Rubrik Q1 2025 Earnings Analysis

Dive into $RBRK Rubrik’s Q1 2025 earnings with review of financial performance, key metrics, operating expenses, dilution, customer growth, future outlook

Financial Results:

↗️$278.5M rev (+48.7% YoY, +7.9% QoQ) beat est by 7.0%

↗️GM* (80.5%, +5.1 PPs YoY)🟢

↗️Operating Margin* (-6.5%, +43.4 PPs YoY)🟢

↗️FCF Margin (12.0%, +31.8 PPs YoY)

↗️Net Margin (-36.7%, +354.2 PPs YoY)🟢

↗️EPS* -$0.15 beat est by 53.1%🟢

*non-GAAP

Revenue By Type

Subscription

➡️$266.0M rev (+54.5% YoY, +53.6% LQ) 🟢

↗️Gross Margin (80.5%, +23.3 PPs YoY)

Key Metrics

➡️DBNR 120% (120% LQ)

↗️Billings $368M (+52.9% YoY)

➡️Subscription ARR$1,181M (+38.0% YoY)🟡

↗️Cloud ARR$972M (+60.5% YoY)🟢

Customers

➡️2,381 $100k+ customers (+28.1% YoY, +135)

Operating expenses

↘️S&M*/Revenue 52.4% (-22.1 PPs YoY)

↘️R&D*/Revenue 22.3% (-10.4 PPs YoY)

↘️G&A*/Revenue 12.4% (-5.8 PPs YoY)

Quarterly Performance Highlights

↗️Net New ARR $89M (+23.1% YoY)

↘️CAC* Payback Period 24.2 Months (-17.3 YoY)🟢

↗️R&D* Index (RDI) 1.52 (+0.5 QoQ)

Dilution

↘️SBC/rev 27%, -6.6 PPs QoQ

↘️Basic shares up 199.4% YoY, -8.8 PPs QoQ🔴

↘️Diluted shares up 199.4% YoY, -8.8 PPs QoQ🔴

Guidance

↗️Q2'25 $281.0 - $283.0M guide (+37.6% YoY) beat est by 3.1%

↗️$1,179.0 - $1,189.0M FY guide (+33.5% YoY) raised by 2.4% beat est by 2.4%

Key points from Rubrik’s First Quarter 2025 Earnings Call:

Financial Performance

Rubrik reported a strong Q1 FY2026, exceeding all key financial metrics. Subscription ARR reached $1.18B, a 38% YoY increase, showing platform durability and growing demand. Net new ARR was $89M, sustaining growth at scale. Subscription revenue totaled $266M, up 54% YoY, while total revenue reached $278M, rising 49% YoY, including a 7% tailwind from cloud transformation material rights.

Net Revenue Retention remained above 120% for the fourth consecutive quarter, confirming consistent expansion across accounts. Customers contributing over $100K in ARR increased to 2,381, up 28% YoY, now making up 85% of subscription ARR, compared to 81% a year ago.

Non-GAAP gross margin rose to 80.5%, from 75.4%, and free cash flow turned positive at $33M, compared to –$37M a year ago. ARR contribution margin improved to 8%, a 1,800 bps increase YoY (or 1,500 bps adjusted for IPO costs).

Forward Motion

Rubrik is expanding its cyber resilience platform through new workloads, stronger GTM execution, and deeper enterprise penetration. $89M in net new ARR reflects scalable execution. The addition of 2,381 $100K+ ARR customers—now 85% of total ARR—confirms enterprise adoption.

RSC saw major enhancements, including AWS RDS support, Code-to-Cloud resilience, and coverage across all four major hyperscalers. A U.S. pharmacy leader replaced both legacy and next-gen vendors with Rubrik. A European insurer selected Rubrik based on board-level RTO performance, validating RSC’s strategic enterprise role.

Rubrik continues to leverage operational scale—ARR contribution margin expanded 1,800 bps YoY. Q3 is expected to be the seasonal low for margins due to expense timing.

Lateral Motion

Rubrik is investing in early-stage innovation to expand TAM and create new growth S-curves. This includes identity resilience, DSPM, and GenAI enablement via Anapurna.

