Rubrik, Inc.
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Item 1. Business
We are on a mission to secure and accelerate the world’s AI transformation.
Organizations are facing new challenges. Cyberattacks are inevitable. Prevention and detection are not enough. Realizing that cyberattacks ultimately target data, we created Zero Trust Data Security to deliver cyber resilience so that organizations can secure their data across the cloud and recover from cyberattacks. As enterprises embrace the forthcoming AI transformation, they are grappling with a threat landscape that is now amplified at an AI-scale. We believe that cyber resilience will result in AI resilience and that the future of cybersecurity is data security—if your data is secure, your business is resilient.
We built the Rubrik Security Cloud (“RSC”) suite with Zero Trust design principles to secure data across enterprise, cloud, SaaS, unstructured data, and identity providers. RSC delivers a cloud native SaaS platform that detects, analyzes, and remediates data security risks and unauthorized user activities. Our platform is architected to help organizations achieve cyber resilience, which encompasses cyber posture and cyber recovery. We enable organizations to confidently accelerate digital transformation and leverage the cloud to realize business agility.
In fiscal 2026, we built Rubrik Agent Cloud (“RAC”), to accelerate enterprise AI transformation. RAC is designed to provide a comprehensive AI operations platform that can dynamically monitor, control, and remediate agentic actions. RAC became commercially available in February 2026.
Our Rubrik Security Cloud and Rubrik Agent Cloud suites are built on the same technology architecture.
Architecture matters when it comes to securing data and accelerating enterprise AI transformation. Our unique SaaS-based architecture combines data and metadata from business applications across enterprise, identity, cloud, and SaaS applications to create self-describing data as a time-series. Self-describing data contains information such as application context, identity, data sensitivity, and application lineage. Our data threat engine, powered by AI and machine learning analyzes the self-describing data time-series to derive security intelligence from data and deliver cyber recovery. This enables our unique Preemptive Recovery Engine to identify clean recovery points in advance of an attack to shorten cyber recovery times. We combined backup and recovery and cybersecurity into a single platform built with a Zero Trust architecture, significantly shrinking the attack surface that exists with legacy solutions. Our Zero Trust Data Security platform assumes that information technology infrastructure will be breached, and nothing can be trusted without authentication.
Our architecture’s ability to understand data, application, and identity context allows us to deliver Rubrik Agent Cloud, which serves as an enterprise control layer for managing the AI agent lifecycle.
Automation is at the core of our architecture ethos. Our automated policy-driven platform delivers data security enforcement, incident response orchestration, and API integrations with the broader security ecosystem.
Our business is indexed to business data growth. Our customers’ need for our solutions grows in lockstep with their business data growth and their need for additional data security capabilities. We primarily sell subscriptions to RSC through our sales team and partner network by employing a land and expand sales strategy. We land new customers by selling subscriptions to RSC to secure any one of five distinct types of data: enterprise, unstructured data, identity, cloud, and SaaS applications. Expansion happens primarily along three vectors: the growth of data from applications already secured by Rubrik; new applications or identities secured; and additional security products. This expansion is driven by a natural flywheel effect in which the value of our platform increases as our customers’ data grows across various applications. As organizations manage more data and identities with RSC, they gain deeper insights into their data, strengthen their overall security posture, and reduce compliance risk.
Our Platform and Products
Rubrik has a unique and purpose-built Zero Trust Data Security approach to help organizations achieve business resilience against cyberattacks, malicious insiders, operational disruptions, and accelerate AI adoption by reducing risk. We enable organizations to implement a Zero Trust framework at the data layer, deliver data availability that withstands the aforementioned adverse conditions, and uphold data integrity even when infrastructure is compromised or attacked.
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RSC, built with a Zero Trust design, automates data policy management and enforcement, delivers threat analytics and response, and orchestrates rapid recovery. RSC is a cloud native SaaS suite that secures data across disparate sources, allowing customers to have a single point of control from one user interface. RSC is built on a proprietary framework that represents time-series data and metadata generated across enterprise, unstructured data, identity, cloud, and SaaS applications. We build products on top of RSC to address myriad use cases that help our customers achieve cyber resilience, from hardening their data security posture to cyber recovery. These use cases include protection and recovery from cyberattacks, malicious insiders, and operational disruptions; orchestration of cyber and operational recovery, failover/failback testing, and cloud migration; sensitive data classification and visibility into over-privileged data access; monitoring for governance, regulatory compliance, and data breaches; and identification, containment, and remediation of ransomware and other security threats.
Our access to time-series data and metadata allows us to deliver a breadth of products across two suites, Rubrik Security Cloud and Rubrik Agent Cloud.
Rubrik Security Cloud
Data Protection. Cyber-proofs various sources of data in an organization with secure, access-controlled backups. Our data protection products are built for ease of deployment and use, scalability, and rapid recovery from cyberattacks, malicious insiders, and operational disruptions. We offer data protection products to manage enterprise, unstructured data, cloud, and SaaS applications. We also protect identity provider services, such as Microsoft Active Directory, EntraID and Okta.
Data Threat Analytics and Data Security. Detects data threats and identifies the blast radius of a cyberattack to speed up data recovery. Combines Anomaly Detection, Threat Monitoring, and Turbo Threat Hunting. Anomaly Detection uses advanced machine learning to detect deletions, modifications, and encryptions. Threat Monitoring continuously monitors for indicators of compromise commonly used by bad actors to establish persistent access, move laterally, or exfiltrate data. Turbo Threat Hunting allows incident responders and Security Operations Center (SOC) analysts to hunt for indicators of compromise and determine the initial point, scope, and time of infection. Turbo Threat Hunting capabilities enable customers to instantly check against precomputed hash values to locate malware-free recovery points. Data Security strengthens cyber posture by locating sensitive data proliferation and identifying data risks. Includes Sensitive Data Monitoring and User Intelligence, which altogether discovers where data lives, sensitivity of data, and user access and activity.
