Rubrik's Subscription Revenue Soars 52%, Net Loss Halved

TL;DR

**Rubrik is burning cash but subscription growth is strong, making it a speculative buy for long-term growth in data security.**

AI Summary

Rubrik, Inc. reported a significant increase in subscription revenue for the three months ended October 31, 2025, reaching $336.39 million, up from $221.51 million in the prior year, representing a 51.8% increase. Total revenue grew to $350.17 million from $236.18 million, a 48.3% increase. Despite this revenue growth, the company recorded a net loss of $63.83 million for the quarter, an improvement from the $130.91 million net loss in the same period last year. For the nine months ended October 31, 2025, the net loss was $261.86 million, a substantial reduction from $1.04 billion in the prior year. Operating expenses for the quarter increased to $357.51 million from $304.82 million, driven by higher sales and marketing expenses of $193.15 million. The company's cash and cash equivalents significantly increased to $307.10 million as of October 31, 2025, from $186.33 million at January 31, 2025, partly due to proceeds from convertible senior notes totaling $1.13 billion. Rubrik also saw its total assets rise to $2.55 billion from $1.42 billion over the same period, while total liabilities increased to $3.07 billion from $1.98 billion.

Why It Matters

Rubrik's strong subscription revenue growth of 51.8% signals robust demand for its data security solutions, which is crucial for investor confidence in a competitive cybersecurity market. The significant reduction in net loss, from $1.04 billion to $261.86 million year-over-year for the nine-month period, demonstrates improved operational efficiency and a clearer path towards profitability, potentially attracting new investors. For employees, this growth suggests job stability and expansion opportunities within a thriving company. Customers benefit from Rubrik's continued innovation in data security, especially with the Rubrik Security Cloud, enhancing their protection against evolving cyber threats and solidifying Rubrik's competitive position against rivals like Veeam and Cohesity.

Risk Assessment

Risk Level: medium — Rubrik has a history of operating losses, with a net loss of $63.83 million for the quarter and $261.86 million for the nine months ended October 31, 2025. While this is an improvement from the prior year's $130.91 million and $1.04 billion losses, the company has not yet achieved profitability. Additionally, the company's total liabilities of $3.07 billion exceed its total assets of $2.55 billion, indicating a stockholders' deficit of $524.41 million, which presents a financial risk.

Analyst Insight

Investors should closely monitor Rubrik's continued subscription revenue growth and its progress towards profitability, as the company is still operating at a net loss. Consider this a growth play in the cybersecurity sector, but be aware of the financial risks associated with its accumulated deficit and high operating expenses. A long-term hold might be warranted if the trend of reduced losses continues.

Financial Highlights

debt To Equity

N/A

revenue

$350.17M

operating Margin

N/A

total Assets

$2.55B

total Debt

$1.13B

net Income

-$63.83M

eps

N/A

gross Margin

80.55%

cash Position

$307.10M

revenue Growth

+48.3%

Revenue Breakdown

Key Numbers

• $336.39M — Subscription Revenue (Increased 51.8% from $221.51M in Q3 2024)
• $350.17M — Total Revenue (Increased 48.3% from $236.18M in Q3 2024)
• $(63.83M) — Net Loss (Q3) (Improved from $(130.91M) in Q3 2024)
• $(261.86M) — Net Loss (YTD) (Improved from $(1.04B) in YTD 2024)
• $307.10M — Cash and Cash Equivalents (Increased from $186.33M at Jan 31, 2025)
• $1.13B — Convertible Senior Notes (New debt issued, net of discount)
• $2.55B — Total Assets (Increased from $1.42B at Jan 31, 2025)
• $3.07B — Total Liabilities (Increased from $1.98B at Jan 31, 2025)
• $(524.41M) — Total Stockholders' Deficit (Indicates liabilities exceed assets)
• 198,379 — Weighted-Average Shares (Used in computing net loss per share for Q3 2025)

Key Players & Entities

• Rubrik, Inc. (company) — Registrant for 10-Q filing
• $336.39 million (dollar_amount) — Subscription revenue for Q3 2025
• $221.51 million (dollar_amount) — Subscription revenue for Q3 2024
• $63.83 million (dollar_amount) — Net loss for Q3 2025
• $130.91 million (dollar_amount) — Net loss for Q3 2024
• $261.86 million (dollar_amount) — Net loss for nine months ended Oct 31, 2025
• $1.04 billion (dollar_amount) — Net loss for nine months ended Oct 31, 2024
• $307.10 million (dollar_amount) — Cash and cash equivalents as of Oct 31, 2025
• $1.13 billion (dollar_amount) — Proceeds from convertible senior notes
• New York Stock Exchange (regulator) — Exchange where Class A Common Stock is registered

