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Rubrik, Inc. Class A (RBRK)
NYSE:RBRK
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Rubrik, Inc. Class A
(NYSE:RBRK)
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Rating:51Neutral
Price Target:
$81.00
▲(3.82% Upside)
Rubrik's overall stock score reflects strong growth in subscription revenue and cash flow, as highlighted in the earnings call. However, significant challenges in profitability, financial stability, and valuation metrics weigh heavily on the score. The technical analysis suggests potential bearish momentum, further impacting the overall assessment.
Positive Factors
Revenue Growth
Rubrik's robust revenue growth indicates strong market demand and effective sales strategies, enhancing its competitive position in the cloud data management sector.
Subscription ARR Growth
The significant growth in subscription ARR reflects Rubrik's successful customer retention and expansion strategy, ensuring a stable and recurring revenue stream.
Cash Flow Generation
Strong cash flow generation enhances Rubrik's financial flexibility, enabling investment in growth initiatives and reducing reliance on external financing.
Negative Factors
Profitability Challenges
Ongoing profitability issues, with negative net income and EBIT margins, could hinder Rubrik's ability to sustain operations without external funding.
High Leverage
High leverage and negative equity pose financial risks, limiting Rubrik's ability to invest in growth and increasing vulnerability to economic downturns.
Non-GAAP EPS Guidance
Negative EPS guidance indicates ongoing profitability challenges, potentially impacting investor confidence and limiting stock performance in the near term.
Rubrik, Inc. Class A (RBRK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.59B
Dividend YieldN/A
Average Volume (3M)3.84M
Price to Earnings (P/E)―
Beta (1Y)1.70
Revenue Growth47.72%
EPS Growth61.95%
CountryUS
Employees3,200
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.03
Shares Outstanding142,085,600
10 Day Avg. Volume6,836,760
30 Day Avg. Volume3,843,184
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 Cap1.24
Enterprise Value/Revenue16.76
Enterprise Value/Gross Profit21.50
Enterprise Value/Ebitda-47.15
Forecast
1Y Price Target
$111.47Price Target Upside42.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
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 a subscription-based model, offering software licenses and services for its data management solutions. Key revenue streams include annual subscriptions for its software platform, professional services for implementation and support, and potential upselling of additional features or services. The company has established significant partnerships with major cloud providers and technology vendors, which enhances its market reach and drives customer acquisition. Additionally, Rubrik's focus on enterprise clients and the growing demand for cloud-based data management solutions contribute to its earnings.
Rubrik, Inc. Class A Earnings Call Summary
Earnings Call Date:Sep 09, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 04, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong quarter for Rubrik with significant growth in subscription ARR, revenue, and customer expansion. The company has shown impressive improvement in profitability and continues to lead in the cyber resilience market with innovative solutions. However, the guidance for non-GAAP earnings per share remains negative, and there is some dependency on non-recurring material rights revenue. Overall, the positive aspects significantly outweigh the challenges.Q2-2026 Updates
Positive Updates
Strong Subscription ARR Growth
Subscription ARR surpassed $1.25 billion, growing 36% year over year, with net new subscription ARR reaching $71 million in the second quarter.
Impressive Subscription Revenue Increase
Subscription revenue was $297 million, growing 55% year over year.
High Customer Engagement
Customers with $100,000 or more in subscription ARR reached 2,500, growing 27% year over year.
Significant Improvement in Profitability
Material improvement in subscription ARR contribution margin, up about 1,800 basis points year over year, with over $57 million in free cash flow generated this quarter.
Successful Cloud ARR Growth
Cloud ARR reached $1.1 billion, up 57%, driven by adoption of the Rubrik Security Cloud.
Expansion in Cyber Resilience Market
Rubrik continues to win in the cyber resilience market with new customer wins, including a major North American oil and gas company and a Fortune 50 pharma leader.
Innovations in Cloud Protection
Expanded cyber protection for AWS RDS database and added comprehensive protection for Amazon DynamoDB.
Notable AI Initiatives
Acquisition of Predibase enhances Rubrik's AI capabilities, with new solutions like Agent Rewind built on secure data platform.
Negative Updates
Non-GAAP Earnings Per Share Guidance
Guidance for non-GAAP earnings per share remains negative, expected to be between negative $0.50 to negative $0.44 for the full year.
Revenue Dependency on Material Rights
Material rights related to cloud transformation contributed approximately six percentage points to revenue growth, with expectations for minimal revenue contribution from material rights in fiscal 2027.
Potential Impact of Sales Compensation Changes
Transition to annual sales comp plans may affect seasonality, with Q4 expected to be seasonally strong.
