BXCAP BOX INC
Price Chart
Executive Summary
Box Inc. filed its Q1 FY27 8-K earnings release, reporting revenue of $305.9M (+11% YoY) and GAAP diluted EPS of $0.08, up from $0.02 in the prior year. Key highlights include accelerating revenue growth, expanding GAAP operating margin to 9.0% (from 2.3%), record RPO of $1.6B, and a $1.280B FY27 revenue guidance (9% YoY growth). For the preferred BXCAP security, the underlying operating improvements are credit-positive but the impact is moderate given the fixed-income nature of the preferred.
Key Financial Metrics
Actionable Insight
The accelerating revenue growth and expanding operating margins are credit-positive for BXCAP preferred holders, as Box's fixed-charge coverage is strengthening. The $445M remaining buyback capacity signals ongoing capital return, but monitor FX headwinds (~170bps on Q2 revenue guidance). No near-term catalyst for the preferred beyond sustained earnings improvement.
Key Facts
- Revenue of $305.9M, up 11% YoY vs 9% YoY in Q4 FY26, marking accelerating growth
- GAAP diluted EPS of $0.08 vs $0.02 YoY; non-GAAP diluted EPS of $0.37 vs $0.30 YoY
- GAAP operating margin expanded to 9.0% from 2.3% YoY; non-GAAP OPM to 27.7% from 25.3%
- RPO of $1.6B, up 12% YoY; short-term RPO $880.2M (+8%), long-term RPO $761.7M (+16%)
- FY27 revenue guidance of ~$1.280B (+9% YoY); Q2 FY27 revenue guidance of ~$319M (+9% YoY)
- Operating cash flow of $140.2M (+10% YoY); non-GAAP FCF of $127.7M (+8% YoY)
- Repurchased 4.8M shares for ~$114M in Q1; $445M remaining under buyback plan
- Preferred BXCAP holders benefit from improving earnings coverage and operating leverage at the issuer
Financial Impact
Revenue growth accelerating to 11% YoY from 9% prior quarter; GAAP operating income surged to $27.4M from $6.3M YoY — a 333% increase. Operating cash flow +$13.1M YoY to $140.2M.
Risk Factors
- FX headwinds: Q2 FY27 guidance includes ~170bps revenue headwind and ~$0.03 EPS headwind from unfavorable FX
- Convertible preferred stock ($496.9M) ranks senior to BXCAP; dividend on Series A preferred consumes ~$4.2M/quarter of net income
- Stockholders' deficit of ($338.4M) persists, though improved from ($299.3M) at fiscal year-end
- Intense competition in content management from Microsoft, Google, and others
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-239239 |
| Document: box-20260526.htm | 0001193125-26-239239 |
| Document: 0001193125-26-239239-index-headers.html | 0001193125-26-239239 |
| Document: 0001193125-26-239239-index.html | 0001193125-26-239239 |
| Document: 0001193125-26-239239.txt | 0001193125-26-239239 |
| 8-K Data (Synthetic) | 0001193125-26-239239 |
US Market Status
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