Rubrik (RBRK) Q2 2025 earnings summary

Executive summary

• Delivered strong Q2 FY25 results, exceeding all guided metrics with 40% YoY Subscription ARR growth to $919.1M and total revenue up 35% to $205M.

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

• Customer base with $100K+ in Subscription ARR grew 35% YoY to 1,969, now 81% of Subscription ARR.

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

• Completed IPO in April 2024, raising over $800M, with significant stock-based compensation expenses impacting net loss.

Financial highlights

• Subscription revenue was $191.3M, up 50% YoY; total revenue $205M, up 35% YoY.

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

• Subscription ARR contribution margin improved to (8)% YoY, or (6)% excluding one-time IPO payroll taxes.

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

• Cash, cash equivalents, and short-term investments totaled $601.3M as of July 31, 2024; debt at $307M.

Outlook and guidance

• Q3 FY25 revenue guidance: $216.5M–$218.5M; non-GAAP EPS: $(0.41)–$(0.39); Subscription ARR: $1.026B–$1.032B.

• Full-year FY25 revenue guidance: $830M–$838M; non-GAAP EPS: $(2.12)–$(2.06); Subscription ARR: $1.026B–$1.032B.

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

• Free cash flow for FY25 projected at $(67)M to $(57)M, or $(44)M to $(34)M excluding IPO-related payroll taxes; positive FCF expected in H2.

• Revenue growth expected to fluctuate through FY27 as legacy products are phased out.