and Stifel Bank partnership": https://www.brex.com/journal/articles/brex-and-stifel-bank-partnership - Brex Journal, "Why we built Tekion Spend" (2026, post-acquisition): https://www.brex.com/journal/brex-for-tekion - Brex Journal, "Brex in ChatGPT" and "Brex in Claude": https://www.brex.com/journal/brex-in-chatgpt · https://www.brex.com/journal/brex-connector-for-claude - Brex pricing page: https://www.brex.com/pricing - Brex About page: https://www.brex.com/about - Brex corporate card page: https://www.brex.com/product/credit-card - Brex support, "Cost of Brex services" (incl. "How Brex earns money"): https://www.brex.com/support/cost-of-brex-services - SECONDARY: American Banker, "Capital One closes Brex acquisition" (Apr 8, 2026): https://www.americanbanker.com/payments/news/capital-one-closes-brex-acquisition - SECONDARY: Capital One Q4 2025 earnings call transcript (Jan 22, 2026), Motley Fool: https://www.fool.com/earnings/call-transcripts/2026/01/22/capital-one-cof-q4-2025-earnings-call-transcript/ ## Teaching arc Give the card and basic software away, get paid when the card is swiped → Brex issues no-personal-guarantee corporate cards (limits based on cash/revenue/dollars raised) plus spend-management software that is free on Essentials and $12/user/month on Premium → it earns "a percentage of the interchange fee" on every transaction, plus software seats, FX markups (up to 3%) and business-account economics → after a 2024 reset ("Brex 3.0": layoffs, leadership change, focus on startups + enterprise) revenue reaccelerated to $700M total annualized, +50% (Sep 2025), and Brex was operating-cash-flow positive for the first time in Aug 2025 → credit funded off balance sheet through a securitization master trust whose senior bonds reached AAA (avg monthly net charge-off 0.114%, payment rate >99%) → Capital One agreed to buy it for a headline $5.15B (Jan 22, 2026), closed Apr 7, 2026 at a $4.5B fair value, paid off Brex's $1.1B of debt, booked $3.1B of goodwill and now funds the card book from its own balance sheet while Brex keeps its brand and CEO. ## Scale and financial disclosures - FACT (CEO, X, Sep 4, 2025): "Brex has reached $700M in total annualized revenue, growing 50%, and is on track to profitability." Unaudited; "total/gross" revenue (likely before interchange sharing — INFERENCE). - FACT (CEO email, Oct 2, 2025): "This August Brex grew 49% and was operating cash flow positive for the first time in history"; ~1,000-person company; "We're still 1% of the market" in a market "98% dominated by incumbent banks". - FACT (Dec 5, 2024): 2024 revenue growth accelerated almost 3x; net revenue retention up >15 points; burn down almost 70%; enterprise business grew 91% with NRR >130%; >150 public companies on Brex; expected 2025 to be the last year Brex burns money; scaled 0→$100M ARR in 16 months in the early days. - FACT (Jan 22, 2026 Capital One release): "Over 25,000" companies run their finances on Brex, in more than 50 countries (DoorDash, TikTok, Anthropic, Robinhood, CrowdStrike, Zoom, Plaid, Intel, SeatGeek, Boston Celtics). Brex About page and Stifel post say "more than 35,000 companies" use Brex (different counting basis, not reconciled — both shown as stated). - FACT (Jan 22, 2026 Brex post): "1 in 3 startups in the US", "over 300+ public companies". ## Acquisition by Capital One (FACT, SEC filings unless noted) - Announced Jan 22, 2026: "stock and cash transaction valued at $5.15 billion", ~50% cash/50% stock (8-K Ex. 99.1; Q4 2025 earnings release). - Closed Apr 7, 2026. 