Rubrik Reports Third Quarter Fiscal Year 2026 Financial Results
PALO ALTO, Calif.--( BUSINESS WIRE)--Rubrik, Inc. (NYSE: RBRK), the Security and AI Operations company, today announced financial results for the third quarter of fiscal year 2026, ended October 31, 2025.
“Rubrik had another exceptional quarter, with record net new subscription ARR and free cash flow generation. As the AI transformation unfolds, organizations worldwide are turning to Rubrik to ensure their businesses remain secure and AI ready. Looking ahead, we are committed to leading and pioneering new advancements at the intersection of data protection, cyber resilience, and enterprise AI acceleration,” said Bipul Sinha, Rubrik’s Chief Executive Officer, Chairman, and Co-Founder.
Commenting on the company’s financial results, Kiran Choudary, Rubrik’s Chief Financial Officer, added, “Q3 was another strong quarter where we exceeded the high end of all of our key performance metrics with 34% year-over-year growth in subscription ARR and over $76 million in free cash flow. We are pleased to raise our outlook for fiscal 2026 and are looking forward to a strong finish to the year.”
Third Quarter Fiscal 2026 Financial Highlights
Recent Business Highlights
Fourth Quarter and Fiscal Year 2026 Outlook
Rubrik is providing the following guidance for the fourth quarter of fiscal year 2026 and the full fiscal year 2026:
Additional information on Rubrik’s reported results, including a reconciliation of the non-GAAP results to their most comparable GAAP measures, is included in the financial tables below. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Rubrik’s results computed in accordance with GAAP. For example, stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of Rubrik’s Class A common stock, and Rubrik’s future hiring and retention needs, all of which are difficult to predict and subject to constant change.
Reports Referenced
Conference Call Information
Rubrik will host a conference call to discuss results for the third quarter of fiscal year 2026, as well as its financial outlook for the fourth quarter of fiscal year 2026 and full fiscal year 2026 today at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. Open to the public, analysts and investors may access the webcast, results press release, and investor presentation on Rubrik’s investor relations website at https://ir.rubrik.com. A replay of the webcast will also be accessible from Rubrik’s investor relations website a few hours after the conclusion of the live event.
Rubrik uses its investor relations website and may use certain social media accounts including X (formerly Twitter) (@rubrikInc and @bipulsinha) and LinkedIn ( www.linkedin.com/company/rubrik-inc and www.linkedin.com/in/bipulsinha) as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
Forward-Looking Statements
This press release and the related conference call contain express and implied “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Rubrik’s financial outlook for the fourth quarter of fiscal year 2026 and full fiscal year 2026, Rubrik’s market position, market opportunities, and growth strategy, product initiatives, go-to-market motions and market trends. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “project,” “will,” “would,” “should,” “could,” “can,” “predict,” “potential,” “target,” “explore,” “continue,” “outlook,” “guidance,” or the negative of these terms, where applicable, and similar expressions intended to identify forward-looking statements. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond Rubrik’s control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the statements. Risks include but are not limited to Rubrik’s limited operating history, the growth rate of the market in which Rubrik competes, Rubrik’s ability to effectively manage and sustain its growth, Rubrik’s ability to introduce new products on top of its platform, Rubrik’s ability to compete with existing competitors and new market entrants, Rubrik’s ability to expand internationally, its ability to utilize AI successfully in its current and future products, and Rubrik’s ability to successfully integrate acquisitions into its business and operations. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our most recent filings with the Securities and Exchange Commission, including in our Quarterly Report on Form 10-Q for the quarter ended October 31, 2025. Forward-looking statements speak only as of the date the statements are made and are based on information available to Rubrik at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. Rubrik assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.
Non-GAAP Financial Measures
Rubrik has provided in this press release financial information that has not been prepared in accordance with GAAP. Rubrik uses these non-GAAP financial measures internally in analyzing its financial results and believes that use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing Rubrik’s financial results with other companies in its industry, many of which present similar non-GAAP financial measures.
Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with Rubrik’s condensed consolidated financial statements prepared in accordance with GAAP. A reconciliation of Rubrik’s historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.
Free Cash Flow and Free Cash Flow Margin. Rubrik defines free cash flow as net cash provided by (used in) operating activities less cash used for purchases of property and equipment and capitalized internal-use software. Rubrik believes free cash flow is a helpful indicator of liquidity that provides information to management and investors about the amount of cash generated or used by Rubrik’s operations that, after the investments in property and equipment and capitalized internal-use software, can be used for strategic initiatives, including investing in Rubrik’s business and strengthening its financial position. One limitation of free cash flow is that it does not reflect Rubrik’s future contractual commitments. Additionally, free cash flow is not a substitute for cash provided by (used in) operating activities and the utility of free cash flow as a measure of Rubrik’s liquidity is further limited as it does not represent the total increase or decrease in Rubrik’s cash balance for a given period. Free cash flow margin is calculated as free cash flow divided by total revenue.
