BOX INC

Previous wording

We continue to innovate by expanding our core services and offerings. In April 2026, we announced the general availability of the new Box Agent that leverages the latest advanced reasoning models to securely search company files, analyze and synthesize critical data, and generate new content – all while respecting Box’s enterprise-grade security, governance, and permissions controls. We also announced the general availability of Box Automate, our content-focused agentic workflow automation solution built natively in Box to orchestrate work across agents and teams.

Current wording

We continue to innovate by expanding our core services and offerings. In June 2026, we announced the expansion of Box Zones to 10 regions worldwide, adding Israel, Singapore, and Switzerland as new regions and enhancing Canada and France with in-region compute, enabling global enterprises to better meet data residency requirements. In July 2026, we announced the launch of Box agent security and governance, a suite of security capabilities that protect enterprise content from the risks introduced by AI agents that connect from third-party platforms like Claude, ChatGPT, Microsoft Copilot, and Gemini through the Box Model Context Protocol (MCP) Server or APIs. In addition, we recently announced the general availability of the new Box Agent that leverages the latest advanced reasoning models to securely search company files, analyze and synthesize critical data, and generate new content – all while respecting Box’s enterprise-grade security, governance, and permissions controls. We also recently announced the general availability of Box Automate, our content-focused agentic workflow automation solution built natively in Box to orchestrate work across agents and teams.

Previous wording

For the three months ended April 30, 2026 and 2025, our revenue was $305.9 million and $276.3 million, respectively, representing year-over-year growth of 11%, or 10% growth on a constant currency basis. As of April 30, 2026, our remaining performance obligations were $1.6 billion, representing a 12% increase from our remaining performance obligations of $1.5 billion as of April 30, 2025, or 16% growth on a constant currency basis. For the three months ended April 30, 2026, our gross profit was $243.2 million and our gross margin was 79.5%, compared to our gross profit of $215.6 million and our gross margin of 78.0% for the three months ended April 30, 2025. For the three months ended April 30, 2026, our operating income was $27.4 million and our operating margin was 9.0%, compared to our operating income of $6.3 million and our operating margin of 2.3% for the three months ended April 30, 2025. For the three months ended April 30, 2026, our net cash provided by operating activities was $140.2 million, a 10% increase from our net cash provided by operating activities of $127.1 million for the three months ended April 30, 2025. For the three months ended April 30, 2026, our non-GAAP free cash flow was $127.7 million, an 8% increase from our non-GAAP free cash flow of $118.3 million for the three months ended April 30, 2025.

Current wording

For the three months ended July 31, 2026 and 2025, our revenue was $321.1 million and $294.0 million, respectively, representing year-over-year growth of 9%, or 11% growth on a constant currency basis. As of July 31, 2026, our remaining performance obligations were $1.7 billion, an increase of 15% from our remaining performance obligations of $1.5 billion as of July 31, 2025, or 17% growth on a constant currency basis. For the three months ended July 31, 2026, our gross profit was $254.0 million and our gross margin was 79.1%, compared to our gross profit of $232.5 million and our gross margin of 79.1% for the three months ended July 31, 2025. For the three months ended July 31, 2026, our operating income was $32.6 million and our operating margin was 10.2%, compared to our operating income of $20.6 million and our operating margin of 7.0% for the three months ended July 31, 2025. For the three months ended July 31, 2026, our net cash provided by operating activities was $70.8 million, an increase of 54% from our net cash provided by operating activities of $46.0 million for the three months ended July 31, 2025. For the three months ended July 31, 2026, our non-GAAP free cash flow was $59.7 million, an increase of 67% from our non-GAAP free cash flow of $35.7 million for the three months ended July 31, 2025.

Previous wording

RPO as of April 30, 2026 was $1.6 billion, an increase of 12% from April 30, 2025. As of April 30, 2026, short-term RPO was $880.2 million, an increase of 8% from April 30, 2025, and long-term RPO was $761.7 million, an increase of 16% from April 30, 2025. The increase in RPO was driven by expansion within existing customers as they broadened their deployment of our product offerings and the conversion to multi-product Suites, the timing of customer-driven renewals, longer average contract terms, and the addition of new customers. RPO growth was unfavorably impacted by approximately 470 basis points due to fluctuations in foreign currency exchange rates.

