Rubrik (RBRK) Q3 2025 earnings summary

Executive summary

• Subscription ARR surpassed $1.002B, up 38% year-over-year, with cloud ARR reaching $769M, up 69% year-over-year, and 2,085 customers above $100K ARR, up 32% year-over-year.

• Subscription revenue was $222M, up 55% year-over-year, comprising 94% of total revenue; total revenue reached $236M, up 43%.

• Free cash flow was $15.6M in Q3, up from $3.5M year-over-year; cash, cash equivalents, and short-term investments totaled $632M as of October 31, 2024.

• Net loss widened post-IPO due to increased stock-based compensation and operating expenses; GAAP net loss per share was $(0.71) for Q3, and $(7.27) for the nine months.

• Surpassed all top-line and profitability guidance, raising full-year outlook and guidance for FY25.

Financial highlights

• Non-GAAP gross margin was 79% in Q3 FY25, with GAAP gross margin at 76.2%; free cash flow margin was 4%–7%.

• Subscription ARR contribution margin improved to (3)% from (14)% year-over-year.

• Non-GAAP loss from operations narrowed to $31.2M in Q3 FY25, or 13% of revenue.

• Sales and marketing expense as a percentage of ARR declined by 1,000 basis points year-over-year.

• Weighted-average shares outstanding for Q3: 183.6 million.

Outlook and guidance

• Q4 FY25 revenue guidance: $231.5M–$233.5M; full-year FY25 revenue: $860M–$862M.

• Subscription ARR for FY25 expected at $1.057B–$1.061B, up ~35%.

• Non-GAAP EPS for Q4 expected at $(0.41)–$(0.37); full-year at $(1.86)–$(1.82).

• Free cash flow for FY25 projected between $(45M) and $(39M), including $22.8M in IPO-related payroll taxes.

• FY26 expected to achieve break-even or better subscription ARR contribution margin and modestly positive free cash flow.