Identity Security. Delivers visibility, continuous monitoring, risk remediation, attack rollback and orchestrated recovery across identity services providers. Identity Recovery orchestrates fast, reliable recovery of Microsoft Active Directory, EntraID, and Okta. Identity Resilience is designed to continuously monitor identity risks and policy violations and rapidly identify compromised accounts.
Cyber Recovery. Improves cyber readiness and incident response with orchestrated Cyber Recovery Simulation, Threat Containment, and orchestrated Active Directory Forest Recovery. Cyber Recovery Simulation is used to create, test, and validate recovery plans, while also staying compliant with policy and audit requirements. Cyber Recovery can also be used to recover compromised data within a safe environment for forensic analysis. Threat Containment is used to quarantine data infected with malware so that recovery is enabled without reinfection. Active Directory Forest Recovery orchestrates the recovery of an organization’s Active Directory identity service to the desired point in time while avoiding malware reintroduction.
Rubrik Agent Cloud. Designed to provide a comprehensive AI operations platform that can dynamically monitor, control, and remediate agentic actions. RAC is designed to accelerate AI transformation for our customers without introducing added risk. It became commercially available in February 2026.
Architecture Matters
We believe the following attributes of our platform architecture allow us to offer a differentiated approach to data security:
•Time-Series Data and Metadata. We design our platform to manage time-series data and metadata as core assets. Our platform combines data and metadata together into self-describing data and records its history over time. To provide a single point of control for data across enterprise, cloud, and SaaS applications, we have constructed a proprietary framework to uniformly represent self-describing data across time. Doing so gives us full context of data and unlocks security use cases, allowing us to build products for cyber recovery and security intelligence.
•Data Threat Engine. We have developed a proprietary machine learning and artificial intelligence-based data threat monitoring and management engine to surface anomalous activities and indicators of data breaches. Our self-describing data, which combines data and metadata, gives us the ability to surface emergent data threats, understand data sensitivity, and identify malicious user activities. In addition, our platform continuously scans self-describing data for indicators of compromise (IOCs) and malicious patterns using our native data threat engine and integrated threat intelligence. This allows us to pre-identify the last known clean snapshots and automate recovery workflows.
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•Zero Trust Design. We employ Zero Trust principles to prevent threats at the data layer. Our use of native immutability, secure protocols, logical air gap, encryption, role-based access controls, multi-factor authentication, and native services uphold data integrity and availability.
•Automation. Core to our product design ethos is automation. To consistently secure and manage data at scale, our platform delivers automated end-to-end policy management and enforcement, orchestration of security incident response, and API integrations.
Key Benefits to Our Customers
Leading businesses, governments, and public entities around the world and across all industries and segments choose Rubrik to:
•Achieve cyber and operational resilience. Our platform allows organizations to continue business operations even when data and applications are compromised by cyberattacks, malicious insiders, and operational disruptions. From the beginning, we have built our platform with the assumption that security breaches are inevitable and that data availability and integrity must be maintained to minimize business downtime and data loss.
•Secure, govern, and recover data across hybrid multi-cloud and SaaS applications. We recognize that organizations are in various stages of their cloud and SaaS journeys, and are accumulating data across enterprise, cloud, and SaaS applications. Our platform provides a consistent, policy managed experience across hybrid multi-cloud and SaaS environments, allowing organizations to uniformly deliver data security, governance, and recovery.
•Strengthen identity and data security posture. Our platform helps organizations manage security threats with detection and analysis of security risks. We combine machine learning and threat intelligence to detect anomalies and unusual behavior in application and identity data. Our platform also analyzes the blast radius of impact, automates ransomware monitoring, and rapidly recovers impacted data and identity services. Our ability to continuously discover and classify sensitive data, in addition to understanding user access, helps reduce the risk of data exfiltration. Our products can be integrated into security operations’ automated playbooks for managing and mitigating ransomware and other data attacks.
•Accelerate AI transformation. Our platform helps enterprises move from their AI pilots to production by addressing the fundamentals expected of mission-critical systems: visibility, control, and recovery.
•Comply with data regulations. Our platform continuously discovers and classifies sensitive data, which provides increasing value to organizations as more data is accumulated across enterprise, cloud, and SaaS applications. This allows organizations to facilitate compliance with evolving data privacy and security regulations, such as GDPR, and reduce risk of double extortion ransomware attacks.
•Catalog and govern data assets. We provide a single platform for complete visibility and management as organizations accumulate more data across enterprise, cloud, and SaaS applications. We help organizations understand what data they have, where that data resides, sensitivity of data, and who has unqualified data access. As a result, our customers can shrink their attack surface, reduce risk of security breaches, and accelerate industry regulatory compliance. Our understanding of sensitive data and user access can help enterprises adopt generative AI by setting guardrails to mitigate exposure to compliance, data privacy, and cybersecurity risks.
•Improve operational efficiency. As organizations adopt hybrid multi-cloud and SaaS strategies, they encounter many different tools, interfaces, and workflows. Organizations can streamline and standardize data security and management operations with our unified policy automation engine and workflows. This reduces the need for employee training, simplifies security and governance challenges, provides reliable and rapid recoveries, and makes it easier to manage exponential data growth and the accumulation of diverse data sources.
Our Growth Strategy
Key elements of our growth strategy include:
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2026, as filed with the SEC on March 19, 2026 (the “Annual Report”). Some of the information contained in this discussion and analysis includes forward-looking statements that involve risks and uncertainties as described under the heading “Special Note About Forward-Looking Statements” in this Quarterly Report on Form 10-Q. You should review the disclosure under the heading “Risk Factors” in this Quarterly Report on Form 10-Q for a discussion of important factors that could cause our actual results to differ materially from those anticipated in these forward-looking statements.
