Rubrik, Inc. Q2 FY2026 earnings call

• Rubrik is evolving into a security and AI company, focusing on cyber resilience and enterprise AI acceleration.
• Cyber resilience: Leading the market with solutions like the preemptive recovery engine. Expanded cloud protection, e.g., AWS RDS and DynamoDB. Notable customer wins in cloud and SaaS protection, like a global Fortune 500 transportation organization and a Fortune 500 logistics company.
• Identity resilience: Over 200 customers for identity recovery solution. Recent customer wins in financial services, with investments in solutions combining identity and DSPM.
• Gen AI: Acquired Predibase to address GenAI challenges. Rubrik's data platform supports GenAI, and Agent Rewind innovation for undoing AI agent mistakes.

Rubrik reported strong financial results. Subscription ARR surpassed $1.25 billion, growing 36% year over year. Net new subscription ARR was $71 million. Subscription revenue was $297 million, up 55% year over year. Subscription NRR remained above 120%. Customers with $100,000 or more in subscription ARR crossed 2,500, growing 27% year over year. Subscription ARR contribution margin improved by about 1,800 basis points year over year. Free cash flow for the quarter was over $57 million. Subscription ARR contribution revenue contribution: Larger customers with $100,000+ in subscription ARR now contribute 85% of subscription ARR.

• Q3 2026 revenue expected $319 million to $321 million, up 35-36%, with non-GAAP subscription ARR contribution margins of approximately 6.5% and non-GAAP EPS negative $0.18 to -$0.16.
• Full year 2026 subscription ARR expected $1.408 billion to $1.416 billion (29-30% YOY growth). Total revenue expected $1.227 billion to $1.237 billion (38-40% YOY growth, 32-34% without material rights). Non-GAAP subscription ARR contribution margins approximately 7%, non-GAAP EPS negative $0.50 to -$0.44, and free cash flow $145 million to $155 million.

• Forward-looking statements are subject to risks and factors affecting performance, as detailed in SEC filings.

Q: Saket Kalia asked about the free cash flow margin and strategic changes driving profitability.

A: Bipul Sinha discussed cyber resilience market and scaling business, while Kiran Chaudhry added details on ARR performance, capital structure optimization, and duration.

Q: Andrew Nowinski asked about sales comp change impact and Q4 seasonality.

A: Bipul Sinha and Kiran Chaudhry talked about sales comp alignment and seasonality shifts.

Q: Howard Ma asked about data growth leverage and pricing model.

A: Bipul Sinha explained the combination of data volume, security features, and SaaS licensing.

Q: Eric Heath asked about early renewals, non-cloud ARR, and material rights.

A: Kiran Chaudhry discussed renewal timing, non-cloud ARR trends, and material rights variability.

Q: Matt Martino asked about go-to-market evolution for multiproduct platform.

A: Bipul Sinha talked about RubrikX, PLS stages, and platform strategy.

Q: Gregg Moskowitz asked about DSPM market adoption.

A: Bipul Sinha discussed holistic view of data, identity, and cyber recovery.

Q: Todd Coupland asked about competitive environment and deal win rate.

A: Bipul Sinha mentioned unique platform and preemptive recovery engine leading to wins.

Q: Junaid Shah Siddiqui asked about MCP protocol and broader security orchestration.

A: Bipul Sinha talked about Rubrik's focus on cyber resilience and AI operations.

Q: James Fish asked about DSPM penetration and Fed market.

A: Bipul Sinha discussed holistic vision, Fed investments, and wins.

Q: Zach Schneider asked about deal sizes, renewal patterns, and expansions across tiers.

A: Kiran Chaudhry talked about edition mix and expansion paths.