Executive Summary
Box Inc. delivered a modest year-over-year revenue uptick in QQ1 2026, with revenue of USD 276.272 million and a solid gross margin of 78.0%. The quarter showcased meaningful cash flow generation, including operating cash flow of USD 127.059 million and free cash flow of USD 118.299 million, supporting a strong cash balance of USD 691.279 million. Despite earnings momentum on a cash basis, reported profitability remains modest, with operating income of USD 6.338 million (2.29% operating margin) and net income of USD 8.194 million (2.97% net margin). The company also benefits from a substantial deferred revenue balance, underscoring revenue visibility and recurring revenue characteristics typical of SaaS models. On the balance sheet, Box carries total debt of USD 724.957 million and net debt of USD 35.329 million, against a robust asset base of USD 1.641 billion and substantial liquidity. While the top-line growth is modest (YoY revenue +4.39%), the strength in gross margins and cash generation provides optionality to accelerate product development, expand go-to-market efforts, and pursue selective acquisitions or partnerships if strategically favorable. Investors should monitor progress toward operating leverage, renewal/retention dynamics, and the trajectory of deferred revenue as visibility and renewal rates evolve.
Key Performance Indicators
QoQ: -64.66% | YoY:-64.80%
QoQ: -95.78% | YoY:-52.42%
QoQ: -98.29% | YoY:-83.33%
Key Insights
Revenue: USD 276.272m; YoY +4.39%; QoQ -1.16%
Gross Profit: USD 215.599m; YoY +4.45%; QoQ -2.33%; Gross Margin 78.04%
Operating Income: USD 6.338m; YoY -64.80%; QoQ -64.66%; Operating Margin 2.29%
Net Income: USD 8.194m; YoY -52.42%; QoQ -95.78%; Net Margin 2.97%
EPS: USD 0.02; YoY -83.33%; QoQ -98.29%
EBITDA: USD 22.736m; EBITDA Margin 8.23%
Cash Flow: CFO USD 127.059m; Capex USD -8.76m; Free Cash Flow USD 118.299m
Balance Sheet: Cash & equivalents USD 689.628m; Short-term investments USD 1...
Financial Highlights
Revenue: USD 276.272m; YoY +4.39%; QoQ -1.16%
Gross Profit: USD 215.599m; YoY +4.45%; QoQ -2.33%; Gross Margin 78.04%
Operating Income: USD 6.338m; YoY -64.80%; QoQ -64.66%; Operating Margin 2.29%
Net Income: USD 8.194m; YoY -52.42%; QoQ -95.78%; Net Margin 2.97%
EPS: USD 0.02; YoY -83.33%; QoQ -98.29%
EBITDA: USD 22.736m; EBITDA Margin 8.23%
Cash Flow: CFO USD 127.059m; Capex USD -8.76m; Free Cash Flow USD 118.299m
Balance Sheet: Cash & equivalents USD 689.628m; Short-term investments USD 100.777m; Total cash & investments USD 790.405m; Total assets USD 1.641b; Total liabilities USD 1.427b; Stockholders’ equity USD 214.583m; Net debt USD 35.329m; Deferred Revenue (current) USD 557.345m; Total debt USD 724.957m; Goodwill USD 80.526m; Working capital dynamics imply solid liquidity and ongoing investment in product/scale.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
276.27M |
4.39% |
-1.16% |
| Gross Profit |
215.60M |
4.45% |
-2.33% |
| Operating Income |
6.34M |
-64.80% |
-64.66% |
| Net Income |
8.19M |
-52.42% |
-95.78% |
| EPS |
0.02 |
-83.33% |
-98.29% |
Management Commentary
Note: Earnings call transcript data are not provided in the input. No management quotes or thematic highlights from an earnings call are available for extraction.
Forward Guidance
No explicit forward guidance was provided in the supplied data. Given Box’s liquidity position and robust free cash flow generation, the company could prioritize reinvestment in product development, GTM initiatives, and platform expansion to drive ARR growth. Investors should monitor: (1) revenue growth trajectory and ARR expansion, (2) progression toward operating leverage as operating expenses scale with revenue, (3) renewal rates and customer retention, (4) management’s commentary on roadmap milestones and potential go-to-market initiatives, and (5) balance sheet flexibility supported by cash, investments, and debt levels.