Rubrik Reports Fourth Quarter and Fiscal Year 2025 Financial Results

   -- Results exceeded all guided metrics 
 
   -- Fourth quarter subscription ARR grew 39% year-over-year to $1,092.6 
      million 
 
   -- Fourth quarter revenue grew 47% year-over-year to $258.1 million 
 
   -- 2,246 customers with $100K or more in Subscription ARR, up 29% 
      year-over-year 
PALO ALTO, Calif.--(BUSINESS WIRE)--March 13, 2025-- 

Rubrik, Inc. $(RBRK)$, a cybersecurity company, today announced financial results for the fourth quarter and fiscal year 2025, ended January 31, 2025.

"Fiscal 2025 was a milestone year for Rubrik. Our strong growth at scale demonstrates that we're winning the cyber resilience market. However, we are still very early in Rubrik's journey to achieve the company's full potential and I'm confident that what's ahead of us is even more important and exciting," said Bipul Sinha, Rubrik's Chief Executive Officer, Chairman, and Co-Founder.

Commenting on the company's financial results, Kiran Choudary, Rubrik's Chief Financial Officer, added, "Throughout the year, we consistently delivered strong results, including improving operating leverage and achieving our first year of positive free cash flow. We look forward to continuing to execute towards the large opportunity in cyber resilience in fiscal 2026 and beyond."

Fourth Quarter Fiscal 2025 Financial Highlights

   -- Subscription Annual Recurring Revenue $(ARR)$: Subscription ARR was up 39% 
      year-over-year, growing to $1,092.6 million as of January 31, 2025. 
 
   -- Revenue: Subscription revenue was $243.7 million, a 54% increase, 
      compared to $158.7 million in the fourth quarter of fiscal 2024. Total 
      revenue was $258.1 million, a 47% increase, compared to $175.0 million in 
      the fourth quarter of fiscal 2024. 
 
   -- Gross Margin: GAAP gross margin was 77.4%, compared to 77.2% in the 
      fourth quarter of fiscal 2024. This includes $5.1 million in stock-based 
      compensation expense, compared to $0.1 million in the year ago period, 
      due to the vesting of certain equity awards after and as a result of the 
      completion of our initial public offering. Non-GAAP gross margin was 
      79.7%, compared to 77.7% in the fourth quarter of fiscal 2024. 
 
   -- Subscription ARR Contribution Margin: Subscription ARR Contribution 
      Margin was 2% compared to (12)% in the fourth quarter of fiscal 2024, 
      reflecting the improvement in operating leverage in the business. 
 
   -- Net Loss per Share: GAAP net loss per share was $(0.61), compared to 
      $(1.59) in the fourth quarter of fiscal 2024. GAAP net loss includes 
      $86.0 million in stock-based compensation expense, compared to $3.4 
      million in the year ago period, due to the vesting of certain equity 
      awards after and as a result of the completion of our initial public 
      offering. Non-GAAP net loss per share was $(0.18), compared to $(1.52) in 
      the fourth quarter of fiscal 2024. 
 
   -- Cash Flow from Operations: Cash flow from operations was $83.6 million, 
      compared to $12.8 million in the fourth quarter of fiscal 2024. Free cash 
      flow was $75.2 million, compared to $8.7 million in the fourth quarter of 
      fiscal 2024. 
 
   -- Cash, Cash Equivalents, and Short-Term Investments: Cash, cash 
      equivalents, and short-term investments were $705.1 million as of January 
      31, 2025. 

Fiscal 2025 Financial Highlights

   -- Revenue: Subscription revenue was $828.7 million, a 54% increase, 
      compared to $537.9 million in fiscal 2024. Total revenue was $886.5 
      million, a 41% increase, compared to $627.9 million in fiscal 2024. 
 
   -- Gross Margin: GAAP gross margin was 70.0%, compared to 76.9% in fiscal 
      2024. This includes $67.0 million in stock-based compensation expense, 
      compared to $0.1 million in the year ago period, due to the vesting of 
      certain equity awards after and as a result of the completion of our 
      initial public offering. Non-GAAP gross margin was 78.0%, compared to 
      77.2% in fiscal 2024. 
 
