Rubrik's Subscription Revenue Soars 55%, Net Loss Narrows

TL;DR

**Rubrik's subscription growth is a green light, but watch those operating expenses – they're still burning cash, but less than before.**

AI Summary

Rubrik, Inc. reported a significant increase in total revenue for the three months ended July 31, 2025, reaching $309.86 million, up from $204.95 million in the prior year, primarily driven by a 55.2% surge in subscription revenue to $296.96 million. Despite this revenue growth, the company recorded a net loss of $95.93 million for the quarter, an improvement from a net loss of $176.93 million in the same period last year. For the six months ended July 31, 2025, total revenue was $588.34 million, a substantial increase from $392.27 million in the prior year, with subscription revenue growing to $562.62 million from $363.51 million. The net loss for the six-month period was $198.03 million, a significant reduction from $909.02 million in the comparable period of 2024. Operating expenses for the quarter increased to $340.76 million from $318.08 million, with sales and marketing expenses rising to $181.99 million. The company's cash and cash equivalents increased to $322.70 million as of July 31, 2025, from $186.33 million at January 31, 2025, and it issued $1.13 billion in convertible senior notes, net, during the six-month period.

Why It Matters

Rubrik's strong subscription revenue growth of 55.2% signals robust demand for its data security solutions, which is crucial for investors evaluating its market position against competitors like Palo Alto Networks and CrowdStrike. The narrowing net loss, from $176.93 million to $95.93 million quarter-over-quarter, indicates improved operational efficiency and a potential path to profitability, which could attract more institutional investors. For employees, continued revenue growth and a shrinking loss suggest greater job security and potential for growth within the company. Customers benefit from Rubrik's expanding platform and innovation, especially in a competitive cybersecurity landscape where data breaches are a constant threat, reinforcing trust in their chosen provider.

Risk Assessment

Risk Level: medium — Rubrik has a history of operating losses, with a net loss of $95.93 million for the quarter and $198.03 million for the six months ended July 31, 2025, indicating it has not yet achieved profitability. The company also highlights risks related to its rapid growth not being indicative of future growth and the difficulty in forecasting future results due to a limited operating history, particularly with Rubrik Security Cloud.

Analyst Insight

Investors should monitor Rubrik's continued subscription revenue growth and its progress in reducing operating losses. While the narrowing net loss is positive, sustained profitability remains a key milestone. Consider the long-term potential of its data security solutions in a growing market, but be aware of the competitive landscape and the company's ongoing cash burn.

Financial Highlights

revenue

$309,860,000

total Assets

$2,388,707,000

total Debt

$1,128,547,000

net Income

-$95,930,000

eps

-$0.49

gross Margin

79.5%

cash Position

$322,702,000

revenue Growth

+51.2%

Revenue Breakdown

Key Numbers

• $309.86M — Total Revenue (Increased from $204.95M in Q2 2024, a 51.2% increase)
• $296.96M — Subscription Revenue (Increased from $191.32M in Q2 2024, a 55.2% increase)
• $(95.93)M — Net Loss (Improved from $(176.93)M in Q2 2024, a 45.8% reduction)
• $(0.49) — Net Loss Per Share (Improved from $(0.98) in Q2 2024)
• $322.70M — Cash and Cash Equivalents (Increased from $186.33M at January 31, 2025)
• $1.13B — Convertible Senior Notes, net (New debt issued during the six months ended July 31, 2025)
• $104.38M — Net Cash Provided by Operating Activities (Improved from $(58.46)M used in operating activities in the prior year period)
• $181.99M — Sales and Marketing Expenses (Increased from $167.93M in Q2 2024)

Key Players & Entities

• Rubrik, Inc. (company) — registrant
• New York Stock Exchange (regulator) — exchange where Class A Common Stock is registered
• $309.86 million (dollar_amount) — total revenue for three months ended July 31, 2025
• $296.96 million (dollar_amount) — subscription revenue for three months ended July 31, 2025
• $95.93 million (dollar_amount) — net loss for three months ended July 31, 2025
• $198.03 million (dollar_amount) — net loss for six months ended July 31, 2025
• $1.13 billion (dollar_amount) — convertible senior notes, net, issued
• Palo Alto Networks (company) — competitor
• CrowdStrike (company) — competitor
• Rubrik Security Cloud (company) — company offering

FAQ

Industry Context

Rubrik operates in the data security and management market, a sector experiencing rapid growth driven by increasing data volumes, cybersecurity threats, and the adoption of cloud technologies. Competitors range from established enterprise software vendors to specialized cloud-native security providers. The industry trend is towards integrated platforms offering ransomware recovery, data backup, and cloud data management.

Regulatory Implications

As a publicly traded company, Rubrik is subject to SEC regulations and reporting requirements, including Sarbanes-Oxley compliance. Changes in data privacy laws (e.g., GDPR, CCPA) could impact product development and customer compliance needs, potentially creating operational and legal risks if not adequately addressed.

What Investors Should Do

1. Monitor subscription revenue growth trajectory: The 55.2% increase is a strong positive, but investors should watch for sustained growth and its contribution to overall profitability.
2. Analyze operating expense management: While revenue is growing, operating expenses also increased. Investors should scrutinize R&D and S&M spending efficiency relative to revenue growth.
3. Evaluate the impact of convertible senior notes: The issuance of $1.13 billion in notes needs careful monitoring for potential dilution and the company's ability to service this debt.
4. Assess path to profitability: Despite improved net loss, the company remains unprofitable. Investors will look for a clear strategy and timeline to achieve positive net income.

Glossary

Deferred revenue

Revenue that has been received by the company but not yet earned. It represents obligations to deliver goods or services in the future. (A significant portion of Rubrik's liabilities, indicating future revenue streams from existing contracts. Total deferred revenue was $1,585,433,000 as of July 31, 2025.)