10-Q Q2 2026: total consideration ~$4.5B fair value = $2.630B cash + 10.6M COF shares with fair value $1.891B (total $4.521B). Capital One paid off Brex's outstanding debt of $1.1B immediately after closing (securitized debt obligations). - Assets recognized ~$5.8B: $3.1B goodwill, $815M loans, $725M cash, $510M developed technology (5-yr amortization), $432M customer relationships/other intangibles (10–12 yrs). Goodwill allocated Credit Card $2.4B / Consumer Banking $710M. Not tax-deductible (nontaxable reorganization). - Brex results sit in Domestic Card (Credit Card segment) from Q2 2026; $96M Brex integration expenses in Q2 2026 (salaries/benefits, professional services). - Q4 2025 presentation: ~$950M transaction-related costs (deal costs, integration, retention compensation) over the next 3 years. Brex's CEO (Jan 29, 2026) describes "Capital One is also investing $950 million into Brex" and Startups team headcount +50% through 2026 — same order of magnitude, framed differently (INFERENCE: likely the same figure). - SECONDARY (call transcript): Fairbank: "in isolation, Brex will result in earnings dilution initially... a growth rate that is multiples of industry growth rates"; consideration ~3.5% of COF market cap; COF will not provide separate Brex metrics. - Capital One scale (FACT): $669.0B total assets, $475.8B deposits at Dec 31, 2025. Brex CEO cites ~$900B annual card GMV, $6B marketing and $6B R&D budgets at Capital One (FACT as stated by Brex). - Brex LLC "is a wholly owned subsidiary of Capital One, N.A." (Brex site footer). ## Products and pricing (FACT, Brex pricing/card/support pages) - Essentials $0/user/month (card, bill pay, reimbursements, travel booking, accounting integrations, API); Premium $12/user/month (multi-entity, custom policies, AI compliance audit, live budgets, ERP/HRIS integrations); Enterprise custom (unlimited entities, local card issuance, named account manager, implementation); Smart Card custom (procurement). - Software billed per user (recurring commitment + overages), separately from card statements. - Cards on Mastercard, accepted in 210+ countries; local-currency cards and billing in 50+ countries; up to 7x back; limits based on revenue or dollars raised; no personal guarantee; "up to 30x higher limits". - Card FX markup "up to 3%" on international transactions; no Brex fees on wires/ACH/checks. - "How Brex earns money: For every transaction made on a Brex card, Brex makes a percentage of the interchange fee which is also split with the card network." - Business account = Checking via Column N.A. (FDIC), Treasury via Brex Treasury LLC (money-market fund sweep, BNY Dreyfus DGVXX + Brex additional return), Vault via program banks. - AI: AI-native operations (KYC/AML first pass by AI), Brex in ChatGPT and Claude connectors, MCP; stablecoin acceptance/payouts (early access, Sep 2025). ## Partners (FACT) - Card issuers: Emigrant Bank, Fifth Third Bank N.A., Airwallex (Netherlands) B.V. (Mastercard); Sutton Bank (Visa commercial card). Checking: Column N.A. Payments: Brex Payments LLC (licensed money transmitter). - Distribution/embedded: Coupa and Navan (BrexPay), Stripe Atlas (banking for startups), Tekion (Tekion Spend on Brex Embedded), Stifel Bank (venture debt referrals), accounting firms program. - Capital markets: securitization master trust; KBRA upgraded 2024 senior bond to AAA (avg monthly net charge-off 0.114%, payment rates >99%, excess spread >40%); first securitization 2021 rated A, 90%+ advance rate. - Pre-acquisition investors (About page): Greenoaks, IVP, Tiger Global, Y Combinator, Kleiner Perkins, DST Global, Max Levchin, Peter Thiel, Lone Pine, Ribbit Capital. ## Costs (mostly INFERENCE; Brex publishes no cost breakdown) - Card rewards (up to 7x back) and interchange sharing with issuers/network (FACT that interchange is split; size INFERENCE). - Credit losses (low: 0.114% average monthly NCO in the master trust — FACT) and funding costs (securitization pre-close; Capital One balance sheet post-close — INFERENCE). - People (~1,000 employees, Oct 2025 — FACT), engineering and AI; sales for enterprise. - Integration/retention: $96M in Q2 2026; ~$950M over 3 years (FACT, Capital One). ## What we did NOT use - Valuation history ($12.3B 2022 round) and Sacra/Contrary revenue estimates — SECONDARY, not shown as metrics. - No revenue split by stream is disclosed; canvas says so.