Box: Fiscal 1Q27 Financial Results

Box, Inc., a active intelligent content management platform, announced preliminary financial results for the first quarter of fiscal year 2027, which ended April 30, 2026.“Box delivered a strong start to FY27 as organizations are increasingly turning to our Intelligent Content Management platform to unlock more value from their unstructured data with AI,” said Aaron Levie, co-founder and CEO, Box. “Customers are adopting Enterprise Advanced to manage and connect their organization’s unique content to AI agents allowing them to securely build intelligent workflows, automate work, and accelerate decision-making at scale. We are continuing to innovate rapidly across our platform and are excited by the opportunity ahead as we remain at the center of customers’ broader AI ecosystems.”

“We delivered robust first quarter results, exceeding our guidance on revenue, billings, operating margin and net retention rate,” said Dylan Smith, co-founder and CFO, Box. “Continued customer adoption of Enterprise Advanced and our Box AI solutions are driving accelerating revenue growth and expanding operating margins. We remain focused on executing against the significant opportunity in front of us and on delivering long-term value for our shareholders.”

Fiscal First Quarter Financial Highlights
All comparisons are against the prior year comparable quarter

• Record revenue of $305.9 million, up 11%, or 10% on a constant currency basis
• Remaining performance obligations (“RPO”) of $1.6 billion, up 12%, or 16% on a constant currency basis. Short-term RPO of $880.2 million, up 8%, or 12% on a constant currency basis. Long-term RPO of $761.7 million, up 16%, or 22% on a constant currency basis
• Billings of $255.4 million, up 5%, or 13% on a constant currency basis
• GAAP gross profit of $243.2 million, or 79.5% of revenue, up from $215.6 million, or 78.0% of revenue
• Non-GAAP gross profit of $249.4 million, or 81.5% of revenue, up from $222.3 million, or 80.5% of revenue
• GAAP operating income of $27.4 million, or 9.0% of revenue, up from $6.3 million, or 2.3% of revenue
• Non-GAAP operating income of $84.7 million, or 27.7% of revenue, up from $69.8 million, or 25.3% of revenue
• GAAP diluted earnings per share (“EPS”) of $0.08, compared to $0.02, impacted by $0.01 from unfavorable foreign currency exchange rates
• Non-GAAP diluted EPS of $0.37, compared to $0.30, impacted by $0.01 from unfavorable foreign currency exchange rates
• Net cash provided by operating activities of $140.2 million, up 10%
• Non-GAAP free cash flow of $127.7 million, up 8%

Growth on a constant currency basis and impact from foreign exchange is determined by comparing current period reported results with the current results calculated using the equivalent rates in the prior period, excluding the effect of hedging.

For more information on the non-GAAP financial measures and key metrics discussed in this press release, please see the section titled, “About Non-GAAP Financial Measures and Other Key Metrics,” and the reconciliations of non-GAAP financial measures and certain key metrics to their nearest comparable GAAP financial measures at the end of this press release.

Recent Business Highlights

• Delivered wins or expansions with leading organizations across a variety of industries, including Legal (DLA Piper and Paul, Weiss, Rifkind, Wharton & Garrison LLP), Life Sciences (Alnylam Pharmaceuticals and Bioprojet Biotech), Media & Entertainment (Penguin Random House and Endemol France), Professional Services (CBRE and Cushman & Wakefield), Public Sector (State of Hawaii and County of Miami-Dade), Retail (L’Oréal Canada and Williams Sonoma), and Telecommunications (BT Group and NTT DOCOMO SOLUTIONS, Inc.)
• Recognized as a Leader in the 2026 Gartner Magic Quadrant for Document Management, validating Box’s standing in the market and reinforcing the company’s commitment to building the most secure AI-powered enterprise content platform in the industry
• Announced the new Box Agent, a unified AI engine across Box 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 control.
• Announced the general availability of Box Automate, an enterprise grade agentic workflow solution centered around content and built to dynamically route work across people, Box Agents, and enterprise systems, driving end-to-end automation and enterprise productivity at scale
• Launched a new version of the Box CLI to make it easier for anyone, including agents, to securely and programmatically interact with content in Box
• Introduced Box Markdown Editor, bringing native Markdown creation and editing directly into Box so teams can draft, review, and publish content in the same secure place where everything else already lives.
• Served as an early launch partner and announced support for Anthropic’s Claude Opus 4.7, Google’s Gemini 3.5 Flash, and OpenAI’s GPT- 5.4 & 5.5 model releases
• Announced the expansion of MCP Apps within the Box MCP server to a broader ecosystem of AI agents, including ChatGPT, Microsoft 365 Copilot, and Glean Assistant, joining our existing support for Anthropic’s Claude
• Announced a collaboration with NVIDIA Agent Toolkit, providing the necessary infrastructure layer around agents that gives them the access they need to be productive while enforcing the security and privacy controls that make them safe to deploy
• Announced the Box Agent for Gemini Enterprise is coming soon to the Agent Gallery in the Gemini Enterprise app, unifying Box’s leading Intelligent Content Management platform with Google Cloud’s advanced AI orchestration
• Hosted the annual Box State and Local Government Virtual Summit, highlighting how state and local governments are transforming operations with Box’s secure, AI-powered platform

Update on Share Repurchase Plan
In the first quarter of fiscal year 2027, Box repurchased 4.8 million shares for approximately $114 million. As of April 30, 2026, approximately $445 million of buyback capacity was remaining under Box’s current share repurchase plan. Box remains committed to opportunistically returning capital to its shareholders through an ongoing stock repurchase program.

Outlook
Approximately 35% of Box’s revenue is generated outside of the U.S., of which approximately 70% is in Japanese Yen. The following guidance includes the expected impact of FX headwinds, assuming present foreign currency exchange rates.

All forward-looking non-GAAP financial measures contained in this section titled “Outlook” exclude estimates for stock-based compensation expense, acquired intangible assets amortization, and as applicable, other special items. Box has provided a reconciliation of GAAP to non-GAAP net income per share and operating margin guidance at the end of this press release.

Q2 FY27 Guidance

• Revenue is expected to be approximately $319 million, up 9% YoY, or 10% on a constant currency basis. This includes an expected headwind of approximately 170 basis points due to FX
• GAAP operating margin is expected to be approximately 10.0% and non-GAAP operating margin is expected to be approximately 28.5%. This includes an expected headwind of approximately 100 basis points due to FX
• GAAP net income per share attributable to common stockholders is expected to be approximately $0.11. This includes an expected headwind of approximately $0.03 due to FX
• Non-GAAP diluted net income per share attributable to common stockholders is expected to be approximately $0.39. This includes an expected headwind of approximately $0.03 due to FX
• Weighted-average diluted shares outstanding are expected to be approximately 139 million

Full Year FY27

• Revenue is expected to be approximately $1.280 billion, up 9% YoY, or 10% on a constant currency basis. This includes an expected headwind of approximately 90 basis points due to FX
• GAAP operating margin is expected to be approximately 9.0% and non-GAAP operating margin is expected to be approximately 28%. This includes an expected headwind of approximately 70 basis points due to FX
• GAAP net income per share attributable to common stockholders is expected to be approximately $0.40. GAAP EPS guidance includes an expected headwind of $0.08 due to FX
• Non-GAAP diluted net income per share attributable to common stockholders is expected to be approximately $1.56. Non-GAAP EPS guidance includes an expected headwind of $0.08 due to FX
• Weighted-average diluted shares outstanding are expected to be approximately 139 million