Box (BOX) AI Stock Analysis

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Box

(NYSE:BOX)

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Outperform 71 (OpenAI - 4o)

Rating:71Outperform

Price Target:

$36.00

▲(11.21% Upside)

Box's overall stock score is driven by strong financial performance and positive earnings call insights, despite high leverage and valuation concerns. The company's strategic focus on AI and customer growth supports its future outlook, though macroeconomic challenges remain a risk.

Positive Factors

Revenue Growth

Box's strong revenue growth indicates robust demand for its services, enhancing its market position and supporting long-term financial stability.

Customer Adoption

Increased adoption of Enterprise Advanced reflects Box's ability to meet enterprise needs, driving sustained revenue and competitive advantage.

AI Integration

Integration with advanced AI models positions Box at the forefront of innovation, improving product offerings and attracting more enterprise clients.

Negative Factors

High Leverage

High leverage may limit Box's financial flexibility and increase risk, potentially affecting its ability to invest in growth opportunities.

Macroeconomic Challenges

Macroeconomic challenges could impact Box's billing and growth, posing a risk to its financial performance and strategic objectives.

Foreign Exchange Headwinds

Foreign exchange volatility can impact Box's revenue and profitability, complicating financial planning and potentially reducing earnings.

Box (BOX) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$4.69B

Dividend YieldN/A

Average Volume (3M)2.17M

Price to Earnings (P/E)26.0

Beta (1Y)0.60

Revenue Growth6.29%

EPS Growth62.03%

CountryUS

Employees2,810

SectorTechnology

Sector Strength88

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)0.33

Shares Outstanding144,885,820

10 Day Avg. Volume1,849,422

30 Day Avg. Volume2,168,866

Financial Highlights & Ratios

PEG Ratio0.19

Price to Book (P/B)24.41

Price to Sales (P/S)4.42

P/FCF Ratio14.61

Enterprise Value/Market Cap1.12

Enterprise Value/Revenue4.66

Enterprise Value/Gross Profit5.89

Enterprise Value/Ebitda48.35

Forecast

1Y Price Target

$38.25

Price Target Upside18.16% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering10

Box Business Overview & Revenue Model

Company DescriptionBox, Inc. provides a cloud content management platform that enables organizations of various sizes to manage and share their content from anywhere on any device. The company's Software-as-a-Service platform enables users to collaborate on content internally and with external parties, automate content-driven business processes, develop custom applications, and implement data protection, security, and compliance features to comply with legal and regulatory requirements, internal policies, and industry standards and regulations. It offers web, mobile, and desktop applications for cloud content management on a platform for developing custom applications, as well as industry-specific capabilities. As of January 31, 2022, the company had approximately 100,000 paying organizations, and its solution was offered in 25 languages. It serves financial services, health care, government, and legal services industries in the United States and internationally. The company was formerly known as Box.net, Inc. and changed its name to Box, Inc. in November 2011. Box, Inc. was incorporated in 2005 and is headquartered in San Francisco Bay Area, California.

How the Company Makes MoneyBox generates revenue primarily through a subscription-based model, offering various pricing tiers that cater to businesses of different sizes and needs. Key revenue streams include monthly and annual subscription fees for its cloud content management services, which vary based on the level of features and storage capacity. The company also offers add-on services such as Box Governance and Box Shield for enhanced compliance and security, providing additional revenue opportunities. Significant partnerships with technology companies, including integrations with Microsoft, Google, and Salesforce, further contribute to Box's earnings by expanding its market reach and enhancing the value of its offerings.

Box Key Performance Indicators (KPIs)

Any

Total Remaining Performance Obligations

Total Remaining Performance Obligations
Represents future revenue from contracts yet to be fulfilled, providing insight into revenue visibility and the strength of customer commitments.

Chart InsightsBox's Remaining Performance Obligations (RPO) have shown a strong upward trend, with a notable 21% year-over-year increase, reflecting robust demand and early renewals. The earnings call highlights this growth, driven by customer adoption of Box AI and Enterprise Advanced. However, early renewals have shifted revenue expectations, potentially impacting future quarters. Despite macroeconomic uncertainties, Box's strategic focus on AI integration and partnerships with tech giants positions it well for sustained growth, as evidenced by raised revenue guidance and strong billings momentum.

Data provided by:

Main Street Data

Box Earnings Call Summary

Earnings Call Date:Aug 26, 2025

(Q2-2026)

% Change Since: |

Next Earnings Date:Nov 26, 2025

Earnings Call Sentiment Positive

The earnings call was largely positive, with strong revenue growth, increased customer adoption of advanced AI offerings, and improvements in operating margins and net retention rates. However, caution was noted due to challenging macroeconomic conditions and FX headwinds.

Q2-2026 Updates

Positive Updates

Revenue and Growth Exceed Expectations

Q2 revenue of $294 million exceeded the high end of guidance, with a 9% year-over-year growth and 7% in constant currency. Nearly 2,000 customers now pay at least $100,000 annually, up 8% year-over-year.

Strong Customer Adoption of Enterprise Advanced

Enterprise Advanced saw significant customer adoption, with a near doubling of deal closures over the prior quarter. New capabilities like AI-powered metadata extraction and intelligent no-code apps drove enterprise-wide agreements.

Operating Margins and EPS Above Guidance

Operating margins were 29% with EPS of $0.33, $0.02 above the high end of the outlook.

Positive Net Retention Rate

Net retention rate improved to 103% from 102% in Q1, indicating increased seat growth and steady improvements in pricing.

Partnerships and AI Model Integration

Box integrated with multiple AI models, including OpenAI's GPT-5 and Anthropic's Claude 4.1, enhancing its AI capabilities and customer offerings.

