Education
About Us
Working with TipRanks
Follow Us
Rubrik, Inc. Class A (RBRK)
NYSE:RBRK
Top Page
Rubrik, Inc. Class A
(NYSE:RBRK)
Select Model
Select Model
Rating:53Neutral
Price Target:
$59.00
▲(8.36% Upside)
The score is held back primarily by weak financial stability (negative equity) and ongoing profitability challenges, alongside a bearish technical trend with the stock below major moving averages. These are partly offset by a strong earnings-call backdrop featuring accelerating subscription metrics, improving margins, and record free cash flow, while valuation remains difficult to assess due to negative earnings.
Positive Factors
Recurring subscription ARR growth
Sustained ARR growth reflects durable recurring revenue and stronger customer retention. A 34% ARR increase and >120% subscription NRR underpin predictable cash flows, support upsell motions, and enable multi-year customer value that fuels long-term product investment and margin expansion.
High gross margin profile
A ~79% gross margin is typical of scalable software and cloud services, creating structural operating leverage. As subscription revenue scales, high gross margins allow incremental revenue to flow to operating income, funding R&D and go-to-market while improving sustainable profitability over time.
Improving free cash flow generation
Material improvement in free cash flow and 34% FCF growth enhances financial flexibility and reduces reliance on external funding. Durable FCF supports continued product investment, potential debt reduction, and resilience through business cycles if subscription growth and margin trends persist.
Negative Factors
Negative stockholders' equity
Negative shareholders' equity signals structural balance sheet weakness and elevated solvency risk. This impairs borrowing capacity and reduces strategic flexibility, making the company more vulnerable if cash generation slows or large investments are needed for competitive positioning.
Persistent operating losses
Continued negative operating and EBITDA margins indicate structural cost or scale challenges despite healthy gross margins. Sustained losses require either sustained FCF conversion or expense discipline to reach durable profitability, constraining reinvestment or stretching liquidity over the medium term.
Revenue headwinds and ARR volatility
Management expects structural headwinds from cloud transformation and reduced material-rights revenue into fiscal 2027, while net new ARR is lumpy. Together these create uncertainty in forward revenue visibility and complicate capacity planning and long-term margin forecasting.
Rubrik, Inc. Class A (RBRK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.90B
Dividend YieldN/A
Average Volume (3M)2.89M
Price to Earnings (P/E)―
Beta (1Y)1.64
Revenue Growth48.93%
EPS Growth69.39%
CountryUS
Employees3,200
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.10
Shares Outstanding151,894,450
10 Day Avg. Volume4,220,897
30 Day Avg. Volume2,893,839
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)-20.42
Price to Sales (P/S)12.75
P/FCF Ratio360.69
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue9.41
Enterprise Value/Gross Profit11.87
Enterprise Value/Ebitda-35.25
Forecast
1Y Price Target
$111.22Price Target Upside104.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
EPS Forecast (FY)0.06
Revenue Forecast (FY)$1.58B
Rubrik, Inc. Class A Business Overview & Revenue Model
Company DescriptionRubrik, Inc. provides data security solutions to individuals and businesses worldwide. The company offers enterprise data protection, unstructured data protection, cloud data protection, and SaaS data protection solutions; data threat analytics; data security posture; and cyber recovery solutions. It serves financial, retail, trade, transportation, energy, industrial, healthcare and life science, education, technology, media, communications, and public sectors. Rubrik, Inc. was formerly known as Scaledata, Inc. and changed its name to Rubrik, Inc. in October 2014. The company was incorporated in 2013 and is based in Palo Alto, California.
How the Company Makes MoneyRubrik generates revenue primarily through the sale of its software licenses, subscription services, and professional services. The company offers its solutions through a subscription-based model, allowing customers to pay for services on a recurring basis, which provides a steady revenue stream. Key revenue streams include sales of cloud data management software, support and maintenance services, and consulting services. Additionally, Rubrik has established significant partnerships with major cloud service providers and technology firms, which enhance its market reach and contribute to its earnings by integrating its solutions with leading cloud platforms and enabling joint go-to-market strategies.
Rubrik, Inc. Class A Earnings Call Summary
Earnings Call Date:Dec 04, 2025
(Q3-2026)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Positive
The earnings call highlighted Rubrik's record-breaking performance in subscription ARR and free cash flow, as well as strong growth in subscription and cloud revenues. The expansion of the identity business and successful cloud transformation are positive indicators. However, challenges remain with negative EPS guidance and expected headwinds in fiscal 2027 revenue growth. Despite these challenges, the overall sentiment leans towards positive due to the significant achievements and growth metrics.Q3-2026 Updates
Positive Updates
Record Net New Subscription ARR
Net new subscription ARR reached a record $94 million, showcasing strong growth and demand for Rubrik's offerings.
Strong Subscription Revenue Growth
Subscription revenue was $336 million, growing 52% year-over-year, demonstrating robust demand and customer expansion.
High Free Cash Flow
Rubrik generated a record $77 million in free cash flow for the quarter, highlighting strong financial health and operational efficiency.
Cloud ARR Growth
Cloud ARR grew 53%, reaching $1.17 billion, indicating successful cloud transformation and strong market demand.
Identity Business Growth
Identity line of business reached about $20 million in subscription ARR, with the total number of identity customers more than doubling in Q3.
Negative Updates
Negative Non-GAAP EPS Guidance
Expected non-GAAP EPS for Q4 is guided at negative $0.12 to negative $0.10, indicating ongoing challenges in profitability.