Unless the context otherwise requires, all references in this Quarterly Report on Form 10-Q to “we,” “us,” “our,” “our company,” and “Rubrik” refer to Rubrik, Inc. and its consolidated subsidiaries. Unless otherwise indicated, references to our “common stock” include our Class A common stock and Class B common stock.
Overview
We are on a mission to secure and accelerate the world’s AI transformation.
Cyberattacks are inevitable. Prevention and detection are not enough. Realizing that cyberattacks ultimately target data, we created Zero Trust Data Security to deliver cyber resilience so that organizations can secure their data across the cloud and recover from cyberattacks. As enterprises embrace the forthcoming AI transformation, they are grappling with a threat landscape that is now amplified at an AI-scale. We believe that cyber resilience will result in AI resilience and that the future of cybersecurity is data security—if your data is secure, your business is resilient.
We built the Rubrik Security Cloud (“RSC”) suite with Zero Trust design principles to secure data across enterprise, cloud, SaaS, unstructured data, and identity providers. RSC delivers a cloud native SaaS platform that detects, analyzes, and remediates data security risks and unauthorized user activities. Our platform is architected to help organizations achieve cyber resilience, which encompasses cyber posture and cyber recovery. We enable organizations to confidently accelerate digital transformation and leverage the cloud to realize business agility.
We launched our first enterprise software product, Converged Data Management, in fiscal 2016, which combined data and metadata together into a single layer of software to offer Zero Trust data protection, and sold it as a perpetual license along with associated maintenance contracts. In fiscal 2019, we extended data protection to cloud native applications and rebranded Converged Data Management to Cloud Data Management (“CDM”). Data protection for cloud native applications are sold as a SaaS subscription offering. In addition, we began launching new SaaS subscription offerings, Anomaly Detection and Sensitive Data Monitoring. In fiscal 2020, we continued our business evolution to a subscription pricing model by offering CDM as a subscription term-based license with associated support. Included in this subscription term-based license was the right to next generation Rubrik-branded commodity servers (“Rubrik-branded Appliances”) at no cost for qualified customers (“Refresh Rights”). As of February 1, 2022, we stopped offering CDM as a perpetual license.
In fiscal 2023, to meet customer demands for data security and a single, unified cloud-based control plane, we launched RSC, a suite built on top of our comprehensive Zero Trust Data Security platform. RSC culminates our early vision of providing one point of control to secure data across enterprise, cloud, SaaS, unstructured data, and identity providers. RSC is primarily adopted by our customers as a cloud-native, fully managed SaaS solution. It is also available as an enterprise-ready, self-managed version (“RSC-Private”), for a few select customers that are subject to stringent data control policies. For U.S. public sector organizations, we also offer a specialized cloud-native fully managed SaaS solution called RSC-Government.
We began transitioning customers from our legacy CDM capabilities to RSC, which is offered on a subscription basis, in fiscal 2023. As part of this business transition, we began transitioning the sale of Rubrik-branded Appliances from us to our contract manufacturers and stopped offering the Refresh Rights as part of our subscription offerings. In lieu of offering Refresh Rights, we offered Subscription Credits to qualifying customers (which are customer options that are accounted for as material rights). We recognize ratable revenue upon utilization or upfront revenue upon expiration of Subscription Credits, and utilization of Subscription Credits also offsets Subscription ARR for the applicable period. Since the end of fiscal 2024, RSC has represented a majority of our total revenue.
We recognize revenue from the sales of our RSC suite (excluding RSC-Private) ratably over the term of the subscription. We recognize a portion of revenue from sales of RSC-Private upon delivery and the remainder ratably over the term of the subscription. The majority of sales of our subscriptions are for three-year terms with upfront payment, and renewals are typically for one-year terms.
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New and existing customers have largely adopted RSC. We have largely migrated our existing customers from our legacy CDM capabilities to RSC. During this migration, certain existing customers consumed our platform and products through a mix of RSC and a transitional CDM license (“RCDM-T”), during which time we recognized a portion of the associated revenue from these customers upfront at the time we transferred control of the license to the customer, and we have largely completed this transition in fiscal 2026. In addition, we expect our subscription revenue to continue to benefit from customers exercising or forfeiting their Subscription Credits through fiscal 2027, although we expect the benefits to significantly decline sequentially.
In fiscal 2026, we launched RAC, our AI agent operations suite, to accelerate enterprise AI transformation without introducing added risk. RAC is designed to monitor and audit agentic actions, enforce real-time guardrails for agentic changes, fine-tune agents for accuracy and, finally, undo agent mistakes. Built on our unique architecture that understands data, identity and application contexts, RAC is designed to give customers security, accuracy, and efficiency as they transform their organizations into AI enterprises. As RAC only became commercially available in February of 2026, we expect the RSC suite to continue to be the majority of our revenue in fiscal 2027 and the main driver for ARR growth.
In the first quarter of fiscal 2027, we started offering the Resilience Guardian as a term-based subscription license program, which provides customers with dedicated resilience managers to design and implement a cyber resilience strategy that maps to business outcomes. This includes proactive security and health checks, detection and resolution of emerging issues, upgrade planning and assistance, and adoption excellence and value realization.
Factors Affecting Our Performance
Evolution of the Market and Adoption of Our Solutions
Our future success depends in part on the market adoption of our approach to Zero Trust Data Security. Many organizations have focused on preventing cyberattacks instead of protecting their data and having a plan to recover it in case of a cyberattack. We believe that the existing security ecosystem lacks a data security platform that will secure a customer’s data, wherever it lives, across enterprise, cloud, SaaS, unstructured data, and identity providers. RSC is our Zero Trust Data Security platform that addresses the growing demand from organizations of virtually any size, across a wide range of industries, to address data security and cyberattack risks. As the data security market continues to evolve, we expect to continuously innovate our platform and product functionality to keep us in a strong position to capture the large opportunity ahead.