DSPM ARR rose over 300% YoY, showing strong cross-sell synergy with RSC. Identity Resilience introduced hybrid cloud recovery across Active Directory and Entra ID, cutting recovery time from days to under one hour.

New customers across healthcare and government expanded their identity deployments. Rubrik is the only vendor offering orchestrated, malware-free identity recovery. The company continues to refine packaging and sales enablement to accelerate monetization.

Rubrik Security Cloud

RSC remains the core platform, delivering $972M in cloud ARR, up 60% YoY. It integrates native scanning, metadata orchestration, and a preemptive recovery engine.

Product innovations included Oracle Cloud coverage, deeper GCP support, and expanded threat automation. A Fortune 500 financial firm added full Azure protection after achieving 25% cost savings and faster RTO in a proof-of-concept. A quantum computing firm consolidated to Rubrik in under two months, covering M365, Jira, and Salesforce.

RSC’s architecture and automation continue to outperform bolted-on tools, but competitive pressure from cloud-native vendors remains.

Identity Resilience

Rubrik’s identity solution integrates with Active Directory and Entra ID, enabling fast, orchestrated, and malware-free recovery. It compresses recovery time from weeks to under an hour.

One healthcare organization, previously using a slower third-party tool, adopted Rubrik for its speed. A U.S. state government added AD Forest Recovery post-ransomware. Rubrik’s solution links identity access to data context, offering a unique recovery capability not available in point tools.

Though early in the sales cycle, identity recovery is gaining traction. Pricing and go-to-market alignment are areas under development.

DSPM

Rubrik’s DSPM is fully integrated following the Laminar acquisition and posted 300% YoY ARR growth. The platform provides classification, usage analytics, and compliance mapping across hybrid environments.

A European financial institution adopted Rubrik to meet DORA compliance and mitigate data exfiltration. Rubrik’s ability to link data classification with identity behavior offers an edge over standalone DSPM tools.

The focus is now on expanding beyond compliance into active security operations.

Anapurna

Anapurna is Rubrik’s multi-year initiative to enable secure and compliant GenAI by delivering trusted, governed data inputs to LLMs.

It integrates with Google Agent Space and leverages Rubrik’s metadata classification engine for real-time policy enforcement. Anapurna addresses fragmented data silos and risk in AI pipelines.

The initiative is in its early phase. Product-market fit and anchor use cases are being tested, positioning Anapurna as Rubrik’s next growth vector.

Product Innovation

Q1 delivered advancements across all platform layers:
– Code-to-Cloud resilience from development to runtime
– AWS RDS protection
– Full coverage of Oracle, GCP, AWS, and Azure
– AI-based identity recovery orchestration

These updates support Rubrik’s unified approach to securing modern cloud and enterprise environments.

Competitive Wins

Rubrik continues to displace both legacy and next-gen backup vendors. Win rates remain high due to faster recovery, cost savings, and platform consolidation.

Customers are opting for Rubrik over tools with bolted-on architecture or narrow coverage. Performance, simplicity, and native integration remain the key differentiators.

Enterprise Adoption

Enterprise expansion remains strong. $100K+ ARR accounts now drive 85% of ARR, up from 81%. Over 30% of NRR growth came from new product adoption.

Core verticals include healthcare, finance, government, pharma, and cloud-first tech. High-profile customer additions reinforce Rubrik’s strategic position in the enterprise.

Customer Wins

U.S. Pharmacy Leader
Selected Rubrik after replacing legacy and next-gen tools. Full-stack deployment included RSC Enterprise, M365 protection, DSPM, identity recovery, and participation in Anapurna’s development.

European Insurer
Chose Rubrik for hybrid cloud recovery and regulatory-grade RTO. Cost and performance outpaced all alternatives.

Fortune 500 Financial Firm
Expanded to protect Azure workloads with 25% cost savings over cloud-native backup. Adopted identity recovery for 10,000+ users.

Quantum Computing Company
Migrated in under two months. Now secures M365, Salesforce, and Jira. Chose Rubrik over legacy tools due to vulnerabilities and lack of scalability.