Current wording

RPO as of July 31, 2026 was $1.7 billion, an increase of 15% from July 31, 2025. As of July 31, 2026, short-term RPO was $904.7 million, an increase of 11% from July 31, 2025, and long-term RPO was $787.0 million, an increase of 18% from July 31, 2025. The increase in RPO was driven by expansion within existing customers as they broadened their deployment of our product offerings and the conversion to multi-product Suites, the timing of customer-driven renewals, longer average contract terms, and the addition of new customers. RPO growth was unfavorably impacted by approximately 290 basis points due to fluctuations in foreign currency exchange rates.

Previous wording

Billings for the three months ended April 30, 2026 were $255.4 million, representing an increase of 5% from the three months ended April 30, 2025. The increase in billings was primarily driven by expansion within existing customers as they broadened their deployment of our product offerings and the conversion to multi-product Suites, the addition of new customers, and the timing of customer-driven renewals. Billings growth was unfavorably impacted by approximately 790 basis points due to fluctuations in foreign currency exchange rates.

Current wording

Billings for the three and six months ended July 31, 2026 were $309.5 million and $564.9 million, respectively, representing an increase of 17% from the three months ended July 31, 2025 and an increase of 11% from the six months ended July 31, 2025. The increase in billings was primarily driven by expansion within existing customers as they broadened their deployment of our product offerings and the conversion to multi-product Suites, the addition of new customers, and the timing of customer-driven renewals. Billings growth was also impacted by fluctuations in foreign currency exchange rates. For the three months ended July 31, 2026, billings growth was favorably impacted by approximately 100 basis points and for the six months ended July 31, 2026, billings growth was unfavorably impacted by approximately 320 basis points.

Previous wording

Non-GAAP free cash flow for the three months ended April 30, 2026 was $127.7 million, representing an increase of 8% from the three months ended April 30, 2025. The increase in non-GAAP free cash flow was primarily driven by the increase in cash flows from operating activities, partially offset by an increase in capitalized software costs and an increase in purchases of property and equipment. The year-over-year changes in cash flows from operating activities are described in more detail under Liquidity and Capital Resources below.

Current wording

The increase in non-GAAP free cash flow for the three months ended July 31, 2026 was primarily driven by an increase in cash flows from operating activities and a decrease in purchases of property and equipment, partially offset by an increase in capitalized software costs. The increase in non-GAAP free cash flow for the six months ended July 31, 2026 was primarily driven by an increase in cash flows from operating activities, partially offset by an increase in capitalized software costs. The year-over-year changes in cash flows from operating activities for the three and six months ended July 31, 2026 are described in more detail under Liquidity and Capital Resources below.

Previous wording

Our net retention rate was 105% and 102% as of April 30, 2026 and 2025, respectively. Our net retention rate continues to be impacted by heightened budget scrutiny, putting pressure on seat expansion within existing customers and increased partial customer churn. As our customers purchase add-on products or our bundled plans, we tend to realize significantly higher average contract values and stronger net retention rates as compared to customers who only purchase our core product. We believe our go-to-market efforts to deliver a solution selling strategy and our investments in product, customer success, and Box Consulting, including our Box Shuttle migration offering, are significant factors in our customer retention results. As we penetrate customer accounts, we expect our net retention rate to remain above 100% for the foreseeable future.

Current wording

Our net retention rate was 106% and 103% as of July 31, 2026 and 2025, respectively. Our net retention rate has improved due to continued customer adoption of our products, particularly our multi-product Suites and AI-enabled products. As our customers purchase add-on products or our bundled plans, we tend to realize significantly higher average contract values and stronger net retention rates as compared to customers who only purchase our core product. We believe our go-to-market efforts to deliver a solution selling strategy and our investments in product, customer success, and Box Consulting, including our Box Shuttle migration offering, are significant factors in our customer retention results. As we penetrate customer accounts, we expect our net retention rate to remain above 100% for the foreseeable future.

Previous wording

Comparison of the Three Months Ended April 30, 2026 and 2025

Current wording

Comparison of the Three and Six Months Ended July 31, 2026 and 2025

Previous wording

The $29.7 million, or 11%, increase in revenue for the three months ended April 30, 2026 was primarily driven by seat growth, net of churn in existing customers and continued strong attach rates of our multi-product Suites offerings, particularly Enterprise Plus and Enterprise Advanced. The increase was also impacted by the strengthening of foreign currency exchange rates, which positively impacted our revenue growth rate by approximately 60 basis points.

