Rubrik Inc (RBRK) Q3 2025 Earnings Report

Rubrik delivered a standout QQ3 2025 quarter that underscored the transition to a cyber resilience-based platform with durable ARR growth and improving leverage, while still navigating GAAP profitability pressures. The company surpassed $1 billion in subscription ARR, up 38% year over year, and generated over $221 million in subscription revenue (up 55% YoY). Net new subscription ARR of $83 million set a quarterly record, signaling continued market penetration in cyber recovery, data security posture management (DSPM), and cloud protections across multiple workloads (enterprise data centers, public cloud, and SaaS). Rubrik also demonstrated strong free cash flow generation for the quarter (approximately $15.6 million) and raised its outlook for FY2025, highlighting confidence in the acceleration of durable growth and operating leverage. On the profitability front, non-GAAP gross margins remained strong at ~79%, while the subscription ARR contribution margin improved by ~1,100 basis points YoY (negative 3%), reflecting scale benefits and efficiency improvements in sales and marketing. Management framed the growth within three pillars: fastest cyber recovery enabled by a zero-trust AI-powered architecture, a unified Rubrik Security Cloud (RSC) platform that spans data management and security across on-prem, cloud, and SaaS workloads, and the unique DSPM+cyber recovery integration. The Q3 results also reinforce Rubrik’s multi-year Gen AI strategy (Annapurna) and expanding strategic partnerships (Okta, Pure Storage) that broaden deployment footprints and shorten backup windows. Full-year guidance was raised: subscription ARR of $1.57–$1.61B (≈+35% YoY), total revenue of $860–$862M (≈+37% YoY), and non-GAAP EPS of about -$1.82 to -$1.86 for FY2025, with free cash flow guidance of negative $22M to negative $16M (excluding IPO-related one-time payroll tax). The company also indicated that it does not expect a material benefit from maintenance-to-subscription ARR conversion in FY2026 and expects more normalized quarterly seasonality going forward. Investors should monitor (1) pace of ARR expansion and acceleration of cloud ARR, (2) progression toward breakeven or better on subscription contribution margin, (3) development and monetization of Annapurna and Gen AI-related initiatives, (4) the trajectory of free cash flow against shorter-term consumption-based headwinds, and (5) cadence of enterprise deployments and DSPM deals as demand for secure data and AI adoption evolves.