Summary
Rubrik reported first quarter fiscal 2026 results for the period ended April 30, 2025. Total revenue was $278.5 million, up 48.7% from the prior-year quarter. Gross profit was $218.0 million, up 138.7%. Gross margin was 78.3%, up 29.5 percentage points. Non-GAAP gross margin was 80.5%, compared with 75.4% in the first quarter of fiscal 2025. The subscription business continued to expand. Subscription ARR reached $1.18 billion as of April 30, 2025, up 38% year over year. Cloud ARR was $971.5 million, up 60%. Rubrik had 2,381 customers with $100,000 or more in Subscription ARR, up 28%. The average subscription dollar-based net retention rate was over 120%.
Profitability improved because the prior-year quarter carried far larger stock-based compensation tied to the company's initial public offering. GAAP operating loss narrowed 87.2% to $93.1 million. GAAP net loss narrowed 86.1% to $102.1 million. GAAP diluted loss per share narrowed 95.4% to $(0.53). Operating margin was negative 33.4%, up 353.5 percentage points. On a non-GAAP basis, net loss per share was $(0.15), compared with $(1.58) in the first quarter of fiscal 2025. Cash generation turned positive. Operating cash flow was $39.7 million, up 226.4% from the prior-year quarter. Free cash flow was $33.3 million, compared with $(37.1) million in the first quarter of fiscal 2025. Deferred revenue was $838.9 million, up 47.4%. Remaining performance obligations were $1.86 billion, up 34.8%.
Rubrik expanded its partner ecosystem during the quarter. It partnered with Google Cloud and Mandiant to develop a cloud-based isolated recovery solution on Google Cloud. The company said Rubrik Annapurna will integrate with Google Agentspace. It announced a strategic alliance with Deloitte and an expanded global strategic partnership with NTT Data for ransomware protection. Rubrik also partnered with Rackspace to launch the Rackspace Cyber Recovery Cloud powered by Rubrik. The company appointed Kavitha Mariappan as Chief Transformation Officer. Management issued guidance for the second quarter of fiscal 2026 and for the full fiscal year 2026. For the second quarter, Rubrik expects revenue of $281 million to $283 million, non-GAAP Subscription ARR contribution margin of 4.5% to 5.5%, and non-GAAP EPS of $(0.35) to $(0.33), with weighted-average shares outstanding of approximately 196 million. For the full fiscal year 2026, the company guides to Subscription ARR between $1,380 million and $1,388 million, a non-GAAP Subscription ARR contribution margin of approximately 6.0%, non-GAAP EPS of $(1.02) to $(0.96), weighted-average shares outstanding of approximately 198 million, and free cash flow of $65 million to $75 million.
The quarter still showed substantial GAAP losses and the business faces several execution risks. Rubrik has a limited operating history and must manage rapid growth, introduce new products, compete with existing and new entrants, expand internationally, and use AI successfully in current and future products. Revenue can fluctuate as existing maintenance customers move to RSC, as customers use transitional RCDM-T licenses, and as qualified customers exercise or forfeit Subscription Credits. The transition of Rubrik-branded Appliance sales to contract manufacturers also affects revenue comparisons. Maintenance revenue is expected to decline, and the transition of maintenance customers to subscription offerings should be largely completed by the end of fiscal 2026. Other revenue as a percentage of total revenue is expected to decrease. Gross margin may fluctuate through fiscal 2027 as SaaS revenue grows and hosting costs rise. Rubrik expects to keep incurring operating losses, and its operating cash flows may swing between positive and negative amounts. Billings are seasonal, with the fourth quarter substantially higher than the other three quarters. The company may need additional capital to execute its strategy. The 10-Q also notes that a weakening U.S. dollar against foreign currencies hurt other income (expense), net, and that the effective tax rate may vary.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2026 | Q4 FY2025 | QoQ | Q1 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $278.5M | $258.1M | +7.9% | $187.3M | +48.7% |
| Gross profit | $218.0M | $199.6M | +9.2% | $91.3M | +138.7% |
| Gross margin | 78.3% | 77.3% | +0.9 pp | 48.8% | +29.5 pp |
| Research & development | $81.8M | $80.0M | +2.3% | $285.4M | -71.3% |
| Sales & marketing | $170.0M | $161.4M | +5.4% | $379.3M | -55.2% |
| General & administrative | $59.3M | $74.4M | -20.4% | $151.5M | -60.9% |
| Total operating expenses | $311.1M | $315.8M | -1.5% | $816.2M | -61.9% |
| Operating income (loss) | -$93.1M | -$116.1M | +19.8% | -$724.8M | +87.2% |
| Operating margin | -33.4% | -45.0% | +11.6 pp | -387.0% | +353.5 pp |
| Net income (loss) | -$102.1M | -$114.9M | +11.1% | -$732.1M | +86.1% |
| Net margin | -36.7% | -44.5% | +7.9 pp | -390.8% | +354.2 pp |
| Diluted EPS | -$0.53 | -$0.74 | +$0.21 | -$11.48 | +$10.95 |
| Customers | 2,381 | — | — | 1,859 | +28.1% |
| Net retention rate | 120.0% | 120.0% | ±0.0 pp | 120.0% | ±0.0 pp |
Risks
Migration of existing customers from legacy CDM to RSC, including RCDM-T licenses and Subscription Credits, is expected to limit and cause fluctuations in revenue growth through fiscal 2027. Total revenue was up 48.7% in FY2026 Q1 (three months ended April 30, 2025), but the company says revenue growth could slow or decline depending on the timing of customer migrations and credit exercises or forfeitures.
New customer acquisition depends on convincing organizations to allocate discretionary budgets to data security, and tariffs plus macroeconomic uncertainty may cause customers to delay or cut security and IT spending. The company also cites the need to hire sufficient sales personnel and reduce their time to productivity.
As a data security company, Rubrik is specifically targeted by threat actors and disclosed unauthorized access in March 2023 and anomalous activity on a server in February 2025. Those incidents did not access customer data or internal code and caused no business disruption, but the company says a future attack may have a less minimal impact and could be catastrophic.
A large majority of customer enterprise data secured relies on Rubrik-branded Appliances built on servers supplied and designed by Supermicro, and only a limited number of manufacturers produce compatible commodity servers. Tariffs and trade restrictions on hardware and technology infrastructure from China may impair supply, increase customer costs, or delay fulfillment.
The data security market is intensely competitive, with competitors including Dell-EMC, IBM, Commvault, Veeam, Cohesity, and cloud/SaaS vendors, many of which have greater resources and larger installed bases. Incumbents have switching-cost advantages, and competitors are investing in AI to improve their data security products.
Rubrik uses generative AI to generate code and materials, but may be unable to obtain U.S. copyright or patent protection for works wholly created by generative AI and faces IP, confidentiality, hallucination, and third-party license risks. Marketing Generative AI Products may also reduce or delay adoption by regulated customers, and new AI laws such as the EU AI Act and Colorado AI Act could restrict use or increase compliance costs.
Increased adoption of RSC and SaaS products is expected to raise hosting costs and cause subscription gross margin to fluctuate through fiscal 2027 as revenue is recognized ratably rather than partly upfront. Total gross margin was up 29.5 pp to 78.3% in FY2026 Q1, but the company expects margin variability.
A substantial majority of outstanding debt is under the Amended Credit Facility, which matures in August 2028 and contains restrictive covenants limiting indebtedness, dividends, investments, liens, mergers, and asset transfers. Failure to comply could result in an event of default that accelerates repayment obligations.
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 FY2026 (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.