01—Abstract
Summary
Summary of the 10-Q filed September 1, 2026. Cited figures are marked; the original filing is the authoritative source.
Rubrik, Inc. (RBRK) reported total revenue of $427.3 milliona for the three months ended July 31, 2026, up 38% from $309.9 million a year earlier, and $814.3 million for the six months, up 38% from $588.3 million.
Subscription revenue rose 37% in the quarter to $407.2 millionb. Subscription ARR reached $1.66 billion as of July 31, 2026, up 33% from $1.25 billion, and Cloud ARR reached $1.48 billion, up 39%. The company narrowed its net loss to $61.8 million for the quarter from $95.9 million, and to $103.6 million for the six months from $198.0 million.
Free cash flow was $139.3 millionc for the six months ended July 31, 2026, compared with $90.9 million a year earlier, and net cash provided by operating activities was $158.5 million. Gross margin was 78% in the quarter versus 79% a year earlier, with subscription gross margin rising to 82% from 81% and other gross margin falling to 10% from 42%. Subscription ARR Contribution Margin was 14.0% for the twelve months ended July 31, 2026, up from 9.4%.
Operating loss narrowed to $71.9 milliond from $94.5 million in the quarter. The balance sheet shows cash, cash equivalents and short-term investments of $1.75 billion against $1.15 billion of 0.00% convertible senior notes due June 2030, and a stockholders' deficit of $499.4 million.
The company stated that its existing cash and investments are sufficient to fund operations for at least the next 12 months. Its filing also discloses a continuing federal grand jury subpoena investigation and an ongoing internal investigation related to government contracts.
02—Key points
Key Highlights
- Total revenue of $427.3 million for the quarter ended July 31, 2026, up 38% from $309.9 million; six-month revenue of $814.3 million, up 38%.
- Subscription ARR of $1.66 billion, up 33%; Cloud ARR of $1.48 billion, up 39%; customers with $100,000 or more in Subscription ARR rose 23% to 3,084.
- Net loss narrowed to $61.8 million for the quarter from $95.9 million, and to $103.6 million for the six months from $198.0 million.
- Free cash flow of $139.3 million for the six months ended July 31, 2026, versus $90.9 million a year earlier; operating cash flow was $158.5 million.
- Average subscription dollar-based net retention rate was over 119%, compared with over 120% a year earlier.
- Cash, cash equivalents and short-term investments totaled $1.75 billion, against $1.15 billion principal of convertible senior notes due 2030 and a stockholders' deficit of $499.4 million.
- Remaining non-cancelable performance obligations were approximately $2.62 billion, with about 53% expected to be recognized over the next 12 months; Class B shares hold approximately 83% of voting power.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2027, Rubrik lost $0.14.
- Revenue$427.3M100.0%
- Cost of revenue−$92.1M21.6%
- Gross profit$335.1M78.4%
- Operating costs−$407.0M95.3%
- Operating income−$71.9M16.8%
- Interest, other & tax$10.1M2.4%
- Net income−$61.8M14.5%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2027filed September 1, 2026Financial Statements
Q2 FY2027 against Q2 FY2026
| Line item | Q2 FY2027Q2 FY2026 | Change |
|---|---|---|
| Revenue | $427.26M$309.86M | +37.9% |
| Cost of Revenue | $92.14M$63.56M | +45.0% |
| Gross Profit | $335.12M$246.30M | +36.1% |
| R&D Expenses | $126.86M$92.11M | +37.7% |
| Operating Expenses | $407.02M$340.76M | +19.4% |
| Operating Income | -$71.90M-$94.46M | +23.9% |
| Interest Expense | $1.10M$5.24M | −78.9% |
| Net Income | -$61.78M-$95.93M | +35.6% |
| EPS (Basic) | $-0.30$-0.49 | +38.8% |
| EPS (Diluted) | $-0.30$-0.49 | +38.8% |
| Shares Outstanding (Basic) | 206.10M194.89M | +5.8% |
| Shares Outstanding (Diluted) | 206.10M194.89M | +5.8% |
05—Questions
Frequently Asked Questions
How fast is Rubrik's recurring revenue growing?
Subscription ARR was $1.66 billion as of July 31, 2026, up 33% from $1.25 billion a year earlier. Cloud ARR, which covers RSC and RSC-Government, grew 39% to $1.48 billion.
Is Rubrik closer to profitability?
The net loss narrowed to $61.8 million for the quarter from $95.9 million, and operating loss narrowed to $71.9 million from $94.5 million. Subscription ARR Contribution Margin rose to 14.0% for the twelve months ended July 31, 2026, from 9.4%, which the company attributes to operating leverage.
Does Rubrik have enough cash to fund operations?
The company had $1.75 billion of cash, cash equivalents and short-term investments and stated that these are sufficient to fund operating and capital needs for at least the next 12 months. Operating cash flow was $158.5 million for the six months ended July 31, 2026.
What are the main risks around the convertible notes and ownership structure?
The company has $1.15 billion of 0.00% convertible senior notes due June 15, 2030, and must make cash payments on conversions unless it elects to settle in shares. Holders of Class B common stock hold approximately 83% of voting power, which limits Class A shareholders' influence over corporate matters.
Are there legal or regulatory matters investors should monitor?
The filing describes a Department of Justice grand jury subpoena received in October 2023 relating to two companies associated with a former sales employee, with the company cooperating and conducting an internal investigation that found communications relating to potential violations of federal law in connection with government contracts. The company cannot predict the outcome, which could include substantial fines and exclusion from federal contracting.
06—Continue