   -- Net Loss per Share: GAAP net loss per share was $(7.48), compared to 
      $(5.84) in fiscal 2024. GAAP net loss includes $913.9 million in 
      stock-based compensation expense, compared to $5.7 million in the year 
      ago period, due to the vesting of certain equity awards after and as a 
      result of the completion of our initial public offering. Non-GAAP net 
      loss per share was $(1.57), compared to $(5.72) in fiscal 2024. 
 
   -- Cash Flow from Operations: Cash flow from operations was $48.2 million, 
      compared to $(4.5) million in fiscal 2024. Free cash flow was $21.6 
      million, compared to $(24.5) million in fiscal 2024. 

Recent Business Highlights

   -- As of January 31, 2025, Rubrik had 2,246 customers with Subscription ARR 
      of $100,000 or more, up 29% year-over-year. 
 
   -- Announced Rubrik Annapurna to accelerate development of GenAI 
      applications. Annapurna API service will allow customers to have 
      ready-to-go access to all business data to quickly build more powerful 
      and trusted GenAI applications. Annapurna will also deliver secure data 
      embeddings powered by Rubrik Security Cloud (RSC) and leverage all 
      enterprise data and metadata in RSC to easily set and manage data access 
      controls for AI applications. 
 
   -- Announced Rubrik Security Cloud -- Government has received Federal Risk 
      and Authorization Management Program (FedRAMP$(R)$) authorization at the 
      Moderate Impact Level. The National Nuclear Security Administration 
      (NNSA), an Office of the U.S. Department of Energy, served as the agency 
      sponsor for Rubrik's FedRAMP authorization. 
 
   -- Announced that Rubrik Security Cloud now combines Data Security Posture 
      Management (DSPM) and Cyber Recovery capabilities within a single, 
      trusted Cyber Resilience platform. Rubrik DSPM allows existing Rubrik 
      customers to simply activate DSPM capabilities within their current 
      Rubrik environment, providing near real-time views into data 
      proliferation to reduce sensitive data exposure risk. 
 
   -- Debuted Rubrik Turbo Threat Hunting, a new feature designed to 
      dramatically accelerate cyber recovery and enable organizations to locate 
      clean recovery points across their entire data estate. Turbo Threat 
      Hunting enables organizations to scan up to 75,000 backups in less than 
      60 seconds. 
 
   -- Named to CRN's 2025 Cloud 100 List, for excellence in cloud storage. 

First Quarter and Fiscal Year 2026 Outlook

Rubrik is providing the following guidance for the first quarter of fiscal year 2026 and the full fiscal year 2026:

   -- First Quarter Fiscal 2026 Outlook: 
 
          -- Revenue of $259 million to $261 million. 
 
          -- Non-GAAP Subscription ARR contribution margin of approximately 
             4.0% to 5.0%. 
 
          -- Non-GAAP EPS of $(0.33) to $(0.31). 
 
          -- Weighted-average shares outstanding of approximately 192 million. 
 
   -- Full Year 2026 Outlook: 
 
          -- Subscription ARR between $1,350 million and $1,360 million. 
 
          -- Revenue of $1,145 million to $1,161 million. 
 
          -- Non-GAAP Subscription ARR contribution margin of approximately 
             4.5% to 5.5%. 
 
          -- Non-GAAP EPS of $(1.23) to $(1.13). 
 
          -- Weighted-average shares outstanding of approximately 198 million. 
 
          -- Free cash flow of $45 million to $65 million. 

Additional information on Rubrik's reported results, including a reconciliation of the non-GAAP results to their most comparable GAAP measures, is included in the financial tables below. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Rubrik's results computed in accordance with GAAP. For example, stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of Rubrik's Class A common stock, and Rubrik's future hiring and retention needs, all of which are difficult to predict and subject to constant change.

Conference Call Information

Rubrik will host a conference call to discuss results for the fourth quarter of fiscal year 2025 and full fiscal year 2025, as well as its financial outlook for the first quarter of fiscal year 2026 and full fiscal year 2026 today at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. Open to the public, analysts and investors may access the webcast, results press release, and investor presentation on Rubrik's investor relations website at https://ir.rubrik.com. A replay of the webcast will also be accessible from Rubrik's investor relations website a few hours after the conclusion of the live event.

Rubrik uses its investor relations website and may use certain social media accounts including X (formerly Twitter) (@rubrikInc and @bipulsinha) and LinkedIn (www.linkedin.com/company/rubrik-inc and www.linkedin.com/in/bipulsinha) as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Forward-Looking Statements

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