Rubrik (RBRK) Q2 2025 earnings summary

Executive summary

• Delivered strong Q2 FY25 results, exceeding guidance with 40% Subscription ARR growth to $919.1M and 35% revenue growth to $205M, driven by robust demand for cyber resilience and major customer wins.

• Cloud ARR reached $678M, up 80% year-over-year, reflecting rapid cloud adoption and SaaS transition.

• Customer base with $100K+ in Subscription ARR grew 35% year-over-year to 1,969, now representing 81% of subscription ARR.

• Expanded partnerships with Mandiant (Google Cloud) and Microsoft, and recognized as Microsoft Healthcare and Life Sciences Partner of the Year 2024.

• Completed IPO in April 2024, raising over $800M, and acquired Laminar Technologies to enhance data security capabilities.

Financial highlights

• Subscription revenue was $191.3M, up 50% year-over-year; total revenue reached $205M, up 35% year-over-year.

• Non-GAAP gross margin stable at 77%; GAAP gross margin declined to 73% due to higher hosting and stock-based compensation costs.

• Free cash flow was -$32M for Q2 FY25 and -$69.1M for the six months ended July 31, 2024, impacted by payment mix, Laminar acquisition, and IPO-related payroll taxes.

• Ended Q2 with $601.3M in cash and $307M in debt.

• Net loss widened to $176.9M for the quarter, primarily due to significant stock-based compensation expenses post-IPO.

Outlook and guidance

• Q3 FY25 revenue expected at $216.5M–$218.5M; non-GAAP EPS of $(0.41)–$(0.39).

• FY25 subscription ARR guidance raised to $1.026B–$1.032B; FY25 revenue expected at $830M–$838M.

• Non-GAAP Subscription ARR contribution margin expected at (7)% to (6)% for FY25.

• FY25 free cash flow projected at -$67M to -$57M, including $23M in one-time payroll taxes; positive free cash flow expected in H2.

• Management anticipates ongoing operating losses and negative cash flows in the near term as investments in R&D, sales, and marketing continue.