Executive Summary

Q3 FY25: Revenue rose 43% year-over-year to $236.2M; subscription revenue was $221.5M (+55% YoY), and Rubrik surpassed $1.0B in Subscription ARR (+38% YoY), reflecting continued leadership in cyber resilience .
Profitability and cash: Non-GAAP gross margin was 79.2% (vs. 80.1% YoY), GAAP gross margin 76.2% (vs. 79.6% YoY); free cash flow was $15.6M, marking positive FCF with improving operating leverage .
Guidance raised: FY25 Subscription ARR increased to $1.057B–$1.061B (from $1.026B–$1.032B), revenue to $860M–$862M (from $830M–$838M), non-GAAP EPS to $(1.86)–$(1.82) (from $(2.12)–$(2.06)), and Subscription ARR contribution margin to (3%)–(2%) (from (7%)–(6%)) .
Catalysts: ARR >$1B milestone, stronger customer expansion (NRR >120%), and reinforced platform narrative (DSPM + cyber recovery) position Rubrik for accelerated enterprise standardization and vendor consolidation .

What Went Well and What Went Wrong

What Went Well

Surpassed $1.0B Subscription ARR (+38% YoY) and added scale customers (2,085 with >$100k ARR, +32% YoY), underscoring enterprise adoption and land-and-expand momentum .
Positive free cash flow ($15.6M) and continued margin progress; management raised FY25 outlook across ARR, revenue, EPS, and ARR contribution margin, signaling confidence in demand and execution .
Platform differentiation (DSPM + cyber recovery) drove competitive wins and consolidation: “We are winning the vast majority of deals in head-to-head competition” (CEO) .

What Went Wrong

GAAP gross margin declined vs. prior year (76.2% vs. 79.6% YoY), reflecting ongoing cloud hosting cost investments; non-GAAP gross margin also modestly lower (79.2% vs. 80.1% YoY) .
GAAP net loss per share remained negative at $(0.71); while improving YoY, profitability remains a multi-quarter journey as cloud transformation and contract/payment term mix weigh on reported operating metrics and cash dynamics .
CFO highlighted shorter duration and invoice cycles in cloud/SaaS products as modest free-cash-flow headwinds, even as efficiency gains and renewal base scaling provide offset over time .

Financial Results

Consolidated performance vs. prior periods and estimates

Metric	Q1 2025	Q2 2025	Q3 2025	Vs. Estimates
Total Revenue ($M)	$187.3	$205.0	$236.2	N/A – SPGI consensus unavailable
GAAP EPS	$(11.48)	$(0.98)	$(0.71)	N/A – SPGI consensus unavailable
Non-GAAP EPS	$(1.58)	$(0.40)	$(0.21)	N/A – SPGI consensus unavailable
GAAP Gross Margin %	48.8%	73.1%	76.2%	—
Non-GAAP Gross Margin %	75.4%	77.0%	79.2%	—

Note: SPGI consensus estimates were unavailable in this session; comparison to Wall Street consensus could not be provided.

Revenue composition

Revenue Breakdown ($M)	Q1 2025	Q2 2025	Q3 2025
Subscription	$172.2	$191.3	$221.5
Maintenance	$5.7	$5.0	$4.3
Other	$9.5	$8.6	$10.3
Total Revenue	$187.3	$204.9	$236.2

