Box Inc delivered a resilient fourth quarter of fiscal 2025, with revenue of USD 279.5 million, representing a year-over-year growth of 6.3% and a modest sequential uptick of 1.3%. The company maintained a very healthy gross margin of approximately 79.0%, contributing to an EBITDA of USD 35.7 million and an operating income of USD 17.9 million (operating margin ~6.4%). The standout aspect of the quarter is an unusually large negative income tax expense, resulting in net income of USD 194.0 million and an EPS of USD 1.17 (basic) / USD 1.12 (diluted). This tax effect creates an outsized net income figure that may not be repeatable on a recurring basis and warrants closer scrutiny when modeling future periods.
Cash generation remained a strength, with USD 102.2 million of net cash from operating activities and USD 92.9 million of free cash flow in the quarter. Box ended the period with USD 626.1 million in cash and cash equivalents, and a total cash-related balance of USD 722.8 million when including short-term investments. Net debt stood at approximately USD 96.7 million, underscored by strong liquidity as reflected in a current ratio of 1.14x and an interest coverage of about 6.3x. The balance sheet carries a notable item: preferred stock of USD 494.2 million, alongside a negative retained earnings position, which influences the equity base and capital structure dynamics to watch going forward.
From a performance standpoint, the quarterly trajectory shows a consistent but modest revenue ramp across the four quarters of 2025, hinting at steady demand for Box’s cloud content management platform and adjacent security/compliance features. However, the near-term profitability will hinge on achieving sustainable operating margin expansion and a disciplined cost structure as Box scales business mix and enters larger enterprise deals. Investors should monitor management’s commentary on go-to-market efficiency, international expansion, product gymnasiums (security/compliance), and any non-recurring tax items that may distort quarterly results.