Slides
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Second Quarter Fiscal FY27 Financial Results August 25, 2026
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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, thetiming 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 2027, 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 ongoing conflicts 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 applications and 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, 2026. 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, 2026. 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, 2026. 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 25, 2026. 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. Constant currency information is provided as a framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations. Growth on a constant currency basis and impact from foreign exchange is determined by comparing current period reported results with the current results calculated using the equivalent rates in the prior period, excluding the effect of hedging.
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Revenue growth driven by suites momentum Note: $ values are shown in millions. Box fiscal year ends January 31. $294 $301 $306 $306 $321 Q2'26 Q3'26 Q4'26 Q1'27 Q2'27 3
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Customer economics strengthening Customer economics continue to improve as customer base evolves 4 Net retention rate expanded by 3pts YoY to 106%* % of revenue from Suites increased by 6 pts YoY to 69% $100k+ customers have increased 10% YoY *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 subscrib ed 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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RPO supports enduring growth and revenue visibility Driven by strong contract durations $1,476 $1,518 $1,711 $1,642 $1,692 $812 $837 $914 $880 $905 $664 $680 $797 $762 $787 Q2'26 Q3'26 Q4'26 Q1'27 Q2'27 Total RPO up 15% YoY (up 17% 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. Figures may not sum due to rounding. Long-Term RPO ($M) Short-Term RPO ($M) 5 +18% YoY (up 22% in constant currency) +11% YoY (up 14% in constant currency)
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Billings acceleration driven by record Q2 bookings Billings up 17% YoY (up 16% in constant currency) Note: $ values are shown in millions. A reconciliations of billings to revenue, deferred revenue, and contract assets calculated in accordance with GAAP can be found in the Appendix of this presentation. $265 $296 $420 $255 $310 Q2'26 Q3'26 Q4'26 Q1'27 Q2'27 6
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Net retention rate expanding Seat expansion and Enterprise Advanced momentum driving improved net retention rate 103% 104% 104% 105% 106% Q2'26 Q3'26 Q4'26 Q1'27 Q2'27 Quarterly net retention rate 7 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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Delivering leverage through margin expansion Investing strategically in innovation and GTM to drive long-term profitable growth Note: A reconciliation of non-GAAP operating and gross margin to the nearest GAAP financial measure can be found in the Appendix of this presentation. Non-GAAP operating margin 28.6% 28.6% 30.6% 27.7% 29.4% Q2'26 Q3'26 Q4'26 Q1'27 Q2'27 Up 90 bps YoY (100 bps FX Headwind) 8 Non-GAAP gross margin 81.4% 81.7% 82.3% 81.5% 81.2% Q2'26 Q3'26 Q4'26 Q1'27 Q2'27 Down 20 bps YoY (30 bps FX Headwind)
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Capital Allocation and Cash Flow • In Q2, the Company repurchased approximately 2.6 million shares of Box’s Class A common stock for approximately $66.4 million. • As of July 31, 2026, the Company had approximately $378 million of remaining Board- approved buyback capacity under the current plan. • As of July 31, 2026, the Company had cash, cash equivalents, restricted cash, and short- term investments of approximately $446 million. • In Q2, the Company generated approximately $60 million of free cash flow (up 67% YoY) and approximately $71 million of operating cash flow (up 54% YoY) 9Note: Free Cash Flow is a non-GAAP measure. A reconciliation to the nearest GAAP financial measure can be found in the Appendix of this presentation.
