# Box, Inc. (NYSE:BOX) Q2 2026 Financial Results Summary
**Release Date:** August 26, 2025
Box, Inc. (NYSE:BOX), a leader in Intelligent Content Management, has announced its preliminary financial results for the second quarter of fiscal year 2026, which ended on July 31, 2025. Below is a summary of the key highlights from the report:
### Financial Highlights
– **Revenue:**
– $294 million, up **9%** year-over-year; up **7%** in constant currency.
– **Remaining Performance Obligations (RPO):**
– $1.5 billion, up **16%** year-over-year; up **16%** in constant currency.
– Short-term RPO: $812 million, up **12%**.
– Long-term RPO: $664 million, up **21%**.
– **Billings:**
– $264.9 million, up **3%** year-over-year; up **6%** in constant currency.
– **Gross Profit:**
– GAAP gross profit: $232.5 million, or **79.1%** of revenue (down from **79.4%**).
– Non-GAAP gross profit: $239.2 million, or **81.4%** of revenue (down from **81.6%**).
– **Operating Income:**
– GAAP operating income: $20.6 million, or **7.0%** of revenue (down from **7.5%**).
– Non-GAAP operating income: $84.0 million, or **28.6%** of revenue (up from **28.4%**).
– **Net Income Per Share:**
– GAAP diluted EPS: $0.05 (down from $0.10).
– Non-GAAP diluted EPS: $0.33 (down from $0.44).
### Cash Flow & Financial Position
– **Net Cash Provided by Operating Activities:**
– $46.0 million, up **27%**.
– **Non-GAAP Free Cash Flow:**
– $35.7 million, up **9%**.
– **Total Current Assets:**
– $1.042 billion, down from $1.097 billion as of January 31, 2025.
– **Current Liabilities:**
– $853.2 million, down from $922.1 million as of January 31, 2025.
### Dividends & Share Repurchase
– **Dividends:** Preferred dividends of $3.75 million were paid.
– **Share Repurchase:** The company repurchased common stock worth **$39.9 million**, down from **$106.6 million** in the same quarter a year ago.
### Business Highlights
– Achieved new contracts and expansions with notable firms across various sectors including Hospitality, Legal, Media, Public Sector, Retail, and Technology.
– Enhanced Box’s AI framework with new tools and updates, promoting better operationalization of AI within businesses.
– Collaborations established with significant partners including AWS, Salesforce, and OpenAI, enhancing the functionality and reach of Box’s services.
### Outlook
– **Q3 FY26 Revenue Guidance:**
– Expected in the range of $298 million to $299 million, up **8%** year-over-year (estimated **7%** in constant currency).
– **Full Year FY26 Revenue Guidance:**
– Expected between $1.170 billion and $1.175 billion, up **8%** year-over-year.
– **Operating Margin Guidance:**
– GAAP operating margin forecasted at approximately **7%**.
– Non-GAAP operational margin guidance around **28%**.
– **EPS Guidance for Q3 FY26:**
– GAAP EPS projected to be in the range of $0.05 to $0.06.
– Non-GAAP EPS expected between $0.31 and $0.32.
### Summary
Box, Inc. reported solid growth in revenue and RPO, albeit with some declines in profit margins and per-share earnings compared to the previous year. The strategic focus on AI and robust business partnerships suggests a proactive approach to navigating future market challenges. The guidance for the upcoming quarters appears positive, highlighting continued growth expectations amidst a backdrop of increased operational investments.
