Executive Summary

Rubrik delivered a strong Q4 FY25, exceeding all guided metrics with total revenue of $258.1M (+47% YoY), subscription revenue of $243.7M (+54% YoY), and non-GAAP EPS of $(0.18), while reporting $75.2M in free cash flow and a 29% free cash flow margin in the quarter .
Subscription ARR reached $1.093B (+39% YoY), net new ARR was over $90M (a company record), non-GAAP total gross margin rose to 79.7% (vs 77.7% prior year), and Subscription ARR Contribution Margin turned positive to 2% from (12)% YoY, reflecting improved operating leverage .
Management guided FY26 ahead of consensus (per call remarks), including revenue of $1.145B–$1.161B (+~30% YoY), Subscription ARR of $1.350B–$1.360B (+~24% YoY), non-GAAP EPS of $(1.23)–$(1.13), and free cash flow of $45M–$65M; Q1 FY26 revenue was guided to $259M–$261M and non-GAAP EPS of $(0.33)–$(0.31) .
Catalysts include accelerating cloud/DSPM adoption, identity recovery innovation (orchestrated Active Directory forest recovery), regulatory tailwinds (e.g., DORA in Europe), and material rights tailwinds to revenue during cloud transformation, offset by billings duration compression and seasonality in contribution margins and free cash flow .

What Went Well and What Went Wrong

What Went Well

Record net new subscription ARR over $90M in Q4 and Subscription ARR of $1.093B (+39% YoY), driven by strong adoption of Rubrik Security Cloud and expansion across cloud and SaaS protection; subscription NRR remained above 120% .
Profitability and cash generation improved meaningfully: Subscription ARR Contribution Margin improved >1,400 bps YoY to 2%, non-GAAP gross margin reached ~80%, and Q4 free cash flow was $75.2M with a 29% margin, demonstrating improving operating leverage at scale .
Strategic product/regulatory milestones: integration of DSPM into RSC, debut of Turbo Threat Hunting, FedRAMP Moderate authorization for RSC-Government, and identity recovery innovation (orchestrated AD forest recovery) supporting faster, trusted recovery and compliance (including DORA-driven wins) .

Selected quotes:

“We once again exceeded all top line and profitability guided metrics.”
“Subscription ARR contribution margin was positive 2%... an improvement of over 1,400 basis points.”
“Our orchestrated AD forest recovery... transformed [recovery] into within an hour.”

What Went Wrong

GAAP metrics remain pressured by elevated stock-based compensation from IPO-related vesting, with FY25 GAAP gross margin at 70.0% (down from 76.9%), GAAP EPS at $(7.48), and GAAP net loss of $(114.9)M in Q4 despite improving non-GAAP results .
Revenue growth benefitted from nonrecurring material rights tied to the cloud transformation (~4 points in Q4); management expects a “few points” of such tailwinds to continue in FY26—positive for revenue but adds a nonrecurring component to growth quality .
Billings duration compression (mid- to high-single-digit YoY) and seasonality expected in Subscription ARR Contribution Margin and free cash flow (weaker in Q2–Q3; first-half FCF ~breakeven), tempering steady cash generation through mid-year and introducing intra-year variability .

Financial Results

Core P&L and Per-Share Metrics

Metric	Q2 FY25	Q3 FY25	Q4 FY25	Consensus (SPGI)
Total Revenue ($USD Millions)	$205.0	$236.2	$258.1	N/A
GAAP Net Loss per Share ($)	$(0.98)	$(0.71)	$(0.61)	N/A
Non-GAAP Net Loss per Share ($)	$(0.40)	$(0.21)	$(0.18)	N/A

Notes: S&P Global consensus unavailable due to request limit; estimates are thus omitted. Management stated FY26 guidance is ahead of consensus on the call .

