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Jul 31
Box Q2 2026 Earnings Report
Box reported steady Q2 performance with modest revenue growth, strong profitability, and record free cash flow.
Key Takeaways
In Q2 FY2026, Box posted $294.0 million in revenue, a 5% year-over-year increase. The company achieved strong operating income and record free cash flow while maintaining a high gross margin, driven by the demand for its AI-powered Content Cloud platform.
Revenue reached $293.999 million, a 5% increase YoY.
Non-GAAP EPS came in at $0.33, while GAAP EPS was $0.05.
Free cash flow hit $35.4 million, with a 12% margin.
RPO totaled $1.016 billion, reflecting strong future revenue visibility.
Box
Box
Box Revenue by Geographic Location
Revenue by Geographic Location
United States Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Box reaffirmed full-year guidance and remains confident in its long-term growth strategy, though short-term macro pressures may persist.
Positive Outlook
- FY26 revenue guidance reaffirmed at $1.02B–$1.028B.
- Q3 revenue expected between $261M–$263M.
- Non-GAAP EPS guidance for Q3 of $0.37–$0.38.
- Expected FY26 GAAP operating margin of ~5%.
- Targeted FY26 non-GAAP operating margin of ~25%.
Challenges Ahead
- Full-year revenue growth projected at just 2%–3% YoY.
- Non-GAAP gross margin slightly down from prior year.
- International revenue growth slower than domestic.
- Free cash flow margin declined YoY to 12%.
- Competitive and macroeconomic pressures continue to weigh on demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income