Slides
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Second Quarter Fiscal FY26 Financial Results August 26, 2025
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Forward-looking statements & non-GAAP financial measures This presentation contains forward-looking statements that involve risks, uncertainties, and assumptions, including statements regarding Box’s expectations regarding its growth and profitability, the size of its market opportunity, its investments in go-to-market programs, the demand for its products, the potential of AI and its impact on Box, the timing of recent and planned product introductions, enhancements and integrations, the short- and long-term success, market adoption and retention, capabilities, and benefits of such product introductions and enhancements, the success of strategic partnerships and acquisitions,the impact of macroeconomic conditions on its business, its ability to grow and scale its business and drive operating efficiencies, the impact of fluctuations in foreign currency exchange rates on its future results, its net retention rate, its ability to achieve revenue targets and billings expectations, its revenue and billings growth rates, its ability to expand operating margins, its long-term financial targets, its ability to achieve profitability on a quarterly or ongoing basis, its free cash flow, its ability to continue to grow unrecognized revenue and remaining performance obligations, its revenue, billings, GAAP and non-GAAP gross margins, GAAP and non-GAAP net income per share, GAAP and non-GAAP operating margins, the related components of GAAP and non-GAAP net income per share, weighted-average outstanding share count expectations for Box’s fiscal third quarter and full fiscal year 2026, equity burn rate, any potential repurchase of its common stock, whether, when, in what amount and by what method any such repurchase would be consummated, and the share price of any such repurchase. There are a significant number of factors that could cause actual results to differ materially from statements made in this presentation, including: (1) adverse changes in general economic or market conditions, including those caused by changes in tariffs, sanctions, international treaties, export/import laws and other trade restrictions, theRussia-Ukraine conflict and the conflict in the Middle East, inflation, and fluctuations in foreign currency exchange rates; (2) delays or reductions in information technology spending; (3) factors related to Box’s highly competitive market, including but not limited to pricing pressures, industry consolidation, entry of new competitors and new applicationsand marketing initiatives by Box’s current or future competitors; (4) the development of the intelligent content management market; (5) the risk that Box’s customers do not renew their subscriptions, expand their use of Box’s services, or adopt new products offered by Box on a timely basis, or at all; (6) Box’s ability to provide timely and successful enhancements, integrations, new features and modifications to its platform and services; (7) actual or perceived security vulnerabilities in Box’s services or any breaches of Box’s security controls; (8) Box’s ability to realize the expected benefits of its third-party partnerships; and (9) Box’s ability to successfully integrate acquired businesses and achieve the expected benefits from those acquisitions. Further information on these and other factors that could affect the forward-looking statements we make in this presentation can be found in the documents that we file with or furnish to the US Securities and Exchange Commission, including Box's most recent Quarterly Report on Form 10-Q filed for the fiscal quarter ended April 30, 2025. In addition, the preliminary financial results set forth in this presentation are estimates based on information currently available to Box. While Box believes these estimates are meaningful, they could differ from the actual amounts that Box ultimately reports in its Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2025. Box assumes no obligations and does not intend to update these estimates prior to filing its Form 10-Q for the fiscal quarter ended July 31, 2025. You should not rely on any forward-looking statements, and Box assumes no obligation, nor do we intend, to update them. All information in this presentation is as of August 26, 2025. This presentation contains non-GAAP financial measures and key metrics relating to the company's past and expected future performance. You can find the reconciliation of these measures to the nearest comparable GAAP financial measures in the appendix at the end of this presentation. The company has not reconciled certain of the non-GAAP measures in its long term operating model to their most directly comparable GAAP measure because certain adjustments cannot be predicted with a reasonabledegree of certainty and the amount recognized can vary significantly. Accordingly, a reconciliation is not available without unreasonable efforts.