Margins and Operating Leverage

Metric	Q2 FY25	Q3 FY25	Q4 FY25
GAAP Gross Margin %	73.1%	76.2%	77.4%
Non-GAAP Gross Margin %	77.0%	79.2%	79.7%
Subscription ARR Contribution Margin %	(8)%	(3)%	2%

Cash Flow

Metric	Q2 FY25	Q3 FY25	Q4 FY25
Cash Flow from Operations ($USD Millions)	$(27.1)	$23.1	$83.6
Free Cash Flow ($USD Millions)	$(32.0)	$15.6	$75.2
Free Cash Flow Margin %	(16)%	7%	29%

Revenue Composition

Metric	Q2 FY25	Q3 FY25	Q4 FY25
Subscription Revenue ($USD Millions)	$191.3	$221.5	$243.7
Maintenance Revenue ($USD Millions)	$5.0	$4.3	$3.4
Other Revenue ($USD Millions)	$8.6	$10.3	$11.0
Total Revenue ($USD Millions)	$205.0	$236.2	$258.1

KPIs

KPI	Q2 FY25	Q3 FY25	Q4 FY25
Subscription ARR ($USD Millions)	$919.1	$1,002.3	$1,092.6
Cloud ARR ($USD Millions)	N/A	N/A	$876
Customers ≥$100K ARR (count)	1,969	2,085	2,246
Customers ≥$1M ARR (count)	N/A	N/A	162
Subscription NRR (%)	N/A	N/A	>120%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance/Actual	Change
Revenue ($USD Millions)	Q4 FY25	$231.5–$233.5	$258.1 actual	Beat
Non-GAAP EPS ($)	Q4 FY25	$(0.41)–$(0.37)	$(0.18) actual	Beat
Subscription ARR Contribution Margin (%)	Q4 FY25	(3)%–(2)%	2% actual	Beat (swing to positive)
Revenue ($USD Millions)	Q1 FY26	N/A	$259–$261	New
Non-GAAP EPS ($)	Q1 FY26	N/A	$(0.33)–$(0.31)	New
Subscription ARR Contribution Margin (%)	Q1 FY26	N/A	~4%–5%	New
Subscription ARR ($USD Millions)	FY26	N/A	$1,350–$1,360	New
Revenue ($USD Millions)	FY26	N/A	$1,145–$1,161	New
Non-GAAP EPS ($)	FY26	N/A	$(1.23)–$(1.13)	New
Subscription ARR Contribution Margin (%)	FY26	N/A	~4.5%–5.5%	New
Free Cash Flow ($USD Millions)	FY26	N/A	$45–$65	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4)	Trend
AI/DSPM initiatives	Announced partnership and integration with Mandiant; expanded presence via ADP; raised full-year guidance	DSPM integrated into RSC; Rubrik Annapurna API announced to accelerate GenAI apps; Turbo Threat Hunting introduced	Expanding scope and integration across platform
Microsoft ecosystem	Named Microsoft Healthcare & Life Sciences 2024 Partner of the Year	Strategic partnership reiterated; large M365 wins; AD/Entra ID security and orchestrated forest recovery	Deepening co-engineering and customer momentum
Cloud transformation & material rights	Cloud transformation early stage; ARR > revenue growth	Revenue benefitted ~4 points from nonrecurring material rights; expected “few points” tailwind in FY26	Revenue tailwind continuing
Identity resilience	N/A	General availability of orchestrated AD forest recovery; fast recovery within hours vs days	New product vector driving wins
Regulatory & compliance	N/A	DORA cited in European insurance win; FedRAMP Moderate for RSC-Government	Regulatory tailwinds rising
R&D execution	Product additions and support expansion (e.g., Red Hat OpenShift virtualization planned)	Innovation cadence across DSPM, threat hunting, identity recovery; continued investments in cloud hosting infra	Sustained investment improving capabilities
Regional trends	N/A	Americas revenue $185M (+48%); outside Americas $73M (+47%)	Broad-based growth across regions
Sales/Go-to-market	Raised guidance; strong execution	Shift to annual comp plans; seasonality in net new ARR (H2 > H1; Q1 ~24% of FY)	Maturing GTM, aligned with ARR planning

Management Commentary

“Net new subscription ARR reached over $90 million in the fourth quarter, which is a record for us… We generated 29% free cash flow margin in the quarter.”
“Our subscription ARR contribution margin was positive 2%… improvement of over 1,400 basis points.”
“Revenue growth benefited for about 4 points of nonrecurring upfront revenue from material rights… we expect that to continue in fiscal ’26 as well.”
“We are guiding fiscal 2026 numbers ahead of the consensus.”
“Our orchestrated AD forest recovery… what once was a manual recovery that can span weeks is now transformed into recovery within an hour.”
“DORA was a key factor for [a] European insurance [win]… regulatory tailwinds are a secular driver.”