New Customer Acquisition
Our business model relies on rapidly and efficiently engaging with new customers. Our ability to attract new customers will depend on a number of factors, including our ability to innovate upon our product breadth and capabilities, our success in recruiting and scaling our sales and marketing organization, our ability to accelerate ramp time of our sales force, our ability to develop and maintain strong partnerships, the impact of marketing efforts to enhance our brand, and competitive dynamics in our target markets.
Retaining and Expanding Within Our Existing Customer Base
Our ability to retain customers and expand within existing customers is integral to our growth and future success. Our growing base of customers represents a significant opportunity for further expansion across our platform. Our customers typically start with securing data in one or more applications on our platform, and then expand by securing additional applications and increasing the amount of data secured. They further extend their use of our platform through adoption of additional security products. Several of our largest customers have deployed our platform to secure large amounts of their data across enterprise, cloud, SaaS, unstructured data, and identity providers. Our ability to expand and extend within our customer base depends on, and has been impacted by, a number of factors, including platform performance, our customers’ satisfaction with our platform, competitive offerings, pricing, overall changes in our customers’ spending levels, and the effectiveness of our efforts to help our customers realize the benefits of our platform.
Macroeconomic and Supply Chain Conditions
Our overall performance depends in part on worldwide economic and geopolitical conditions and their impact on customer behavior. Macroeconomic conditions, including inflation, fluctuations in interest rates, foreign currency fluctuations, tariffs or other trade restrictions, geopolitical issues, changes in government policy or spending, and other changes in economic conditions, may adversely affect the buying patterns of our customers and prospective customers. For example, in light of current macroeconomic conditions, such as higher cost-consciousness around information technology budgets, as well as constraints affecting the availability or pricing of compatible commodity servers needed to deploy our solutions, we have observed a lengthening of our sales cycles. Additionally, key components of the commodity servers that are compatible with our solutions have been, and continue to be, affected by global chip shortages and allocation constraints, in part due to elevated industry demand, which in certain cases have resulted in extended lead times and increased server prices. Such delays, constraints and increased costs may affect our customers’ purchasing decisions and
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deployment timelines, in some cases delaying customer purchases and in other cases resulting in customers pulling software purchases forward to lock in hardware prices. In response, we may in the future provide certain commercial accommodations, which could reduce our margins or adversely affect our revenue and operating results if such practices become widespread or prolonged. Due to our subscription-focused business model, any impact of the current macroeconomic environment and supply chain constraints on our business may not be fully reflected in our results of operations until future periods. As we continue to monitor the direct and indirect impacts of the current environment, the broader implications of macroeconomic conditions and supply chain constraints on our business, results of operations and financial condition, particularly in the long term, remain uncertain.
Key Business Metrics
We monitor the following key business metrics to help us evaluate our business.
Subscription ARR
Subscription ARR is calculated as the annualized value of our active subscriptions as of the measurement date, based on our customers’ total contract value, and assuming any contract that expires during the next 12 months is renewed on existing terms. Subscriptions include offerings for our RSC suite and related data security SaaS solutions, term-based licenses for our RSC-Private suite and related products, prior sales of CDM sold as a subscription term-based license with associated support and related SaaS products, and standalone sales of our SaaS subscription offerings like Anomaly Detection, Sensitive Data Monitoring and Resilience Guardian. We believe Subscription ARR illustrates our success in acquiring new subscription customers and maintaining and expanding our relationships with existing subscription customers.
The following table sets forth our Subscription ARR as of the dates presented:
| April 30, | |||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||
| Subscription ARR | $ | 1,565,141 | $ | 1,181,269 | |||||||||||||||
| % growth | 32 | % | 38 | % | |||||||||||||||
Subscription ARR does not include any maintenance revenue associated with perpetual licenses, which we generally no longer offer. Of the 32% and 38% growth, approximately 0.4 percentage points and 2 percentage points of growth for the three months ended April 30, 2026 and 2025, respectively, were a result of transitioning our existing maintenance customers to our subscription editions. Contributions to growth from these transitions were largely completed in fiscal 2026.
Cloud Annual Recurring Revenue, or Cloud ARR
Cloud ARR is calculated as the annualized value of our active cloud-based subscriptions as of the measurement date, based on our customers’ total contract value, and assuming any contract that expires during the next 12 months is renewed on existing terms. Our cloud-based subscriptions include RSC and RSC-Government (excluding RSC-Private). Cloud ARR also includes SaaS subscription offerings like Anomaly Detection and Sensitive Data Monitoring, which are sold standalone or with prior sales of term-based license offerings of CDM. We believe that Cloud ARR provides important information on new and existing customers purchasing new RSC subscription offerings and existing subscription term-based license customers renewing with RSC subscription offerings.
The following table sets forth our Cloud ARR as of the dates presented:
| April 30, | |||||||||||||||
| 2026 | 2025 | ||||||||||||||
| (in thousands, except percentages) | |||||||||||||||
| Cloud ARR | $ | 1,393,920 | $ | 971,546 | |||||||||||
% growth | 43 | % | 60 | % | |||||||||||
Average Subscription Dollar-Based Net Retention Rate
Our average subscription dollar-based net retention rate compares our Subscription ARR from the same set of subscription customers across comparable periods. We calculate our average subscription dollar-based net retention rate by first identifying subscription customers (the “Prior Period Subscription Customers”) that were subscription customers at the end of a particular quarter (the “Prior Period”) and calculate the Subscription ARR from the Prior Period Subscription Customers. We then calculate the Subscription ARR from these Prior Period Subscription Customers at the end of the same quarter of the subsequent year (the “Current Period”). This
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calculation captures upsells, contraction, and attrition since the Prior Period. We then divide total Current Period Subscription ARR by the total Prior Period Subscription ARR for Prior Period Subscription Customers. Our average subscription dollar-based net retention rate in a particular quarter is obtained by averaging the result from that particular quarter with the corresponding results from each of the prior three quarters. We believe that our average subscription dollar-based net retention rate provides useful information about the evolution of our existing customers as they expand through the increase of data from applications we already secure, new applications for us to secure, additional data security products, and conversion of our recurring revenue related to maintenance contracts into subscription revenue.
