8-K: Rubrik Soars Past Q2 Forecasts, Revenue Up 51%, Boosts FY26 Outlook

Rubrik, Inc. announced strong second quarter fiscal year 2026 financial results, exceeding all guided metrics with significant revenue and subscription ARR growth, and raised its full fiscal year 2026 outlook.

Summary

• Subscription Annual Recurring Revenue (ARR) grew 36% year-over-year to $1.25 billion as of July 31, 2025.
• Total revenue increased 51% year-over-year to $309.9 million for the second quarter of fiscal year 2026.
• Subscription revenue was $297.0 million, a 55% increase compared to the second quarter of fiscal 2025.
• The company reported 2,505 customers with $100,000 or more in Subscription ARR, marking a 27% year-over-year increase.
• GAAP gross margin improved to 79.5% from 73.1% in the prior year's second quarter, while non-GAAP gross margin reached 81.6% from 77.0%.
• Subscription ARR contribution margin significantly improved to 9.4% compared to (8.2)% in the second quarter of fiscal 2025.
• GAAP net loss per share improved to $(0.49) from $(0.98) in the second quarter of fiscal 2025, and non-GAAP net loss per share improved to $(0.03) from $(0.40).
• Cash flow from operations turned positive at $64.7 million, compared to $(27.1) million in the second quarter of fiscal 2025.
• Free cash flow also became positive at $57.5 million, up from $(32.0) million in the second quarter of fiscal 2025.
• Rubrik completed the acquisition of Predibase to enhance its GenAI capabilities and launched Agent Rewind, powered by Predibase's AI infrastructure.
• Expanded cloud data protection offerings for Amazon RDS for PostgreSQL and Amazon DynamoDB.
• Named a Leader in the 2025 Gartner Magic Quadrant for Enterprise Backup and Recovery Software Solutions for the sixth consecutive year.

Sentiment

Score: 9

Explanation: The company reported exceptional growth across key financial metrics, significantly improved profitability and cash flow, exceeded all guided metrics, and raised its full-year outlook. Strategic acquisitions and product launches further strengthen its market position, indicating very strong positive momentum.

Positives

• Results exceeded all guided metrics for the quarter.
• Subscription ARR grew 36% year-over-year to $1.25 billion.
• Total revenue increased 51% year-over-year to $309.9 million.
• Subscription revenue grew 55% year-over-year to $297.0 million.
• Number of customers with $100K or more in Subscription ARR increased 27% year-over-year to 2,505.
• GAAP gross margin improved to 79.5% from 73.1% year-over-year.
• Non-GAAP gross margin improved to 81.6% from 77.0% year-over-year.
• Subscription ARR contribution margin significantly improved to 9.4% from (8.2)% year-over-year, reflecting strong operating leverage.
• GAAP net loss per share improved to $(0.49) from $(0.98) year-over-year.
• Non-GAAP net loss per share improved to $(0.03) from $(0.40) year-over-year.
• Cash flow from operations turned positive at $64.7 million, a substantial improvement from a $(27.1) million outflow.
• Free cash flow turned positive at $57.5 million, a significant improvement from a $(32.0) million outflow.
• Cash, cash equivalents, and short-term investments stood at a robust $1,523.0 million.
• Successfully acquired Predibase to bolster secure, efficient, and accelerated GenAI offerings.
• Launched Agent Rewind, a new product powered by Predibase's AI infrastructure, to undo agentic AI mistakes.
• Strengthened leadership in cloud data protection with expanded immutability for Amazon RDS for PostgreSQL and comprehensive protection for Amazon DynamoDB.
• Recognized as a Leader and furthest in Completeness of Vision in the 2025 Gartner Magic Quadrant for Enterprise Backup and Recovery Software Solutions for the 6th consecutive year.
• Raised the financial outlook for the full fiscal year 2026.

Negatives

• The company continues to report a GAAP net loss of $(95.9) million for the quarter.
• A total stockholders deficit of $(564.3) million was reported as of July 31, 2025, an increase from $(553.7) million at January 31, 2025.