FAQ

Risk Factors

• Substantial Stockholders' Deficit [high — financial]: As of October 31, 2025, Rubrik has a total stockholders' deficit of $524.41 million. This indicates that the company's total liabilities ($3.07 billion) exceed its total assets ($2.55 billion), which could raise concerns about financial stability and solvency.
• Significant Net Losses [high — financial]: The company continues to incur substantial net losses, with $63.83 million in the three months ended October 31, 2025, and $261.86 million year-to-date. While losses have improved year-over-year, sustained unprofitability poses a risk to long-term viability without further funding or a clear path to profitability.
• Dependence on Key Personnel [medium — operational]: The success of Rubrik's business depends on the continued service of its key technical and management personnel. The loss of any such personnel could have a material adverse effect on the company's operations and future prospects.
• Intense Competition [medium — market]: The market for data security and data management solutions is highly competitive and rapidly evolving. Rubrik faces competition from established players and emerging companies, which could impact its market share and pricing power.
• Data Privacy and Security Regulations [medium — regulatory]: Rubrik operates in an industry subject to extensive and evolving data privacy and security regulations globally. Non-compliance could result in significant fines, legal liabilities, and reputational damage.
• Reliance on Debt Financing [medium — financial]: The issuance of $1.13 billion in convertible senior notes indicates a reliance on debt financing. While this strengthened the cash position, it also increases financial leverage and future interest obligations.
• Growth in Operating Expenses [medium — operational]: Operating expenses increased to $357.51 million in Q3 2025, driven by a significant rise in sales and marketing expenses ($193.15 million). Sustaining this level of investment while achieving profitability is a key challenge.
• Rapid Technological Changes [medium — market]: The technology landscape is subject to rapid change. Rubrik must continuously innovate and adapt its offerings to keep pace with evolving customer needs and technological advancements to remain competitive.

Industry Context

Rubrik operates in the rapidly growing data security and resilience market, a critical area for businesses facing increasing cyber threats and data management complexities. The industry is characterized by a shift towards cloud-native solutions and Software-as-a-Service (SaaS) models, demanding continuous innovation in areas like ransomware protection, disaster recovery, and data governance.

Regulatory Implications

Rubrik must navigate a complex web of global data privacy regulations (e.g., GDPR, CCPA) and cybersecurity mandates. Compliance failures can lead to substantial fines and reputational damage, requiring robust internal controls and continuous monitoring of evolving legal landscapes.

What Investors Should Do

1. Monitor path to profitability
2. Assess impact of convertible notes
3. Evaluate subscription revenue growth sustainability
4. Analyze operating expense efficiency
5. Consider the implications of the stockholders' deficit

Key Dates

• 2025-10-31: End of Q3 Fiscal Year 2026 — Reporting period for the latest 10-Q, showing strong revenue growth but continued net losses.
• 2025-01-31: End of Q4 Fiscal Year 2025 — Previous fiscal year-end, used as a comparison point for balance sheet items like cash and assets.
• 2025-10-31: Issuance of Convertible Senior Notes — Provided a significant cash infusion of $1.13 billion, bolstering the company's liquidity.

Glossary

Subscription Revenue

Revenue recognized from customers paying for access to Rubrik's software and services over a defined period. (The primary and fastest-growing revenue stream for Rubrik, indicating strong market adoption of its core offerings.)

Deferred Revenue

Revenue that has been paid for by customers but not yet earned by Rubrik, as the service or product has not yet been delivered or fully rendered. (A significant liability on the balance sheet ($1.69B total), representing future revenue to be recognized as services are delivered.)

Convertible Senior Notes

Debt securities that can be converted into a predetermined amount of the issuer's equity at certain times. (A major source of financing ($1.13B) that increased cash but also represents future potential dilution or debt repayment obligations.)

Stockholders' Deficit

The amount by which total liabilities exceed total assets, resulting in a negative equity position. (Indicates that Rubrik's liabilities outweigh its assets, a common characteristic of early-stage, high-growth companies investing heavily in expansion.)

Goodwill

An intangible asset that arises when one company acquires another for a price greater than the fair market value of its identifiable net assets. (A substantial asset ($199.6M) indicating past acquisitions, which can contribute to growth but also carries impairment risk.)