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Revenue growth driven by Suites momentum Note: $ values are shown in millions. Box fiscal year ends January 31. $270 $276 $280 $276 $294 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 3
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RPO supports enduring growth and revenue visibility Driven by strong contract durations $1,272 $1,282 $1,466 $1,469 $1,476 $723 $737 $815 $812 $812 $549 $545 $651 $657 $664 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Total RPO up 16% YoY (up 16% in constant currency) Note: $ values are shown in millions. Remaining performance obligations (RPO) represent, at a point in time, contracted revenue that has not yet been recognized. RPO consists of deferred revenue and backlog, offset by contract assets. Box does not consider RPO to be a non-GAAP financial measure becauseit is calculated in accordance with GAAP. Long-Term RPO ($M) Short-Term RPO ($M) 4 +21% YoY +12% YoY
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Billings and deferred revenue Billings up 3%* YoY (up 6% in constant currency) Deferred revenue up 9%* YoY (up 9% in constant currency) Note: $ values are shown in millions. *Reconciliations of billings to revenue, deferred revenue, and contract assets calculated in accordance with GAAP can be found in the Appendix of this presentation. $256 $265 $399 $242 $265 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 $502 $491 $609 $574 $547 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 5
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Delivering leverage through gross margin expansion Cloud infrastructure strategy delivers long-term gross margin stability Non-GAAP gross margin 81.6% 81.9% 81.0% 80.5% 81.4% Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 *Excluding the tailwind from data center equipment sales in Q2’25, Q2’26 gross margin would have been up 40 bps year-over-year. Note: A reconciliation of non-GAAP gross margin to the nearest GAAP financial measures can be found in the Appendix of this presentation. Down 20 bps YoY* 6
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Delivering strong operating margins Making strategic investments in key GTM initiatives and our leading ICM platform in FY26 Note: A reconciliation of non-GAAP operating margin to the nearest GAAP financial measures can be found in the Appendix of this presentation. Non-GAAP operating margin 28.4% 29.1% 27.3% 25.3% 28.6% Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Up 20 bps YoY 7
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Cash, cash equivalents, restricted cash, and short-term investments Note: $ values are shown in millions. $ 792 $ 46 $ 9 $ 65 $ 4 $ 760 Q1'26 CFO CFI CFF FX Q2'26 8
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Share repurchase program • In Q2, the Company repurchased approximately 1.2 million shares of Box’s Class A common stock for approximately $40 million. • As of July 31, 2025, the Company had approximately $112 million of remaining Board- approved buyback capacity under the current plan. 9
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Proven business model focused on driving growth and profitability FY’23 FY’24 FY’25 Annual Revenue Growth + FCF Margin 37% 31% 33% YoY Revenue Growth 13% 5% 5% Non-GAAP Gross Margin 77% 77% 81% Non-GAAP S&M as a % of Revenue 28% 27% 28% Non-GAAP R&D as a % of Revenue 18% 17% 17% Non-GAAP G&A as a % of Revenue 9% 8% 8% Non-GAAP Operating Margin 23% 25% 28% Note: Gross Margin, S&M as a % of revenue, R&D as a % of revenue, G&A as a % of revenue, Operating Margin, and Free Cash Flow Margin are non-GAAP financial measures. A reconciliation to their nearest GAAP financial measures can be found in the Appendix of this presentation. Q2’26 N/A 9% 81% 28% 17% 8% 29% 10 Q1’26 N/A 4% 80% 29% 18% 9% 25%
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Guidance and Outlook
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Q3 and fiscal year 2026 guidance Q3’26 Q3’26 (constant currency) Non-cash deferred income tax expense (1) FY26 FY26 (constant currency) Non-cash deferred income tax expense (1) Revenue $298 to $299 million -- -- $1.170 to $1.175 billion -- -- Year-over-Year growth +8% +7% -- +8% +7% -- GAAP operating margin Approximately 8% Approximately 8% -- Approximately 7% Approximately 7% -- Non-GAAP operating margin Approximately 28% Approximately 28% -- Approximately 28% Approximately 28% -- GAAP EPS (diluted) 5¢ - 6¢ 4¢ - 5¢ 5¢ 18¢ - 20¢ 14¢ - 16¢ 19¢ Non-GAAP EPS (diluted) 31¢ - 32¢ 30¢ - 31¢ 14¢ $1.26 - $1.28 $1.22 - $1.24 58¢ Weighted-average shares, diluted Approximately 150 million -- -- Approximately 150 million -- 12 (1) As our business has become consistently profitable, we have released valuation allowances associated with certain deferred ta x assets. Accordingly, in fiscal year 2026 we will be recognizing deferred tax expenses. This non -cash expense is reflected in our GAAP and non -GAAP diluted net income per share guidance for the third qu arter of fiscal year 2026 and full fiscal year 2026. Within the impacts presented in this table, $0. 14 and $0.58 represent the deferred tax expenses for third quarter of fiscal year 2026 and full fiscal year 2026, respectively.