Company Guidance
During Rubrik's second quarter fiscal year 2026 conference call, the company reported surpassing all guided metrics, highlighting a subscription ARR of over $1.25 billion, which marks a 36% year-over-year increase. Net new subscription ARR was $71 million, and subscription revenue reached $297 million, reflecting a 55% growth. The subscription net retention rate (NRR) remained robust at over 120%, while the number of customers with $100,000 or more in subscription ARR grew by 27% to over 2,500. The company also reported an improvement of approximately 1,800 basis points in subscription ARR contribution margin. Furthermore, Rubrik generated over $57 million in free cash flow, underscoring its strong cash flow generation capabilities. The company raised its full-year outlook, driven by its focus on evolving into a security and AI company and capturing opportunities in the cyber resilience and enterprise AI acceleration markets.Rubrik, Inc. Class A Financial Statement Overview
Summary
Rubrik, Inc. shows strong revenue growth but faces challenges with profitability and financial stability. The company has negative net income and EBIT margins, high leverage, and negative equity, which are significant concerns despite positive cash flow trends.Income Statement
Rubrik, Inc. has experienced significant revenue growth, with total revenue increasing from $627.9M in Jan 2024 to $977.7M in TTM (Trailing-Twelve-Months). However, profitability remains a challenge, as evidenced by negative net income and EBIT margins. The gross profit margin stands at a reasonable level, but high operating expenses lead to negative EBIT and EBITDA margins, indicating operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet reveals a concerning negative stockholders' equity, indicating that liabilities exceed assets. The debt-to-equity ratio cannot be calculated due to negative equity, but the company carries a significant amount of debt. This high leverage poses financial risks. Moreover, the equity ratio is negative, further emphasizing financial instability.30
Negative
Cash Flow
Rubrik, Inc. has shown improvement in cash flow generation, with a positive free cash flow in the TTM (Trailing-Twelve-Months) period. Operating cash flow to net income and free cash flow to net income ratios highlight that the company is generating cash despite reporting net losses. However, the cash flow position remains sensitive, given the negative net income.55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.08B | 886.54M | 627.89M | 599.82M | 506.15M | 387.75M |
| Gross Profit | 843.98M | 620.80M | 389.69M | 320.25M | 269.87M | 217.20M |
| EBITDA | -384.89M | -1.08B | -196.34M | -153.79M | -144.90M | -125.51M |
| Net Income | -443.83M | -1.15B | -354.16M | -277.75M | -254.40M | -213.09M |
Balance Sheet | ||||||
| Total Assets | 2.39B | 1.42B | 873.61M | 769.18M | 518.98M | 509.92M |
| Cash, Cash Equivalents and Short-Term Investments | 1.52B | 705.14M | 279.25M | 295.91M | 138.81M | 217.31M |
| Total Debt | 1.13B | 332.43M | 309.29M | 216.04M | 33.21M | 5.97M |
| Total Liabilities | 2.95B | 1.98B | 1.58B | 1.14B | 623.61M | 430.04M |
| Stockholders Equity | -564.34M | -553.73M | -704.54M | -372.62M | -104.63M | 79.87M |
Cash Flow | ||||||
| Free Cash Flow | 191.61M | 31.34M | -16.85M | -15.01M | -103.23M | -74.62M |
| Operating Cash Flow | 211.07M | 48.23M | -4.52M | 19.29M | -82.78M | -58.74M |
| Investing Cash Flow | -769.69M | -383.44M | -93.62M | -125.19M | 8.42M | -1.60M |
| Financing Cash Flow | 740.75M | 398.02M | 95.95M | 171.82M | 22.87M | 137.51M |
Rubrik, Inc. Class A Technical Analysis
Neutral
78.02
Price Trends
86.45
Negative
86.63
Negative
76.40
Positive
Market Momentum
-3.13
Positive
42.59
Neutral
9.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBRK, the sentiment is Neutral. The current price of 78.02 is below the 20-day moving average (MA) of 84.99, below the 50-day MA of 86.45, and above the 200-day MA of 76.40, indicating a neutral trend. The MACD of -3.13 indicates Positive momentum. The RSI at 42.59 is Neutral, neither overbought nor oversold. The STOCH value of 9.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RBRK.
Rubrik, Inc. Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | 21.93B | 20.74 | 26.72% | ― | 9.22% | 6.60% | |
74 Outperform | 5.13B | 21.65 | 18.02% | ― | 11.22% | 40.85% | |
72 Outperform | 6.38B | -62.75 | -30.14% | ― | 14.29% | -14.42% | |
66 Neutral | 20.82B | 122.24 | -27.12% | ― | 18.11% | 0.00% | |
66 Neutral | 15.87B | 110.36 | 2.49% | ― | 12.68% | 0.00% | |
51 Neutral | $14.59B | ― | 218.28% | ― | 47.72% | 61.95% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
RBRK
Rubrik, Inc. Class A
78.02
44.73
134.36%
ACIW
ACI Worldwide
51.13
0.80
1.59%
CPAY
Corpay Inc
305.27
-1.94
-0.63%
VRNS
Varonis Systems
57.49
1.61
2.88%
NTNX
Nutanix
78.16
17.34
28.51%
OKTA
Okta
93.60
17.85
23.56%
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.