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Jul 31, 2025
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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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