Box Inc. Reports 9% Revenue Growth to $294M in Q2 Fiscal 2026

Box Inc. reported its financial results for the second quarter of fiscal year 2026, revealing a revenue of $294.0 million, a 9% increase from $270.0 million in the same period last year. For the six months ending July 31, 2025, total revenue reached $570.3 million, up from $534.7 million in the prior year, marking a 7% year-over-year growth. The company’s gross profit for the quarter was $232.5 million, with a gross margin of 79.1%, slightly down from 79.4% in the previous year. Operating income was reported at $20.6 million, with a corresponding operating margin of 7.0%, compared to 7.5% in the same quarter last year.

Box's financial performance reflects a strategic focus on expanding its customer base and enhancing product offerings. The company reported a 16% increase in remaining performance obligations, totaling $1.5 billion as of July 31, 2025, compared to $1.3 billion a year earlier. This growth was attributed to increased deployments among existing customers and the introduction of new products, including the Enterprise Advanced plan, which offers enhanced features and capabilities. The company also noted a net retention rate of 103%, indicating a stable revenue stream from existing customers.

Operationally, Box has seen a rise in its workforce, with a 14% increase in headcount contributing to higher research and development expenses, which totaled $71.7 million for the quarter. The company is investing in its Intelligent Content Management platform, which includes new features aimed at improving customer experience and operational efficiency. Additionally, Box has been expanding its international presence, particularly in Japan, where it has seen significant revenue growth.

In terms of cash flow, Box generated $173.0 million from operating activities during the first half of the fiscal year, a slight increase from $167.5 million in the same period last year. The company’s cash and cash equivalents, along with short-term investments, totaled $759.6 million as of July 31, 2025. Box has also been active in share repurchases, buying back 2.8 million shares for $89.8 million during the first half of the fiscal year, with $112.1 million remaining under its repurchase authorization.

Looking ahead, Box anticipates continued growth driven by its strategic initiatives and product innovations. However, the company acknowledged potential challenges from macroeconomic factors, including inflation and geopolitical tensions, which could impact customer spending and sales cycles. Despite these uncertainties, Box remains optimistic about its ability to navigate the evolving market landscape and maintain its competitive position in the Intelligent Content Management sector.