Non-GAAP Subscription Cost of Revenue. Rubrik defines non-GAAP subscription cost of revenue as subscription cost of revenue, adjusted for amortization of acquired intangibles, stock-based compensation expense, stock-based compensation from amortization of capitalized internal-use software, and other non-recurring items.
Non-GAAP Operating Expenses (Research and Development, Sales and Marketing, General and Administrative). Rubrik defines non-GAAP operating expenses as operating expenses (research and development, sales and marketing, general and administrative), adjusted for, as applicable, stock-based compensation expense, and other non-recurring items.
Non-GAAP Gross Profit, Non-GAAP Operating Income (Loss), and Non-GAAP Net Income (Loss). Rubrik defines non-GAAP gross profit, non-GAAP operating income (loss), and non-GAAP net income (loss) as the respective GAAP measure, excluding, as applicable, the effect of amortization of acquired intangibles, stock-based compensation expense, stock-based compensation from amortization of capitalized internal-use software, amortization of debt issuance costs, other non-recurring items, and the related income tax effect of these adjustments.
Non-GAAP Gross Margin. Rubrik defines non-GAAP gross margin as non-GAAP gross profit as a percentage of total revenue.
Non-GAAP Net Income (Loss) Per Share, Basic and Diluted. Rubrik defines non-GAAP net income (loss) per share, basic as non-GAAP net income (loss) divided by the weighted-average number of shares of common stock outstanding during the period. Our non-GAAP net income per share, diluted is defined as non-GAAP net income divided by the non-GAAP weighted-average number of diluted shares outstanding, which includes (a) the effect of all potentially dilutive common stock equivalents (stock options, restricted stock units, restricted stocks, employee stock purchase rights under our 2024 Employee Stock Purchase Plan), and (b) the potential dilutive effect of the shares issuable upon conversion of our convertible senior notes using the if-converted method.
Subscription Annual Recurring Revenue (“ARR”) Contribution Margin. Rubrik defines Subscription ARR Contribution Margin as Subscription ARR contribution divided by Subscription ARR at the end of the period. Rubrik defines Subscription ARR Contribution as Subscription ARR at the end of the period less: (i) non-GAAP subscription cost of revenue and (ii) non-GAAP operating expenses for the prior 12-month period ending on that date. Rubrik believes that Subscription ARR Contribution Margin is a helpful indicator of operating leverage. One limitation of Subscription ARR Contribution Margin is that the factors that impact Subscription ARR will vary from those that impact subscription revenue and, as such, may not provide an accurate indication of Rubrik’s actual or future GAAP results. Additionally, the historical expenses in this calculation may not accurately reflect the costs associated with future commitments.
Key Business Metrics
Subscription ARR. Rubrik calculates Subscription ARR as the annualized value of our active subscriptions as of the measurement date, based on our customers’ total contract value, and assuming any contract that expires during the next 12 months is renewed on existing terms. Subscriptions include offerings for our RSC platform and related data security SaaS solutions, term-based licenses for our RSC-Private platform and related products, prior sales of CDM sold as a subscription term-based license with associated support and related SaaS products, and standalone sales of our SaaS subscription products like Anomaly Detection and Sensitive Data Monitoring.
Cloud ARR. Rubrik calculates Cloud ARR as the annualized value of our active cloud-based subscriptions as of the measurement date, based on our customers’ total contract value, and assuming any contract that expires during the next 12 months is renewed on existing terms. Our cloud-based subscriptions include RSC and RSC-Government (excluding RSC-Private). Cloud ARR also includes SaaS subscription products like Anomaly Detection and Sensitive Data Monitoring, which are sold standalone or with prior sales of term-based license offerings of CDM.
Average Subscription Dollar-Based Net Retention Rate. Rubrik calculates Average Subscription Dollar-Based Net Retention Rate by first identifying subscription customers (“Prior Period Subscription Customers”) which were subscription customers at the end of a particular quarter (the “Prior Period”). Rubrik then calculates the Subscription ARR from these Prior Period Subscription Customers at the end of the same quarter of the subsequent year (the “Current Period”). This calculation captures upsells, contraction, and attrition since the Prior Period. Rubrik then divides total Current Period Subscription ARR by the total Prior Period Subscription ARR for Prior Period Subscription Customers. Rubrik’s Average Subscription Dollar-Based Net Retention Rate in a particular quarter is obtained by averaging the result from that particular quarter with the corresponding results from each of the prior three quarters.
