Revenue growth has stabilized at 9.2% year-over-year, but operating margin expansion to 10.2% may be peaking as further gains would require either revenue acceleration or cuts to growth-critical R&D spending.
Box, Inc. (BOX) annual income statement — 14-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 | Jan'13 |
|---|
| Sales/Revenue | 1.23B | 1.18B | 1.09B | 1.04B | 990.87M | 874.33M | 770.77M | 696.26M | 608.39M | 506.14M | 398.61M | 302.7M | 216.44M | 124.19M | 58.8M |
| Revenue Growth % | 9.63% | 7.99% | 5.05% | 4.73% | 13.33% | 13.44% | 10.7% | 14.44% | 20.2% | 26.98% | 31.68% | 39.86% | 74.28% | 111.22% | - |
| Cost of Goods Sold | 252.37M | 244.65M | 228.1M | 260.61M | 252.56M | 249.48M | 224.74M | 215.58M | 173.59M | 135.25M | 112.13M | 87.1M | 47.27M | 25.97M | 14.28M |
| COGS % of Revenue | - | 20.78% | 20.92% | 25.11% | 25.49% | 28.53% | 29.16% | 30.96% | 28.53% | 26.72% | 28.13% | 28.77% | 21.84% | 20.91% | 24.29% |
| Gross Profit | 981.7M | 932.61M | 862.02M | 777.13M | 738.32M | 624.85M | 546.03M | 480.69M | 434.79M | 370.89M | 286.48M | 215.6M | 169.17M | 98.22M | 44.52M |
| Gross Margin % | 79.55% | 79.22% | 79.08% | 74.89% | 74.51% | 71.47% | 70.84% | 69.04% | 71.47% | 73.28% | 71.87% | 71.23% | 78.16% | 79.09% | 75.71% |
| Gross Profit Growth % | - | 8.19% | 10.92% | 5.26% | 18.16% | 14.43% | 13.59% | 10.56% | 17.23% | 29.47% | 32.87% | 27.45% | 72.24% | 120.63% | - |
| Operating Expenses | 865.35M | 849.42M | 782.39M | 726.38M | 701.48M | 652.47M | 583.67M | 620.16M | 569.03M | 524.91M | 437.13M | 416.61M | 335.82M | 257M | 153.65M |
| OpEx % of Revenue | - | 72.15% | 71.77% | 70% | 70.79% | 74.63% | 75.73% | 89.07% | 93.53% | 103.71% | 109.66% | 137.63% | 155.16% | 206.94% | 261.32% |
| Selling, General & Admin | 560.51M | 554.88M | 517.54M | 477.61M | 457.95M | 433.95M | 382.41M | 420.41M | 405.28M | 388.12M | 321.2M | 314.11M | 269.42M | 211.03M | 124.65M |
| SG&A % of Revenue | - | 47.13% | 47.47% | 46.02% | 46.22% | 49.63% | 49.61% | 60.38% | 66.62% | 76.68% | 80.58% | 103.77% | 124.48% | 169.92% | 212% |
| Research & Development | 304.84M | 294.54M | 264.85M | 248.77M | 243.53M | 218.52M | 201.26M | 199.75M | 163.75M | 136.79M | 115.93M | 102.5M | 66.4M | 45.97M | 29M |
| R&D % of Revenue | - | 25.02% | 24.3% | 23.97% | 24.58% | 24.99% | 26.11% | 28.69% | 26.92% | 27.03% | 29.08% | 33.86% | 30.68% | 37.01% | 49.32% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 2.43M | -1.13M | 1.34M | 789K | 678K | -98K | -257K | -26K | 116K |
| Operating Income | 116.35M | 83.19M | 79.63M | 50.75M | 36.84M | -27.63M | -37.64M | -139.47M | -134.24M | -154.02M | -150.66M | -201M | -166.66M | -158.78M | -109.13M |
| Operating Margin % | 9.43% | 7.07% | 7.31% | 4.89% | 3.72% | -3.16% | -4.88% | -20.03% | -22.06% | -30.43% | -37.8% | -66.4% | -77% | -127.85% | -185.6% |
| Operating Income Growth % | - | 4.46% | 56.9% | 37.77% | 233.35% | 26.61% | 73.01% | -3.9% | 12.85% | -2.23% | 25.05% | -20.61% | -4.96% | -45.5% | - |
| EBITDA | 140.94M | 120.3M | 101.74M | 101.99M | 102.83M | 53.62M | 37.84M | -81.27M | -87.92M | -113.91M | -110.5M | -144.79M | -137.64M | -140.91M | -100.51M |
| EBITDA Margin % | 11.42% | 10.22% | 9.33% | 9.83% | 10.38% | 6.13% | 4.91% | -11.67% | -14.45% | -22.51% | -27.72% | -47.83% | -63.59% | -113.46% | -170.95% |
