Rubrik (RBRK) Q3 2026 earnings summary

Executive summary

• Achieved record third quarter results, with subscription ARR reaching $1.35 billion, up 34% year-over-year, and Cloud ARR up 53% to $1.17–$1.18 billion.

• Subscription revenue grew 52% year-over-year to $336–$336.4 million; total revenue was $350–$350.2 million, up 48%.

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

• Free cash flow reached a record $76.9–$77 million for the quarter, and non-GAAP gross margin improved to 82.8–83%.

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

Financial highlights

• Subscription ARR: $1.35 billion (+34% YoY); Cloud ARR: $1.17–$1.18 billion (+53% YoY); net new subscription ARR: $94 million (record high).

• Subscription revenue: $336–$336.4 million (+52% YoY); total revenue: $350–$350.2 million (+48% YoY).

• Non-GAAP gross margin: 82.8–83% (up from 79–79.2% YoY); subscription ARR contribution margin: 10–10.3% (up from (3)%–(3.3)% YoY).

• Free cash flow: $76.9–$77 million for the quarter (up from $15.6–$16 million YoY); cash and equivalents: $1.6 billion; convertible debt: $1.1–$1.15 billion.

• Net loss per share for the quarter was $(0.32), improved from $(0.71) YoY; non-GAAP net income per share, diluted, was $0.10 versus $(0.21).

Outlook and guidance

• Q4 revenue expected at $341–$343 million (+33% YoY); non-GAAP net loss per share of $(0.12) to $(0.10).

• Full-year 2026 subscription ARR guidance raised to $1,439–$1,443 million (+32% YoY); total revenue expected at $1,280–$1,282 million (+44% YoY).

• Free cash flow for full year expected at $194–$202 million.

• FY27 reported revenue growth expected to lag ARR growth due to reduced non-recurring material rights revenue.

• Continued investment in R&D, sales, and marketing to drive future growth.