Box generated substantially faster cash-flow growth than revenue during its fiscal second quarter of 2027 as enterprise demand, expanding remaining performance obligations and stronger operating leverage supported profitability. Revenue increased 9% year-over-year to a record $321.1 million and rose 11% on a constant-currency basis.
Net cash provided by operating activities increased 54% to $70.8 million, while non-GAAP free cash flow jumped 67% to $59.7 million. The increase in cash generation substantially outpaced top-line growth.
Remaining performance obligations reached $1.7 billion, up 15% reported and 17% in constant currency. Short-term RPO increased 11% to $904.7 million, while long-term RPO increased 18% to $787 million, or 22% in constant currency.
Billings increased 17% to $309.5 million, providing another indication of stronger forward demand than the 9% reported revenue growth rate.
Profitability also improved. GAAP operating income increased 59% to a record $32.6 million from $20.6 million, while GAAP operating margin expanded to 10.2% from 7%. Non-GAAP operating income increased to $94.5 million from $84 million, with non-GAAP operating margin of 29.4%.
Box’s net retention rate improved to 106%, while management said revenue growth for Enterprise Advanced accelerated in constant currency for a fifth consecutive quarter.
The company is positioning Enterprise Advanced and its Intelligent Content Management platform around the growing use of AI agents inside large organizations. Box has been adding security controls for AI agents, including agent guardrails, third-party activity oversight, prompt-injection detection and classification-based access policies.
Box also announced integrations and support across multiple AI ecosystems, including Anthropic, Google, OpenAI and Meta models as well as MCP integrations with services including Databricks, Figma, Harvey, IBM, Notion and Slack.
The company repurchased 2.6 million shares for approximately $66 million during the quarter and had approximately $378 million of remaining repurchase authorization at July 31.
KEY QUOTES:
“Box delivered exceptional second quarter results, continuing our strong momentum accelerated by the rapid adoption of Enterprise Advanced.”
Aaron Levie, Co-Founder and CEO of Box
“Net retention rate improved to 106%, and Enterprise Advanced continues to be a key driver of growth, with revenue in constant currency accelerating for a fifth quarter in a row.”
Dylan Smith, Co-Founder and Chief Financial Officer of Box
