Box Stock Earnings Reports

Box reported a solid Q3 FY2025 with revenue of $276M (up 5% YoY, 6% constant-currency), record gross margin (~82%) and record operating margin (~29%). Key subscription health metrics: RPO $1.3B (up 13% YoY), ~1,900 customers paying ≥$100k (up 8% YoY), net retention ~102% and annualized full churn ~3%. Management emphasized strong early customer adoption of Box AI and Suites (Enterprise Plus) and unveiled a major product expansion—Enterprise Advanced—bringing Box Apps (no-code workflow apps), Box Forms, Box Doc Gen, Box AI Studio (custom AI agents), Box Metadata Extract and Box Archive to address larger, legacy ECM takeouts and workflow automation. Enterprise Advanced is expected to command a 20–40% price uplift versus Enterprise Plus on a like-for-like volume basis and is targeted to drive more platform and API revenue over FY26 and beyond. Financial outlook: Q4 revenue guide ~$279M (≈6% YoY), FY25 revenue guide ~$1.09B (~5% YoY, 7% constant-currency), FY25 non-GAAP operating margin ~28% and non-GAAP EPS ~$1.70; management warned of incremental FX headwinds (~190 bps on revenue vs prior expectation) and ~$12M billings impact for the year. Capital allocation: $699M cash on hand, recent convertible debt raise (~$460M gross), ~$205M net proceeds, ~$30M in share repurchases in Q3 with ~$95M remaining authorization; management plans continued targeted investment, tuck-in M&A and buybacks while sustaining profitability.