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Rubrik, Inc. (RBRK)·Q1 2026 Earnings Summary

Executive Summary

  • Rubrik delivered a strong Q1 FY26: total revenue $278.5M (+49% YoY), non-GAAP EPS $(0.15), non-GAAP gross margin 80.5%, and free cash flow $33.3M; management noted results “exceeded all guided metrics,” supported by net new ARR of $89M and NRR >120% .
  • Guidance was raised across FY26: revenue to $1.179–$1.189B (from $1.145–$1.161B), subscription ARR to $1.380–$1.388B (from $1.350–$1.360B), non-GAAP EPS to $(1.02)–$(0.96) (from $(1.23)–$(1.13)), and FCF to $65–$75M (from $45–$65M) .
  • Q2 FY26 outlook calls for revenue $281–$283M and non-GAAP EPS $(0.35)–$(0.33); management expects seasonally lowest ARR contribution margin in Q3 and stronger in Q4 .
  • Stock catalysts: raised FY26 outlook, continued strong cloud/data protection wins, and identity resilience momentum; note that Q1 revenue growth benefited by ~7 percentage points from non-recurring “material rights” tied to the cloud transformation, a few points above expectations .

What Went Well and What Went Wrong

What Went Well

  • Strong growth at scale: Subscription ARR reached $1.18B (+38% YoY), net new ARR $89M, with NRR remaining above 120%; “we once again exceeded all guided metrics” and are “winning the cyber resilience market” .
  • Cloud/data protection and identity momentum: Cloud ARR hit $972M (+60% YoY); management highlighted identity recovery wins that cut recovery from “weeks to under an hour” via hybrid Active Directory and Entra ID orchestration .
  • Profitability and cash generation improved: Subscription ARR contribution margin was 8% (LTM), free cash flow $33.3M; CFO emphasized “continued improvement in profitability” and positive FCF .

What Went Wrong

  • GAAP losses persist: GAAP net loss $(102.1)M; GAAP net loss per share $(0.53), despite improving non-GAAP results .
  • Revenue boosted by non-recurring items: ~7 percentage points of Q1 revenue growth were from “material rights” tied to cloud transformation, above plan by a few points, suggesting some revenue pull-forward .
  • Seasonal margin headwinds ahead: Management expects the Subscription ARR contribution margin to be “seasonally lowest in Q3 before moving higher in Q4,” and noted payment mix (more annual/monthly, shorter terms) as an offset to FCF linearity .

Financial Results

MetricQ4 2025Q1 2026Q2 2026
Total Revenue ($USD Millions)$258.1 $278.5 $309.9
GAAP Gross Margin (%)77.4% 78.3% 79.5%
Non-GAAP Gross Margin (%)79.7% 80.5% 81.6%
GAAP EPS ($)$(0.61) $(0.53) $(0.49)
Non-GAAP EPS ($)$(0.18) $(0.15) $(0.03)
Subscription ARR Contribution Margin (%)2% 8% 9.4%
Cash from Operations ($USD Millions)$83.6 $39.7 $64.7
Free Cash Flow ($USD Millions)$75.2 $33.3 $57.5
Segment Revenue ($USD Millions)Q4 2025Q1 2026Q2 2026
Subscription$243.7 $265.7 $297.0
Maintenance$3.4 $2.3 $2.0
Other$11.0 $10.5 $10.9
Total$258.1 $278.5 $309.9
KPIsCurrent Quarter (Q1 2026)YoY Change
Subscription ARR ($USD Billions)$1.18 +38%
Net New Subscription ARR ($USD Millions)$89 n/a
Cloud ARR ($USD Millions)$972 +60%
Avg Subscription NRR>120% n/a
Customers ≥$100K ARR2,381 +28%
Americas Revenue ($USD Millions)~$203 +51%
Outside Americas Revenue ($USD Millions)~$75 +43%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)FY26$1,145–$1,161 $1,179–$1,189 Raised
Subscription ARR ($USD Millions)FY26$1,350–$1,360 $1,380–$1,388 Raised
Non-GAAP EPS ($)FY26$(1.23)–$(1.13) $(1.02)–$(0.96) Raised
Non-GAAP Sub. ARR Contribution Margin (%)FY26~4.5–5.5 ~6.0 Raised
Free Cash Flow ($USD Millions)FY26$45–$65 $65–$75 Raised
Weighted Avg Shares (Millions)FY26~198 ~198 Maintained
Revenue ($USD Millions)Q2 FY26n/a$281–$283 New
Non-GAAP EPS ($)Q2 FY26n/a$(0.35)–$(0.33) New
Non-GAAP Sub. ARR Contribution Margin (%)Q2 FY26n/a4.5–5.5 New
Weighted Avg Shares (Millions)Q2 FY26n/a~196 New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q1 2026)Trend
AI/Technology InitiativesQ4: Announced Annapurna to accelerate GenAI apps; FedRAMP authorization for RSC-Government . Q2: Closed Predibase acquisition; launched Agent Rewind; broader hyperscaler coverage .Annapurna integrates with Google Agentspace; portfolio approach to multiple S-curves; early phases of optimizing GenAI product-market fit .Expanding AI stack from data security to model serving; increased emphasis on agentic AI after Predibase.
Identity ResilienceQ4: DSPM integrated; platform to combine DSPM + cyber recovery . Q2: Identity resilience discussed in business highlights and narrative .Identity recovery orchestration across AD + Entra ID; avoids malware reintroduction; recovery from weeks to under an hour; momentum with healthcare/public sector wins .Rapidly accelerating; key differentiator and TAM expander.
Product Performance & Platform DifferentiationQ4: Turbo Threat Hunting; platform-based security . Q2: Gartner Leader; expanded cloud DB protections .“Preemptive recovery engine” and “assume breach” approach; multi-product leverage; winning majority of head-to-head deals .Strengthening competitive position and win rates.
Regional TrendsQ4: Not detailed. Q2: Not split provided.Americas ~$203M (+51% YoY); outside Americas ~$75M (+43% YoY) .Broad-based growth; Americas leading.
Macro/TariffsQ4: Not highlighted. Q2: Not highlighted.Demand environment resilient; cyber resilience now top priority; not opportunity-constrained (TAM ~$50B) .Constructive backdrop; secular tailwinds.
R&D ExecutionQ4: Investments across data/security; non-GAAP OpEx discipline . Q2: Continued investments in R&D and GTM with compelling ROI .Continued investment in data, security, AI; disciplined cost management; operating leverage improvement .Efficient growth with increasing leverage.
Regulatory/LegalQ4: FedRAMP Moderate for RSC-Gov; DORA compliance use case .Reinforced compliance narratives (DORA, healthcare identity outage anecdote) .Strengthened gov/compliance positioning.

