Summary
Box closed fiscal 2025 with fourth quarter revenue of $279.52 million, up 6.3% from the prior year quarter, and full year revenue of $1.09 billion, up 5.0%. Gross profit reached $220.74 million in the quarter, up 10.3%, and $862.02 million for the year, up 10.9%. Gross margin was 79.0% in the quarter, a 2.8 percentage point increase. For the full year, gross margin was 79.1%, up 4.2 percentage points. Operating income was $17.94 million in the quarter, down 15.3%, while full year operating income was $79.63 million, up 56.9%. Operating margin was 6.4% in the quarter, down 1.6 percentage points, and 7.3% for the year, up 2.4 percentage points. The quarter's operating margin decline came on higher operating expenses, even as gross margin expanded.
Net income was $194.01 million in the fourth quarter, up 95.5%, and $244.62 million for the fiscal year, up 89.6%. The quarter's net income included a net tax benefit from the release of a valuation allowance on deferred tax assets, which the company said was partially offset by preferred participation in undistributed earnings. Diluted EPS for the full year was $1.36, up 103.0%. Operating cash flow was $102.17 million in the quarter, up 14.4%, and $332.26 million for the year, up 4.2%. Non-GAAP free cash flow, a different measure, was $91.3 million in the quarter, up 12%, and $304.6 million for the year, up 13%. Deferred revenue was $608.60 million at January 31, 2025, up 3.7%. Remaining performance obligations were $1.50 billion, up 15.4%.
The quarter's business momentum centered on the Enterprise Advanced Suites plan, which packages Box Apps, Box AI Studio, and Box Doc Gen API. Box also added AI extract agents, multi-doc querying, Box Forms, and Box Doc Gen. It expanded AI availability to Business, Business Plus, and Enterprise plans and introduced Box AI Units for managing AI usage. Partnerships with Anthropic, OpenAI, Adobe, CrowdStrike, and Atlassian extended the platform's reach. Customer wins and expansions included Toyota Motor Corporation, Moelis Company, AmTrust North America, Cooley LLP, Schulte Roth Zabel, IQVIA, Parexel International, the District of Columbia Government, Texas Department of Motor Vehicles, Sony Music Entertainment, Wieden+Kennedy, and Boston Dynamics. Box was named a leader by Forrester, Gartner, and IDC. On capital return, Box repurchased about 1.3 million shares for about $43 million in the fourth quarter. About $52 million of buyback capacity remained as of January 31, 2025, and the board authorized an additional $150 million expansion on March 3, 2025.
Guidance points to slower near-term growth. For the first quarter of fiscal 2026, Box expects revenue of $274 million to $275 million, up 4% year over year, or 5% growth at the high end on a constant currency basis. The outlook includes a 120 basis point headwind from the leap year in fiscal 2025. GAAP operating margin is expected to be about 4.0%, and non-GAAP operating margin about 25%. GAAP net income per share attributable to common stockholders is expected to be $0.00 to $0.01, while non-GAAP diluted net income per share is expected to be $0.25 to $0.26. For the full fiscal year 2026, revenue is expected to be $1.155 billion to $1.160 billion, up 6% year over year. GAAP operating margin is expected to be about 7.5%, and non-GAAP operating margin about 28%. GAAP net income per share is expected to be $0.10 to $0.14, and non-GAAP diluted net income per share is expected to be $1.13 to $1.17. The company will recognize non-cash deferred tax expense in fiscal 2026, which affects both GAAP and non-GAAP EPS guidance.
