Summary
Rubrik posted $309.9 million in revenue for the second quarter of fiscal 2026, a 51.2% increase from the prior-year quarter, and $588.3 million for the first six months, up 50.0%. Subscription revenue was $297.0 million, up 55%, and subscription ARR reached $1.25 billion as of July 31, 2025, up 36% year over year. Cloud ARR rose 57% to $1,064.1 million. Rubrik ended the quarter with 2,505 customers spending $100,000 or more in subscription ARR, up 27% from 1,969 a year earlier, and its average subscription dollar-based net retention rate stayed above 120%.
Margins and losses both moved the right way. Gross margin rose 6.4 percentage points to 79.5%, and gross profit rose 64.4% to $246.3 million. The operating loss narrowed 43.9% to $94.5 million, and the net loss narrowed 45.8% to $95.9 million. Diluted net loss per share was $0.49, an improvement from the prior-year quarter, and the year-to-date net loss narrowed 78.2% to $198.0 million. Stock-based compensation of $88.5 million, down from $105.0 million a year earlier, did much of the work. Non-GAAP net loss per share was $0.03, against $0.40 in the prior-year quarter. Subscription ARR contribution margin came in at 9.4%, compared with (8.2)% a year ago.
Cash flow swung hard positive. Operating cash flow was $64.7 million in the quarter and $104.4 million for the six months, against outflows in the comparable prior-year periods. Free cash flow, a non-GAAP measure that subtracts capital spending and capitalized software, was $57.5 million for the quarter and $90.9 million year to date. Capital expenditures were $3.5 million, up 35.2%. Rubrik held $1,523.0 million in cash, cash equivalents and short-term investments at July 31, 2025. Deferred revenue rose 43.4% to $897.7 million, and remaining performance obligations reached $2.02 billion, up 33.7%.
The balance sheet changed shape in June 2025. Rubrik repaid $327.9 million under its credit facility and issued $1.15 billion of 0.00% convertible notes due 2030, paying $88.6 million for capped calls with a cap price of $175.10 per share. The accumulated deficit stood at $3,035.4 million. Management then raised its outlook for fiscal 2026. For the third quarter of fiscal 2026, guidance is a non-GAAP subscription ARR contribution margin of about 6.5% and a non-GAAP net loss per share of $0.18 to $0.16. For the full fiscal year, the outlook is subscription ARR of $1,408 million to $1,416 million, a non-GAAP subscription ARR contribution margin of roughly 7.0%, a non-GAAP net loss per share of $0.50 to $0.44, and free cash flow of $145 million to $155 million.
Two items flatter the headline growth. Non-recurring revenue from material rights supplied about 7 percentage points of subscription revenue growth in the quarter, and management expects that benefit to decline significantly after fiscal 2026. Maintenance-to-subscription conversions added roughly 1.4 percentage points to ARR growth, down from 2.5 percentage points a year earlier. The MD&A warns that these factors, together with the transitional RCDM-T licenses and Subscription Credit exercises, will limit and cause fluctuations in revenue growth through fiscal 2027.
Other risks are the familiar ones for a young public company: a limited operating history, competition, international expansion, building new products on top of the platform, and the work of absorbing Predibase. Rubrik acquired Predibase in July 2025 for $109.1 million, mostly in common stock, and launched Agent Rewind for undoing agentic AI actions. A hosting contract amendment extended the term to April 2029 and added $375.0 million in minimum spending, leaving $428.3 million of remaining commitment. The quarter also carried a $6.7 million loss on debt extinguishment and $12.2 million of interest income, and management still expects operating losses.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2026 | Q1 FY2026 | QoQ | Q2 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $309.9M | $278.5M | +11.3% | $205.0M | +51.2% |
| Gross profit | $246.3M | $218.0M | +13.0% | $149.8M | +64.4% |
| Gross margin | 79.5% | 78.3% | +1.2 pp | 73.1% | +6.4 pp |
| Research & development | $92.1M | $81.8M | +12.6% | $86.2M | +6.8% |
| Sales & marketing | $182.0M | $170.0M | +7.1% | $167.9M | +8.4% |
| General & administrative | $66.7M | $59.3M | +12.5% | $63.9M | +4.3% |
| Total operating expenses | $340.8M | $311.1M | +9.5% | $318.1M | +7.1% |
| Operating income (loss) | -$94.5M | -$93.1M | -1.5% | -$168.3M | +43.9% |
| Operating margin | -30.5% | -33.4% | +2.9 pp | -82.1% | +51.6 pp |
| Net income (loss) | -$95.9M | -$102.1M | +6.0% | -$176.9M | +45.8% |
| Net margin | -31.0% | -36.7% | +5.7 pp | -86.3% | +55.4 pp |
| Diluted EPS | -$0.49 | -$0.53 | +$0.04 | -$0.98 | +$0.49 |
| Customers | 2,505 | 2,381 | +5.2% | 1,969 | +27.2% |
| Net retention rate | 120.0% | 120.0% | ±0.0 pp | 120.0% | ±0.0 pp |
Risks
Enforcement of migration deadlines to move existing customers to RSC may be perceived negatively and delay transitions; MD&A states revenue growth will be limited and fluctuate through fiscal 2027 as customers mix RSC and RCDM-T licenses, which still recognize a portion of revenue upfront.
Subscription Credits are accounted for as material rights and cause revenue to fluctuate when customers exercise or forfeit them; non-recurring material rights revenue contributed approximately 7 percentage points to subscription revenue growth in the quarter ended July 31, 2025, and management expects these benefits to significantly decline after fiscal 2026.
Rubrik uses generative and agentic AI in products and internal development, which may limit IP protection, expose it to legal claims over training data, and subject it to evolving AI regulations; adoption of AI Products may be resisted by customers in highly regulated industries.
Customers have no obligation to renew subscriptions after terms that are generally three years and may shorten terms, select lower editions, or purchase less capacity; initiatives to accelerate RSC migration may cause customer dissatisfaction, and MD&A identifies retaining and expanding within the existing customer base as integral to growth.
As a data security company, Rubrik is specifically targeted by threat actors and disclosed past incidents in March 2023 and February 2025; a significant compromise could affect many customers and cause potentially catastrophic liability and reputational harm.
RSC relies on third-party cloud providers including GCP, Azure, and AWS, and Rubrik's costs and gross margins are significantly influenced by prices negotiated with them; in June 2025 it amended a hosting contract, increasing minimum spending by $375.0 million, with $428.3 million remaining on the commitment as of July 31, 2025.
Deterioration in general economic conditions and uncertainty related to recent global tariffs may cause current and prospective customers to delay or cut security and IT operations spending, impacting customer adoption and revenue.
The data security market is intensely competitive, and competitors such as Dell-EMC, IBM, Commvault, Veeam, and Cohesity (which acquired Veritas' data protection business) may have greater resources and larger installed bases, while many are investing in AI to improve their products.
Based on market value of Class A common stock held by non-affiliates as of July 31, 2025, Rubrik will cease to be an emerging growth company on January 31, 2026, losing reduced reporting and accounting transition exemptions and increasing compliance costs.
In June 2025 Rubrik issued $1.15 billion of 0.00% convertible senior notes due 2030 and entered into capped call transactions; counterparty default or note conversion could cause dilution or require cash payments, and the capped calls may affect stock price.
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 Q2 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.