Customers with $100K or More in Subscription ARR. Customers with $100K or more in Subscription ARR represent the number of customers that contributed $100,000 or more in Subscription ARR as of period end.
About Rubrik
Rubrik (NYSE: RBRK), the Security and AI Operations Company, leads at the intersection of data protection, cyber resilience, and enterprise AI acceleration. Rubrik Security Cloud delivers complete cyber resilience by securing, monitoring, and recovering data, identities, and workloads across clouds. Rubrik Agent Cloud accelerates trusted AI agent deployments at scale by monitoring and auditing agentic actions, enforcing real-time guardrails, fine-tuning for accuracy and undoing agentic mistakes.
Rubrik, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
October 31,
Nine Months Ended
October 31,
2025
2024
2025
2024
Revenue
Subscription
$
336,390
$
221,511
$
899,008
$
585,021
Maintenance
1,508
4,342
5,798
15,027
Other
12,268
10,325
33,701
28,396
Total revenue
350,166
236,178
938,507
628,444
Cost of revenue
Subscription
59,842
46,486
167,778
166,006
Maintenance
187
824
983
5,473
Other
8,108
8,836
23,418
35,814
Total cost of revenue
68,137
56,146
192,179
207,293
Gross profit
282,029
180,032
746,328
421,151
Operating expenses
Research and development
97,581
80,050
271,503
451,657
Sales and marketing
193,151
158,907
545,129
706,163
General and administrative
66,780
65,862
192,733
281,248
Total operating expenses
357,512
304,819
1,009,365
1,439,068
Loss from operations
(75,483
)
(124,787
)
(263,037
)
(1,017,917
)
Interest income
16,591
7,468
36,480
17,688
Interest expense
(1,080
)
(10,310
)
(16,134
)
(31,179
)
Loss on debt extinguishment
—
—
(6,653
)
—
Other income (expense), net
(965
)
(1,333
)
(6,515
)
(3,406
)
Loss before income taxes
(60,937
)
(128,962
)
(255,859
)
(1,034,814
)
Income tax expense
2,892
1,948
6,003
5,117
Net loss
$
(63,829
)
$
(130,910
)
$
(261,862
)
$
(1,039,931
)
Net loss per share, basic and diluted
$
(0.32
)
$
(0.71
)
$
(1.34
)
$
(7.27
)
Weighted-average shares used in computing net loss per share, basic and diluted
198,379
183,590
195,001
142,985
Rubrik, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
October 31,
January 31,
2025
2025
Assets
Current assets
Cash and cash equivalents
$
307,100
$
186,331
Short-term investments
1,295,907
518,813
Accounts receivable, net of allowances
219,687
177,627
Deferred commissions
100,820
91,919
Prepaid expenses and other current assets
143,183
102,951
Total current assets
2,066,697
1,077,641
Property and equipment, net
66,989
53,194
Deferred commissions, noncurrent
133,624
132,465
Goodwill
199,606
100,343
Other assets, noncurrent
81,739
59,331
Total assets
$
2,548,655
$
1,422,974
Liabilities and stockholders’ deficit
Current liabilities
Accounts payable
$
11,857
$
10,439
Accrued expenses and other current liabilities
182,820
162,602
Deferred revenue
968,167
777,135
Total current liabilities
1,162,844
950,176
Deferred revenue, noncurrent
718,380
642,370
Other liabilities, noncurrent
62,213
61,821
Convertible senior notes, net
1,129,627
—
Debt, noncurrent
—
322,341
Total liabilities
3,073,064
1,976,708
Stockholders’ deficit
Preferred stock
—
—
Class A common stock
4
3
Class B common stock
1
2
Additional paid-in capital
2,574,825
2,291,829
Accumulated other comprehensive loss
(44
)
(8,235
)
Accumulated deficit
(3,099,195
)
(2,837,333
)
Total stockholders’ deficit
(524,409
)
(553,734
)
Total liabilities and stockholders’ deficit
$
2,548,655
$
1,422,974
Rubrik, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended
October 31,
2025
2024
Cash flows from operating activities:
Net loss
$
(261,862
)
$
(1,039,931
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization
26,423
21,542
Stock-based compensation
244,464
827,875
Amortization of deferred commissions
79,344
66,372
Non-cash interest
—
29,127
Loss on debt extinguishment
6,653
—
Deferred income taxes
2,591
1,527
Other
(1,462
)
(4,670
)
Changes in operating assets and liabilities:
Accounts receivable