Current wording

The $27.1 million, or 9%, and $56.8 million, or 10%, increases in revenue for the three and six months ended July 31, 2026, respectively, were primarily driven by seat growth, net of churn in existing customers and continued strong attach rates of our multi-product Suites offerings, particularly Enterprise Plus and Enterprise Advanced. The increases were partially offset by the weakening of foreign currency exchange rates, which negatively impacted our revenue growth rates by approximately 170 basis points and 60 basis points for the three and six months ended July 31, 2026, respectively.

Previous wording

The $2.1 million, or 3%, increase in cost of revenue for the three months ended April 30, 2026 was primarily due to increases of $4.0 million in amortization of capitalized software and $0.7 million in subscription software contract expense. This increase was partially offset by decreases of $1.2 million in public cloud infrastructure costs, $0.8 million in workforce reorganization expenses, and $0.7 million in acquired intangible assets amortization. Cost of revenue as a percentage of revenue decreased by approximately 150 basis points year-over-year.

Current wording

The $7.7 million, or 6%, increase in cost of revenue for the six months ended July 31, 2026 was primarily due to increases of $7.7 million in amortization of capitalized software and $2.0 million in public cloud infrastructure costs. This increase was partially offset by decreases of $1.4 million in acquired intangible assets amortization and $0.8 million in workforce reorganization expenses. Cost of revenue as a percentage of revenue decreased by approximately 70 basis points year-over-year.

Previous wording

The $3.6 million, or 5%, increase in research and development expense for the three months ended April 30, 2026 was primarily due to increases of $4.6 million and $1.8 million in employee related costs and stock-based compensation expense, respectively, driven by a 4% increase in headcount. The increased employee headcount and related costs are primarily driven by the growth in lower cost regions. Additionally, we had increases of $1.5 million in subscription software contract expense, $1.5 million in office related costs, and $1.3 million in public cloud infrastructure costs. The increase was partially offset by a decrease of $3.6 million in workforce reorganization expenses, an increase of $2.8 million in capitalized internally developed software costs, and a decrease of $0.7 million in contractors and consulting services. Research and development expenses as a percentage of revenue decreased by approximately 100 basis points year-over-year.

Current wording

The $10.3 million, or 7%, increase in research and development expense for the six months ended July 31, 2026 was primarily due to increases of $10.2 million and $3.2 million in employee related costs and stock-based compensation expense, respectively, driven by a 6% increase in headcount. The increased employee headcount and related costs are primarily driven by the growth in lower cost regions. Additionally, we had increases of $3.6 million in enterprise software expenses, $2.9 million in office related costs, and $2.8 million in public cloud infrastructure costs. The increase was partially offset by higher capitalized internally developed software costs of $6.9 million and decreases of $4.1 million in workforce reorganization expenses and $1.3 million in contractors and consulting services. Research and development expenses as a percentage of revenue decreased by approximately 60 basis points year-over-year.

Previous wording

The $2.8 million, or 3%, increase in sales and marketing expense for the three months ended April 30, 2026 was primarily due to increases of $4.4 million and $0.9 million in employee related costs and stock-based compensation expense, respectively, driven by a 7% increase in headcount, and an increase of $0.3 million in commission expenses. This increase was partially offset by decreases of $2.1 million in workforce reorganization expenses and $0.8 million in contractors and consulting services. Sales and marketing expenses as a percentage of revenue decreased by approximately 300 basis points year-over-year.

Current wording

The $7.3 million, or 4%, increase in sales and marketing expense for the six months ended July 31, 2026 was primarily due to increases of $8.4 million and $1.5 million in employee related costs and stock-based compensation expense, respectively, driven by a 5% increase in headcount. Additionally, we had an increase of $0.6 million in enterprise software expenses. The increase was partially offset by decreases of $2.1 million in workforce reorganization expenses and $1.0 million in contractors and consulting services. Sales and marketing expenses as a percentage of revenue decreased by approximately 200 basis points year-over-year.

Previous wording

The $3.7 million decrease for the three months ended April 30, 2026, was primarily due to a decrease in interest income on cash and cash equivalents and short-term investments. This decrease was driven by lower average cash and short-term investment balances, primarily resulting from the settlement of convertible notes in January 2026 and repurchases of common stock, along with lower interest rates on our investments.