Enhanced Product Roadmap

Announced updates to Box AI capabilities and plans for new workflow and no-code app capabilities to further automate critical workflows.

Negative Updates

Macro Environment Challenges

The company remains cautious due to a challenging macroeconomic environment, potentially impacting future billing and growth.

Deferred Tax Expense Impact

Noncash deferred tax expenses are expected to be a non-GAAP EPS headwind of $0.58 in FY 2026.

Foreign Exchange Headwinds

FX headwinds are affecting revenue and billing expectations, with adjustments made in the guidance.

Company Guidance

During Box, Inc.'s second quarter fiscal 2026 earnings call, the company provided robust financial guidance and insights into their strategic initiatives. Box reported a 9% year-over-year revenue growth, reaching $294 million, with a constant currency growth of 7%. Operating margins were at 29%, and earnings per share (EPS) were $0.33, surpassing the high end of their outlook by $0.02. The company saw a 16% growth in remaining performance obligations (RPO) and a 3% improvement in net retention rate, which rose to 103%. The momentum was largely driven by the adoption of Enterprise Advanced and Box AI, which contributed to an 8% year-over-year increase in customers paying at least $100,000 annually. Box anticipates a strong pipeline for the second half of the year, forecasting third-quarter revenues between $298 million and $299 million, with an anticipated full fiscal 2026 revenue of $1.17 to $1.175 billion, representing an 8% year-over-year growth. The company continues to focus on expanding its intelligent content management platform, leveraging AI to enhance workflow automation and metadata extraction capabilities, while also maintaining a disciplined capital allocation strategy, including buybacks.

Box Financial Statement Overview

Summary

Box demonstrates solid financial performance with consistent revenue growth and strong gross profit margins. However, high leverage and a low EBIT margin indicate potential financial risks. Robust cash flow generation provides a cushion against these risks.

Income Statement

Positive

Box has demonstrated consistent revenue growth, with a TTM growth rate of 2.18% and a strong gross profit margin of 79.08%. The net profit margin has improved significantly to 21.38%, indicating enhanced profitability. However, the EBIT margin remains relatively low at 7.05%, suggesting room for operational efficiency improvements.

Balance Sheet

Neutral

The company has a high debt-to-equity ratio of 3.38, indicating significant leverage, which could pose financial risks. However, the return on equity has improved to 1.97%, reflecting better utilization of equity. The equity ratio remains low, suggesting a reliance on debt financing.

Cash Flow

Positive

Box's cash flow position is strong, with a free cash flow growth rate of 4.65% and a high free cash flow to net income ratio of 0.92. The operating cash flow to net income ratio is 0.37, indicating efficient cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.13B	1.09B	1.04B	990.87M	874.33M	770.77M
Gross Profit	889.17M	862.02M	777.13M	738.32M	624.85M	546.03M
EBITDA	108.38M	113.34M	101.99M	102.83M	50.61M	37.84M
Net Income	223.19M	244.62M	129.03M	26.78M	-41.46M	-43.43M
Balance Sheet
Total Assets	1.62B	1.67B	1.24B	1.21B	1.39B	1.35B
Cash, Cash Equivalents and Short-Term Investments	757.86M	722.82M	480.69M	461.25M	586.27M	595.08M
Total Debt	204.48M	721.32M	491.80M	535.10M	621.50M	648.15M
Total Liabilities	1.40B	1.47B	1.18B	1.24B	1.79B	1.20B
Stockholders Equity	225.92M	197.28M	61.03M	-33.86M	-395.09M	151.06M
Cash Flow
Free Cash Flow	317.45M	329.68M	300.32M	281.49M	224.33M	180.34M
Operating Cash Flow	337.78M	332.26M	318.73M	297.98M	234.82M	196.83M
Investing Cash Flow	-57.76M	-23.21M	-82.79M	120.60M	-239.37M	-16.38M
Financing Cash Flow	-32.31M	-62.36M	-272.90M	-396.50M	-172.86M	218.68M

Box Technical Analysis

Technical Analysis Sentiment

Negative

Last Price32.37

Price Trends

50DMA

32.24

Positive

100DMA

33.11

Negative

200DMA

32.49

Negative

Market Momentum

MACD

0.02

Positive

RSI

49.52

Neutral

STOCH

41.38

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BOX, the sentiment is Negative. The current price of 32.37 is below the 20-day moving average (MA) of 32.58, above the 50-day MA of 32.24, and below the 200-day MA of 32.49, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.52 is Neutral, neither overbought nor oversold. The STOCH value of 41.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BOX.

Box Risk Analysis

Box disclosed 56 risk factors in its most recent earnings report. Box reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Box Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PATH	73 Outperform	$6.48B	342.02	1.21%	―	8.25%	―
VRNS	72 Outperform	$6.67B	-64.99	-30.14%	―	14.29%	-14.42%
BOX	71 Outperform	$4.69B	26.00	163.44%	―	6.29%	62.03%
WEX	69 Neutral	$5.50B	20.29	31.31%	―	-1.62%	36.57%
DBX	69 Neutral	$8.22B	19.23	-37.18%	―	-0.04%	-5.07%
S	68 Neutral	$6.05B	-13.75	-28.48%	―	25.39%	-42.90%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

BOX

Box

32.37

-0.36

-1.10%

WEX

160.56

-49.17

-23.44%

VRNS

Varonis Systems

59.54

3.04

5.38%

DBX

Dropbox

31.42

5.99

23.55%

PATH

UiPath

12.21

-0.59

-4.61%

SentinelOne

18.15

-5.77

-24.12%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 19, 2025