Box Inc - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −13.34%.
Did BOX Beat Earnings? Q4 2025 Results
Box delivered a mixed but broadly steady fourth quarter for fiscal 2025, nudging past revenue expectations while falling just short on earnings. The cloud content management company posted revenue of $279.52 million, up 6.3% year-over-year and fractionally above the $279.20 million consensus, though non-GAAP diluted EPS of $0.42 came in below the $0.42 estimate by 0.59%, snapping a five-quarter streak of consecutive EPS beats. The primary culprit was a steeper-than-expected currency headwind, with FX weighing 150 basis points on billings versus the previously anticipated 80 basis points and shaving $0.03 from non-GAAP EPS. Bright spots included non-GAAP gross margin expanding to 81.0% from 78.4% and record full-year free cash flow of $304.61 million, up 13%. Remaining performance obligations grew 12% to $1.47 billion, pointing to a solid demand pipeline. Looking ahead, Box guided full-year fiscal 2026 revenue of $1.16 billion to $1.16 billion, implying 6% growth, with non-GAAP EPS of $1.13 to $1.17, though that figure absorbs a $0.56 per-share headwind from non-cash deferred tax expenses.
- Revenue growth of 6% YoY (8% constant currency)
- RPO growth of 12% (14% constant currency) to $1.466 billion
- Non-GAAP gross margin expansion to 81.0% from 78.4%
- Non-GAAP operating margin expansion to 27.3% from 26.7%
- Operating cash flow up 14% YoY
- Non-GAAP free cash flow up 12% YoY
“Fiscal 2025 was a pivotal year for Box. We delivered our strongest set of AI-powered innovations and launched Enterprise Advanced, integrating the full capabilities of our platform into one solution. Early customer adoption highlights that customers are choosing Box to power intelligent metadata extraction from documents, automate workflows and dashboards with Box Apps, customize Box AI with the AI Studio, power complete business processes with Box Sign, Forms and Doc Gen, and so much more. We are entering one of the biggest shifts in business driven by AI. Box is developing the leading Intelligent Content Management platform that transforms unstructured data into actionable information, empowering businesses to take advantage of this critical opportunity.”
Box CEO, on the earnings call
Forward Guidance & Outlook
Q1 FY26: Revenue expected $274M–$275M (up 4% YoY, includes 120 bps leap year headwind); GAAP operating margin ~4.0%; Non-GAAP operating margin ~25%; GAAP EPS $0.00–$0.01; Non-GAAP EPS $0.25–$0.26 (includes $0.12 negative impact from non-cash deferred tax expenses). Full Year FY26: Revenue expected $1.155B–$1.160B (up 6% YoY, assumes neutral FX); GAAP operating margin ~7.5%; Non-GAAP operating margin ~28%; GAAP EPS $0.10–$0.14 (includes $0.19 deferred tax expense impact); Non-GAAP EPS $1.13–$1.17 (includes $0.56 deferred tax expense impact vs. $0.04 in prior year). Weighted-average diluted shares expected ~151M in Q1 and ~153M for full year.
BOX YoY Financials
Figures from SEC filings and company reports. Not investment advice.