(42,700
)
(14,312
)
Deferred commissions
(89,404
)
(90,428
)
Prepaid expenses and other assets
(59,748
)
(14,291
)
Accounts payable
1,387
3,888
Accrued expenses and other liabilities
17,135
950
Deferred revenue
267,042
176,982
Net cash provided by (used in) operating activities
189,863
(35,369
)
Cash flows from investing activities:
Purchases of property and equipment
(11,087
)
(11,296
)
Capitalized internal-use software
(11,004
)
(6,902
)
Purchases of investments
(1,289,391
)
(641,292
)
Sale of investments
—
27,978
Maturities of investments
520,913
243,912
Payments for business combinations, net of cash acquired
(20,903
)
—
Net cash used in investing activities
(811,472
)
(387,600
)
Cash flows from financing activities:
Proceeds from initial public offering and underwriters' exercise of over-allotment option, net of underwriting discounts and commissions
—
815,209
Taxes paid related to net share settlement of equity awards
(6,339
)
(432,512
)
Proceeds from exercise of stock options
3,589
6,592
Proceeds from issuance of common stock under employee stock purchase plan
28,986
11,064
Payments for deferred offering costs, net
—
(3,545
)
Proceeds from issuance of convertible senior notes, net of discount
1,129,875
—
Repayment of debt and related costs
(329,646
)
—
Payments for debt discount costs
—
(475
)
Payments for debt issuance costs
(1,903
)
(233
)
Purchase of capped calls related to convertible senior notes
(88,550
)
—
Net cash provided by financing activities
736,012
396,100
Effect of exchange rate on cash, cash equivalents, and restricted cash
6,550
898
Net increase (decrease) in cash, cash equivalents, and restricted cash
120,953
(25,971
)
Cash, cash equivalents, and restricted cash, beginning of period
193,594
137,059
Cash, cash equivalents, and restricted cash, end of period
$
314,547
$
111,088
Rubrik, Inc.
GAAP to Non-GAAP Reconciliations
(in thousands, except percentages and per share data)
(unaudited)
Three Months Ended
October 31,
Nine Months Ended
October 31,
2025
2024
2025
2024
Reconciliation of GAAP total gross profit to non-GAAP total gross profit:
Total gross profit on a GAAP basis
$
282,029
$
180,032
$
746,328
$
421,151
Add: Stock-based compensation expense
4,813
5,955
14,489
61,900
Add: Stock-based compensation from amortization of capitalized internal-use software
697
119
1,455
149
Add: Amortization of acquired intangibles
2,398
923
4,581
2,749
Non-GAAP total gross profit
$
289,937
$
187,029
$
766,853
$
485,949
GAAP total gross margin
81
%
76
%
80
%
67
%
Non-GAAP total gross margin
83
%
79
%
82
%
77
%
Reconciliation of GAAP operating expenses to non-GAAP operating expenses:
Research and development operating expense on a GAAP basis
$
97,581
$
80,050
$
271,503
$
451,657
Less: Stock-based compensation expense
29,135
23,088
73,681
275,562
Non-GAAP research and development operating expense
$
68,446
$
56,962
$
197,822
$
176,095
Sales and marketing operating expense on a GAAP basis
$
193,151
$
158,907
$
545,129
$
706,163
Less: Stock-based compensation expense
29,818
27,468
83,600
301,611
Non-GAAP sales and marketing operating expense
$
163,333
$
131,439
$
461,529
$
404,552
General and administrative operating expense on a GAAP basis
$
66,780
$
65,862
$
192,733
$
281,248
Less: Stock-based compensation expense
18,701
36,016
72,694
188,802
Non-GAAP general and administrative operating expense
$
48,079
$
29,846
$
120,039
$
92,446
Reconciliation of GAAP operating loss to non-GAAP operating loss:
Operating loss on a GAAP basis
$
(75,483
)
$
(124,787
)
$
(263,037
)
$
(1,017,917
)
Add: Stock-based compensation expense
82,467
92,527
244,464
827,875
Add: Stock-based compensation from amortization of capitalized internal-use software
697
119
1,455
149
Add: Amortization of acquired intangibles
2,398
923
4,581
2,749
Non-GAAP operating income (loss)
$
10,079
$
(31,218
)
$
(12,537
)
$
(187,144
)
Reconciliation of GAAP net loss to non-GAAP net income (loss):
Net loss on a GAAP basis
$
(63,829
)
$
(130,910
)
$
(261,862
