Rubrik, Inc. (RBRK)·Q2 2026 Earnings Summary

Executive Summary

• Strong quarter with top-line beat and improved profitability: revenue $309.9M (+51% YoY) and non-GAAP EPS $(0.03), both above consensus; GAAP gross margin 79%/non-GAAP 82%, with free cash flow (FCF) $57.5M (19% margin) driven by sales strength, early renewals, and lower hosting costs including a one-time credit . Results compared to S&P Global consensus: revenue $309.9M vs $282.3M*, EPS $(0.03) vs $(0.34)* — significant beat on both.
• Guidance raised materially for FY26 across revenue ($1.227–$1.237B from $1.179–$1.189B), subscription ARR ($1.408–$1.416B from $1.380–$1.388B), non-GAAP sub-ARR contribution margin (~7% from ~6%), EPS ($(0.50)–$(0.44) from $(1.02)–$(0.96)), and FCF ($145–$155M from $65–$75M) .
• Strategic momentum: 36% YoY subscription ARR to $1.25B; Cloud ARR $1.1B (+57% YoY); customers ≥$100K ARR up 27% to 2,505; NRR remained >120% highlighting healthy expansion vectors (security attach, workloads, data growth) .
• Catalysts: outsized beat/raise, accelerating cash generation, identity resilience traction (200+ customers), and AI roadmap progress (Predibase acquisition closed; Agent Rewind launched) to support the “security and AI” positioning .

What Went Well and What Went Wrong

• What Went Well

  • Broad beat and cash inflection: revenue +51% YoY to $309.9M, non-GAAP EPS $(0.03), FCF $57.5M (19% margin) as efficiencies and renewals timing aided cash, with lower hosting costs and a one-time hosting credit supporting gross margin outperformance .
  • Expansion engine: NRR remained >120% with ~35% of NRR from additional security functionality; customers ≥$100K ARR rose 27% to 2,505; Cloud ARR reached $1.1B (+57% YoY) reflecting strong adoption of Rubrik Security Cloud .
  • Strategic AI/identity advances: closed Predibase to accelerate agentic AI; launched Agent Rewind; identity recovery now 200+ customers, reducing recovery to under two hours for notable wins; expanded AWS database protection (RDS/DynamoDB) .

• What Went Wrong

  • Revenue quality mix: part of the revenue growth reflected non-recurring “material rights” related to cloud transformation (~7% contribution in Q2), which management expects to be minimal in FY27, implying some normalization ahead .
  • Seasonality/margin cadence: management guided Q3 to be the seasonal low for sub-ARR contribution margins (~6.5%) before improving in Q4, reflecting investment timing and ARR linearity .
  • Non-cloud ARR decline persists as migrations continue; management expects stabilization as cloud mix normalizes beyond ~85% cloud ARR penetration .

Financial Results

Actuals vs S&P Global consensus

Values marked with * are retrieved from S&P Global.

Revenue mix by type

Q2 FY26 geographic mix (revenue)

KPIs

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• CEO Bipul Sinha: “Subscription ARR surpassed $1.25 billion, growing 36%... customers with $100,000 or more in subscription ARR crossed 2,500, growing 27%... we generated over $57 million in free cash flow this quarter.”
• Platform differentiation: “Rubrik Security Cloud is underpinned by a Preemptive Recovery Engine… enabling fast recovery after cyber attacks… We still win a vast majority of deals against legacy and new gen vendors.”
• AI vision: “We are building a portfolio of innovation… Predibase allows enterprises to fine-tune models and run an optimized inference stack… Agent Rewind helps customers undo the mistakes of AI agents.”
• CFO Kiran Choudary: “Material rights contributed ~7% to revenue growth… gross margin benefited from reduced hosting costs including a one-time credit… sub-ARR contribution margin improved ~1,800 bps YoY to +9% LTM.”

Q&A Highlights

• Cash/FCF drivers: Stronger ARR, early/multi-year renewals, capital structure optimization (refinancing to 0% converts), and favorable duration (not assumed to persist); raised FY26 FCF margin guide to ~12% .
• Seasonality and sales comp change: Minimal disruption from shift to annual plans; Q2/Q3 similar; Q4 seasonally strong; sub-ARR margin lowest in Q3 before rising in Q4 .
• Revenue mix/material rights: Outperformance from expiring credits used by qualified customers during cloud transformation; non-recurring and timing-driven; minimal in FY27 .
• Cloud vs non-cloud ARR: Non-cloud still declining due to migrations; expected to stabilize as cloud mix normalizes beyond ~85% .
• Competitive landscape: High win rates replacing legacy and new-gen vendors due to faster recovery and simplified platform .

Estimates Context

• Q2 FY26: Revenue $309.9M vs consensus $282.3M*; non-GAAP EPS $(0.03) vs $(0.34)* — clear beat on both.
• FY26: Company revenue guidance $1.227–$1.237B vs consensus $1.2337B*; non-GAAP EPS guidance $(0.50)–$(0.44) vs consensus $(0.487)* — midpoint broadly in line/slightly better on EPS. Q3 guidance $319–$321M revenue vs $320.19M* and $(0.18) to $(0.16) EPS vs $(0.172)* — essentially in line. Values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

• Quality beat with raise: Strong outperformance on revenue and EPS plus a broad FY26 raise (ARR, revenue, margins, EPS, FCF) should support positive estimate revisions and sentiment .
• Mind the non-recurring tailwind: Material rights added ~7 pts to Q2 revenue growth and ~6 pts for FY26; expect this to fade in FY27 — normalize medium-term models accordingly .
• Cash trajectory improving: Four straight positive FCF quarters; FY26 FCF guide doubled to $145–$155M; OpEx discipline and lower hosting costs (including one-time credit) support the path to profitability .
• Expansion vectors intact: NRR >120% with ~35% from security functionality attach; growth across workloads, identities, and data volume positions RBRK to deepen enterprise penetration .
• Strategic differentiation: Identity resilience and DSPM on a unified platform plus Preemptive Recovery Engine underpin competitive wins; federal wins and FedRAMP provide public sector runway .
• AI optionality: Predibase+Annapurna+Agent Rewind broaden the AI stack narrative from data to modeling/serving — longer-term growth lever as product-market fit matures .
• Near-term setup: Q3 seasonally softer sub-ARR margin, then ramp in Q4; revenue mix normalization likely as material rights fade — watch for sustained Cloud ARR growth and identity adoption to drive durable ARR .

Appendix: Additional Business Highlights

• Q2 press release highlights: Subscription ARR $1.25B (+36% YoY); GAAP gross margin 79.5% (non-GAAP 81.6%); GAAP EPS $(0.49), non-GAAP EPS $(0.03); FCF $57.5M; customers ≥$100K ARR 2,505 (+27% YoY) .
• Product updates: Expanded immutability for Amazon RDS for PostgreSQL; comprehensive protection for Amazon DynamoDB (press release) ; reiterated in highlights .
• Predibase acquisition: Aims to accelerate agentic AI adoption and reduce inference costs; integrated with Rubrik’s secure data platform .

Notes:

• Company-reported non-GAAP metrics are reconciled in 8-K exhibits; GAAP-to-non-GAAP adjustments primarily reflect stock-based compensation and amortization of intangibles .
• Management expects minimal revenue from material rights in FY27 and guides Q3 as seasonal low for contribution margin before improving in Q4 .

S&P Global disclaimer: All values marked with * are retrieved from S&P Global.