Rubrik: Fiscal 3Q26 Financial Results

Summary:

Results exceeded all guided metrics
Third quarter subscription ARR grew 34% YoY to $1.35 billion
Third quarter revenue grew 48% YoY to $350.2 million
2,638 customers with $100K or more in subscription ARR, up 27% YoY

Rubrik, Inc., the Security and AI Operations company, today announced financial results for the third quarter of fiscal year 2026, ended October 31, 2025. Rubrik Logo “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, CEO, chairman, and co-founder, Rubrik.

Commenting on the company’s financial results, Kiran Choudary, CFO, Rubrik, added, “Q3 was another strong quarter where we exceeded the high end of all of our key performance metrics with 34% YoY 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

Subscription Annual Recurring Revenue (ARR): Subscription ARR was up 34% year-over-year, growing to $1.35 billion as of October 31, 2025
Revenue: Subscription revenue was $336.4 million, a 52% increase compared to $221.5 million in the third quarter of fiscal 2025. Total revenue was $350.2 million, a 48% increase compared to $236.2 million in the third quarter of fiscal 2025
Gross Margin: GAAP gross margin was 80.5%, compared to 76.2% in the third quarter of fiscal 2025. This includes $4.8 million in stock-based compensation expense, compared to $6.0 million in the third quarter of fiscal 2025. Non-GAAP gross margin was 82.8%, compared to 79.2% in the third quarter of fiscal 2025
Subscription ARR Contribution Margin: Subscription ARR contribution margin was 10.3% compared to (3.3)% in the third quarter of fiscal 2025, reflecting the strong net new subscription ARR in the quarter and an improvement in operating leverage in the business
Net Loss per Share: GAAP net loss per share was $(0.32), compared to $(0.71) in the third quarter of fiscal 2025. GAAP net loss includes $82.5 million in stock-based compensation expense, compared to $92.5 million in the third quarter of fiscal 2025. Non-GAAP net income per share, diluted, was $0.10, compared to non-GAAP net loss per share, diluted, of $(0.21) in the third quarter of fiscal 2025
Cash Flow from Operations: Cash flow from operations was $85.5 million, compared to $23.1 million in the third quarter of fiscal 2025. Free cash flow was $76.9 million, compared to $15.6 million in the third quarter of fiscal 2025
Cash, Cash Equivalents, and Short-Term Investments: Cash, cash equivalents, and short-term investments were $1.60 billion as of October 31, 2025

Recent Business Highlights

As of October 31, 2025, Rubrik had 2,638 customers with Subscription ARR of $100,000 or more, up 27% YoY
Launched Rubrik Agent Cloud to manage risk and accelerate Enterprise AI Agent adoption. Rubrik Agent Cloud is designed to monitor and audit agentic actions, enforce real-time guardrails for agentic changes, fine-tune agents for accuracy and undo agent mistakes
Introduced Rubrik Okta Recovery, a solution for automated, immutable backups and granular recovery of Okta Identity Provider (IdP) environments. This extends Rubrik’s existing identity recovery capabilities for Active Directory and Entra ID, providing protection for all three IdPs
Expanded our partnership with CrowdStrike to enhance identity security. Rubrik Identity Resilience now integrates with CrowdStrike Falcon Next-Gen Identity Security, allowing customers to reverse malicious identity changes and restore identity providers. This integration provides a complete solution for detecting, adapting to, and reversing identity-based threats, ensuring continued operations in the face of cyberattacks
Partnered with Cognizant to deliver Business Resilience-as-a-Service (BRaaS), a flexible subscription model for rapid cyber incident and ransomware recovery. This offering integrates Rubrik’s AI-driven cyber resilience with Cognizant’s expertise, shifting clients from reactive recovery to proactive business continuity against expanding AI threats
Named a leader in the IDC MarketScape: Worldwide Cyber-Recovery 2025 Vendor Assessment¹. Rubrik was recognized for strengths in extensive threat detection capabilities, DSPM and identity resilience, ransomware response services included and deep ecosystem integration

Click to enlarge

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:

Fourth Quarter Fiscal 2026 Outlook:
- Revenue of $341 million to $343 million
- Non-GAAP subscription ARR contribution margin of approximately 9%
- Non-GAAP net loss per share of $(0.12) to $(0.10)
- Weighted-average shares outstanding of approximately 201 million
Full Year 2026 Outlook:
- Subscription ARR between $1,439 million and $1,443 million
- Revenue of $1,280 million to $1,282 million
- Non-GAAP subscription ARR contribution margin of approximately 9%
- Non-GAAP net loss per share of $(0.20) to $(0.16)
- Weighted-average shares outstanding of approximately 197 million
- Free cash flow of $194 million to $202 million

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