Box Inc. reported its financial results for the third quarter of fiscal year 2026, revealing a revenue increase of 9% year-over-year, reaching $301.1 million compared to $275.9 million in the same period last year. The company's gross profit for the quarter was $239.5 million, resulting in a gross margin of 79.6%, slightly down from 79.9% in the prior year. Operating income was $25.1 million, with an operating margin of 8.3%, compared to $23.4 million and 8.5% in the previous year. Net income attributable to common stockholders was $6.9 million, or $0.05 per share, consistent with the prior year's earnings per share.
In terms of operational metrics, Box's remaining performance obligations (RPO) increased by 18% year-over-year to $1.5 billion, indicating strong future revenue potential. The company also reported a net retention rate of 104%, reflecting its ability to retain and expand revenue from existing customers. However, the company faced challenges from macroeconomic factors, including inflation and foreign exchange fluctuations, which impacted customer budgets and sales cycles.
Strategically, Box has been focusing on product innovation and expansion. The company launched several new features and services, including Box Extract and Box Automate, aimed at enhancing its Intelligent Content Management platform. Additionally, Box introduced its Enterprise Advanced plan, which offers enhanced capabilities to customers. The company also conducted a workforce reorganization, incurring charges of approximately $8.3 million, aimed at aligning resources with strategic priorities.
Box's cash flow from operating activities for the quarter was $73.0 million, a 17% increase from the previous year. The company reported a non-GAAP free cash flow of $61.4 million, up 7% year-over-year. As of October 31, 2025, Box had cash, cash equivalents, and short-term investments totaling $731.3 million, which the company believes will be sufficient to meet its working capital needs for at least the next 12 months. Looking ahead, Box anticipates continued growth driven by its product offerings and customer expansion, despite potential challenges from the broader economic environment.
About BOX INC
Box, Inc. provides a cloud-based Intelligent Content Management (ICM) platform that enables organizations to securely manage, collaborate on, and govern unstructured content throughout its lifecycle. Its SaaS offerings include secure file sharing, workflow automation, e-signatures, and AI-powered content insights, serving primarily large enterprises across various industries. Box’s platform integrates with over 1,500 applications, emphasizing enterprise-grade security, compliance, scalability, and extensibility through APIs and developer tools.
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