)
$
(1,039,931
)
Add: Stock-based compensation expense
82,467
92,527
244,464
827,875
Add: Stock-based compensation from amortization of capitalized internal-use software
697
119
1,455
149
Add: Amortization of acquired intangibles
2,398
923
4,581
2,749
Add: Amortization of debt issuance costs
1,080
—
1,655
—
Income tax expenses effect related to the above adjustments
40
(441
)
(2,014
)
(664
)
Non-GAAP net income (loss)
$
22,853
$
(37,782
)
$
(11,721
)
$
(209,822
)
Net income (loss) per share - basic and diluted:
GAAP net loss per share, basic and diluted
$
(0.32
)
$
(0.71
)
$
(1.34
)
$
(7.27
)
Weighted-average shares used to compute GAAP net loss per share, basic and diluted
198,379
183,590
195,001
142,985
Non-GAAP net income (loss) per share, basic
$
0.12
$
(0.21
)
$
(0.06
)
$
(1.47
)
Weighted-average shares used to compute non-GAAP net income (loss) per share, basic
198,379
183,590
195,001
142,985
Non-GAAP net income (loss) per share, diluted
$
0.10
$
(0.21
)
$
(0.06
)
$
(1.47
)
Weighted-average shares used to compute GAAP net loss per share, basic and diluted
198,379
183,590
195,001
142,985
Add: Effect of potentially dilutive common stock equivalents
15,501
—
—
—
Add: Effect of convertible senior notes
9,218
—
—
—
Weighted-average shares used to compute non-GAAP net income (loss) per share, diluted (1)
223,098
183,590
195,001
142,985
(1) For the periods in which we had non-GAAP net income, the non-GAAP weighted-average shares used in computing non-GAAP net income per share, diluted included (a) the effect of all potentially dilutive common stock equivalents (stock options, restricted stock units, restricted stocks and employee stock purchase rights under our 2024 Employee Stock Purchase Plan, to the extent they are dilutive) and (b) the potential dilutive effect of shares issuable upon conversion of the convertible senior notes using the if-converted method. The capped call transactions entered into in connection with the convertible senior notes had no dilutive impact for any of the periods presented.
The following table presents a reconciliation of free cash flow to net cash provided by (used in) operating activities, the most directly comparable GAAP measure, for each of the periods indicated (unaudited, in thousands, except percentages):
Three Months Ended
October 31,
Nine Months Ended
October 31,
2025
2024
2025
2024
Net cash provided by (used in) operating activities
$
85,484
$
23,095
$
189,863
$
(35,369
)
Less: Purchases of property and equipment
(4,739
)
(5,069
)
(11,087
)
(11,296
)
Less: Capitalized internal-use software
(3,856
)
(2,458
)
(11,004
)
(6,902
)
Free cash flow
$
76,889
$
15,568
$
167,772
$
(53,567
)
Operating cash flow margin
24
%
10
%
20
%
(6
)%
Free cash flow margin
22
%
7
%
18
%
(9
)%
Net cash used in investing activities
$
(109,760
)
$
(72,139
)
$
(811,472
)
$
(387,600
)
Net cash provided by financing activities
$
8,914
$
11,726
$
736,012
$
396,100
The following table presents the calculation of Subscription ARR Contribution Margin for the periods presented as well as a reconciliation of (i) non-GAAP subscription cost of revenue to subscription cost of revenue and (ii) non-GAAP operating expenses to operating expenses (in thousands, except percentages):
Twelve Months Ended
October 31,
2025
2024
Subscription cost of revenue
$
216,808
$
196,395
Stock-based compensation expense
(16,431
)
(45,360
)
Stock-based compensation from amortization of capitalized internal-use software
(1,579
)
(163
)
Amortization of acquired intangibles
(5,505
)
(3,672
)
Non-GAAP subscription cost of revenue
$
193,293
$
147,200
Operating expenses
$
1,325,125
$
1,657,219
Stock-based compensation expense
(310,872
)
(769,401
)
Non-GAAP operating expenses
$
1,014,253
$
887,818
Subscription ARR
$
1,346,836
$
1,002,252
Non-GAAP subscription cost of revenue
(193,293
)
(147,200
)
Non-GAAP operating expenses
(1,014,253
)
(887,818
)
Subscription ARR Contribution
$
139,290
$
(32,766
)
Subscription ARR Contribution Margin
10
%
(3
)%