Our historical average subscription dollar-based net retention rate does not include any maintenance revenue associated with perpetual licenses, which we no longer offer. Like Subscription ARR, our historical average subscription dollar-based net retention rate benefits from the transition of our existing maintenance customers to our subscription editions.
The following table sets forth our average subscription dollar-based net retention rate as of the dates presented:
| April 30, | |||||||||||||||
| 2026 | 2025 | ||||||||||||||
| Average subscription dollar-based net retention rate | approximately 120% | over 120% | |||||||||||||
Customers with $100,000 or More in Subscription ARR
We believe that customers with $100,000 or more in Subscription ARR is a helpful metric in measuring our ability to scale with our customers and the success of our ability to acquire large customers. Additionally, we believe that our ability to increase the number of customers with $100,000 or more in Subscription ARR is a useful indicator of our market penetration and demand for our platform.
The following table sets forth the number of customers with $100,000 or more in Subscription ARR as of the dates presented:
| April 30, | |||||||||||||||
| 2026 | 2025 | ||||||||||||||
| Customers with $100,000 or more in Subscription ARR | 2,946 | 2,381 | |||||||||||||
% growth | 24 | % | 28 | % | |||||||||||
Non-GAAP Financial Measures
We believe that non-GAAP financial measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance. However, non-GAAP financial measures are presented for supplemental informational purposes only, have limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.
Free Cash Flow
Free cash flow is a non-GAAP financial measure that we calculate as net cash provided by (used in) operating activities less cash used for purchases of property and equipment and capitalized internal-use software. We believe that free cash flow is a helpful indicator of liquidity that provides information to management and investors about the amount of cash generated or used by our operations that, after the investments in property and equipment and capitalized internal-use software, can be used for strategic initiatives, including investing in our business and strengthening our financial position. The limitation of free cash flow is that it does not reflect our future contractual commitments and may fluctuate due to the timing of cash payments received from our customers and payments relative to expenses, prepayments of other spend, including hosting prepayments, and charitable donations. Additionally, free cash flow is not a substitute for cash provided by (used in) operating activities, and the utility of free cash flow as a measure of our liquidity is further limited as it does not represent the total increase or decrease in our cash balance for a given period.
Free cash flow was $73.6 million and $33.3 million for the three months ended April 30, 2026 and 2025, respectively. The improvement in free cash flow was primarily due to higher sales, including timing of renewals, improved operating leverage and optimizing our capital structure. This trend when combined with changes in new business growth, may result in free cash flow volatility across periods.
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In the longer term, we view continued Subscription ARR growth, operating leverage, and the mix of annual versus upfront payment terms on our multi-year contracts as primary drivers of free cash flow. See the risk factor titled “We expect fluctuations in our financial results, making it difficult to project future results, and if we fail to meet the expectations of securities analysts or investors with respect to our results of operations, our stock price and the value of your investment could decline” in the section titled “Risk Factors.”
The following table presents a reconciliation of free cash flow to net cash provided by operating activities for the periods presented:
| Three Months Ended April 30, | |||||||||||
| 2026 | 2025 | ||||||||||
(in thousands) | |||||||||||
| Net cash provided by operating activities | $ | 81,689 | $ | 39,655 | |||||||
| Less: Purchases of property and equipment | (4,277) | (2,850) | |||||||||
| Less: Capitalized internal-use software | (3,799) | (3,465) | |||||||||
| Free cash flow | $ | 73,613 | $ | 33,340 | |||||||
| Net cash (used in) provided by investing activities | $ | (36,183) | $ | 34,165 | |||||||
| Net cash provided by financing activities | $ | 17,215 | $ | 15,341 | |||||||
Subscription ARR Contribution Margin
We define Subscription ARR Contribution Margin as the Subscription ARR Contribution (as defined below) divided by Subscription ARR at the end of the period. We define Subscription ARR Contribution as Subscription ARR at the end of the period less: (i) our non-GAAP subscription cost of revenue and (ii) our non-GAAP operating expenses for the prior 12-month period ending on that date. In fiscal 2023, we began transitioning customers from our legacy CDM capabilities to our subscription-based RSC offerings. As a result of differing revenue recognition treatment between CDM and RSC, including the RCDM-T licenses offered to existing customers, and as qualified customers choose to exercise or forfeit their Subscription Credits, these business transitions cause fluctuations to our total revenue growth and limit the comparability of our revenue with past performance. As a result, we measure the performance of our business on the basis of Subscription ARR. We believe that Subscription ARR Contribution Margin is a helpful indicator of operating leverage during this business transition. One limitation of Subscription ARR Contribution Margin is that the factors that impact Subscription ARR will vary from those that impact subscription revenue and, as such, may not provide an accurate indication of our actual or future GAAP results. Additionally, the historical expenses in this calculation may not accurately reflect the costs associated with future commitments.
Subscription ARR Contribution Margin was 13% and 8% for the 12 months ended April 30, 2026 and 2025, respectively. The increase in Subscription ARR Contribution Margin was primarily driven by the strong year-over-year Subscription ARR growth outpacing the year-over-year growth in non-GAAP subscription costs of sales and non-GAAP operating expenses. We believe that this increase in Subscription ARR Contribution Margin reflects increased operating leverage in our business.
