Rubrik (RBRK) Q3 2025 earnings summary

Executive summary

• Subscription ARR surpassed $1 billion, up 38% year-over-year, with Cloud ARR up 69% to $769 million and 2,085 customers generating $100K+ in Subscription ARR.

• Total revenue grew 43% year-over-year to $236.2 million, with subscription revenue up 55% to $222 million, now comprising 94% of total revenue.

• Results exceeded all top-line and profitability guidance metrics, leading to a raised outlook for the remainder of fiscal 2025.

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

• Completed IPO in April 2024, raising $710.3 million, with an additional $104.9 million from underwriters' option in May 2024.

Financial highlights

• Non-GAAP gross margin was 79% in Q3 FY25, with GAAP gross margin at 76.2%; free cash flow was $15.6 million, up from $3.5 million year-over-year.

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

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

• Cash, cash equivalents, and short-term investments totaled $632.0 million as of October 31, 2024.

• Free cash flow margin for the quarter was 7%.

Outlook and guidance

• Q4 FY25 revenue guidance: $231.5M–$233.5M; non-GAAP EPS: $(0.41)–$(0.37); non-GAAP Subscription ARR contribution margin: (3)%–(2)%.

• FY25 guidance: Subscription ARR $1,057M–$1,061M; total revenue $860M–$862M; non-GAAP EPS $(1.86)–$(1.82); free cash flow $(45)M–$(39)M (including $22.8M in IPO-related payroll taxes).

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

• Revenue growth may fluctuate through fiscal 2027 due to transition from legacy products to subscription and cloud offerings.