10-Q · June 5, 2026
Rubrik, Inc. reported robust Q1 FY 2027 results, surpassing expectations with revenue of $387 million, which marked a 39% increase year-over-year. The company achieved an EPS of $0.16, exceeding the expected loss of…
Earnings analysis · 10-Q
RBRK earnings analysis
Filed August 31, 2026 · Our reading of the company's report
The latest report
Rubrik delivered 37.9% year-over-year revenue growth to $427.3 million, strong ARR expansion, and improved operating leverage, while six-month free cash flow increased to $139.3 million. Subscription economics were…
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Rubrik delivered 37.9% year-over-year revenue growth to $427.3 million, strong ARR expansion, and improved operating leverage, while six-month free cash flow increased to $139.3 million. Subscription economics were favorable, but quarterly GAAP losses remained $61.8 million and total gross margin declined to 78.5% from 79.5% because of weaker hardware margins. The balance sheet remains well funded with $1.75 billion of cash and investments, although declining subscription-credit benefits, SaaS hosting costs, supply-chain constraints, ongoing government-contract investigations, and emerging AI risks remain important watch items.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.3
What stood out
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Revenue growth remained strong
Revenue increased 37.9% year over year to $427.3 million from $309.9 million. Subscription revenue grew 37% to $407.2 million, while other revenue rose 56% to $20.1 million.
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Subscription economics improved
Gross profit increased 36.1% year over year to $335.1 million, with total gross margin of 78.5% versus 79.5% in the prior-year quarter. Subscription gross margin improved to 82% from 81%, offset by other gross margin falling to 10% from 42%.
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Operating leverage accelerated
Operating loss narrowed to $71.9 million from $94.5 million, and operating margin improved to negative 16.8% from negative 30.5%. Sales and marketing expense increased 23% to $224.5 million, while general and administrative expense declined 16% to $55.7 million.
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ARR and retention were healthy
Subscription ARR increased 33% year over year to $1.661 billion, Cloud ARR increased 39% to $1.483 billion, and the average subscription dollar-based net retention rate was over 119%. Customers with at least $100,000 of Subscription ARR increased to 3,084 from 2,505.
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Cash generation improved
Six-month operating cash flow increased to $158.5 million from $104.4 million, and free cash flow rose to $139.3 million from $90.9 million. Management attributed the improvement to higher sales, renewal timing, improved operating leverage, and capital-structure optimization.
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Liquidity remains substantial
Cash, cash equivalents, and short-term investments totaled $1.75 billion at July 31, 2026, including $416.2 million of cash and cash equivalents and $1.331 billion of short-term investments. Management said these resources should fund operating and capital needs for at least the next 12 months.
What to watch
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Profitability remains unachieved
The company reported a quarterly GAAP net loss of $61.8 million, or $(0.30) per diluted share, and stated that it expects to continue incurring operating losses. Accumulated deficit reached $3.29 billion at July 31, 2026.
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Revenue and billings volatility
Subscription-credit benefits are expected to decline significantly over fiscal 2027, creating revenue-recognition volatility. Management also noted that subscription revenue is recognized ratably, while customers are increasingly choosing annual, monthly, or consumption payments instead of multi-year upfront payments.
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SaaS cost pressure
Hosting costs increased by $7.9 million in the quarter and $16.5 million for the six months, driven by adoption of additional SaaS offerings. Management expects subscription gross margin to fluctuate through fiscal 2027 as SaaS adoption increases hosting costs.
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Hardware supply-chain exposure
The filing highlights ongoing chip shortages and allocation constraints affecting compatible commodity servers, with extended lead times and increased server prices. Other-revenue gross margin fell to 10% from 42% year over year, primarily because of higher hardware costs.
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Ongoing government-contract investigation
The company disclosed ongoing DOJ and internal investigations concerning potential federal-law violations connected with government contracts. A negative outcome could result in substantial fines, penalties, financial exposure, reputational harm, or exclusion from future federal contracting.
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Emerging AI product and regulatory risk
The filing adds expanded risks from generative and agentic AI, including potential security vulnerabilities, erroneous outputs, data leakage, intellectual-property claims, and evolving regulation. Rubrik launched Rubrik Agent Cloud in February 2026, so the product has limited operating history.
Management's outlook
The 10-Q does not provide new numeric guidance. The previously disclosed fiscal 2027 outlook was provided in the August 27, 2026 earnings release and call.
Earlier filings 4
10-K · March 19, 2026
Rubrik, Inc. reported substantial growth in its annual revenue driven primarily by its subscription offerings, achieving $1.316 billion for the fiscal year ending January 31, 2026, a 48% increase from the previous year.…
10-Q · December 8, 2025
Rubrik, Inc. reported strong Q3 FY2026 results, with revenue of $350.2 million, up 48% year-over-year, driven by a 52% increase in subscription revenue and a notable 34% rise in Subscription ARR to $1.35 billion. The…
10-Q · September 10, 2025
Rubrik, Inc. reported Q2 fiscal 2026 results showing a 51% increase in revenue to $309.86 million, exceeding both expectations and prior year's performance. The company continues to shift towards SaaS subscriptions,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.