Japanese Manufacturer
Replaced multiple cloud-native tools. Adopted Rubrik to reduce cyber risk and control multi-cloud costs.

U.S. Cancer Research Center
Selected Rubrik for faster cyber recovery and data risk visibility.

U.S. Hospital Network
Expanded identity coverage, displacing a point solution.

U.S. County Government
Deployed AD Forest Recovery after ransomware threat.

European Bank
Deployed DSPM for compliance and risk mitigation.

U.S. Healthcare Organization
Migrated to Rubrik identity recovery after a week-long Entra ID outage using a competitor.

Strategic Partnerships

Rubrik maintains tight integrations with Microsoft, Google Cloud, and Oracle, enabling co-sell motions and product interoperability. The Google Agent Space partnership for Anapurna supports future growth in GenAI.

Market Environment

Rubrik is benefiting from strong, durable demand in cyber resilience. Decision-makers now treat recovery as mandatory infrastructure, unlike discretionary security tools.

The company operates in a $50B+ TAM. At $1.2B in ARR, Rubrik still has significant room to grow. No signs of macro weakness were cited.

FY2026 Outlook

Rubrik raised guidance for FY2026:
– Subscription ARR: $1.38B–$1.388B (+26–27% YoY)
– Total Revenue: $1.179B–$1.189B (+33–34% YoY)
– Free Cash Flow: $65M–$75M
– Non-GAAP EPS: –$1.20 to –$0.96
– Q3 margin expected to be lowest, with a Q4 rebound anticipated

Rubrik expects to continue scaling with efficiency while investing in R&D and market expansion. The company views itself at the beginning of a secular growth cycle in data security and GenAI infrastructure.

Management comments on the earnings call.

Product Innovations

Bipul Sinha, Chief Executive Officer, Chairman and Co-Founder
"Our innovation engine is powered by a unique platform architecture that combines data and metadata across enterprise, cloud, and SaaS applications, as well as identity providers."

"We introduced Code to Cloud Cyber Resilience, purpose-built protection for AWS RDS, expanded our Google Cloud capabilities, and added support for Oracle Cloud Infrastructure—essentially strengthening coverage across all four major hyperscalers."

Rubrik Security Cloud

Bipul Sinha, Chief Executive Officer, Chairman and Co-Founder
"From our inception, Rubrik was designed to help customers achieve the fastest cyber recovery time. At the center of our unique architecture is the preemptive recovery engine, which continuously scans protected data and identities to pre-calculate clean recovery points."

Kiran Chaudhry, Chief Financial Officer
"We continue to drive adoption of our Rubrik Security Cloud, which resulted in $972 million of cloud ARR, up 60% year over year."

Identity Resilience

Bipul Sinha, Chief Executive Officer, Chairman and Co-Founder
"Our newly released identity recovery solution has seen notable momentum due to our unique ability to orchestrate hybrid cloud recovery across Active Directory and Entra ID, all while avoiding malware reintroduction."

"We are giving our customers peace of mind against identity-based attacks by combining identity and data context in a unified platform."

Kiran Chaudhry, Chief Financial Officer
"We got off to a good start in terms of interest and demand, but it’s still very early. We’ll keep you updated as we progress more."

Data Security Posture Management (DSPM)

Bipul Sinha, Chief Executive Officer, Chairman and Co-Founder
"Our DSPM ARR was up over 300% year over year this quarter, following full integration of the Laminar acquisition into the Rubrik platform."

"We are forging a whole new world of data security by combining DSPM with identity recovery—creating solutions that understand what data you have, who has access, and who is doing what."

Annapurna

Bipul Sinha, Chief Executive Officer, Chairman and Co-Founder
"Rubrik Anapurna is designed to help break through the barriers preventing GenAI applications from broad-based enterprise deployment. This solution enables secure and scalable GenAI by leveraging Rubrik’s ability to extract, manage, and secure business data."

"This is a multi-year initiative. Just as our success in cyber resilience was built over years of disciplined effort, we’re committed to taking Anapurna from zero to one, and then to scale."

