A laser altimeter using code modulation techniques receives a backscattered pulse wider than the transmitted rectangular pulse when scanning a rough or sloped target surface. This leads to degrading the ranging performance in terms of signal-to-noise ratio (SNR) and detection probability. Unlike the pulsed techniques, little work has focused on the pulse broadening effect of the code modulation techniques. In this study, mathematical models were derived to investigate the pulse broadening effect on the ranging performance of a return-to-zero pseudorandom noise (RZPN) laser altimeter. Considering that the impulse response can be approximated by a Gaussian function, the analytical waveform was derived using a new flat-topped multi-Gaussian beam (FMGB) model. The closed-form expressions were also analytically derived for a peak cross-correlation, SNR, and detection probability in terms of the pulse broadening effect. With the use of a three-dimensional model of asteroid Itokawa for practical surface profiles, the analytical expressions were validated by comparing to the results obtained from numerical simulations. It was also demonstrated that the pulse broadening effect dropped down the peak cross-correlation and then deteriorated the ranging performance. These analytical expressions will play an important role in not only designing a laser altimeter using the RZPN code modulation technique but also analyzing its ranging performance.