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The following table presents the calculation of Subscription ARR Contribution Margin for the periods presented as well as a reconciliation of (i) non-GAAP subscription cost of revenue to subscription cost of revenue and (ii) non-GAAP operating expenses to operating expenses:
Twelve Months Ended April 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (in thousands, except percentages) | |||||||||||
| Subscription cost of revenue | $ | 244,552 | $ | 193,223 | |||||||
| Stock-based compensation expense | (17,037) | (18,289) | |||||||||
| Stock-based compensation included in amortization of capitalized internal-use software | (2,903) | (607) | |||||||||
| Amortization of acquired intangibles | (9,330) | (3,730) | |||||||||
| Non-GAAP subscription cost of revenue | $ | 215,282 | $ | 170,597 | |||||||
| Operating expenses | $ | 1,453,058 | $ | 1,249,744 | |||||||
| Stock-based compensation expense | (309,832) | (334,156) | |||||||||
| Non-GAAP operating expenses | $ | 1,143,226 | $ | 915,588 | |||||||
| Subscription ARR | $ | 1,565,141 | $ | 1,181,269 | |||||||
| Non-GAAP subscription cost of revenue | (215,282) | (170,597) | |||||||||
| Non-GAAP operating expenses | (1,143,226) | (915,588) | |||||||||
| Subscription ARR Contribution | $ | 206,633 | $ | 95,084 | |||||||
| Subscription ARR Contribution Margin | 13.2 | % | 8.0 | % | |||||||
Components of Results of Operations
Revenue
We generate revenue primarily from sales of subscriptions and typically invoice our customers at the inception of the contract.
While we have largely completed both the sales of Rubrik-branded Appliances transitioning from us to our contract manufacturers in fiscal 2025 and the transition for new and existing customers to sales of RSC in fiscal 2026, we expect our subscription revenue to continue to benefit from customers exercising or forfeiting their Subscription Credits (which are customer options that are accounted for as material rights) through fiscal 2027, although we expect the benefits to significantly decline sequentially. These business transitions cause fluctuations to our total revenue growth and limit the comparability of our revenue with past performance. We primarily measure our business on the basis of Subscription ARR, as we believe it best reflects our actual growth and our growth prospects.
Certain prior period amounts reported in the unaudited condensed consolidated financial statements and notes have been reclassified to conform to the current year presentation. For the three months ended April 30, 2026 and 2025, the Company combined maintenance revenue and other revenue into “Other” on the unaudited condensed consolidated statements of operations. The presentation of cost of revenue has been conformed to reflect the changes related to the presentation of revenues. Such reclassifications related to the presentation of revenue and cost of revenue did not impact total revenue, loss from operations or net loss.
Subscription Revenue
Our subscription revenue consists of SaaS subscriptions and subscription term-based licenses with related support services.
SaaS includes SaaS subscription offerings like Anomaly Detection and Sensitive Data Monitoring sold standalone or with prior sales of term-based license offerings of CDM prior to the launch of the RSC suite as well as sales of RSC. RSC is offered as a fully-hosted subscription or a hybrid cloud subscription. RSC is a fully-hosted subscription in the case of protection of cloud, SaaS, unstructured data, and identity providers. When RSC is securing enterprise applications, it is a hybrid cloud subscription which includes software hosted from the cloud (as a service) and an on-premise license for securing enterprise applications. The hybrid cloud subscription is accounted for as a single performance obligation because the software hosted from the cloud (as a service) and the on-premise software licenses are not separately identifiable and serve together to fulfill our promise to the customer, which is to provide a single, unified data security solution. Our RSC subscription capabilities are primarily sold as editions which bundle multiple products and include the Foundation Edition, Business Edition, and Enterprise Edition. Subscription revenue related to SaaS is recognized ratably over the subscription period.
Subscription term-based licenses provide our customer with a right to use the software for a fixed term commencing upon delivery of the license to our customer. Support services are bundled with each subscription term-based license for the term of the subscription.
| Rubrik, Inc. | Q1 2027 Form 10-Q | 27 | ||||||||||
Subscription revenue related to subscription term-based licenses includes upfront revenue recognized at the later of the start date of the subscription term-based license and the date when the subscription term-based license is delivered. The remainder of the revenue is recognized ratably over the subscription period for support services, commencing with the date the service is made available to customers.
Our subscription revenue will fluctuate when qualified customers choose to exercise or forfeit their customer options that are accounted for as material rights. We have experienced revenue growth benefits from the non-recurring revenue associated with material rights; however, we expect these benefits to decline over the course of fiscal 2027. The combination of both of these factors may continue to limit and cause fluctuations in our subscription revenue growth during fiscal 2027, depending in part on the timing of our existing customers’ transition to RSC and exercises or forfeitures of Subscription Credits (which are customer options that are accounted for as material rights).
Other Revenue
Other revenue includes fees earned from sales of professional services, software updates on a when-and-if-available basis, telephone and integrated web-based support, Rubrik-branded Appliance maintenance relating to our perpetual licenses, and Rubrik-branded Appliances. Revenue for Rubrik-branded Appliances is recognized when shipped to the customer. When we sell our software license with our Rubrik-branded Appliances, revenue for both the Rubrik-branded Appliances and software licenses are recognized at the same time. Revenue related to professional services is typically recognized as the services are performed. We expect other revenue to be largely driven by sales of professional services in the future and as a percentage of total revenue to decrease over time.
Cost of Revenue
Cost of revenue primarily includes employee compensation and related expenses associated with customer support, certain hosting costs, amortization of capitalized internal-use software, amortization of finite-lived intangible assets and cost of Rubrik-branded Appliances.
Cost of Subscription Revenue
Cost of subscription revenue primarily includes employee compensation and related expenses associated with customer support for our subscription offerings, certain hosting costs, amortization of capitalized internal-use software, and amortization of finite-lived intangible assets. We expect our cost of subscription revenue to increase as our subscription revenue increases.
Cost of Other Revenue
Cost of other revenue includes the cost of professional services, employee compensation and related expenses associated with customer support from our perpetual licenses, and the cost of Rubrik-branded Appliances. We expect cost of other revenue as a percentage of total cost of revenue to decrease as the transition of sales of Rubrik-branded Appliances from us to our contract manufacturers was largely completed in fiscal 2025. Over the long-term, we expect the cost of other revenue to be largely driven by sales of professional services.
