RBRK

Rubrik, Inc. Q2 2026 (Fiscal 2026) 10-Q Summary

Business Context and Reporting Period

This report covers the quarterly period ended July 31, 2025 (Fiscal Q2 2026). Rubrik, Inc. is a security and artificial intelligence company providing the Rubrik Security Cloud (RSC) platform for data protection, cyber resilience, and enterprise AI acceleration. The company is an emerging growth company and a non-accelerated filer.

Key Financial Metrics

Material Changes vs. Prior Period

• Revenue Growth: Total revenue increased 51% year-over-year (YoY) for the quarter and 50% YoY for the six-month period, driven primarily by a 55% increase in subscription revenue.
• Profitability Improvement: Net loss narrowed significantly to $(95.9) million for the quarter compared to $(176.9) million in the prior year quarter. This improvement is largely attributed to a reduction in stock-based compensation (SBC) expense following the IPO in April 2024, which included a one-time cumulative recognition in the prior period.
• Debt Restructuring: In June 2025, the company repaid its $327.9 million Amended Credit Facility in full and terminated the agreement. Concurrently, it issued $1.15 billion in 0.00% Convertible Senior Notes due 2030. This resulted in a one-time loss on debt extinguishment of $6.7 million recorded in the quarter.
• Acquisition: In July 2025, Rubrik acquired Predibase, Inc. for approximately $109.1 million (cash and stock) to accelerate agentic AI adoption. This added $92.9 million to goodwill.
• Key Metrics: Subscription Annual Recurring Revenue (ARR) grew 36% YoY to $1.25 billion. Cloud ARR grew 57% YoY to $1.06 billion.

Guidance, Outlook, and Risks

• Outlook: Management expects revenue growth to fluctuate through fiscal 2027 due to the transition of customers from legacy term-based licenses to the SaaS-based RSC platform. Subscription revenue benefits from the exercise or forfeiture of "Subscription Credits" (material rights) are expected to decline significantly after fiscal 2026.
• Capital Resources: The company believes existing cash and investments ($1.52 billion) are sufficient to fund operations for at least the next 12 months. Proceeds from the Convertible Notes are being used for general corporate purposes, including acquisitions and working capital.
• Risks:
  • Regulatory/Legal: The company is cooperating with a Department of Justice (DOJ) investigation regarding potential violations of federal law in connection with government contracts involving a former employee. The outcome is uncertain and could result in fines or reputational harm.
  • Market Transition: Revenue recognition timing is volatile as customers migrate to RSC, shifting from upfront license recognition to ratable SaaS recognition.
  • Concentration: Three channel partners accounted for approximately 73% of revenue in fiscal 2025.
  • AI Risks: Use of generative AI tools poses potential legal liability, IP infringement risks, and security vulnerabilities.

Investor Verification Checklist

• Debt Covenants: Verify compliance with the new Convertible Notes indenture and the impact of the 0.00% interest rate on future cash flow projections.
• DOJ Investigation: Monitor updates regarding the DOJ investigation into government contract compliance and potential financial penalties.
• Subscription Credit Run-Rate: Assess the sustainability of revenue growth once the non-recurring benefits from Subscription Credit forfeitures diminish post-fiscal 2026.
• Customer Concentration: Review the stability of relationships with the top three channel partners (Arrow, Exclusive Networks, Ingram Micro).
• Integration of Predibase: Evaluate the progress of integrating Predibase's AI capabilities into the RSC platform and the associated costs.