Here are the extracted tables from the press release:
### BOX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Data) (Unaudited)
| Three Months Ended | July 31, 2025 | July 31, 2024 | Six Months Ended | July 31, 2025 | July 31, 2024 |
|---|---|---|---|---|---|
| Revenue | $293,999 | $270,039 | $570,271 | $534,697 | |
| Cost of revenue | 61,522 | 55,513 | 122,195 | 113,765 | |
| Gross profit | 232,477 | 214,526 | 448,076 | 420,932 | |
| Operating expenses: | |||||
| Research and development (1) | 71,717 | 65,445 | 144,018 | 128,118 | |
| Sales and marketing (1) | 102,198 | 95,235 | 201,297 | 187,908 | |
| General and administrative | 37,984 | 33,566 | 75,845 | 66,619 | |
| (1) | |||||
| Total operating expenses | 211,899 | 194,246 | 421,160 | 382,645 | |
| Income from operations | 20,578 | 20,280 | 26,916 | 38,287 | |
| Interest income | 6,715 | 5,387 | 13,413 | 11,076 | |
| Interest expense | (2,680) | (796) | (5,376) | (1,601) | |
| Other (expense) income, net | (872) | 108 | 1,932 | (918) | |
| Income before income taxes | 23,741 | 24,979 | 36,885 | 46,844 | |
| Provision for income taxes | 10,296 | 4,483 | 15,246 | 9,126 | |
| Net income | $13,445 | $20,496 | $21,639 | $37,718 | |
| Accretion and dividend on series A | (4,312) | (4,310) | (8,540) | (8,550) | |
| Undistributed earnings attributable to | (1,036) | (1,845) | (1,488) | (3,313) | |
| Net income attributable to common | $8,097 | $14,341 | $11,611 | $25,855 | |
| Net income per share attributable to common stockholders | |||||
| Basic | $0.06 | $0.10 | $0.08 | $0.18 | |
| Diluted | $0.05 | $0.10 | $0.08 | $0.18 | |
| Weighted-average shares used to compute net income per share attributable to common stockholders | |||||
| Basic | 144,896 | 144,070 | 144,669 | 144,678 | |
| Diluted | 151,102 | 146,525 | 150,369 | 147,634 | |
| (1) Includes stock-based compensation expense as follows: | |||||
| Three Months Ended | July 31, 2025 | July 31, 2024 | Six Months Ended | July 31, 2025 | July 31, 2024 |
| Cost of revenue | $5,666 | $4,731 | $10,498 | $9,352 | |
| Research and development | 21,380 | 19,676 | 40,186 | 37,495 | |
| Sales and marketing | 19,679 | 19,173 | 37,546 | 36,956 | |
| General and administrative | 14,033 | 11,531 | 27,422 | 22,470 | |
| Total stock-based compensation | $60,758 | $55,111 | $115,652 | $106,273 |
### BOX, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands) (Unaudited)
| ASSETS | July 31, 2025 | January 31, 2025 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $657,826 | $624,575 |
| Short-term investments | 100,032 | 98,241 |
| Accounts receivable, net | 189,561 | 292,707 |
| Other current assets | 95,321 | 82,256 |
| Total current assets | 1,042,740 | 1,097,779 |
| Operating lease right-of-use assets, net | 82,559 | 77,970 |
| Goodwill | 80,781 | 76,969 |
| Deferred tax assets | 240,158 | 245,417 |
| Other long-term assets | 178,343 | 169,385 |
| Total assets | $1,624,581 | $1,667,520 |
| LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT | ||
| Current liabilities: | ||
| Accounts payable, accrued expenses and other current liabilities | $79,022 | $80,069 |
| Accrued compensation and benefits | 35,932 | 49,721 |
| Debt, net, current | 204,476 | 203,907 |
| Deferred revenue | 533,729 | 588,379 |
| Total current liabilities | 853,159 | 922,076 |
| Debt, net, non-current | 449,822 | 448,638 |
| Other liabilities, non-current | 95,677 | 99,530 |
| Total liabilities | 1,398,658 | 1,470,244 |
| Series A convertible preferred stock | 495,278 | 494,238 |
| Stockholders’ deficit: | ||
| Common stock | 14 | 14 |
| Additional paid-in capital | 674,962 | 677,088 |
| Accumulated other comprehensive loss | (3,827) | (11,921) |
| Accumulated deficit | (940,504) | (962,143) |
| Total stockholders’ deficit | (269,355) | (296,962) |
| Total liabilities, convertible preferred stock and stockholders’ deficit | $1,624,581 | $1,667,520 |