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Estimated Q3 and fiscal year 2026 preferred share impact summary Q3 FY26 FY26 Amortization of preferred share issuance costs $0.5M $2.1M Preferred stock dividend $3.8M $15.0M Undistributed earnings attributable to preferred shareholders $6.0M - $6.5M $24.5M - $25.0M The impact from the above items will appear below the net income line in our P&L, and in the Earnings Per Share Note accompanying Box’s financial statements. 13
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Key Customer Metrics
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Stable net retention rate Customer stickiness driveslow full churn rate of 3% 102% 102% 102% 102% 103% Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Quarterly net retention rate 15 Note: Net retention rate is defined as the net percentage of Total Annual Recurring Revenue (Total ARR) retained from existing customers, including expansion. In calculating our net retention rate, we include only Total ARR associated with those customers who have subscribed to Box for at least 12 months. We calculate our net retention rate by dividing the current period total ARR of these customers by the prior period total ARR.
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Customers increasingly adopting Suites Strong demand for Box AI drives adoption for Enterprise Plus and Enterprise Advanced 58% 59% 60% 61% 63% Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 % of total revenue from Suites 16
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Large customer growth demonstrates strength of business model Steady growth in customers paying more than $100k annually 1,850 1,900 1,920 1,940 1,990 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Customers >$100k in average contract value +8% YoY Note: Figures are rounded. 17
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Appendix
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($ in thousands) Q2FY25 Q3FY25 Q4FY25 Q1FY26 Q2FY26 GAAP revenue $270,039 $275,913 $279,520 $276,272 $293,999 Deferred revenue, end of period 502,104 491,304 608,600 574,119 547,263 Less: Deferred revenue, beginning of period (513,572) (502,104) (491,304) (608,600) (574,119) Contract assets, beginning of period 3,345 5,481 5,909 4,160 3,662 Less: Contract assets, end of period (5,481) (5,909) (4,160) (3,662) (5,931) Billings $256,435 $264,685 $398,565 $242,289 $264,874 GAAP Revenue to Billings Reconciliation
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GAAP to Non-GAAP Reconciliation – Gross Margin ($ in thousands) Q2FY25 As a % of revenue Q3FY25 As a % of revenue Q4FY25 As a % of revenue Q1FY26 As a % of revenue Q2FY26 As a % of revenue GAAP gross margin $214,526 79.4% $220,357 79.9% $220,736 79.0% $215,599 78.0% $232,477 79.1% Add: Stock-based compensation 4,731 4,640 4,664 4,832 5,666 Add: Acquired intangible assets amortization 981 1,073 1,008 994 993 Add: Workforce reorganization - - - 894 45 Non-GAAP gross margin $220,238 81.6% $226,070 81.9% $226,408 81.0% $222,319 80.5% $239,181 81.4% ($ in thousands) FY23 As a % of revenue FY24 As a % of revenue FY25 As a % of revenue GAAP gross margin $738,318 75% $777,129 75% $862,025 79% Add: Stock-based compensation 17,816 19,111 18,656 Add: Acquired intangible assets amortization 5,808 5,838 4,214 Add: Workforce reorganization - 912 - Non-GAAP gross margin $761,942 77% $802,990 77% $884,895 81%
