01—Abstract
Summary
Summary of the 10-Q filed December 8, 2025. Cited figures are marked; the original filing is the authoritative source.
Rubrik, Inc. (RBRK) reported a quarter ended October 31, 2025 with total revenue of $350.2 milliona for the three months, up from $236.2 million a year earlier (a 48% increase per the filing), and $938.5 million for the nine months versus $628.4 million (49%).
Gross margin for the quarter was 81% versus 76%, and the company posted a net loss of $63.8 millionb compared with $130.9 million in the prior-year quarter. Nine-month net loss narrowed to $261.9 million from $1.04 billion, largely because stock-based compensation fell to $244.5 million from $827.9 million, reflecting the cumulative RSU expense recognized at the April 2024 IPO in the prior-year period. Key growth metrics improved: Subscription ARR reached $1.35 billion, up 34%, and Cloud ARR reached $1.17 billion, up 53%.
The average subscription dollar-based net retention rate was over 120%, and customers with $100,000c or more in Subscription ARR rose to 2,638 from 2,085. Operating cash flow for the nine months was $189.9 million versus an outflow of $35.4 million, and free cash flow was $167.8 million versus $(53.6) million. The company also reported remaining non-cancellable performance obligations of approximately $2.13 billion, with about 53% expected to be recognized over the next 12 months.
Balance sheet changes were significant. In June 2025 Rubrik issued $1.15 billiond of 0.00% convertible senior notes due June 2030, net proceeds were about $1.13 billion, and it repaid the $327.9 million Amended Credit Facility.
Cash, cash equivalents and short-term investments totaled $1.60 billion, and stockholders' deficit was $(524.4) million. The filing states that its existing cash is sufficient for at least the next 12 months, and it notes that the company will cease to be an emerging growth company effective January 31, 2026.
02—Key points
Key Highlights
- Total revenue of $350.2 million for the quarter ended October 31, 2025, up from $236.2 million (48% increase per the filing); nine-month revenue of $938.5 million, up 49%.
- Net loss narrowed to $63.8 million for the quarter from $130.9 million, and to $261.9 million for nine months from $1.04 billion, with stock-based compensation of $244.5 million versus $827.9 million for nine months.
- Subscription ARR of $1.35 billion, up 34%; Cloud ARR of $1.17 billion, up 53%; average subscription dollar-based net retention rate over 120%.
- Nine-month operating cash flow of $189.9 million versus $(35.4) million a year earlier; free cash flow of $167.8 million versus $(53.6) million.
- Issued $1.15 billion of 0.00% convertible senior notes due 2030 in June 2025 (net proceeds about $1.13 billion) and repaid the $327.9 million Amended Credit Facility; cash, cash equivalents and short-term investments totaled $1.60 billion.
- Remaining non-cancellable performance obligations of approximately $2.13 billion, with about 53% expected to be recognized as revenue over the next 12 months.
- Acquired Predibase in July 2025 for a purchase consideration of $109.1 million and completed additional immaterial acquisitions; the filing notes the company will cease to be an emerging growth company effective January 31, 2026.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q3 FY2026, Rubrik lost $0.18.
- Revenue$350.2M100.0%
- Cost of revenue−$68.1M19.5%
- Gross profit$282.0M80.5%
- Operating costs−$357.5M102.1%
- Operating income−$75.5M21.6%
- Interest, other & tax$11.7M3.3%
- Net income−$63.8M18.2%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed December 8, 2025Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $350.17M$236.18M | +48.3% |
| Cost of Revenue | $68.14M$56.15M | +21.4% |
| Gross Profit | $282.03M$180.03M | +56.7% |
| R&D Expenses | $97.58M$80.05M | +21.9% |
| Operating Expenses | $357.51M$304.82M | +17.3% |
| Operating Income | -$75.48M-$124.79M | +39.5% |
| Interest Expense | $1.08M$10.31M | −89.5% |
| Net Income | -$63.83M-$130.91M | +51.2% |
| EPS (Basic) | $-0.32$-0.71 | +54.9% |
| EPS (Diluted) | $-0.32$-0.71 | +54.9% |
| Shares Outstanding (Basic) | 198.38M183.59M | +8.1% |
| Shares Outstanding (Diluted) | 198.38M183.59M | +8.1% |
05—Questions
Frequently Asked Questions
Why did the net loss shrink so much compared with the prior year?
The filing attributes the decline largely to stock-based compensation, which was $244.5 million for the nine months ended October 31, 2025 versus $827.9 million in the prior-year period. The prior year included recognition of cumulative RSU expense upon the April 2024 IPO. Gross profit also rose to $746.3 million for nine months from $421.2 million.
How is Rubrik's revenue mix changing, and what does that mean for revenue comparisons?
The filing states that subscription revenue includes upfront recognition from subscription term-based licenses and material rights from Subscription Credits, alongside ratable SaaS revenue. It says this mix will cause fluctuations in revenue growth through fiscal 2027, and that these material-rights benefits are expected to decline in fiscal 2026 and further in fiscal 2027. Maintenance revenue is expected to decline as customers move to RSC.
What are the main terms and risks of the convertible notes?
The notes carry a 0.00% coupon, mature June 15, 2030, and have an initial conversion price of approximately $124.76 per share. Capped calls cost $88.6 million and have a cap price of $175.10 per share. The notes are general unsecured obligations, and the filing notes a fundamental change could require cash repurchase at par plus accrued special interest.
Does the company have enough liquidity?
The filing states it believes existing cash and cash equivalents will be sufficient to fund operating and capital needs for at least the next 12 months. It had cash, cash equivalents and short-term investments of $1.60 billion as of October 31, 2025, against a stockholders' deficit of $(524.4) million and total liabilities of $3.07 billion. It also says it may need additional capital for strategic initiatives.
How concentrated is the customer base and channel?
The filing identifies Partner B as 31% of Q3 revenue and Partner A as 27%, and states that its three largest Channel Partners generated approximately 73% of revenue for fiscal 2025. Channel agreements are non-exclusive and renewable annually, and may be terminated by either party at any time.
06—Continue