Gross Profit and Margin
Gross profit is revenue less cost of revenue.
Gross margin is gross profit expressed as a percentage of revenue. Our gross margin has been, and will continue to be, affected by a number of factors, including the mix of subscription term-based licenses, SaaS subscriptions, and other products, when qualified customers choose to exercise or forfeit their customer options that are accounted for as material rights, the timing and extent of our investments in our global customer support organization, certain hosting costs, the amortization of capitalized internal-use software, and stock-based compensation expense. Over time, we expect our gross margin to fluctuate due to the factors described above.
Subscription Gross Margin
We expect our subscription gross margin to fluctuate through fiscal 2027. This is due to the revenue being recognized ratably over the subscription term rather than a portion being recognized upfront from subscription term-based licenses and associated increases in hosting costs for our SaaS solutions. We expect our subscription gross margin to fluctuate as customers adopt data security SaaS solutions on the RSC suite.
Other Gross Margin
We expect other gross margin to decrease as a percentage of total revenue, which we expect will result in a decrease in cost of other revenue. We expect sales of Rubrik-branded Appliances to decrease as the transition of sales of Rubrik-branded Appliances from us to
| Rubrik, Inc. | Q1 2027 Form 10-Q | 28 | ||||||||||
our contract manufacturers was largely completed in fiscal 2025. Over the long-term, we expect other gross margin to be largely driven by sales of professional services.
Operating Expenses
Our operating expenses consist of research and development, sales and marketing, and general and administrative expenses. Personnel costs are the most significant component of operating expenses. We also incur other non-personnel costs such as colocation and certain hosting costs, office space costs, fees for third-party professional services, and costs associated with software and subscription services. We expect our operating expenses will continue to increase as our business grows. We also expect our operating expenses, exclusive of stock-based compensation, as a percentage of revenue to generally decrease over the long term.
Research and Development
Research and development expenses consist primarily of employee compensation and related expenses, net of capitalized amounts, and colocation and certain hosting costs. To capture share in the ever-growing data security market, we expect to continuously innovate our platform and product functionality and will continue to invest in research and development. We expect our research and development expenses will continue to increase as our business grows. We also expect our research and development expenses, exclusive of stock-based compensation, as a percentage of revenue to generally decrease over the long term.
Sales and Marketing
Sales and marketing expenses consist primarily of employee compensation and related expenses including sales commissions, marketing programs, and travel-related costs. To capture share in the ever-growing data security market, we expect to continuously expand our sales force, increase our marketing efforts, and expand into new markets. We expect our sales and marketing expenses will continue to increase as our business grows. We also expect our sales and marketing expenses, exclusive of stock-based compensation, as a percentage of revenue to generally decrease over the long term.
General and Administrative
General and administrative expenses consist primarily of employee compensation and related expenses for administrative functions, including finance, legal, human resources, information technology, and fees for third-party professional services. We expect our general and administrative expenses will continue to increase as our business grows. We also expect our general and administrative expenses, exclusive of stock-based compensation, as a percentage of revenue to generally decrease over the long term.
Other Non-Operating Income (Expense)
Other non-operating income (expense) consists primarily of interest income, interest expense, loss on debt extinguishment, and foreign exchange gains and losses.
Income Tax Expense
Income tax expense consists primarily of income taxes in certain foreign jurisdictions in which we conduct business, as well as state income taxes in the United States. We have recorded U.S. federal and state net deferred tax assets for which we provide a full valuation allowance, which includes net operating loss carryforwards and tax credits. We expect to maintain this full valuation allowance for the foreseeable future as it is more likely than not that some or all of those deferred tax assets may not be realized based on our history of losses.
| Rubrik, Inc. | Q1 2027 Form 10-Q | 29 | ||||||||||
Results of Operations
The following tables summarize our unaudited condensed consolidated statements of operations data for the periods presented. The period-to-period comparison of results is not necessarily indicative of results for future periods.
| Three Months Ended April 30, | |||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
| Revenue | |||||||||||||||||||||
| Subscription | $ | 374,153 | $ | 265,661 | |||||||||||||||||
| Other | 12,915 | 12,820 | |||||||||||||||||||
| Total revenue | 387,068 | 278,481 | |||||||||||||||||||
| Cost of revenue | |||||||||||||||||||||
Subscription(1) | 66,723 | 51,912 | |||||||||||||||||||
Other(1) | 8,562 | 8,571 | |||||||||||||||||||
| Total cost of revenue | 75,285 | 60,483 | |||||||||||||||||||
| Gross profit | 311,783 | 217,998 | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||