Current wording

The $3.9 million and $7.6 million decreases for the three and six months ended July 31, 2026, respectively, were primarily due to decreases in interest income on cash and cash equivalents and short-term investments. These decreases were driven by lower average cash and short-term investment balances, primarily resulting from the settlement of convertible notes in January 2026 and repurchases of common stock, along with lower interest rates on our investments.

Previous wording

The $0.3 million decrease for the three months ended April 30, 2026, was primarily due to a decrease in amortization of convertible debt issuance costs due to the maturity of convertible notes in January 2026.

Current wording

The $0.3 million and $0.6 million decreases for the three and six months ended July 31, 2026, respectively, were primarily due to decreases in amortization of convertible debt issuance costs due to the maturity of convertible notes in January 2026.

Previous wording

The $3.3 million decrease for the three months ended April 30, 2026 was primarily due an increase of $3.4 million in net foreign currency losses.

Current wording

The $0.3 million and $3.6 million decreases for the three and six months ended July 31, 2026, respectively, were primarily due to increases of $0.3 million and $3.7 million, respectively, in net foreign currency losses.

Previous wording

The $4.8 million increase for the three months ended April 30, 2026 was primarily due to increased profitability and tax shortfalls on stock-based compensation.

Current wording

The $2.3 million and $7.2 million increases for the three and six months ended July 31, 2026, respectively, were primarily due to increased profitability and a change from tax windfalls to tax shortfalls on stock-based compensation, partially offset by lower U.S. tax on foreign earnings.

Previous wording

As of April 30, 2026, we had cash and cash equivalents, restricted cash, and short-term investments of $478.6 million. During the three months ended April 30, 2026, we generated operating cash flow of $140.2 million. Since our inception, we have financed our operations primarily through equity financing, cash generated from operations and debt financing. We believe our existing cash, cash equivalents, and short-term investments, together with our credit facility, will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months and beyond. Our long-term capital requirements will depend on many factors including our growth rate, subscription renewal activity, billing frequency, public cloud obligations, repayment or refinancing of our debt obligations, settlement of our convertible senior notes and convertible preferred stock, the timing and extent of spending to support development efforts, the expansion of international activities, the introduction of new and enhanced service offerings, and the continuing market acceptance of our services. We may in the future enter into arrangements to acquire or invest in complementary businesses, services and technologies, including intellectual property rights. We may be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all.

Current wording

As of July 31, 2026, we had cash and cash equivalents, restricted cash, and short-term investments of $445.6 million. During the six months ended July 31, 2026, we generated operating cash flow of $211.0 million. Since our inception, we have financed our operations primarily through equity financing, cash generated from operations and debt financing. We believe our existing cash, cash equivalents, and short-term investments, together with our credit facility, will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months and beyond. Our long-term capital requirements will depend on many factors including our growth rate, subscription renewal activity, billing frequency, public cloud obligations, repayment or refinancing of our debt obligations, settlement of our convertible senior notes and convertible preferred stock, the timing and extent of spending to support development efforts, the expansion of international activities, the introduction of new and enhanced service offerings, and the continuing market acceptance of our services. We may in the future enter into arrangements to acquire or invest in complementary businesses, services and technologies, including intellectual property rights. We may be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all.

Previous wording

For the three months ended April 30, 2026 and 2025, our cash flows were as follows (in thousands):

Current wording

For the six months ended July 31, 2026 and 2025, our cash flows were as follows (in thousands):

Previous wording

The $13.1 million increase in net cash provided by operating activities for the three months ended April 30, 2026 compared to the three months ended April 30, 2025 was primarily due to a $15.2 million increase in non-cash items and a $9.5 million increase in net income, partially offset by an $11.6 million decrease in net cash provided from changes in operating assets and liabilities.

Current wording

The $38.0 million increase in net cash provided by operating activities for the six months ended July 31, 2026 compared to the six months ended July 31, 2025 was primarily due to an increase of $22.8 million in non-cash items and an increase of $15.3 million in net income.

Previous wording

The $15.2 million increase in non-cash items was primarily due to an $8.1 million decrease in unrealized loss from foreign currency remeasurement, a $5.0 million increase in deferred income tax benefit, a $2.4 million increase in depreciation and amortization expense driven by an increase in amortization of capitalized software, and a $1.4 million increase in stock-based compensation expense driven by an increase in headcount. The increase was partially offset by a $2.2 million decrease in gains from foreign currency forward contracts not designated as cash flow hedges.

