Rubrik, Inc.

Rubrik operates in the data security and AI solutions market, a new and rapidly evolving market at an early stage. The market is driven by the need for cyber resilience as cyberattacks become inevitable and prevention and detection are insufficient. The company believes the future of cybersecurity is data security, and that cyber resilience will result in AI resilience. The market for data security and AI solutions is at an early stage and rapidly evolving, making it difficult to predict potential growth, customer adoption, and retention.

The data security market is highly competitive and rapidly evolving. Primary competitors include data management and protection vendors such as Commvault, Dell EMC, IBM, Veeam, and Cohesity; smaller cloud and SaaS data management vendors; and vendors providing cyber/ransomware detection, identity recovery, data security posture management, and other security technologies. Principal competitive factors include the ability to converge backup and recovery and cybersecurity in a cloud architecture, ease of deployment, performance, scalability, and brand recognition. The company believes its platform is unique and is not aware of other companies taking a similar approach to deliver cyber resilience and accelerate enterprise AI transformation.

Rubrik generates revenue primarily from sales of subscriptions to its Rubrik Security Cloud (RSC) suite, which is a cloud native SaaS platform. The company primarily sells subscriptions through its global sales team and partner network, employing a land and expand sales strategy. The business is indexed to business data growth, as customers' need for solutions grows in lockstep with their business data growth and need for additional data security capabilities. Subscription revenue includes revenue from SaaS subscriptions and subscription term-based licenses with related support services.

The Rubrik Security Cloud (RSC) suite is built with Zero Trust design principles to secure data across enterprise, cloud, SaaS, unstructured data, and identity providers. RSC delivers a cloud native SaaS platform that detects, analyzes, and remediates data security risks and unauthorized user activities. The platform is architected to help organizations achieve cyber resilience, encompassing cyber posture and cyber recovery. RSC products include Data Protection (cyber-proofing various data sources), Data Threat Analytics and Data Security (detecting data threats and identifying blast radius), Identity Security (visibility and recovery across identity services), and Cyber Recovery (orchestrated recovery simulation and threat containment). The company also offers Ruby, an AI agent for cyber resilience. RSC is available for purchase via four subscription editions: Foundation Edition, Business Edition, and Enterprise Edition.

In fiscal 2026, Rubrik built Rubrik Agent Cloud (RAC), a comprehensive AI operations platform designed to dynamically monitor, control, and remediate agentic actions. RAC became commercially available in February 2026. The company also offers SentryAI, a proprietary AI deep learning-based platform for system health monitoring, and a Premium-Plus Add-on Support program. Education is provided through Rubrik University, and a Certification Program enables technical personnel to become Rubrik Certified Systems Administrators.

In July 2025, Rubrik acquired all outstanding stock of Predibase, a developer platform specializing in the operationalization of open-source AI models, for a purchase consideration of $109.1 million ¹, of which $14.5 million ² was in cash and the remainder in common stock. In June 2025, the company completed a private offering of $1.15 billion ³ aggregate principal amount of 0.00% convertible senior notes due 2030. Net proceeds from the issuance were approximately $1.13 billion ⁴. The company used a portion of the net proceeds to repay the outstanding balance of $327.9 million ⁵ under its Amended Credit Facility and to pay $88.6 million ⁶ for capped call transactions. In April 2024, the company completed its initial public offering, issuing and selling 23,500,000 ⁷ shares of Class A common stock at $32.00 ⁸ per share, receiving net proceeds of approximately $710.3 million ⁹. In May 2024, underwriters exercised their option to purchase an additional 3,472,252 ¹⁰ shares at the IPO Price of $32.00 ¹¹ per share, with net proceeds of approximately $104.9 million ¹².

Total revenue for fiscal 2026 was $1,316.191 million ¹³, compared to $886.544 million ¹⁴ in fiscal 2025, representing a 48% ¹⁵ increase. Subscription revenue was $1,263.927 million ¹⁶ in fiscal 2026, up 53% ¹⁷ from $828.740 million ¹⁸ in fiscal 2025. The company reported a net loss of $(348.828) million ¹⁹ in fiscal 2026, compared to a net loss of $(1,154.820) million ²⁰ in fiscal 2025. Gross profit was $1,054.314 million ²¹ in fiscal 2026, compared to $620.796 million ²² in fiscal 2025, with gross margin improving to 80% ²³ from 70% ²⁴. Net cash provided by operating activities was $282.908 million ²⁵ in fiscal 2026, compared to $48.228 million ²⁶ in fiscal 2025.

A key growth vector is continuing to grow the company's SaaS solutions, particularly RSC and RAC, by investing in development and go-to-market motion to capitalize on the large and growing market opportunity. Another vector is growing the customer base as cyberattacks increase in scale and sophistication, driving organizations to seek cyber resilience, identity security, AI transformation, and regulatory compliance. The company also plans to expand within its existing customer base by cross-selling identity security, data governance, and compliance products, as well as the RAC suite, as customers generate more data and adopt more applications. International revenue grew from $250.4 million ²⁷ in fiscal 2025 to $364.5 million ²⁸ in fiscal 2026, and the company expects to continue expanding its global footprint in EMEA and Asia-Pacific regions.