Risks

• Limited operating history.
• The growth rate of the market in which the company competes.
• Ability to effectively manage and sustain growth.
• Ability to introduce new products on top of its platform.
• Ability to compete with existing competitors and new market entrants.
• Ability to expand internationally.
• Ability to utilize AI successfully in current and future products.
• Ability to successfully integrate Predibase into operations and market the Predibase platform.

Future Outlook

Rubrik provided an updated outlook for the third quarter and full fiscal year 2026, raising its guidance. For Q3 FY2026, revenue is projected to be between $319 million and $321 million, with a non-GAAP subscription ARR contribution margin of approximately 6.5% and non-GAAP net loss per share of $(0.18) to $(0.16). For the full fiscal year 2026, Subscription ARR is expected to be between $1,408 million and $1,416 million, total revenue between $1,227 million and $1,237 million, non-GAAP subscription ARR contribution margin of approximately 7.0%, non-GAAP net loss per share of $(0.50) to $(0.44), and free cash flow of $145 million to $155 million.

Management Comments

• "We delivered a strong quarter with exceptional top-line growth and significant cash flow margin. We continue to build towards a highly profitable growth business. We're also pleased to close the acquisition of Predibase, which bolsters our ability to deliver secure, efficient and accelerated GenAI for our customers. We look forward to continuing to unlock new frontiers in data, security, and AI as we build a generational company." Bipul Sinha, CEO, Chairman, and Co-Founder.
• "We saw solid results in the second quarter with 36% growth in subscription ARR and a 19% free cash flow margin. This was driven by healthy new customer acquisition, robust expansion and increased efficiencies in the business. We're pleased to raise our outlook for fiscal 2026." Kiran Choudary, CFO.

Industry Context

Rubrik's strong performance and strategic moves align with the accelerating trends in data security, cyber resilience, and enterprise AI adoption. The acquisition of Predibase and the launch of Agent Rewind directly address the growing demand for secure and efficient Generative AI solutions, positioning Rubrik to capitalize on the increasing complexity of AI-driven data environments. Expanding cloud data protection for Amazon RDS and DynamoDB further solidifies its position in the rapidly expanding cloud market, where data protection and immutability are critical concerns for enterprises.

Comparison to Industry Standards

• Rubrik was named a Leader and the furthest in Completeness of Vision in the 2025 Gartner Magic Quadrant for Enterprise Backup and Recovery Software Solutions for the 6th consecutive year, indicating strong competitive standing and vision within its core market segment.

Stakeholder Impact

• Shareholders: Likely positive impact due to strong financial performance, exceeding guidance, raised outlook, and strategic acquisitions, which could lead to increased share price.
• Employees: Positive impact from company growth, strategic expansion, and innovation, potentially leading to job stability and new opportunities.
• Customers: Enhanced product offerings and capabilities, particularly in secure GenAI and cloud data protection, providing more robust solutions.
• Creditors: Improved financial health, positive cash flow, and strong cash reserves enhance the company's creditworthiness.

Next Steps

• Rubrik will host a conference call to discuss the second quarter fiscal year 2026 results and financial outlook for Q3 and full FY2026 on September 9, 2025, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time.

Key Dates

Recommendation

Rubrik's Q2 FY2026 results demonstrate exceptional execution, with significant year-over-year growth in subscription ARR (36%) and total revenue (51%), exceeding all guided metrics. The substantial improvement in gross margins, a positive swing in cash flow from operations and free cash flow, and a significant reduction in non-GAAP net loss per share indicate a strong trajectory towards profitability. The strategic acquisition of Predibase and the raised full-year outlook further underscore robust business momentum and future growth potential in critical areas like data security and AI. These factors collectively present a compelling investment case.

Keywords

Rubrik, RBRK, financial results, Q2 2026, subscription ARR, revenue growth, data security, cyber resilience, AI, GenAI, Predibase acquisition, cloud data protection, enterprise backup, Gartner Magic Quadrant