Current wording

The $22.8 million increase in non-cash items was primarily due to a $7.9 million increase in unrealized loss from foreign currency remeasurement, a $4.6 million increase in deferred income tax expense, a $4.6 million increase in depreciation and amortization expense driven by an increase in amortization of capitalized software, a $2.5 million increase in losses from foreign currency forward contracts not designated as cash flow hedges, and a $2.0 million increase in stock-based compensation expense driven by an increase in headcount.

Previous wording

The $11.6 million decrease in net cash provided from changes in operating assets and liabilities was primarily due to a $13.0 million change in accounts payables and accruals due to timing of payments and an $8.3 million change in other assets due to the timing of prepayments. The decrease was partially offset by a $10.5 million change in accounts receivable due to timing of our cash collections.

Current wording

The increase in net cash provided by operating activities was further adjusted by a $0.1 million increase in net cash outflows due to changes in our operating assets and liabilities, which was primarily due to an $8.5 million change in other assets due to the timing of prepayments, a $5.4 million change in deferred commissions resulting from capitalization of incremental commissions paid to our sales force, and a $1.9 million change in operating lease liabilities due to recurring lease payments. These changes were partially offset by an $11.6 million change in deferred revenue due to the timing of revenue recognition and a $3.9 million change in accounts receivable due to timing of our cash collections.

Previous wording

The $4.2 million decrease in net cash used in investing activities for the three months ended April 30, 2026 compared to the three months ended April 30, 2025 was primarily due to a $6.2 million decrease driven by the timing of purchases of short-term investments, partially offset by a $1.4 million increase in capitalized software costs driven by increased projects and a $1.0 million increase in purchases of property and equipment, net of sale proceeds, driven by build outs for office spaces.

Current wording

The $1.3 million increase in net cash used in investing activities for the six months ended July 31, 2026 compared to the six months ended July 31, 2025 was primarily due to a $4.3 million increase in capitalized software costs driven by increased projects, partially offset by a $1.5 million decrease in purchases of short-term investments driven by the timing, a $0.8 million decrease in purchases of property and equipment, net of sale proceeds driven by reduced office space build out expenses, and a $0.7 million increase in maturities of short-term investments.

Previous wording

The $64.1 million increase in net cash used in financing activities for the three months ended April 30, 2026 compared to the three months ended April 30, 2025 was primarily due to a $66.7 million increase in repurchases of our common stock, partially offset by a $4.4 million decrease in employee payroll taxes paid related to net share settlement of stock awards.

Current wording

The $89.4 million increase in net cash used in financing activities for the six months ended July 31, 2026 compared to the six months ended July 31, 2025 was primarily due to a $96.1 million increase in repurchases of our common stock, partially offset by a $10.5 million decrease in employee payroll taxes paid related to net share settlement of stock awards driven by our stock price on the date of vest.

Previous wording

Our Board of Directors has authorized a share repurchase plan to opportunistically repurchase shares of our outstanding Class A common stock in open market transactions. On March 19, 2026, we announced that our Board of Directors authorized a $500 million expansion of the share repurchase plan. During the three months ended April 30, 2026, we repurchased 4.8 million shares at a weighted average price of $23.74 per share for a total amount of $114.4 million. As of April 30, 2026, approximately $445 million remained authorized and available for additional repurchases.

Current wording

Our Board of Directors has authorized a share repurchase plan to opportunistically repurchase shares of our outstanding Class A common stock in open market transactions. On March 19, 2026, we announced that our Board of Directors authorized a $500 million expansion of the share repurchase plan. During the three months ended July 31, 2026, we repurchased 2.6 million shares at a weighted average price of $25.84 per share for a total amount of $66.4 million. During the six months ended July 31, 2026, we repurchased 7.4 million shares at a weighted average price of $24.47 per share for a total amount of $180.7 million. As of July 31, 2026, approximately $378 million remained authorized and available for additional repurchases.

Previous wording

There have been no material changes to our critical accounting estimates during the three months ended April 30, 2026 from those disclosed in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended January 31, 2026.

Current wording

There have been no material changes to our critical accounting estimates during the six months ended July 31, 2026 from those disclosed in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended January 31, 2026.