| EBITDA Growth % | 48.35% | 18.24% | -0.25% | -0.81% | 91.76% | 41.72% | 146.55% | 7.56% | 22.82% | -3.08% | 23.68% | -5.2% | 2.32% | -40.19% | - |
| D&A (Non-Cash Add-back) | 22.48M | 37.11M | 22.1M | 51.24M | 65.99M | 81.25M | 75.48M | 58.2M | 46.32M | 40.11M | 40.15M | 56.21M | 29.02M | 17.87M | 8.62M |
| EBIT | 123.48M | 103.56M | 91.23M | 50.75M | 36.84M | -27.63M | -37.64M | -139.47M | -132.9M | -153.23M | -149.98M | -201.1M | -166.79M | -167.28M | -110.74M |
| Net Interest Income | 7M | 14.04M | 17.63M | 11.83M | 1.03M | -9.84M | -4.58M | -2.34M | -316K | -1.01M | -896K | -1.16M | -2.01M | -3.71M | -1.76M |
| Interest Income | 17.13M | 24.74M | 23.71M | 11.83M | 5.9M | 0 | 2.43M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 10.13M | 10.7M | 6.08M | 0 | 4.87M | 9.84M | 7.01M | 2.34M | 316K | 1.01M | 896K | 1.16M | 2.01M | 3.71M | 1.76M |
| Other Income/Expense | 4.86M | 15.54M | 5.53M | 11.83M | -2.43M | -9.84M | -4.58M | -3.47M | 1.02M | -224K | -218K | -1.25M | -2.14M | -12.21M | -3.38M |
| Pretax Income | 121.21M | 98.73M | 85.16M | 62.59M | 34.41M | -37.46M | -42.23M | -142.94M | -133.21M | -154.25M | -150.87M | -202.26M | -168.8M | -170.99M | -112.5M |
| Pretax Margin % | 9.82% | 8.39% | 7.81% | 6.03% | 3.47% | -4.28% | -5.48% | -20.53% | -21.9% | -30.47% | -37.85% | -66.82% | -77.99% | -137.68% | -191.34% |
| Income Tax | -9.48M | -16.65M | -159.46M | -66.45M | 7.62M | 4M | 1.21M | 1.41M | 1.4M | 715K | 914K | 690K | -569K | -2.43M | 59K |
| Effective Tax Rate % | -7.82% | -16.87% | -187.25% | -106.17% | 22.16% | -10.66% | -2.86% | -0.99% | -1.05% | -0.46% | -0.61% | -0.34% | 0.34% | 1.42% | -0.05% |
| Net Income | 116.62M | 101.31M | 244.62M | 129.03M | 26.78M | -41.46M | -43.43M | -144.35M | -134.61M | -154.96M | -151.79M | -202.95M | -168.23M | -168.56M | -112.56M |
| Net Margin % | 9.45% | 8.61% | 22.44% | 12.43% | 2.7% | -4.74% | -5.63% | -20.73% | -22.13% | -30.62% | -38.08% | -67.05% | -77.72% | -135.72% | -191.44% |
| Net Income Growth % | -48.97% | -58.59% | 89.58% | 381.77% | 164.6% | 4.54% | 69.91% | -7.23% | 13.13% | -2.09% | 25.21% | -20.64% | 0.2% | -49.74% | - |
| Net Income (Continuing) | 130.69M | 115.38M | 244.62M | 129.03M | 26.78M | -41.46M | -43.43M | -144.35M | -134.61M | -154.96M | -151.79M | -202.95M | -168.23M | -168.56M | -112.56M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.83 | 0.59 | 1.36 | 0.67 | 0.18 | -0.27 | -0.28 | -0.98 | -0.95 | -1.16 | -1.19 | -1.67 | -1.41 | -1.76 | -1.18 |
| EPS Growth % | -44.03% | -56.62% | 102.99% | 272.22% | 166.67% | 3.57% | 71.43% | -3.16% | 18.1% | 2.52% | 28.74% | -18.44% | 19.89% | -49.15% | - |
| EPS (Basic) | - | 0.60 | 1.40 | 0.69 | 0.19 | -0.27 | -0.28 | -0.98 | -0.95 | -1.16 | -1.19 | -1.67 | -1.41 | -1.76 | -1.18 |
| Diluted Shares Outstanding | 139.91M | 146.42M | 148.64M | 148.59M | 150.19M | 155.6M | 155.85M | 147.76M | 141.35M | 133.93M | 127.47M | 121.24M | 119.43M | 95.67M | 95.67M |
| Basic Shares Outstanding | 138.25M | 143.07M | 144.23M | 144.2M | 143.59M | 155.6M | 155.85M | 147.76M | 141.35M | 133.93M | 127.47M | 121.24M | 119.43M | 95.67M | 95.67M |
| Dividend Payout Ratio | - | - | 6.13% | 11.58% | 56.22% | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying BOX stock.
