Box Inc. has recently released its 10-Q report, providing a detailed overview of its financial performance for the three months ended April 30, 2025. The company, headquartered in Redwood City, California, offers a cloud content management platform that enables organizations to securely manage and share their content across various devices. Box's Software-as-a-Service (SaaS) platform allows users to work with their content, improving productivity and accelerating business processes. The company's recent highlights include a 4% year-over-year revenue growth, with remaining performance obligations reaching $1.469 billion as of April 30, 2025, representing a 21% increase from the previous year.
Box's gross profit for the three months ended April 30, 2025, was $215.6 million, with a gross margin of 78.0%. However, the operating income for the same period was $6.3 million, with an operating margin of 2.3%, down from $18.0 million and 6.8% respectively for the three months ended April 30, 2024. The company reported a net cash provided by operating activities of $127.1 million for the three months ended April 30, 2025, and a non-GAAP free cash flow of $118.3 million, down 4% from the same period in the previous year.
Box Inc. also highlighted the impact of macroeconomic factors on its business, citing headwinds from foreign exchange rate trends and additional customer scrutiny on larger deals, which have led to customer churn and delayed sales cycles. The company conducted a workforce reorganization effort, resulting in charges of approximately $7.1 million in the first quarter of fiscal year 2026, primarily consisting of severance and termination benefits. Box anticipates incurring additional charges as related actions are finalized in the second quarter of fiscal year 2026.
The company's key business metrics include remaining performance obligations (RPO), which stood at $1.469 billion as of April 30, 2025, representing a 21% increase from the previous year. Billings for the three months ended April 30, 2025, reached $242.3 million, reflecting a 27% increase from the same period in 2024. Box Inc. also reported a non-GAAP free cash flow of $118.3 million for the three months ended April 30, 2025, down 4% from the previous year.
These figures provide a comprehensive view of Box Inc.'s financial performance and its strategic initiatives to navigate through the dynamic macroeconomic environment and align resources with its long-term priorities. Following these announcements, the company's shares moved -0.32%, and are now trading at a price of $36.7535. Check out the company's full 10-Q submission here.