Research and development(1) | 114,341 | 81,815 | |||||||||||||||||||
Sales and marketing(1) | 193,098 | 169,993 | |||||||||||||||||||
General and administrative(1) | 56,978 | 59,281 | |||||||||||||||||||
| Total operating expenses | 364,417 | 311,089 | |||||||||||||||||||
| Loss from operations | (52,634) | (93,091) | |||||||||||||||||||
| Interest income | 15,898 | 7,696 | |||||||||||||||||||
| Interest expense | (1,070) | (9,813) | |||||||||||||||||||
| Other income (expense), net | 590 | (5,622) | |||||||||||||||||||
| Loss before income taxes | (37,216) | (100,830) | |||||||||||||||||||
| Income tax expense | 4,637 | 1,274 | |||||||||||||||||||
| Net loss | $ | (41,853) | $ | (102,104) | |||||||||||||||||
| Net loss per share, basic and diluted | $ | (0.21) | $ | (0.53) | |||||||||||||||||
| Weighted-average shares used in computing net loss per share, basic and diluted | 203,668 | 191,625 | |||||||||||||||||||
(1) Includes stock-based compensation expense as follows:
| Three Months Ended April 30, | |||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||
| Cost of revenue | |||||||||||||||||||||
| Subscription | $ | 4,631 | $ | 3,968 | |||||||||||||||||
| Other | 634 | 857 | |||||||||||||||||||
| Research and development | 33,026 | 19,812 | |||||||||||||||||||
| Sales and marketing | 16,331 | 24,144 | |||||||||||||||||||
| General and administrative | 18,746 | 24,759 | |||||||||||||||||||
| Total stock-based compensation expense | $ | 73,368 | $ | 73,540 | |||||||||||||||||
| Rubrik, Inc. | Q1 2027 Form 10-Q | 30 | ||||||||||
The following table sets forth our unaudited condensed consolidated statements of operations data expressed as a percentage of revenue for the periods indicated:
| Three Months Ended April 30, | ||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| Revenue | ||||||||||||||||||||
| Subscription | 97 | % | 95 | % | ||||||||||||||||
| Other | 3 | 5 | ||||||||||||||||||
| Total revenue | 100 | 100 | ||||||||||||||||||
| Cost of revenue | ||||||||||||||||||||
| Subscription | 17 | 19 | ||||||||||||||||||
| Other | 2 | 3 | ||||||||||||||||||
| Total cost of revenue | 19 | 22 | ||||||||||||||||||
| Gross profit | 81 | 78 | ||||||||||||||||||
| Operating expenses | ||||||||||||||||||||
| Research and development | 30 | 29 | ||||||||||||||||||
| Sales and marketing | 50 | 61 | ||||||||||||||||||
| General and administrative | 15 | 21 | ||||||||||||||||||
| Total operating expenses | 95 | 111 | ||||||||||||||||||
| Loss from operations | (14) | (33) | ||||||||||||||||||
| Interest income | 4 | 3 | ||||||||||||||||||
| Interest expense | — | (4) | ||||||||||||||||||
| Other income (expense), net | — | (2) | ||||||||||||||||||
| Loss before income taxes | (10) | (36) | ||||||||||||||||||
| Income tax expense | 1 | 1 | ||||||||||||||||||
| Net loss | (11) | % | (37) | % | ||||||||||||||||
Comparison of the Three Months Ended April 30, 2026 and 2025
Revenue
| Three Months Ended April 30, | ||||||||||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | |||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||
| Subscription | $ | 374,153 | $ | 265,661 | $ | 108,492 | 41 | % | ||||||||||||||||||||||
| Other | 12,915 | 12,820 | 95 | 1 | % | |||||||||||||||||||||||||
| Total revenue | $ | 387,068 | $ | 278,481 | $ | 108,587 | ||||||||||||||||||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-06-03 | Wassenaar Yvonne | Director | Sell | -721 | $80.73 | -$58,206 |
| 2026-06-03 | Nithrakashyap Arvind | Chief Technology Officer | Sell | -12,820 ×5 | $78.89 | -$1,011,408 |
| 2026-06-02 | Nithrakashyap Arvind | Chief Technology Officer | Sell | -12,820 ×4 | $82.16 | -$1,053,353 |
| 2026-06-01 | Nithrakashyap Arvind | Chief Technology Officer | Sell | -199,447 ×8 | $84.28 | -$16,808,915 |
| 2026-06-01 | THOMPSON JOHN WENDELL | Director | Sell | -11,000 ×6 | $84.55 | -$930,019 |
| 2026-06-01 | THOMPSON JOHN WENDELL indirect | Director | Sell | -2,500 ×5 | $84.51 | -$211,270 |
| 2026-05-29 | Wassenaar Yvonne | Director | Sell | -2,838 | $75.00 | -$212,850 |
| 2026-05-01 | THOMPSON JOHN WENDELL | Director | Sell | -11,000 ×2 | $55.48 | -$610,298 |
| 2026-05-01 | THOMPSON JOHN WENDELL indirect | Director | Sell | -2,500 ×2 | $55.51 | -$138,780 |
| 2026-04-07 | Choudary Kiran Kumar | Chief Financial Officer | Sell | -20,000 ×4 | $51.69 | -$1,033,733 |
| 2026-04-01 | THOMPSON JOHN WENDELL | Director | Sell | -11,000 ×2 | $48.90 | -$537,940 |
| 2026-04-01 | THOMPSON JOHN WENDELL indirect | Director | Sell | -2,500 ×2 | $48.96 | -$122,392 |
| 2026-03-30 | MCLAUGHLIN MARK D | Director | Buy | +10,638 | $47.21 | $502,220 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-09-06 10-Q expected by 2026-09-10 (in 74 days)
- ~2026-12-04 10-Q expected by 2026-12-08 (in 163 days)
- ~2027-06-01 10-Q expected by 2027-06-05 (in 342 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-06-05 10-Q Quarterly Report
- 2026-06-04 8-K Earnings Release; Financial Statements and Exhibits
- 2026-04-15 DEF 14A Proxy Statement
- 2026-03-19 10-K Annual Report
- 2026-03-12 8-K Earnings Release; Financial Statements and Exhibits
- 2026-02-04 8-K Earnings Release; Officer/Director Change; Financial Statements and Exhibits
- 2025-12-08 10-Q Quarterly Report
- 2025-12-04 8-K Earnings Release; Financial Statements and Exhibits
- 2025-09-10 10-Q Quarterly Report
- 2025-09-09 8-K Earnings Release; Financial Statements and Exhibits
- 2025-06-27 8-K Unregistered Equity Sale; Shareholder Vote Results
- 2025-06-13 8-K Material Agreement Entered; Material Financial Obligation; Unregistered Equity Sale; Other Events; Financial Statements and Exhibits
- 2025-06-09 10-Q Quarterly Report
- 2025-06-05 8-K Earnings Release; Financial Statements and Exhibits
- 2025-03-20 10-K Annual Report