Deferred Commissions

Costs incurred to obtain contracts with customers that are capitalized and amortized over the expected customer relationship period. (Represents significant sales and marketing investment ($234.4M total) aimed at acquiring new customers, impacting short-term profitability.)

Accumulated Deficit

The cumulative net losses of a company since its inception, less any net gains. (Reflects the company's history of operating losses, totaling $3.10 billion, highlighting the path to profitability as a key focus.)

Weighted-Average Shares Outstanding

The average number of shares of common stock outstanding during a period, adjusted for dilutive effects. (Used to calculate net loss per share; the number of shares increased significantly, impacting per-share metrics.)

Year-Over-Year Comparison

Rubrik demonstrates robust top-line growth, with total revenue increasing by 48.3% year-over-year to $350.17 million for the quarter. Subscription revenue, the key growth engine, surged by 51.8%. While net losses have narrowed significantly compared to the prior year, the company still reported a net loss of $63.83 million. Operating expenses have risen, reflecting continued investment in growth, and the balance sheet shows a substantial increase in assets and liabilities, notably due to the recent issuance of convertible senior notes.

Key Financial Figures

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

Filing Documents

• rbrk-20251031.htm (10-Q) — 2122KB
• rubrik-arnonxemployeedirec.htm (EX-10.1) — 21KB
• rubrik-severanceandchangei.htm (EX-10.2) — 152KB
• rubrik10q10312025exhibit311.htm (EX-31.1) — 11KB
• rubrik10q10312025exhibit312.htm (EX-31.2) — 11KB
• rubrik10q10312025exhibit321.htm (EX-32.1) — 7KB
• rubrik10q10312025exhibit322.htm (EX-32.2) — 7KB
• 0001943896-25-000054.txt ( ) — 9909KB
• rbrk-20251031.xsd (EX-101.SCH) — 58KB
• rbrk-20251031_cal.xml (EX-101.CAL) — 77KB
• rbrk-20251031_def.xml (EX-101.DEF) — 409KB
• rbrk-20251031_lab.xml (EX-101.LAB) — 763KB
• rbrk-20251031_pre.xml (EX-101.PRE) — 588KB
• rbrk-20251031_htm.xml (XML) — 1277KB

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 31 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 48 Item 4.

Controls and Procedures

Controls and Procedures 48

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 50 Item 1A.

Risk Factors

Risk Factors 50 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 90 Item 3. Defaults Upon Senior Securities 90 Item 4. Mine Safety Disclosures 90 Item 5. Other Information 90 Item 6. Exhibits 92

Signatures

Signatures 93 Rubrik, Inc. Q3 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) October 31, January 31, 2025 2025 Assets Current assets Cash and cash equivalents $ 307,100 $ 186,331 Short-term investments 1,295,907 518,813 Accounts receivable, net of allowances of $ 569 and $ 499 219,687 177,627 Deferred commissions 100,820 91,919 Prepaid expenses and other current assets 143,183 102,951 Total current assets 2,066,697 1,077,641 Property and equipment, net 66,989 53,194 Deferred commissions, noncurrent 133,624 132,465 Goodwill 199,606 100,343 Other assets, noncurrent 81,739 59,331 Total assets $ 2,548,655 $ 1,422,974 Liabilities and stockholders' deficit Current liabilities Accounts payable $ 11,857 $ 10,439 Accrued expenses and other current liabilities 182,820 162,602 Deferred revenue 968,167 777,135 Total current liabilities 1,162,844 950,176 Deferred revenue, noncurrent 718,380 642,370 Other liabilities, noncurrent 62,213 61,821 Convertible senior notes, net 1,129,627 — Debt, noncurrent — 322,341 Total liabilities 3,073,064 1,976,708 Commitments and contingencies (Note 9) Stockholders' deficit Preferred stock, $ 0.000025 par value – 20,000,000 shares authorized as of October 31, 2025 and January 31, 2025; zero shares issued and outstanding as of October 31, 2025 and January 31, 2025 — — Class A common stock, $ 0.000025 par value – 1,070,000,000 shares authorized as of October 31, 2025 and January 31, 2025; 151,877,278 and 101,981,023 shares issued and outstanding as of October 31, 2025 and January 31, 2025, respectively 4 3 Class B common stock, $ 0.000025 par value – 210,000,000 shares authorized as of October 31, 2025 and January 31, 2025; 48,256,092 and 87,785,767 shares issued and outstanding as of October 31, 2025 and January 31, 2025, respectively 1 2 Additional paid-in capital 2,574,825 2,291,829 Accumulated other comprehensive loss ( 44 )

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