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SEC filingRubrik's MD&A highlights 48% total revenue growth driven by 53% subscription revenue expansion, with subscription ARR up 34%.
Rubrik describes itself as a Zero Trust Data Security company on a mission to “secure and accelerate the world’s AI transformation.” The company built the Rubrik Security Cloud (RSC) suite with Zero Trust design principles to secure data across enterprise, cloud, SaaS, unstructured data, and identity providers. In fiscal 2026, Rubrik launched Rubrik Agent Cloud (RAC), an AI operations platform for managing agentic actions, which became commercially available in February 2026.
The Business section does not disclose any reporting segments. The company’s commercial offerings are organized around two suites—RSC and RAC—and multiple product categories (Data Protection, Data Threat Analytics, Identity Security, Cyber Recovery) but no segment revenue or profit data is provided.
Rubrik’s platform is built on a proprietary architecture that combines time-series data and metadata with a data threat engine. RSC includes: Data Protection (Enterprise, Unstructured, Cloud, SaaS), Data Threat Analytics (Anomaly Detection, Threat Monitoring, Turbo Threat Hunting, Data Security Posture Management), Identity Security (Identity Recovery, Identity Resilience), and Cyber Recovery (Cyber Recovery Simulation, Threat Containment, Active Directory Forest Recovery). The company also offers Ruby, an AI agent for cyber resilience, and SentryAI for proactive customer support. RAC was introduced as a separate suite to monitor, control, and remediate agentic actions.
Rubrik sells primarily through a global sales team and partner network using a land-and-expand strategy. Customers can “land” by securing any of five data types: enterprise, unstructured, identity, cloud, or SaaS. Expansion occurs via data growth from existing applications, new applications, or additional security products. The company uses a two-tier indirect fulfillment model through Channel Partners and also offers products via cloud marketplaces (GCP, Azure, AWS). No customer concentration is disclosed.
The company faces competition from legacy data management and protection vendors such as Commvault, Dell EMC, IBM, Veeam, and Cohesity; smaller cloud/SaaS data management vendors; and cybersecurity vendors providing ransomware detection, identity recovery, data security posture management, and related technologies. Rubrik believes its Zero Trust platform combining backup/recovery and cybersecurity is unique.
Rubrik’s growth strategy includes: continuing to grow its SaaS solutions (RSC and RAC); acquiring new customers as cyberattacks increase; expanding within the existing customer base through data growth and cross-selling; innovating in product leadership, particularly around generative AI; growing the partner ecosystem (channel, system integrators, technology partners); expanding globally, as evidenced by international revenue growth; and pursuing strategic acquisitions to accelerate time-to-market.
As of January 31, 2026, Rubrik had approximately 3,797 full-time employees worldwide. None are represented by a labor union. The company emphasizes its core values (Relentlessness, Integrity, Velocity, Excellence, Transparency) and offers competitive rewards and equity compensation.
For fiscal year 2026 (ended January 31, 2026), Rubrik reported total revenue of $1.316 billion, a 48% increase from $886.5 million in the prior year. This growth was overwhelmingly driven by subscription revenue, which rose 53% to $1.264 billion, as the company continued its successful transition to the Rubrik Security Cloud (RSC) platform. Non-recurring revenue from material rights associated with Subscription Credits contributed approximately $70.2 million to subscription revenue in fiscal 2026. Other revenue, comprising legacy perpetual licenses, Rubrik-branded Appliances, and professional services, declined 10% to $52.3 million, reflecting the completion of the appliance transition and the near-completion of the RSC migration.
Gross profit more than doubled, rising 70% to $1.054 billion, with gross margin improving 1,000 basis points to 80%. Subscription gross margin expanded 800 basis points to 82%, aided by a $33.1 million decrease in stock-based compensation compared to the prior year (which had been elevated due to IPO-related cumulative expense recognition), partly offset by higher hosting costs from SaaS product adoption. Other gross margin improved sharply from 12% to 39%, also benefiting from lower stock-based compensation.
Operating expenses decreased 20% to $1.400 billion, as a $584.5 million reduction in stock-based compensation (from $913.9 million to $329.4 million) more than offset increases in employee costs, marketing, and consulting. Research and development expenses fell 30% to $373.7 million, sales and marketing declined 11% to $769.0 million, and general and administrative expenses decreased 28% to $257.0 million, all primarily due to lower IPO-related stock compensation. Operating loss narrowed to $345.4 million from $1.134 billion, and net loss improved to $348.8 million from $1.155 billion, with net loss per share improving to $(1.78) from $(7.48).
Free cash flow turned strongly positive at $237.8 million versus $21.6 million in the prior year, driven by higher sales, improved operating leverage, and capital structure optimization. Net cash from operations was $282.9 million, up from $48.2 million.