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GAAP to Non-GAAP Reconciliation — Operating Expenses ($ in thousands) FY23 As a % of revenue FY24 As a % of revenue FY25 As a % of revenue Q1FY26 As a % of revenue GAAP research and development $243,529 25% $248,767 24% $264,853 24% $72,301 26% Less: Stock-based compensation (68,900) (70,240) (77,557) (18,806) Less: Acquisition-related expenses - - (102) - Less: Workforce reorganization - - - (3,847) Non-GAAP research and development $174,629 18% $178,527 17% $187,194 17% $49,648 18% GAAP sales and marketing $331,400 33% $348,638 34% $380,154 35% $99,099 36% Less: Stock-based compensation (58,448) (65,886) (75,281) (17,867) Less: Workforce reorganization - - - (2,008) Non-GAAP sales and marketing $272,952 28% $282,752 27% $304,873 28% $79,224 29% GAAP general and administrative $126,549 13% $128,971 12% $137,384 13% $37,861 14% Less: Stock-based compensation (40,468) (43,546) (47,509) (13,389) Less: Acquisition-related expenses (53) (120) (276) - Less: Fees related to shareholder activism 77 - - - Less: Expenses related to litigation (722) (361) (419) (421) Less: Workforce reorganization - - - (374) Non-GAAP general and administrative $85,383 9% $84,944 8% $89,180 8% $23,677 9% Q2FY26 As a % of revenue $71,717 24% (21,380) - (417) $49,920 17% $102,198 35% (19,679) 53 $82,572 28% $37,984 13% (14,033) (270) - (334) (643) $22,704 8%
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GAAP to Non-GAAP Reconciliation — Operating Margin ($ in thousands) Q2FY25 As a % of revenue Q3FY25 As a % of revenue Q4FY25 As a % of revenue Q1FY26 As a % of revenue Q2FY26 As a % of revenue GAAP operating margin $20,280 7.5% $23,411 8.5% $17,936 6.4% $6,338 2.3% $20,578 7.0% Add: Stock-based compensation 55,111 55,584 57,146 54,894 60,758 Add: Acquired intangible assets amortization 981 1,073 1,008 994 993 Add: Acquisition-related expenses 293 50 35 - 270 Add: Expenses related to litigation 25 72 243 421 334 Add: Workforce reorganization - - - 7,123 1,052 Non-GAAP operating margin $76,690 28.4% $80,190 29.1% $76,368 27.3% $69,770 25.3% $83,985 28.6% ($ in thousands) FY23 As a % of revenue FY24 As a % of revenue FY25 As a % of revenue GAAP operating margin $36,840 4% $50,753 5% $79,634 7% Add: Stock-based compensation 185,632 198,783 219,003 Add: Acquired Intangible assets amortization 5,808 5,838 4,214 Add: Acquisition-related expenses 53 120 378 Add: Fees related to shareholder activism (77) - - Add: Expenses related to litigation 722 361 419 Add: Workforce reorganization - 912 - Non-GAAP operating margin $228,978 23% $256,767 25% $303,648 28%
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GAAP to Non-GAAP Reconciliation — Free Cash Flow ($ in thousands) FY23 As a % of revenue FY24 As a % of revenue FY25 As a % of revenue GAAP net cash provided by operating activities $297,982 30% $318,727 31% $332,257 30% Less: Purchases of property and equipment (5,034) (4,703) (2,573) Add: Proceeds from sales of property and equipment 601 2,860 8,395 Less: Principal payments of finance lease liabilities (40,353) (30,176) (2,141) Less: Capitalized internal-use software costs (14,751) (17,742) (31,332) Free cash flow $238,445 24% $268,966 26% $304,606 28%
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GAAP to Non-GAAP Reconciliation — EPS Outlook Three Months Ended October 31, 2025 Fiscal Year Ended January 31, 2026 GAAP net income per share attributable to common stockholders, diluted $0.05 - $0.06 $0.18 - $0.20 Stock-based compensation 0.38 1.53 Acquired intangible assets amortization 0.01 0.03 Expenses related to litigation - 0.02 Amortization of debt issuance costs 0.01 0.02 Workforce reorganization - 0.06 Income tax effects of non-GAAP adjustments (1) (0.11) (0.44) Undistributed earnings attributable to preferred stockholders (0.03) (0.14) Non-GAAP net income per share attributable to common stockholders, diluted $0.31 - $0.32 $1.26 - $1.28 Weighted-average shares, diluted 150,000 150,500 (1) Non-GAAP tax provision uses a long-term projected tax rate of 26.8%, which reflects currently available information and could be subject to change.
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GAAP to Non-GAAP Reconciliation — Operating Margin Outlook Three Months Ended October 31, 2025 Fiscal Year Ended January 31, 2026 GAAP operating margin 8.0% 7.0% Add: Stock-based compensation 19.5% 19.5% Add: Acquired intangible assets amortization 0.5% 0.5% Add: Other (1) - 1.0% Non-GAAP operating margin 28.0% 28.0% (1) Other includes workforce reorganization and expenses related to litigation.