Core Viewpoint - Box reported a decline in non-GAAP earnings for Q1 fiscal 2026, but total revenues exceeded expectations, driven by strong demand for its Suite offerings and new product introductions [1][2][3]. Financial Performance - Non-GAAP earnings for Q1 fiscal 2026 were 30 cents per share, a 23.1% decline year over year, but exceeded the Zacks Consensus Estimate by 20% [1] - Total revenues reached $276.3 million, surpassing the consensus mark by 0.67%, with a year-over-year increase of 4.4% on a reported basis and 5% on a constant-currency basis [1] - Billings for the quarter were $242.3 million, reflecting a 27% year-over-year increase (17% growth on a constant-currency basis) [3] - The company’s net retention rate improved to 102%, up 100 basis points year over year [4] Product and Service Developments - The revenue growth was primarily driven by the strong momentum of Box Suites, which bundle multiple products and services [2] - Box introduced a new Box AI Agent for Microsoft 365 Copilot, enhancing customer capabilities to interact with Box content [4] Operating Metrics - Non-GAAP gross margin for Q1 fiscal 2026 was 80.5%, an increase of 30 basis points year over year [6] - Operating expenses rose to $209.3 million, an 11.1% increase year over year, leading to an operating margin of 25.3%, which contracted by 130 basis points [6] Balance Sheet and Cash Flow - As of April 30, 2025, cash and cash equivalents were $689.7 million, up from $624.6 million at the end of January 2025 [7] - The company generated $127.1 million in cash from operations, an increase from $102.2 million in the previous quarter [8] - Non-GAAP free cash flow for the quarter was $118.3 million, with $50 million spent on share repurchases [9] Guidance - For Q2 fiscal 2026, Box expects revenues between $290 million and $291 million, indicating an 8% rise year over year [10] - For fiscal 2026, the revenue guidance is set between $1.16 billion and $1.17 billion, suggesting a 7% year-over-year increase [11]