Subscription revenue has become the dominant driver, representing 96% of total revenue in fiscal 2026, up from 93% in the prior year. Subscription ARR grew 34% to $1.462 billion, with net retention exceeding 120%. Cloud ARR grew even faster, up 48% to $1.293 billion, now making up 88% of subscription ARR. The number of customers with $100,000+ in subscription ARR increased 25% to 2,805. The other revenue segment continues to shrink as a percentage of total, declining to 4% in fiscal 2026 from 7% in fiscal 2025, consistent with the strategic shift to a subscription-first model.
Management expects subscription revenue to continue benefiting from Subscription Credits through fiscal 2027, albeit at a significantly reduced level. The company launched RAC, its AI agent operations suite, in February 2026, but expects the RSC suite to remain the majority of revenue in fiscal 2027 and the main driver of ARR growth. Operating expenses are expected to continue increasing in absolute dollars as the company invests in R&D, sales, and marketing, but management expects non-GAAP operating expenses as a percentage of revenue to decrease over the long term. Free cash flow is expected to be influenced by Subscription ARR growth, operating leverage, and payment term mix. The company believes its $1.68 billion in cash, cash equivalents, and short-term investments will fund operations for at least the next 12 months.
As of January 31, 2026, Rubrik holds $380.2M in cash and cash equivalents and $1,295.6M in short-term marketable securities, totaling $1,675.8M in liquidity. The company issued $1.15B of 0% convertible senior notes due 2030, net carrying $1,130.7M, and fully repaid its $327.9M term loan. Shareholders' deficit improved slightly to -$519.6M from -$553.7M, driven by additional paid-in capital from stock-based compensation and the convertible note issuance, offset by accumulated deficit of $3,186.2M. Inventory is modest at $5.7M.
Purchase commitments total $448.8M: $290.4M remaining under an amended hosting service contract through April 2029, and $158.4M for other hosting and software commitments. The company also has operating lease liabilities of $37.0M. Remaining performance obligations (RPO) stand at $2.40B, of which 53% is expected to be recognized within 12 months.
Rubrik's capital allocation activity was dominated by debt refinancing: $1.15B convertible notes issued, with net proceeds of $1.13B after discount, used to repay the $327.9M term loan and purchase $88.6M of capped calls. Capex (including capitalized software) was $45.1M, or 3.4% of revenue. No share buybacks or dividends were disclosed.
The company operates as a single reportable segment: software and services. Revenue for fiscal 2026 was $1,316.2M, up 48.4% from $886.5M. Geographic revenue: Americas $951.7M (72%), EMEA $312.7M (24%), APAC $51.7M (4%). The U.S. alone contributed $915.8M, or 70% of total revenue.
Rubrik's rapid revenue growth from $627.9M (FY2024) to $1.32B (FY2026) may not be sustainable. The company warns that subscription credit benefits will taper through FY2027, and business transitions (e.g., moving to SaaS subscriptions) limit comparability. Net losses remain significant ($348.8M in FY2026), with an accumulated deficit of $3.19B. Achieving profitability is uncertain due to expected increases in R&D, sales, and compliance costs.
As a data security company, Rubrik faces heightened targeting. A February 2025 incident involved unauthorized access to log files, though customer data and internal code were not compromised. The company acknowledges that future attacks could be catastrophic, potentially leading to regulatory actions, litigation, and reputational harm. The Ransomware Recovery Warranty (up to $10M per customer) adds financial exposure.
Rubrik relies heavily on Supermicro for Rubrik-branded Appliances and on third-party cloud providers (GCP, Azure, AWS). Global chip shortages, tariffs, and geopolitical tensions could disrupt supply and increase costs. The transition of appliance sales to contract manufacturers is largely complete, but any disruption could impair customer deployments.
The data security market is intensely competitive, with players like Dell-EMC, Commvault, Veeam, and Cohesity. Rubrik's success depends on market growth for data security and AI solutions, which is unproven. Failure to differentiate or keep pace with technological change (especially AI) could erode market share.
A DOJ investigation into potential federal contract violations (subpoena issued October 2023) could result in fines, penalties, or exclusion from government business. Additionally, evolving AI regulations (e.g., EU AI Act) and export controls may impose compliance costs and limit market access.
Three channel partners (Arrow, Exclusive Networks, Ingram Micro) generated ~68% of FY2026 revenue. Loss of any partner could materially harm sales, as agreements are non-exclusive and terminable at will.
Global tariffs and economic uncertainty may delay customer purchasing decisions, lengthen sales cycles, and increase costs. The company notes that recent tariff policies could impact customer adoption and revenue.
The provided excerpt from Rubrik's 10-K does not include the actual Consolidated Statements of Cash Flows table. The document contains only the index, audit report, and partial notes. Therefore, no cash flow metrics (CFO, capex, FCF, etc.) are available for analysis. To perform a proper evaluation, the full cash flow statement must be obtained.