Rubrik (RBRK) Q3 2026 earnings summary

Executive summary

• Subscription ARR grew 34% year-over-year to $1.35 billion, with Cloud ARR up 53% to $1.17–$1.18 billion and total revenue for Q3 at $350.2 million, up 48%.

• Record net new subscription ARR and free cash flow, with subscription revenue now representing 96% of total revenue.

• Customer base with $100K+ in subscription ARR grew 27% to 2,638, with net retention rates above 120%.

• Net loss for the nine months was $(261.9) million, a significant improvement from $(1.04) billion in the prior year.

• Launched new AI and identity security products, expanded partnerships, and completed the Predibase acquisition to enhance AI capabilities.

Financial highlights

• Subscription revenue reached $336.4 million (+52% YoY); total revenue was $350.2 million (+48% YoY); non-GAAP gross margin was 82.8–83%.

• Subscription ARR contribution margin improved to 10.3% from (3.3)% YoY; free cash flow for Q3 was $76.9–$77 million, up from $15.6 million YoY.

• Free cash flow for the nine months was $167.8 million, compared to $(53.6) million in the prior year.

• Cash, cash equivalents, and short-term investments totaled $1.60 billion as of October 31, 2025; convertible debt stands at $1.1–$1.15 billion.

• Material rights contributed $25 million to Q3 revenue; normalized revenue growth was 36%.

Outlook and guidance

• Q4 revenue expected at $341–$343 million; full-year subscription ARR guidance: $1,439–$1,443 million; total revenue: $1,280–$1,282 million.

• Non-GAAP EPS for Q4: $(0.12) to $(0.10); full year: $(0.20) to $(0.16); free cash flow for full year expected at $194–$202 million.

• Fiscal 2027 revenue growth expected to lag ARR growth due to reduced material rights, but normalized revenue growth to outpace ARR.

• Management expects continued investment in R&D, sales, and marketing to drive future growth.