The company expects to continue making significant investments in research and development to further increase product differentiation, particularly in generative AI to help enterprises securely adopt the technology. The company also plans to continue investing in building out and leveraging its partner ecosystem to broaden distribution footprint and drive platform usage. Additionally, the company intends to pursue strategic acquisitions to accelerate time-to-market for new data security capabilities and widen the competitive moat.

The company expects its subscription revenue to continue to benefit from customers exercising or forfeiting their Subscription Credits through fiscal 2027, although the benefits are expected to significantly reduce sequentially. The company expects its subscription gross margin to fluctuate through fiscal 2027 due to revenue being recognized ratably over the subscription term rather than upfront, and associated increases in hosting costs for SaaS solutions. The company expects its other revenue as a percentage of total revenue to continue to decrease. The company expects its operating expenses, exclusive of stock-based compensation, as a percentage of revenue to generally decrease over the long term.

The company expects to continue to invest in research and development to extend its platform and drive innovation. The company expects its research and development expenses to continue to increase as the business grows, but as a percentage of revenue, exclusive of stock-based compensation, to generally decrease over the long term. The company expects its sales and marketing expenses to continue to increase as the business grows, but as a percentage of revenue, exclusive of stock-based compensation, to generally decrease over the long term. The company expects its general and administrative expenses to continue to increase as the business grows, but as a percentage of revenue, exclusive of stock-based compensation, to generally decrease over the long term.

The company expects to continue to expend substantial financial and other resources on expansion and enablement of sales, services, and marketing organizations; product development; cloud infrastructure technology; use and development of AI technologies and tools; partner ecosystem; international expansion; acquisitions or strategic investments; information security program; and general administration. The company expects to continue to incur operating losses, and its operating cash flows may fluctuate between positive and negative amounts for the foreseeable future. The company believes its existing cash, cash equivalents, and short-term investments will be sufficient to fund its operating and capital needs for at least the next 12 months.

The company has observed a lengthening of its sales cycles due to macroeconomic conditions, such as higher cost-consciousness around information technology budgets and constraints affecting the availability or pricing of compatible commodity servers. Key components of commodity servers have been adversely affected by global chip shortages and allocation constraints, resulting in extended lead times and increased server prices. The company faces risks from the ongoing conflict in Israel and the Middle East, which could negatively impact its operations, and from potential disruptions in Bangalore, India due to future conflicts. The company is also subject to risks from the imposition of new trade restrictions and tariffs due to escalating tensions, hostilities, or trade disputes.

The company faces risks from the evolving regulatory landscape for AI, including the EU's AI Act and various U.S. state laws, which could result in additional compliance costs, regulatory investigations, and lawsuits. The company is subject to stringent and evolving U.S. and foreign laws regarding privacy and data security, including the GDPR, CCPA, and HIPAA, and failure to comply could lead to significant consequences. The company also faces risks from changes in tax laws, including the One Big Beautiful Bill Act and the OECD's Pillar Two proposals, which could increase its worldwide effective tax rate and compliance costs.

The company has a history of operating losses, with net losses of $(348.8) million ²⁹, $(1.15) billion ³⁰, and $(354.2) million ³¹ for fiscal 2026, 2025, and 2024, respectively, and an accumulated deficit of $(3.19) billion ³² as of January 31, 2026, and may not achieve or sustain profitability. The company relies on a limited number of contract manufacturers, including Super Micro Computer, Inc., for Rubrik-branded Appliances, and supply chain disruptions, including global chip shortages, have adversely affected the availability and pricing of compatible commodity servers. The company's three largest Channel Partners collectively generated approximately 68% ³³ and 73% ³⁴ of revenue for fiscal 2026 and 2025, respectively, and the loss of one or more of these partners could harm the business. The company is subject to a DOJ investigation related to potential violations of federal law in connection with government contracts, which could result in substantial fines, penalties, or exclusion from future federal contracting. The company's use of generative and other AI tools poses risks to its proprietary software and systems and may subject it to legal liability, including from claims of intellectual property infringement or non-compliance with rapidly evolving regulations.

Management's message emphasizes the mission to secure and accelerate the world's AI transformation, highlighting the belief that cyber resilience will result in AI resilience and that the future of cybersecurity is data security. Key strategic priorities emphasized for the period ahead include continuing to grow SaaS solutions, particularly RSC and the newly launched RAC; expanding within the existing customer base by cross-selling additional products; and innovating and extending product leadership, especially in generative AI. Management also highlights the importance of growing and harnessing the partner ecosystem and expanding the global footprint. The filing states that the company expects subscription revenue to continue to benefit from customers exercising or forfeiting their Subscription Credits through fiscal 2027, although the benefits are expected to significantly reduce sequentially.