Q&A Highlights

TAM and AI: CEO emphasized Rubrik’s expansion of the traditional data protection market by combining DSPM and cyber recovery into a true data security platform, positioning at the intersection of data security and AI; TAM cited as >$50B per IPO prospectus, with expanding demand as customers adopt cloud and GenAI .
Operating leverage drivers: CFO detailed margin improvement largely from sales & marketing productivity (~1,200 bps of ~1,400 bps ARR contribution margin improvement), renewals leverage at scale, and R&D cost leverage via global talent pools (India/Israel) .
Cash flow seasonality and billings duration: CFO noted Q1 and Q4 are seasonally strongest for FCF; first half ~breakeven; billings duration compression mid- to high-single-digit YoY expected to continue, impacting cash collections timing .
Revenue vs ARR divergence: CFO explained revenue now benefits in latter part of cloud transformation (catching up to ARR) and from nonrecurring material rights tailwinds (a few points), driving the divergence in FY26 guidance (revenue +~30% vs ARR +~24%) .
Go-to-market maturity: Shift to annual comp plans aligns sales execution to annual net new ARR planning, with expected seasonality (H2 heavier than H1) .

Estimates Context

S&P Global consensus estimates for Q4 FY25 (EPS and revenue) were unavailable due to SPGI daily request limit; comparisons vs Street estimates are therefore omitted. Values would normally be anchored on S&P Global consensus.
Management stated FY26 guidance is ahead of consensus on the call, implying potential estimate revisions upward in revenue and operating leverage expectations if analysts were previously below the guided ranges .

Key Takeaways for Investors

Rubrik’s Q4 FY25 delivered a clean beat across revenue, non-GAAP EPS, and Subscription ARR Contribution Margin, with strong free cash flow—evidence of scaling efficiency alongside high growth .
Revenue quality includes nonrecurring material rights tailwinds from cloud transformation (~4 points in Q4) expected to persist at “a few points” in FY26; investors should adjust revenue durability expectations accordingly .
Operating leverage is improving faster than expected (ARR Contribution Margin from (12)% to 2%), driven by S&M productivity, renewals leverage, and R&D efficiency—supporting path toward profitability even as growth remains robust .
Strategic differentiation in identity resilience (orchestrated AD forest recovery) and integrated DSPM positions Rubrik favorably for enterprise AI readiness and recovery, underpinning large-deal momentum and competitive displacement .
Regulatory compliance (FedRAMP Moderate for RSC-Government; DORA) and deep cloud ecosystem partnerships (e.g., Microsoft) are tangible demand tailwinds and validation points in enterprise/government markets .
Expect intra-year variability: contribution margins and FCF are strongest in Q1/Q4, softer in Q2/Q3; billings duration compression could cap near-term cash collection growth despite ARR momentum .
With management guiding FY26 ahead of consensus (per call remarks), sell-side estimates may need upward adjustment; watch for revisions once consensus becomes available and monitor Q1 FY26 execution vs revenue and margin targets .

Appendix: Additional Context and Data

Fiscal Year 2025 results: Total revenue $886.5M (+41% YoY), subscription revenue $828.7M (+54% YoY), non-GAAP total gross margin 78.0%, cash from operations $48.2M, free cash flow $21.6M .
Balance sheet strength: Cash, cash equivalents, and short-term investments $705.1M; noncurrent debt $322.3M at year-end FY25 .
Geographic Q4 mix: Americas revenue $185M (+48% YoY) and outside Americas $73M (+47% YoY), indicating broad-based demand .
Other relevant press releases in the Q4 FY25 timeframe included Annapurna API and DSPM integration announcements in the Q4 8-K business highlights, and FedRAMP Moderate for RSC-Government, underscoring AI/data security posture advances and government compliance milestones .

S&P Global estimates unavailable notice: Consensus values were not retrievable due to SPGI daily request limit; therefore, comparisons vs Street estimates are omitted.

Rubrik, Inc. (RBRK)·Q4 2025 Earnings Summary