Rubrik (RBRK) Q1 2026 earnings summary

Executive summary

• Q1 FY26 exceeded all guided metrics, with total revenue up 49% to $278.5M and Subscription ARR rising 38% year-over-year to $1.18B, driven by strong adoption of cloud and SaaS offerings.

• Cloud ARR reached $972M, up 60% year-over-year, and subscription revenue grew 54% to $266M, now accounting for 95% of total revenue.

• Free cash flow turned positive at $33.3M, a significant improvement from negative $37.1M a year ago.

• Customer base with $100K+ in Subscription ARR grew 28% year-over-year to 2,381, now representing 85% of subscription ARR.

• The company continues to innovate in cloud, AI, and identity security, launching new products and forming strategic partnerships.

Financial highlights

• Subscription ARR: $1.18B (+38% YoY); Cloud ARR: $972M (+60% YoY); net new subscription ARR: $89M.

• Subscription revenue: $266M (+54% YoY); total revenue: $278.5M (+49% YoY); maintenance revenue declined 59% to $2.3M.

• Non-GAAP gross margin improved to 80.5% (vs. 75.4% YoY); GAAP gross margin 78.3% (vs. 48.8% YoY).

• Subscription ARR Contribution Margin improved to 8% from (10.6)% YoY.

• Free cash flow: $33.3M (vs. -$37.1M YoY); cash position: $762.1M; debt: $323M.

Outlook and guidance

• Q2 FY26 revenue guidance: $281M–$283M; non-GAAP EPS $(0.35)–$(0.33); non-GAAP Subscription ARR contribution margin 4.5%–5.5%.

• FY26 guidance: 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 $(1.02)–$(0.96); non-GAAP Subscription ARR contribution margin ~6%.

• Non-recurring revenue from material rights added ~7 percentage points to Q1 revenue growth; expected to add a few points for FY26.