Headwinds from Cloud Transformation in Fiscal 2027
Dynamics related to cloud transformation and a reduction in material rights revenue are expected to represent a headwind to reported revenue growth in fiscal 2027.
Volatility in Net New ARR
Net new ARR has been lumpy across quarters, indicating potential variability and challenges in sales consistency.
Company Guidance
During the Rubrik Third Quarter Fiscal Year 2026 Results Conference Call, the company reported exceptional performance, surpassing all guided metrics. Key highlights included a subscription ARR of $1.35 billion, representing a 34% year-over-year increase, and net new subscription ARR reaching a record $94 million. Subscription revenue rose to $336 million, a 52% year-over-year growth, while the subscription NRR remained robust at over 120%. The number of customers with $100,000 or more in subscription ARR increased by 27% to 2,638. Rubrik also achieved a notable improvement in subscription ARR contribution margin, which rose by about 1,400 basis points year-over-year. The company generated a record $77 million in free cash flow. These results reinforced Rubrik's commitment to leading the market in cyber resilience and AI operations, prompting an upward revision of its outlook for the fiscal year.Rubrik, Inc. Class A Financial Statement Overview
Summary
Revenue growth is solid (10.53% TTM) and gross margin is strong (79.05%), but profitability remains weak with negative net profit/EBIT/EBITDA margins. Balance-sheet risk is elevated due to negative stockholders’ equity, while cash flow is improving with strong free cash flow growth (+34.02%).Income Statement
Rubrik, Inc. shows a strong revenue growth rate of 10.53% in the TTM, indicating positive sales momentum. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins, suggesting operational inefficiencies or high costs. The gross profit margin is healthy at 79.05%, but the negative EBITDA margin highlights challenges in managing operational expenses.45
Neutral
Balance Sheet
The balance sheet reveals significant financial risk with a negative stockholders' equity, leading to a high and negative debt-to-equity ratio. This indicates potential solvency issues. The return on equity is positive due to negative equity, but this is not a sustainable position. The equity ratio is also negative, reflecting a weak financial structure.30
Negative
Cash Flow
Rubrik, Inc. demonstrates improvement in cash flow with a 34.02% growth in free cash flow. The operating cash flow to net income ratio is positive, indicating some ability to convert income into cash. However, the free cash flow to net income ratio suggests that cash flow generation is still a challenge relative to net losses.55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 886.54M | 627.89M | 599.82M | 506.15M | 387.75M |
| Gross Profit | 620.80M | 389.69M | 320.25M | 269.87M | 217.20M |
| EBITDA | -1.08B | -196.34M | -153.79M | -144.90M | -125.51M |
| Net Income | -1.15B | -354.16M | -277.75M | -254.40M | -213.09M |
Balance Sheet | |||||
| Total Assets | 1.42B | 873.61M | 769.18M | 518.98M | 509.92M |
| Cash, Cash Equivalents and Short-Term Investments | 705.14M | 279.25M | 295.91M | 138.81M | 217.31M |
| Total Debt | 350.81M | 309.29M | 216.04M | 33.21M | 5.97M |
| Total Liabilities | 1.98B | 1.58B | 1.14B | 623.61M | 430.04M |
| Stockholders Equity | -553.73M | -704.54M | -372.62M | -104.63M | 79.87M |
Cash Flow | |||||
| Free Cash Flow | 31.34M | -16.85M | -15.01M | -103.23M | -74.62M |
| Operating Cash Flow | 48.23M | -4.52M | 19.29M | -82.78M | -58.74M |
| Investing Cash Flow | -383.44M | -93.62M | -125.19M | 8.42M | -1.60M |
| Financing Cash Flow | 398.02M | 95.95M | 171.82M | 22.87M | 137.51M |
Rubrik, Inc. Class A Technical Analysis
Negative
54.45
Price Trends
72.21
Negative
74.79
Negative
80.37
Negative
Market Momentum
-5.16
Positive
24.05
Positive
5.59
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBRK, the sentiment is Negative. The current price of 54.45 is below the 20-day moving average (MA) of 65.75, below the 50-day MA of 72.21, and below the 200-day MA of 80.37, indicating a bearish trend. The MACD of -5.16 indicates Positive momentum. The RSI at 24.05 is Positive, neither overbought nor oversold. The STOCH value of 5.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RBRK.
Rubrik, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.48B | 15.98 | 18.58% | ― | 7.01% | 17.48% | |
73 Outperform | $21.33B | 19.84 | 29.35% | ― | 11.27% | 4.47% | |
62 Neutral | $10.84B | 49.22 | ― | ― | 17.45% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $15.62B | 75.57 | 2.96% | ― | 12.12% | ― | |
53 Neutral | $10.90B | -26.64 | ― | ― | 48.93% | 69.39% | |
50 Neutral | $3.45B | -26.18 | -22.17% | ― | 11.37% | -34.44% |
* Technology Sector Average
RBRK
Rubrik, Inc. Class A
52.15
-21.93
-29.60%
ACIW
ACI Worldwide
39.52
-14.18
-26.41%
CPAY
Corpay Inc
292.23
-87.43
-23.03%
VRNS
Varonis Systems
26.53
-20.31
-43.36%
NTNX
Nutanix
36.86
-34.08
-48.04%
OKTA
Okta
82.31
-12.10
-12.82%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.