Executive Summary
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.
Key Performance Indicators
QoQ: -23.39% | YoY:-15.25%
QoQ: 1 404.77% | YoY:95.51%
QoQ: 2 099.25% | YoY:101.72%
Key Insights
Revenue: USD 279.52M, YoY +6.33%, QoQ +1.31%.
Gross Profit: USD 220.736M, Gross Margin ~78.97% (YoY +10.28%, QoQ +0.17%).
Operating Income: USD 17.936M, Operating Margin ~6.42% (YoY -15.25%, QoQ -23.39%).
Net Income: USD 194.01M, Net Margin ~69.41% (YoY +95.51%, QoQ +1404.77%).
EPS: USD 1.17 (basic), USD 1.12 (diluted); YoY growth ~101.72%, QoQ ~2099.25%.
EBITDA: USD 35.73M, EBITDA Margin ~12.78%.
Cash Flow: Operating Cash Flow USD 102.17M; Free Cash Flow USD 92.94M.
Cash/Balance: Cash at end US...
Financial Highlights
Revenue: USD 279.52M, YoY +6.33%, QoQ +1.31%.
Gross Profit: USD 220.736M, Gross Margin ~78.97% (YoY +10.28%, QoQ +0.17%).
Operating Income: USD 17.936M, Operating Margin ~6.42% (YoY -15.25%, QoQ -23.39%).
Net Income: USD 194.01M, Net Margin ~69.41% (YoY +95.51%, QoQ +1404.77%).
EPS: USD 1.17 (basic), USD 1.12 (diluted); YoY growth ~101.72%, QoQ ~2099.25%.
EBITDA: USD 35.73M, EBITDA Margin ~12.78%.
Cash Flow: Operating Cash Flow USD 102.17M; Free Cash Flow USD 92.94M.
Cash/Balance: Cash at end USD 626.11M; Total cash and short-term investments USD 722.82M; Total assets USD 1.6675B.
Leverage & Liquidity: Total debt USD 721.32M; Net debt USD 96.74M; Current ratio 1.141x; Interest coverage ~6.27x.
Shareholder Cash Activity: Stock repurchases USD -42.41M; Dividends USD -3.75M.
Valuation Signals: Price-to-book ~24.37x; Price-to-sales ~17.20x; Price-to-earnings ~6.20x; Free cash flow yield modest (FCF per share USD 0.705).
Note: A material tax benefit drove the reported net income figure in the quarter; investors should consider normalization scenarios for ongoing earnings power.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
279.52M |
6.33% |
1.31% |
| Gross Profit |
220.74M |
10.28% |
0.17% |
| Operating Income |
17.94M |
-15.25% |
-23.39% |
| Net Income |
194.01M |
95.51% |
1 404.77% |
| EPS |
1.17 |
101.72% |
2 099.25% |
Key Financial Ratios
operatingProfitMargin
6.43%
operatingCashFlowPerShare
$0.71
freeCashFlowPerShare
$0.71
dividendPayoutRatio
1.93%
Management Commentary
No earnings call transcript or management quotes were provided in the input data; as a result, there are no direct quotes to cite or themes to extract from the call. If a transcript becomes available, a subsequent update can populate this section with management commentary on strategy, product roadmap, sales execution, and market conditions.
Forward Guidance
No explicit revenue or profitability targets were disclosed in the provided data for Box’s upcoming periods. Given the strong cash generation in Q4 2025 and a trailing four-quarter revenue trend in the mid- to high-200s to around USD 279M, a plausible base case would be for Box to sustain mid-single-digit revenue growth with gradual gross margin stability around 78–80%. The critical risk is margin progression: without a clear plan to scale operating leverage (e.g., efficiency in SG&A, optimization of R&D spend relative to revenue growth, and the impact of the unusual tax benefit on reported profitability). Investors should monitor: (1) management’s guidance on ARR growth, customer acquisition/retention metrics, and enterprise deal cycles; (2) ongoing cost discipline and any non-recurring items; (3) currency and tax position developments; (4) potential capital allocation decisions including dividends, buybacks, or debt management as the balance sheet evolves.