For fiscal year 2026, Box, Inc. (BOX) reported total revenue of $1.18B. This represents a 1902.2% increase compared to $58.8M in 2013.
Box, Inc. (BOX) is profitable, generating $101.3M in net income for the fiscal year ending 2026 with a net profit margin of 8.6%.
Box, Inc. (BOX) reported an operating income of $83.2M, resulting in an operating profit margin of 7.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Box, Inc. (BOX) generated $932.6M in gross profit for the year, representing a gross profit margin of 79.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
AI competition from Microsoft
Metrics are mathematically derived from official filings.
Stable Growth with Sequential Deceleration
Box's revenue growth has stabilized in the 9-11% year-over-year range, but the Q2 2027 guidance of $329M implies a sequential deceleration from the 9.2% growth reported in the latest quarter, suggesting potential near-term demand softness.
The company has maintained a consistent year-over-year growth trajectory, with the last four quarters showing growth between 9.1% and 10.7%. However, the sequential revenue guidance for Q2 2027 points to a potential slowdown, which may indicate that the recent acceleration seen in Q1 2027 was not sustained. This pattern suggests the business is in a mature, stable growth phase rather than an accelerating one, with future expansion likely dependent on the successful upsell of higher-tier suites like Enterprise Advanced.
Structural Gross Margin Stability
Box's gross margin has remained remarkably stable in the 79-80% range over the past ten quarters, indicating strong pricing power and an efficient hybrid infrastructure model that supports its enterprise-focused value proposition.
The consistency of gross margins near 80% is a key strength, especially when compared to peers like DigitalOcean (59.9%) and OpenText (73.7%). This stability suggests that Box has successfully optimized its cost of revenue through its hybrid cloud strategy and is not facing significant pricing pressure from hyperscalers. The durability of this margin profile provides a solid foundation for operating leverage, though the company's ability to expand these margins further may depend on the premium pricing it can command for AI-integrated features.
Operating Leverage Emerging from SG&A Discipline
Operating income has scaled from $6.3M in Q1 2026 to $32.6M in Q2 2027, driven by a more disciplined SG&A structure that has grown slower than revenue, demonstrating meaningful operating leverage.
The most significant driver of operating leverage appears to be SG&A, which has grown from $137.0M in Q1 2026 to $142.9M in Q2 2027, a 4.3% increase, while revenue grew 16.2% over the same period. This discipline has allowed operating margin to expand from 2.3% to 10.2%. However, R&D spending has grown at a faster pace than revenue, which may indicate necessary investment in product differentiation but also presents a risk to margin expansion if not matched by corresponding revenue growth from new features.
GAAP Profitability Masked by SBC Dilution
While Box has achieved consistent GAAP operating profitability, the significant stock-based compensation expense, which was $56.3M in Q1 2027, represents a substantial non-cash charge that dilutes shareholder value and obscures the true economic earnings power.
The gap between GAAP and non-GAAP metrics is primarily driven by stock-based compensation, which has averaged over $55M per quarter. This level of SBC is material relative to operating income, which was $27.4M in Q1 2027. Investors should note that while the company is reporting GAAP profits, the dilutive impact of SBC means that the per-share economic value creation is lower than headline EPS figures suggest. The recent quarter with minimal SBC ($0 in Q2 2027) appears to be an anomaly and not indicative of a structural change.
R&D as Primary Investment Driver
Research & Development is the fastest-growing major cost line item, increasing from $62.7M in Q1 2025 to $78.4M in Q2 2027, reflecting management's focus on product innovation to compete in the AI-driven enterprise software landscape.
R&D spending has grown at a compound annual rate of approximately 12% over the past two years, outpacing revenue growth. This suggests a strategic prioritization of product development, likely focused on AI capabilities and platform enhancements to defend against competition from Microsoft and others. While this investment is necessary for long-term competitiveness, it creates a near-term drag on operating margins. The key monitorable is whether this R&D spend translates into higher attach rates for premium suites, which would improve both revenue mix and profitability.
Margin Expansion May Be Peaking
The strongest challenge to Box's narrative is that its operating margin expansion from 2.3% to 10.2% over the past year may be largely complete, as further gains would require either significant revenue acceleration or deeper cuts to growth-critical R&D and S&M spending.
While the improvement in operating margin is impressive, the pace of expansion appears to be slowing. The sequential improvement from Q1 2027 (9.0%) to Q2 2027 (10.2%) is modest compared to the jump from Q1 2026 (2.3%) to Q2 2026 (7.0%). This suggests that the low-hanging fruit from expense discipline has been harvested. To achieve materially higher margins, Box would need to either accelerate revenue growth significantly or make deeper cuts to R&D or S&M, which could jeopardize its competitive position. The current margin level may represent a new plateau rather than a stepping stone to higher profitability.