Risks remain familiar for Box. Macroeconomic conditions, inflation, higher interest rates, tariffs, slower growth, a stronger dollar versus foreign currencies (especially the Japanese Yen), reductions in U.S. federal spending, and geopolitical conflicts could pressure results. Management said customers continue to scrutinize larger deals, seat expansion rates are lower, and partial churn has increased. Net retention rate was 102% as of January 31, 2025. Other risks include competition and pricing pressure, delays or reductions in IT spending, renewal and expansion challenges, security vulnerabilities, reliance on third-party partnerships, and the integration of acquisitions. The financial results are preliminary and could differ from the company's eventual Form 10-K.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $279.5M | $275.9M | +1.3% | $262.9M | +6.3% |
| Gross profit | $220.7M | $220.4M | +0.2% | $200.2M | +10.3% |
| Gross margin | 79.0% | 79.9% | -0.9 pp | 76.1% | +2.8 pp |
| Research & development | $68.9M | $67.9M | +1.5% | $61.9M | +11.2% |
| Sales & marketing | $96.8M | $95.4M | +1.5% | $85.9M | +12.7% |
| General & administrative | $37.1M | $33.7M | +10.1% | $31.2M | +18.9% |
| Total operating expenses | $202.8M | $196.9M | +3.0% | $179.0M | +13.3% |
| Operating income (loss) | $17.9M | $23.4M | -23.4% | $21.2M | -15.3% |
| Operating margin | 6.4% | 8.5% | -2.1 pp | 8.1% | -1.6 pp |
| Net income (loss) | $194.0M | $12.9M | +1404.8% | $99.2M | +95.5% |
| Net margin | 69.4% | 4.7% | +64.7 pp | 37.8% | +31.7 pp |
| Diluted EPS | $1.13 | $0.05 | +$1.08 | $0.57 | +$0.56 |
| Net retention rate | 102.0% | 102.0% | ±0.0 pp | 101.0% | +1.0 pp |
Risks
MD&A says revenue growth for FY2025 was negatively impacted by 210 basis points from foreign currency, RPO growth by 160 basis points and billings growth by 110 basis points, with the Japanese Yen decline negatively affecting results for the year ended January 31, 2025. It also cites inflation, higher interest rates, tariffs, reductions in U.S. federal spending and geopolitical conflicts as pressures that may delay sales cycles and reduce customer budgets.
The filing says sales efforts are increasingly focused on enterprise and highly regulated customers, which may lengthen and increase the cost of sales cycles and create greater pricing pressure and implementation challenges. MD&A notes continued additional customer scrutiny on larger deals and delayed sales cycles due to the challenging macroeconomic environment.
Box's growth depends on customer renewals and expansion; net retention rate was 102% as of January 31, 2025, 101% as of January 31, 2024 and 108% as of January 31, 2023. MD&A says heightened budget scrutiny is pressuring seat expansion and increased partial customer churn.
Disruptive technologies such as generative AI may fundamentally alter the market for Box services, including reduced customer demand and increased costs of doing business. Box is integrating AI into offerings such as Box AI and acquired Alphamoon technology, but third-party AI service outages or unfavorable terms could disrupt products and increase computing costs, impacting margins.
The market is intensely competitive with Microsoft, Google, OpenText and Dropbox, and some competitors offer lower-priced or free bundled products, pressuring pricing. MD&A highlights strong attach rates for multi-product Suites, particularly Enterprise Plus, but competition and pricing pressure could reduce sales and margins.
As of January 31, 2025, Box had $460.0 million of 2029 Convertible Notes and $205.0 million of 2026 Convertible Notes outstanding, and it must settle principal in cash upon conversion. This could reduce liquidity or working capital if notes are reclassified as current, and failure to repurchase or repay could cause default.
The EU AI Act and state AI bills in California and Colorado impose evolving obligations, and the January 2025 Executive Order rescinding the prior AI order creates uncertainty for AI adoption and integration. Compliance and litigation related to AI could increase costs and slow customer adoption of Box AI features.
Sales to government entities face certification requirements, public sector budget cycles and termination rights; recent efforts to reduce U.S. federal spending, a shutdown, continuing resolution, debt ceiling breach or sovereign default may limit or delay federal government spending on Box solutions.
Series A Convertible Preferred Stock has preferential liquidation rights, 3.0% cumulative compounding dividends, redemption rights after the seventh anniversary, and a make-whole premium upon certain change of control events, which could limit liquidity and additional financing. KKR has board designation and consent rights over certain actions.
Box depends on key employees and highly skilled personnel, including its direct sales force, and has expanded hiring in lower cost regions such as Poland. Failure to hire, retain and motivate personnel could impair growth and product development.
Box has migrated storage and processing to third-party public cloud facilities and has never performed a full live failover; outages or delays could trigger service credits, customer terminations and reputational harm. The filing notes past temporary unavailability that required service credits to some customers.
Success of new offerings such as Box AI, Box Hubs, Box Doc Gen, Box Forms and Enterprise Advanced depends on timely completion, market acceptance and integration with third-party systems. Failure to launch or achieve adoption could impair revenue growth and renewal rates.
SaaS KPIs
All quarters →Billings
Net Retention Rate
Non-GAAP Operating Margin
Remaining Performance Obligations (RPO)
Non-GAAP Free Cash Flow
Paying Organizations
Summary, forecast, risks and KPIs are extracted from BOX INC's SEC filings for Q4 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.