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Guidance and Outlook
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Q3 and fiscal year 2027 guidance Q3’27 Q3’27 (FX Impact) FY27 FY’27 (FX Impact) Revenue ~$329 million ~170 basis point headwind ~$1,290 million ~100 basis point headwind Year-over-Year growth 9% ~11% constant currency 10% ~11% constant currency GAAP operating margin ~10.0% ~80 basis point headwind ~9.5% ~80 basis point headwind Non-GAAP operating margin ~28.0% ~80 basis point headwind ~28.0% ~80 basis point headwind GAAP EPS (diluted) ~$0.12 ~$0.02 headwind ~$0.38 ~$0.09 headwind Non-GAAP EPS (diluted) ~$0.39 ~$0.02 headwind ~$1.54 ~$0.09 headwind Weighted-average shares, diluted ~142 million -- ~141 million -- 11
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Estimated Q3 and fiscal year 2027 preferred share impact summary Q3 FY27 FY27 Accretion and dividend on series A convertible preferred stock (GAAP and Non-GAAP) $4.3M $17.1M Undistributed earnings attributable to preferred shareholders (Non-GAAP) $7M - $8M $29M - $30M The impact from the above items will appear below the net income line in our P&L, and in the Earnings Per Share Note accompanying Box’s financial statements. 12
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Appendix
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($ in thousands) Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 GAAP revenue $293,999 $301,107 $305,875 $305,941 $321,147 Deferred revenue, end of period 547,263 545,991 656,697 605,944 595,814 Less: Deferred revenue, beginning of period (574,119) (547,263) (545,991) (656,697) (605,944) Contract assets, beginning of period 3,662 5,931 9,734 6,479 6,255 Less: Contract assets, end of period (5,931) (9,734) (6,479) (6,255) (7,766) Billings $264,874 $296,032 $419,836 $255,412 $309,506 GAAP Revenue to Billings Reconciliation
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GAAP to Non-GAAP Reconciliation – Gross Margin ($ in thousands) Q2FY26 As a % of revenue Q3FY26 As a % of revenue Q4FY26 As a % of revenue Q1FY27 As a % of revenue Q2FY27 As a % of revenue GAAP gross margin $232,477 79.1% $239,532 79.6% $244,998 80.1% $243,206 79.5% $253,965 79.1% Add: Stock-based compensation 5,666 5,602 5,731 5,940 6,453 Add: Acquired intangible assets amortization 993 994 993 303 303 Add: Workforce reorganization 45 2 84 - - Non-GAAP gross margin $239,181 81.4% $246,130 81.7% $251,806 82.3% $249,449 81.5% $260,721 81.2%
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GAAP to Non-GAAP Reconciliation — Operating Margin ($ in thousands) Q2FY26 As a % of revenue Q3FY26 As a % of revenue Q4FY26 As a % of revenue Q1FY27 As a % of revenue Q2FY27 As a % of revenue GAAP operating margin $20,578 7.0% $25,063 8.3% $31,210 10.2% $27,442 9.0% $32,635 10.2% Add: Stock-based compensation 60,758 59,308 58,756 56,313 61,363 Add: Acquired intangible assets amortization 993 994 993 303 303 Add: Acquisition-related expenses 270 119 203 - - Add: Expenses related to litigation 334 470 258 333 212 Add: Workforce reorganization 1,052 150 2,304 272 - Non-GAAP operating margin $83,985 28.6% $86,104 28.6% $93,724 30.6% $84,663 27.7% $94,513 29.4%
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GAAP to Non-GAAP Reconciliation — Free Cash Flow ($ in thousands) Q2’27 GAAP net cash provided by operating activities $70,845 Less: Purchases of property and equipment, net of sale proceeds (121) Less: Capitalized software costs (10,985) Free cash flow $59,739
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GAAP to Non-GAAP Reconciliation — EPS Outlook Three Months Ended October 31, 2026 Fiscal Year Ended January 31, 2027 GAAP net income per share attributable to common stockholders, diluted $0.12 $0.38 Stock-based compensation 0.41 1.68 Acquired intangible assets amortization - 0.01 Amortization of debt issuance costs - 0.02 Other (1) 0.01 0.02 Income tax effects of non-GAAP adjustments (2) (0.11) (0.41) Undistributed earnings attributable to preferred stockholders (0.04) (0.16) Non-GAAP net income per share attributable to common stockholders, diluted $0.39 $1.54 Weighted-average shares, diluted 142,000 141,000 (1) Other includes expenses related to litigation and workforce reorganization. (2) Non-GAAP tax provision uses a long-term projected tax rate of 25%, 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, 2026 Fiscal Year Ended January 31, 2027 GAAP operating margin 10.0% 9.5% Add: Stock-based compensation 17.5 18.5 Add: Other (1) 0.5 - Non-GAAP operating margin 28.0% 28.0% (1) Other includes acquired intangible assets amortization, expenses related to litigation, and workforce reorganization.