Management Commentary

  • “Our first quarter results were excellent… we once again exceeded all guided metrics across top line and profitability… we are winning the cyber resilience market.” — CEO Bipul Sinha .
  • “Q1 was a strong start… another quarter of solid top-line growth at scale and continued improvement towards profitability.” — CFO Kiran Choudary .
  • Identity recovery differentiation: “We orchestrate hybrid cloud recovery across Active Directory and Entra ID… transform identity recovery times from weeks to under an hour.” — CEO Bipul Sinha .
  • AI vision: “Rubrik Annapurna… enables secure and scalable GenAI… we are in the early phases of optimizing product market fit.” — CEO Bipul Sinha .

Q&A Highlights

  • TAM expansion via identity resilience: Management sees identity security merging with data security, expanding addressable market and differentiating via integrated platform (identity + DSPM + cyber recovery) .
  • Demand environment: Despite macro uncertainty in security broadly, Rubrik sees cyber resilience as the top priority with robust demand; not opportunity constrained (TAM ~$50B) .
  • Guidance philosophy: Clarified Q1 revenue tailwind (~7 pts) from material rights; raised FY26 ARR, revenue, EPS, FCF guidance while retaining conservative seasonality expectations for ARR contribution margins (lowest Q3, higher Q4) .
  • Technical edge in identity: Hybrid AD + Entra ID recovery, malware reintroduction prevention, wizard-style orchestration; selected over point products due to faster clean recovery .
  • GenAI path: Multi-year Annapurna initiative; Predibase integration accelerates agentic AI with secure governed data and optimized model serving .

Estimates Context

  • Q1 FY26 consensus: S&P Global consensus for Q1 was not available; comparisons anchored to company guidance and actuals .
  • Q2 FY26 actual vs S&P Global consensus: Revenue $309.9M vs $282.26M*, EPS $(0.03) vs $(0.342)* — a material beat on both metrics .
  • Forward estimates snapshot: Q3 FY26 Revenue consensus $320.19M*, EPS consensus $(0.172)*; FY26 raised guidance suggests potential upward estimate revisions for full-year revenue/EPS trajectories .
  • Note: *Values retrieved from S&P Global.
MetricQ2 2026Q3 2026 (Forward)
Revenue Consensus Mean ($USD)$282.26M*$320.19M*
Primary EPS Consensus Mean ($)$(0.342)*$(0.172)*
Primary EPS — # of Estimates17*19*
Revenue — # of Estimates16*19*

Key Takeaways for Investors

  • Core thesis strengthened: Platform-led cyber resilience (data + identity + recovery) is delivering share gains, high NRR, and rising ARR contribution margins — supporting durable growth and improving profitability .
  • Guidance raise is a key catalyst: FY26 revenue, ARR, EPS, and FCF all raised; watch for estimate revisions and multiple support as execution continues .
  • Identity resilience differentiates: Hybrid AD/Entra ID recovery, malware reintroduction prevention, and integrated DSPM are resonating; expect identity to be a growing driver and TAM expander .
  • Revenue quality consideration: Q1 revenue growth included a ~7-pt non-recurring tailwind from material rights; monitor normalization and mix as cloud transformation progresses .
  • Seasonality watch: Management anticipates seasonally lowest ARR contribution margin in Q3 and stronger in Q4; align expectations and trading around these dynamics .
  • Cash generation improving: FCF positive and rising; FY26 FCF guide raised to $65–$75M — supports reinvestment and balance sheet flexibility .
  • AI optionality: Predibase and Annapurna expand Rubrik’s role at the intersection of secure data and GenAI; near-term revenue impact modest, but medium-term strategic leverage is notable .