Summary
Rubrik closed FY2026 Q3 with revenue of $350.17 million, up 48.3% from $236.18 million in the prior-year quarter. Subscription ARR reached $1.35 billion as of October 31, 2025, up 34% year over year. Cloud ARR was $1.17 billion, up 53%. Average subscription dollar-based net retention was over 120%. Customers with at least $100,000 in subscription ARR totaled 2,638, up 27% year over year. Subscription ARR contribution margin was 10.3%, compared with (3.3)%.
Gross profit rose 56.7% to $282.03 million. GAAP gross margin was 80.5%, up 4.3 percentage points from 76.2%. Non-GAAP gross margin was 82.8%. Operating loss narrowed to $75.48 million from $124.79 million, and operating margin was negative 21.6%, up 31.3 percentage points from negative 52.8%. Net loss narrowed to $63.83 million from $130.91 million. Diluted loss per share was $(0.32), compared with $(0.71) last year. Non-GAAP net income per diluted share was $0.10, compared with a non-GAAP loss per share of $0.21.
Cash generation improved. Operating cash flow was $85.5 million, up 270.1% from $23.1 million. Free cash flow was $76.9 million, compared with $15.6 million. Capital expenditures were $4.74 million, down 6.5%. Deferred revenue, current portion, was $968.17 million, up 41.1% from $686.01 million. Remaining performance obligations were $2.13 billion, up 36.4% from $1.56 billion.
Management guided for the fourth quarter of fiscal 2026. Non-GAAP subscription ARR contribution margin is expected at approximately 9%. Non-GAAP net loss per share is expected at $(0.12) to $(0.10). Weighted-average shares outstanding are expected at approximately 201 million. For full fiscal year 2026, management guided subscription ARR between $1,439 million and $1,443 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, and free cash flow of $194 million to $202 million.
Operationally, Rubrik launched Agent Cloud to monitor and audit AI agent actions, enforce real-time guardrails, fine-tune agents, and undo agent mistakes. It introduced Okta Recovery and expanded its CrowdStrike partnership for identity security. The company partnered with Cognizant for Business Resilience-as-a-Service. It was named a leader in the IDC MarketScape Worldwide Cyber-Recovery 2025 Vendor Assessment. Risks remain. Rubrik has a limited operating history and faces competition. Revenue can fluctuate as customers move from legacy CDM to RSC, as they exercise or forfeit Subscription Credits, and from material rights. Management said those benefits will decline for the rest of fiscal 2026 and further in fiscal 2027. Billings are seasonal, with the fourth quarter substantially higher than the other three quarters. The company has an accumulated deficit and expects to keep incurring operating losses. It may need additional capital. Other risks include managing growth, launching new products, expanding internationally, using AI successfully, and integrating acquisitions. Rubrik also amended a hosting contract, adding $375.0 million in minimum spending, with $336.3 million remaining as of October 31, 2025.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2026 | Q2 FY2026 | QoQ | Q3 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $350.2M | $309.9M | +13.0% | $236.2M | +48.3% |
| Gross profit | $282.0M | $246.3M | +14.5% | $180.0M | +56.7% |
| Gross margin | 80.5% | 79.5% | +1.1 pp | 76.2% | +4.3 pp |
| Research & development | $97.6M | $92.1M | +5.9% | $80.0M | +21.9% |
| Sales & marketing | $193.2M | $182.0M | +6.1% | $158.9M | +21.5% |
| General & administrative | $66.8M | $66.7M | +0.2% | $65.9M | +1.4% |
| Total operating expenses | $357.5M | $340.8M | +4.9% | $304.8M | +17.3% |
| Operating income (loss) | -$75.5M | -$94.5M | +20.1% | -$124.8M | +39.5% |
| Operating margin | -21.6% | -30.5% | +8.9 pp | -52.8% | +31.3 pp |
| Net income (loss) | -$63.8M | -$95.9M | +33.5% | -$130.9M | +51.2% |
| Net margin | -18.2% | -31.0% | +12.7 pp | -55.4% | +37.2 pp |
| Diluted EPS | -$0.32 | -$0.49 | +$0.17 | -$0.71 | +$0.39 |
| Customers | 2,638 | 2,505 | +5.3% | 2,085 | +26.5% |
| Net retention rate | 120.0% | 120.0% | ±0.0 pp | 120.0% | ±0.0 pp |
Risks
Transition of existing customers from legacy CDM to RSC, mixed RSC and RCDM-T consumption, and Subscription Credits cause revenue to fluctuate because upfront term-license recognition declines while SaaS revenue is recognized ratably. MD&A states these factors will limit and cause fluctuations in subscription revenue growth through fiscal 2027 and that non-recurring material-rights revenue was approximately $24.6 million in FY2026 Q3 and is expected to decline sequentially.
Rubrik is investing in generative and agentic AI, including Rubrik Agent Cloud and the July 2025 Predibase acquisition, but AI technology is advancing rapidly and competitors are also investing in AI. The filing warns the company may not achieve market acceptance, and third-party AI platform changes, unavailability, or performance degradation could make its solutions less appealing.
As a data security company, Rubrik is specifically targeted by threat actors and had prior unauthorized access incidents in March 2023 and February 2025. A future compromise of its platform or customer data could be catastrophic, causing reputational harm, customer loss, litigation, regulatory penalties, and monetary fund diversions.
RSC relies on third-party cloud infrastructure from GCP, Azure, and AWS, and hosting costs significantly influence gross margins. MD&A notes increased hosting costs, a $375.0 million increase in minimum spending commitment under an amended hosting contract, and a $77.0 million hosting prepayment in FY2026 Q3; outages or unfavorable pricing could harm margins and service levels.
Customers have no obligation to renew after generally three-year terms, and RSC migration initiatives, including enforcement of migration deadlines, may be perceived negatively, causing customer dissatisfaction, lost customers, or reduced usage. A decline in customer retention would hurt Subscription ARR and results of operations.
Evolving AI laws, including the EU AI Act and U.S. state frameworks such as the Colorado Artificial Intelligence Act, plus copyright and patent uncertainty for generative-AI-created works, could require changes to AI products, increase compliance costs, or limit AI use. The company also markets AI Products and may face claims over training-data rights or erroneous AI output.
The data security market is intensely competitive with larger competitors such as Dell-EMC, IBM, Commvault, Veeam, and Cohesity. Incumbent advantage from installed data management systems and competitors' AI investments could slow Rubrik's customer acquisition or cause price reductions and loss of market share.
Deterioration in general economic conditions, constrained security and IT spending, and uncertainty related to recent global tariffs may cause current and prospective customers to delay or cut spending on Rubrik's platform. This could decrease revenue and adversely affect customer adoption.
Revenue grew rapidly, up 48.3% in FY2026 Q3 versus the prior-year quarter, but the company warns recent growth may not be indicative of future growth and that it must hire sufficient sales personnel, reduce sales ramp time, expand internationally, and manage its partner ecosystem. Failure to execute could make forecasting difficult and weigh on the stock price.
The June 2025 issuance of $1.15 billion 0.00% convertible senior notes due 2030, related capped call transactions, and future equity awards may dilute stockholders and affect the market price of Class A common stock. As of October 31, 2025, there were 9,056,104 Class B shares issuable upon option exercises and 10,795,208 RSUs to be settled in Class B shares.
Rubrik will cease to qualify as an emerging growth company effective January 31, 2026, which will increase public-company legal, accounting, and compliance costs and eliminate reduced disclosure and extended accounting-standard transition exemptions.
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 Q3 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.