01—Abstract
Summary
Summary of the 10-Q filed September 10, 2025. Cited figures are marked; the original filing is the authoritative source.
Rubrik, Inc. reported total revenue of $309.9 milliona for the three months ended July 31, 2025, up from $205.0 million a year earlier, a 51% increase as stated in the filing.
Subscription revenue was $297.0 millionb, and gross margin rose to 79% from 73%. Net loss narrowed to $95.9 million from $176.9 million for the quarter. For the six months, revenue was $588.3 million (50% growth) and net loss was $198.0 million, compared with $909.0 million a year earlier, a period that included stock-based compensation tied to the IPO.
Operating cash flow was $104.4 millionc and free cash flow was $90.9 million for the six months. Key operating metrics were Subscription ARR of $1,252.4 million (36% growth), Cloud ARR of $1,064.1 million (57% growth), and 2,505 customers with $100,000 or more in Subscription ARR (27% growth). Remaining non-cancellable performance obligations were approximately $2,022.6 million, with about 52% expected to be recognized over the next 12 months.
The filing states that revenue will continue to fluctuate through fiscal 2027 as customers transition to Rubrik Security Cloud and as Subscription Credits are exercised or forfeited, and that these material-rights benefits are expected to significantly decline after fiscal 2026. In June 2025, the company issued $1.15 billiond of 0.00% convertible senior notes due 2030, net proceeds of about $1.13 billion, and used part of the proceeds to repay the $327.9 million outstanding under its Amended Credit Facility and to buy capped calls for $88.6 million. Cash, cash equivalents and short-term investments were $1,523.0 million at July 31, 2025, and the company stated it was in compliance with its debt covenants.
Stockholders' deficit was $564.3 million and the accumulated deficit was $3,035.4 million. The company also acquired Predibase in July 2025 for $109.1 million in purchase consideration, and it stated it will cease to qualify as an emerging growth company effective January 31, 2026.
02—Key points
Key Highlights
- Q2 total revenue of $309.9 million, up from $205.0 million, a 51% increase; six-month revenue of $588.3 million, a 50% increase.
- Gross margin of 79% for the quarter, compared with 73% a year earlier, as stated in the filing.
- Net loss of $95.9 million for the quarter versus $176.9 million, and $198.0 million for the six months versus $909.0 million.
- Subscription ARR of $1,252.4 million (36% growth) and Cloud ARR of $1,064.1 million (57% growth); 2,505 customers with $100,000 or more in Subscription ARR (27% growth).
- Issued $1.15 billion of 0.00% convertible senior notes due June 2030 and repaid the $327.9 million Amended Credit Facility in full.
- Cash, cash equivalents and short-term investments of $1,523.0 million; six-month operating cash flow of $104.4 million and free cash flow of $90.9 million.
- Acquired Predibase in July 2025 for $109.1 million in purchase consideration; the company will cease to be an emerging growth company on January 31, 2026.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2026, Rubrik lost $0.31.
- Revenue$309.9M100.0%
- Cost of revenue−$63.6M20.5%
- Gross profit$246.3M79.5%
- Operating costs−$340.8M110.0%
- Operating income−$94.5M30.5%
- Interest, other & tax−$1.5M0.5%
- Net income−$95.9M31.0%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed September 10, 2025Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $309.86M$204.95M | +51.2% |
| Cost of Revenue | $63.56M$55.17M | +15.2% |
| Gross Profit | $246.30M$149.78M | +64.4% |
| R&D Expenses | $92.11M$86.23M | +6.8% |
| Operating Expenses | $340.76M$318.08M | +7.1% |
| Operating Income | -$94.46M-$168.29M | +43.9% |
| Interest Expense | $5.24M$10.24M | −48.8% |
| Net Income | -$95.93M-$176.93M | +45.8% |
| EPS (Basic) | $-0.49$-0.98 | +50.0% |
| EPS (Diluted) | $-0.49$-0.98 | +50.0% |
| Shares Outstanding (Basic) | 194.89M179.85M | +8.4% |
| Shares Outstanding (Diluted) | 194.89M179.85M | +8.4% |
05—Questions
Frequently Asked Questions
How fast is recurring revenue growing?
Subscription ARR was $1,252.4 million as of July 31, 2025, a 36% increase from $919.1 million a year earlier. Cloud ARR was $1,064.1 million, a 57% increase from $677.9 million. The filing notes that about 1.4 percentage points of the Subscription ARR growth came from transitioning maintenance customers to subscription editions, and that this contribution is expected to subside in fiscal 2026.
Why did revenue growth and the reported net loss change so much year over year?
Six-month operating expenses fell to $651.9 million from $1,134.2 million, mainly because stock-based compensation was $162.0 million versus $735.3 million; the prior-year period reflected cumulative expense recognized upon the April 2024 IPO. Subscription revenue also increased, and the filing attributes part of that growth to customers exercising or forfeiting Subscription Credits, which it says contributed approximately 7 percentage points of growth for the quarter.
What does the convertible note issuance mean for the balance sheet and dilution?
The notes have a principal amount of $1.15 billion, carry no regular interest, and mature on June 15, 2030. The initial conversion price is about $124.76 per share, and the capped calls, which cost $88.6 million, have a cap price of $175.10 per share and are intended to reduce potential dilution. The company stated its net proceeds were about $1.13 billion and that it expects to use the remaining proceeds for general corporate purposes.
How much cash does the company have and how is it generating it?
Cash, cash equivalents and short-term investments totaled $1,523.0 million at July 31, 2025. Net cash provided by operating activities was $104.4 million for the six months, driven largely by a $165.9 million increase in deferred revenue from increased billings. The company stated that it believes existing cash will be sufficient to fund operating and capital needs for at least the next 12 months.
What are the main risks highlighted in the filing?
The filing highlights continued operating losses and an accumulated deficit of $3,035.4 million, revenue fluctuations tied to the migration of customers to Rubrik Security Cloud and to Subscription Credit timing, competition from data management and cybersecurity vendors, dependence on third-party cloud providers and a limited number of hardware manufacturers, and a dual-class structure in which Class B holders control about 87% of voting power. It also discloses an ongoing Department of Justice investigation related to government contracts.
06—Continue