Box Inc. Reports 4% Revenue Growth to $276.3 Million, Operating Income Declines

Box Inc. reported its financial results for the three months ending April 30, 2025, revealing a revenue of $276.3 million, a 4% increase from $264.7 million in the same period last year. The company’s gross profit for the quarter was $215.6 million, maintaining a gross margin of 78%. However, Box's operating income decreased to $6.3 million from $18 million year-over-year, resulting in an operating margin of 2.3%. Net income attributable to common stockholders was $3.5 million, or $0.02 per share, down from $11.5 million, or $0.08 per share, in the prior year.

The company experienced a significant increase in its remaining performance obligations, which rose 21% to $1.5 billion compared to $1.2 billion a year earlier. This growth was attributed to expansion within existing customer accounts and the addition of new customers. However, Box noted that macroeconomic factors, including inflation and currency fluctuations, have led to increased scrutiny on larger deals and a slowdown in customer spending, which may impact future growth.

In terms of operational metrics, Box's net cash provided by operating activities was $127.1 million, slightly down from $131.2 million in the previous year. The company also reported a non-GAAP free cash flow of $118.3 million, a decrease of 4% from $123.2 million in the same quarter last year. The decline in free cash flow was primarily driven by lower operating cash flows and increased capitalized internal-use software costs.

Strategically, Box has been focusing on enhancing its product offerings, launching the Enterprise Advanced plan in January 2025, which includes several new features aimed at improving customer experience and operational efficiency. The company also undertook a workforce reorganization, incurring approximately $7.1 million in related costs, as part of its efforts to align resources with strategic priorities. Looking ahead, Box anticipates continued challenges from the macroeconomic environment but remains optimistic about its ability to leverage its Intelligent Content Management platform to drive productivity and reduce costs for its customers.