KPIs and scale indicators

KPI	Q1 2025	Q2 2025	Q3 2025
Subscription ARR ($M)	$856.1	$919.1	$1,002.3
Cloud ARR ($M)	N/A	$678	$769
Customers ≥$100K ARR	1,859	1,969	2,085
Average Subscription NRR	>120%	>120%	>120%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Subscription ARR ($M)	FY25	$1,026–$1,032	$1,057–$1,061	Raised
Total Revenue ($M)	FY25	$830–$838	$860–$862	Raised
Non-GAAP EPS	FY25	$(2.12)–$(2.06)	$(1.86)–$(1.82)	Raised (less negative)
ARR Contribution Margin (%)	FY25	(7)–(6)	(3)–(2)	Raised (improved)
Free Cash Flow ($M)	FY25	$(67)–$(57)	$(45)–$(39)	Raised (improved)
Revenue ($M)	Q4 FY25	—	$231.5–$233.5	New
Non-GAAP EPS	Q4 FY25	—	$(0.41)–$(0.37)	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3 FY25)	Trend
Cyber resilience platform (DSPM + rapid recovery)	Emphasized platform architecture and preemptive recovery engine; majority win rates; multi-product land/expand	Reinforced majority win rates, consolidation of legacy/new-gen; mission-critical uptime examples (healthcare, financials)	Strengthening and scaling
DSPM adoption & AI readiness	DSPM attach rising; >50 customers by Q2; Copilot security use case	Continued momentum and displacement of point solutions; platform value before/during/after attack	Adoption broadening
Generative AI initiatives (Annapurna, Ruby)	Announced Annapurna (secure data embeddings, Bedrock/AgentSpace integration); Ruby agent productivity focus	AI framed as multi-year S-curve; enabling trusted inputs and operational guardrails across data	Early but expanding
Partnerships (Mandiant, Microsoft, Pure Storage)	Expanded integrations, incident response, healthcare and storage alliances	Validated GTM leverage and co-engineered solutions (faster recovery, threat context)	Deepening ecosystem
Competitive dynamics (Cohesity–Veritas)	CrowdStrike outage heightened resilience focus; competitive wins	Merger seen as opening evaluation window; Rubrik winning vast majority of head-to-heads	Favorable share shift
Go-to-market efficiency & margin	S&M productivity, targeted marketing, renewals scaling; ARR contribution margin improving	Positive FCF; raised FY guide; continued leverage pursuit	Improving efficiency

Management Commentary

“We’re incredibly proud to have surpassed $1 billion in Subscription ARR, growing 38% year-over-year…Our strong growth at scale shows that we’re winning the cyber resilience market” (CEO) .
“We had another strong quarter, outperforming expectations across all metrics…Subscription ARR Contribution Margin was up over 1,100 basis points year-over-year, and we generated positive free cash flow” (CFO) .
“We are the only vendor in the market to offer DSPM plus cyber recovery in an integrated platform…we win the vast majority of deals in head-to-head competition” (CEO) .

Q&A Highlights

Identity/DSPM strategy and differentiation: Combining identity recovery (AD/Entra ID) with DSPM delivers faster, clean recovery and unified risk view; notable customer outcomes with recovery times reduced from days to hours .
Cloud vs. native backup: Enterprises prefer unified policy/control across data center/cloud/SaaS for rapid recovery at scale; documented TCO and performance benefits vs. native tools .
Competitive landscape and consolidation: Cohesity–Veritas merger seen as opening evaluation windows; Rubrik’s platform approach and win rate provide share shift tailwinds .
Efficiency and margin trajectory: Margin improvements driven by S&M productivity, renewals scaling, and R&D leverage; continued focus on FCF generation and operating leverage .
Partnerships: Deepened Mandiant/Microsoft/Pure alliances to accelerate incident response and cyber recovery; platform integrations enhance customer value .

Estimates Context

S&P Global consensus estimates were unavailable during this session; as a result, we cannot provide apples-to-apples comparisons of Q3 FY25 actuals vs. consensus in the tables above. We will anchor future estimate comparisons on S&P Global data when accessible.

Key Takeaways for Investors

ARR scale and durability: Surpassing $1.0B Subscription ARR with >120% NRR, broader adoption of premium Enterprise Edition and DSPM attach underpin multi-year growth visibility .
Platform consolidation drive: Demonstrated displacement of legacy/new-gen and native cloud tools with unified resilience platform; customers report faster recovery and TCO savings, fueling wallet share gains .
Operating leverage vector: ARR contribution margin improvement and positive FCF validate efficient growth; FY25 guidance raised across ARR, revenue, EPS, and margin .
AI positioning: Annapurna/Ruby and secure data embeddings align Rubrik with enterprise AI acceleration, turning data security posture into AI trust and guardrails—an emerging, strategic growth leg .
Partnerships as accelerants: Mandiant, Microsoft, Pure Storage integrations enhance incident response and recovery outcomes, reinforcing ecosystem-led GTM leverage .
Competitive backdrop favorable: Vendor consolidation and infrastructure re-platforming (e.g., Cohesity–Veritas) create evaluation inflection points; Rubrik’s win rates suggest share capture ahead .
Watch list: Continued improvement in gross margin mix, duration/invoice cycle headwinds to cash, and the pace of DSPM/identity resilience monetization across the installed base .

Sources: Company 8‑K earnings press releases and transcripts cited above. All figures and statements are sourced as indicated by citations:

Q3 FY25 press release and financials
Q3 FY25 earnings call transcript
Q2 FY25 press release and financials
Q2 FY25 earnings call transcript
Q1 FY25 press release and financials

Rubrik, Inc. (RBRK)·Q3 2025 Earnings Summary