Summary
Rubrik reported total revenue of $187.3 million for the first quarter of fiscal 2025, up 38.0% from the prior-year quarter. Subscription ARR reached $856.1 million as of April 30, 2024, a 46% increase year over year, and subscription revenue climbed 59% as more customers adopted Rubrik Security Cloud. The company sizes its data security market at about $53 billion by 2027 and argues it is still early in that opportunity.
The GAAP results are distorted by costs tied to the April listing. Gross profit was $91.3 million, down 8.5% from a year earlier, and GAAP gross margin was 48.8%, far below the prior-year quarter. The operating loss widened to $724.8 million, the net loss widened to $732.1 million, and diluted loss per share was $11.48, wider than a year earlier. Stock-based compensation of $630.3 million from the vesting of equity awards at the IPO drove most of that swing, with $20.6 million of related employer payroll taxes on top. Strip those items out, and non-GAAP gross margin was 75.4% while non-GAAP net loss per share was $1.58.
Demand metrics held up. Rubrik ended the quarter with 1,859 customers holding $100,000 or more in Subscription ARR, up 41% from 1,314 a year earlier. Cloud ARR reached $605.6 million, up 104% year over year, and the average subscription dollar-based net retention rate was over 120%. The Subscription ARR Contribution Margin improved from the prior-year period, with a further lift once the employer payroll taxes tied to the equity vesting are excluded.
Management issued guidance for the second quarter of fiscal 2025 and for the full fiscal year 2025. For the second quarter, non-GAAP EPS is guided to $0.50 to $0.48, and the Subscription ARR contribution margin is expected to stay negative. For the full fiscal year 2025, the outlook is Subscription ARR of $983 million to $997 million, non-GAAP EPS of $2.35 to $2.25, and free cash flow of negative $115 million to negative $95 million, which includes $23 million of one-time payroll taxes related to the public offering. The full-year Subscription ARR contribution margin is also expected to remain negative.
Cash generation stayed negative. Operating cash flow was negative $31.4 million, compared with negative $17.5 million a year earlier, and free cash flow was negative $37.1 million, compared with negative $23.2 million. Capital expenditures were $3.6 million, up 7.9% from a year earlier. Deferred revenue was $569.2 million as of April 30, 2024, and remaining performance obligations were $1.38 billion. Cash, cash equivalents, and short-term investments totaled $606.3 million, helped by $710.3 million in net IPO proceeds and about $104.9 million from the underwriters' exercised option. The accumulated deficit stood at $2,414.6 million.
Risks include a limited operating history, competition from larger security vendors and new entrants, the difficulty of sustaining rapid growth, international expansion, and the use of AI in current and future products. Rubrik also notes that more customers are choosing annual and consumption-based payments instead of multi-year upfront deals, which adds volatility to collections against an uncertain macroeconomic environment. The migration from legacy CDM and maintenance revenue to Rubrik Security Cloud is expected to limit and create fluctuations in reported revenue growth through fiscal 2027.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $187.3M | — | — | — | — |
| Gross profit | $91.3M | — | — | — | — |
| Gross margin | 48.8% | — | — | — | — |
| Research & development | $285.4M | — | — | — | — |
| Sales & marketing | $379.3M | — | — | — | — |
| General & administrative | $151.5M | — | — | — | — |
| Total operating expenses | $816.2M | — | — | — | — |
| Operating income (loss) | -$724.8M | — | — | — | — |
| Operating margin | -387.0% | — | — | — | — |
| Net income (loss) | -$732.1M | — | — | — | — |
| Net margin | -390.8% | — | — | — | — |
| Diluted EPS | -$11.48 | — | — | — | — |
| Customers | 1,859 | — | — | — | — |
| Net retention rate | 120.0% | — | — | — | — |
Risks
Q1 FY2025 net loss widened to $732.1 million and operating loss widened to $724.8 million, driven in part by $630.3 million of stock-based compensation after the IPO. The filing warns that RSU-related stock-based compensation will significantly increase future expenses and may delay profitability.
The transition from legacy CDM subscription term-based licenses to RSC SaaS subscriptions shifts revenue to ratable recognition and is expected to limit and cause fluctuations in revenue growth through fiscal 2027. Subscription Credits and CDM-T transitional licenses add further unpredictability to period-to-period revenue.
Q1 FY2025 gross margin fell to 48.8% from 73.6% in the prior-year quarter, and subscription gross margin fell to 57% from 80%, largely due to IPO-related stock-based compensation and higher hosting costs. The company expects gross margin to fluctuate through fiscal 2027 as RSC adoption increases.
Average subscription dollar-based net retention rate was over 120% as of April 30, 2024, down from over 140% a year earlier, and Subscription ARR growth decelerated to 46% from 86%. Cloud ARR growth also slowed to 104% from 214%, which may pressure future revenue if expansion or renewals weaken.
RSC and other cloud services depend on third-party cloud providers including GCP, Azure, and AWS for substantially all infrastructure. Service interruptions, capacity limits, or unfavorable pricing could harm gross margins and the ability to meet uptime commitments.
A large majority of customer enterprise data secured relies on Rubrik-branded Appliances built on servers supplied by Supermicro, with a limited number of compatible manufacturers. Delays, supply constraints, or failure to manage the Supermicro relationship could impair customer orders and increase costs.
The data security market is intensely competitive, with rivals such as Dell-EMC, IBM, Commvault, Veeam, and Cohesity, and many competitors are investing in AI to improve their products. Larger competitors with greater resources may respond faster to new threats and customer requirements.
As a data security company, Rubrik has been specifically targeted by threat actors, including a March 2023 unauthorized access to a non-production testing environment. A future large-scale compromise of its platform or customer data could cause catastrophic liability and reputational harm.
Use of third-party generative AI tools to generate code and materials exposes Rubrik to uncertain IP protection, copyright infringement claims, confidentiality leaks, and security vulnerabilities in generated source code. Generative AI Products may also face customer reluctance or claims from erroneous output.
Success depends on senior management and skilled engineering, services, and sales personnel, including key founders and employees concentrated in Palo Alto and Bangalore. Intense competition for these professionals and volatility in equity award value could impair hiring and retention.
The Amended Credit Facility imposes operating and financial restrictions, including limits on additional debt, dividends, investments, liens, and asset transfers. Interest expense increased 92% to $10.6 million in Q1 FY2025, and a covenant breach could require early repayment of borrowings.
Deterioration in general economic conditions and constrained security and IT budgets could cause current and prospective customers to delay or cut spending. Free cash flow was $(37.1) million in Q1 FY2025 compared with $(23.2) million in the prior-year quarter, and payment timing may add volatility.
The dual-class structure gives Class B holders approximately 98% of voting power as of April 30, 2024, limiting Class A stockholders' ability to influence corporate matters. This structure also makes Rubrik ineligible for certain stock indices, which could reduce passive fund demand and liquidity.
SaaS KPIs
All quarters →Average Subscription Dollar-Based Net Retention Rate
Cloud ARR
Subscription ARR
Free Cash Flow
Free Cash Flow Margin
Non-GAAP Gross Margin
Customers with $100K or More in Subscription ARR
Summary, forecast, risks and KPIs are extracted from Rubrik, Inc.'s SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.