Competitors

Bipul Sinha, Chief Executive Officer, Chairman and Co-Founder
"Legacy backup as well as new-gen vendors can’t match our proactive capabilities because their solutions were not natively built for cyber recovery. They often bolt on features from acquisitions or third-party tools."

"In head-to-head competition, we win the vast majority of deals because of our clean and rapid recovery, platform simplicity, and cyber resilience strategy."

Customers

Bipul Sinha, Chief Executive Officer, Chairman and Co-Founder
"A world-renowned cancer medical center replaced their legacy backup vendor and outcompeted a new-gen vendor. They chose Rubrik for our ability to deliver the fastest cyber recovery at scale."

"A Fortune 500 financial services company expanded with Rubrik, showing a 25% cloud cost savings over three years compared to their existing solution—plus faster recovery time."

"A quantum computing company transitioned from legacy providers to Rubrik in under two months, protecting M365, Jira, and Salesforce."

Strategic Partnerships

Bipul Sinha, Chief Executive Officer, Chairman and Co-Founder
"Rubrik Anapurna now integrates with Google Agent Space, facilitating secure GenAI deployment on Google Cloud. We're helping customers move faster and safer into GenAI."

Challenges

Bipul Sinha, Chief Executive Officer, Chairman and Co-Founder
"We're still figuring out how we package, sell, and align solutions like identity recovery and DSPM. It's part of our long-term approach to building the next S-curve."

Kiran Chaudhry, Chief Financial Officer
"Subscription ARR contribution margin has some seasonality due to timing of net new ARR and operating expenses. We expect Q3 to be the seasonally lowest margin before rebounding in Q4."

Future Outlook

Bipul Sinha, Chief Executive Officer, Chairman and Co-Founder
"We are at the front end of a large, secular trend around data, security, and AI. We believe Rubrik is uniquely positioned to lead this transition."

"We want to build a platform company across data, security, and AI. The best is yet to come."

Kiran Chaudhry, Chief Financial Officer
"We are raising our outlook for the year. For FY26, we expect ARR of $1.38B–$1.388B, and free cash flow of $65M–$75M. We remain confident in delivering efficient and durable growth."

Thoughts on Rubrik Earnings Report $RBRK:

🟢 Positive

• Revenue of $278.5M grew +48.7% YoY and +7.9% QoQ, beating estimates by 7.0%.

• Subscription revenue at $266M, up +54.5% YoY and +53.6% QoQ.

• Cloud ARR rose to $972M, up +60.5% YoY.

• Net new ARR of $89M, up +23.1% YoY.

• Free cash flow margin turned positive at 12.0%, a +31.8 pts YoY improvement.

• Non-GAAP operating margin improved by +43.4 pts YoY to –6.5%.

• EPS of –$0.15 beat estimates by 53.1%.

• ARR contribution margin improved to 8%, up +1,800 bps YoY.

• Gross margin reached 80.5%, up +5.1 pts YoY.

• Billing of $368M, up +52.9% YoY.

• Customer base of 2,381 $100K+ ARR customers, up +28.1% YoY, now 85% of total ARR.

• DSPM ARR up +300% YoY following Laminar integration.

• Guidance raised: FY revenue outlook $1.179B–$1.189B (+33.5% YoY) and ARR $1.38B–$1.388B (+26–27% YoY).

• DBNR held steady at >120%, flat QoQ.

🟡 Neutral

• Subscription ARR at $1.181B, up +38% YoY, solid but slowing growth rate compared to prior quarters.

• R&D Index (RDI) at 1.52, a moderate QoQ increase.

• Q3 expected to be lowest margin quarter due to seasonality and investment timing.

• Continued investment needed to scale identity resilience and Anapurna to full revenue contribution.

🔴 Negative

• SBC-to-revenue at 27%, still elevated despite –6.6 pts QoQ improvement.

• Basic and diluted shares up +199.4% YoY, recent IPO.

• Net margin at –36.7%, despite large YoY improvement, remains significantly negative.

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Disclaimer: This earnings review is for informational purposes only and does not constitute financial, investment, or trading advice.