Convertible senior notes

Debt securities that can be converted into a predetermined amount of the issuer's equity at certain times. (Rubrik issued $1,128,547,000 in convertible senior notes, net, during the six months ended July 31, 2025, impacting its debt structure and potential future dilution.)

Accumulated deficit

The cumulative net losses of a company since its inception, minus any cumulative net income. (Rubrik has a substantial accumulated deficit of $3,035,366,000 as of July 31, 2025, reflecting its history of net losses despite recent revenue growth.)

Year-Over-Year Comparison

Rubrik has demonstrated significant top-line growth, with total revenue increasing by 51.2% year-over-year for the quarter ended July 31, 2025. Subscription revenue, the primary growth engine, surged by 55.2%. While the net loss has substantially improved by 45.8% compared to the prior year's quarter, the company continues to operate at a net loss. A notable change is the issuance of $1.13 billion in convertible senior notes, significantly altering the company's capital structure from the prior period where it had $322.34 million in noncurrent debt.

Key Financial Figures

• $0.000025 — which registered Class A Common Stock, $0.000025 par value RBRK New York Stock Exchange

Filing Documents

• rbrk-20250731.htm (10-Q) — 2106KB
• rubrik10q7312025exhibit311.htm (EX-31.1) — 11KB
• rubrik10q7312025exhibit312.htm (EX-31.2) — 11KB
• rubrik10q7312025exhibit321.htm (EX-32.1) — 7KB
• rubrik10q7312025exhibit322.htm (EX-32.2) — 7KB
• 0001943896-25-000042.txt ( ) — 9447KB
• rbrk-20250731.xsd (EX-101.SCH) — 55KB
• rbrk-20250731_cal.xml (EX-101.CAL) — 72KB
• rbrk-20250731_def.xml (EX-101.DEF) — 396KB
• rbrk-20250731_lab.xml (EX-101.LAB) — 747KB
• rbrk-20250731_pre.xml (EX-101.PRE) — 572KB
• rbrk-20250731_htm.xml (XML) — 1217KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 5 Condensed Consolidated Balance Sheets 5 Condensed Consolidated Statements of Operations 6 Condensed Consolidated Statements of Comprehensive Loss 7 Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Deficit 8 Condensed Consolidated Statements of Cash Flows 11 Notes to Condensed Consolidated Financial Statements 12 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 30 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 47 Item 4.

Controls and Procedures

Controls and Procedures 47

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 49 Item 1A.

Risk Factors

Risk Factors 49 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 88 Item 3. Defaults Upon Senior Securities 89 Item 4. Mine Safety Disclosures 89 Item 5. Other Information 89 Item 6. Exhibits 90

Signatures

Signatures 91 Rubrik, Inc. Q2 2026 Form 10-Q 2 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future financial condition or results of operations, business strategy and plans, and objectives of management for future operations are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "toward," "will," "would," or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning the following: our expectations regarding our revenue, cost of revenue, gross profit or gross margin, operating expenses, and other results of operations, including our key metrics; the growth rate of the market in which we compete; our business plan and our ability to effectively manage our growth and associated investments; anticipated trends, growth rates, and challenges in our business and in the markets in which we operate; our ability to achieve or sustain our profitability; future investments in our business, our anticipated capital expenditures, and our estimates regarding our capital requirements; the costs and success of our marketing efforts and our ability to promote our brand; our ability to increase sales of our products; our ability to acquire new customers and successfully retain and expand platform usage with existing customers; our ability and expectations to continue to innovate and enhance our platform; our ability to operate our business under evolvin

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) Rubrik, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and par value amounts) (unaudited) July 31, January 31, 2025 2025 Assets Current assets Cash and cash equivalents $ 322,702 $ 186,331 Short-term investments 1,200,309 518,813 Accounts receivable, net of allowances of $ 389 and $ 499 217,048 177,627 Deferred commissions 97,216 91,919 Prepaid expenses and other current assets 91,696 102,951 Total current assets 1,928,971 1,077,641 Property and equipment, net 58,335 53,194 Deferred commissions, noncurrent 125,416 132,465 Goodwill 194,531 100,343 Other assets, noncurrent 81,454 59,331 Total assets $ 2,388,707 $ 1,422,974 Liabilities and stockholders' deficit Current liabilities Accounts payable $ 13,983 $ 10,439 Accrued expenses and other current liabilities 148,834 162,602 Deferred revenue 897,676 777,135 Total current liabilities 1,060,493 950,176 Deferred revenue, noncurrent 687,757 642,370 Other liabilities, noncurrent 76,254 61,821 Convertible senior notes, net 1,128,547 — Debt, noncurrent — 322,341 Total liabilities 2,953,051 1,976,708 Commitments and contingencies (Note 9) Stockholders' deficit Preferred stock, $ 0.000025 par value – 20,000,000 shares authorized as of July 31, 2025 and January 31, 2025; zero shares issued and outstanding as of July 31, 2025 and January 31, 2025 — — Class A common stock, $ 0.000025 par value – 1,070,000,000 shares authorized as of July 31, 2025 and January 31, 2025; 141,767,371 and 101,981,023 shares issued and outstanding as of July 31, 2025 and January 31, 2025, respectively 4 3 Class B common stock, $ 0.000025 par value – 210,000,000 shares authorized as of July 31, 2025 and January 31, 2025; 55,622,085 and 87,785,767 shares issued and outstanding as of July 31, 2025 and January 31, 2025, respectively 1 2 Additional paid-in capital 2,473,597 2,291,829 Accumulated other comprehensive loss ( 2,580 ) ( 8,235 ) Accumulat

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