Rubrik, Inc. Class A ((RBRK)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call for Rubrik, Inc. Class A revealed a positive sentiment, underscored by strong financial performance and significant growth in subscription ARR. The company demonstrated improved profitability and strategic positioning in the cyber resilience market. However, there was a note of caution regarding the outlook for fiscal 2026, with expectations of moderated net new ARR growth. Overall, the sentiment was optimistic, reflecting robust growth and strategic foresight.
Strong Subscription ARR Growth
Rubrik, Inc. reported a remarkable increase in subscription ARR, reaching $1.093 billion, which represents a 39% year-over-year growth. The net new subscription ARR was over $90 million in Q4, highlighting the company’s strong market presence and customer acquisition capabilities.
Subscription Revenue Surge
The company experienced a significant surge in subscription revenue, which grew to $244 million, marking a 54% increase compared to the previous year. This surge underscores the company’s successful subscription-based business model and its appeal to a growing customer base.
High Customer Retention and Expansion
Rubrik maintained a strong subscription NRR above 120%, with a notable 29% year-over-year growth in customers spending $100k or more in subscription ARR. This indicates high customer satisfaction and the company’s ability to expand within its existing customer base.
Improved Profitability
The company achieved a material improvement in its subscription ARR contribution margin, which increased by over 1,400 basis points year-over-year. This improvement reflects Rubrik’s operational efficiency and effective cost management strategies.
Free Cash Flow Growth
Rubrik reported over $75 million in free cash flow for the quarter and approximately $22 million for the full fiscal year. This growth in free cash flow demonstrates the company’s strong cash generation capabilities and financial health.
Exceptional Revenue Growth
Total revenue for Rubrik grew by 47% year-over-year, showcasing the company’s robust performance and successful execution of its growth strategies in the cyber resilience market.
Strategic Partnerships and Customer Wins
Rubrik highlighted notable customer wins and strategic partnerships, including collaborations with a European insurance company and a Fortune 50 organization. These partnerships are expected to drive further growth and expand the company’s market reach.
Guidance for Net New ARR Growth Moderation
Looking ahead, Rubrik has provided guidance for fiscal 2026, suggesting a moderation in net new ARR growth to 24%, which is lower than the growth experienced in fiscal 2025. This cautious outlook reflects the company’s strategic planning and market conditions.
Billings Duration Compression
The company experienced a mid to high single digits compression in billings duration year-over-year. This indicates a shift in billing practices, potentially impacting cash flow timing.
Forward-Looking Guidance
Rubrik, Inc. surpassed all guided metrics in the fourth quarter of fiscal year 2025, demonstrating substantial growth and profitability. The company is guiding fiscal 2026 numbers ahead of consensus, driven by strategic investments, product innovation, and market demand for cyber resilience solutions. This forward-looking guidance reflects confidence in continued growth and market leadership.
In summary, Rubrik, Inc. Class A’s earnings call painted a picture of strong financial health, with significant growth in subscription ARR and revenue. The company showcased improved profitability and strategic partnerships, positioning itself well in the cyber resilience market. While there is some caution regarding future ARR growth, the overall sentiment remains positive, with expectations of continued success driven by strategic initiatives.