Rubrik Revenue Jumps 38% to $427.3 Million, Raises 2027 Forecast
Key Facts
Rubrik reported results on August 27 for the second quarter of its 2027 fiscal year, ended July 31, posting total revenue of $427.3 million, up 38% from $309.9 million a year earlier. The company said the results exceeded all the metrics it had previously guided for and that it raised its full-year financial forecast. The figures show strong growth in its subscription business, alongside improvement in some profitability and cash-flow measures. But the GAAP net loss continued, making it necessary to distinguish it from adjusted profitability when reading the results. The stock's move on October 29 was separate in time from the results announcement issued in August.
Subscription activity drove most of the revenue, with subscription revenue rising 37% to $407.2 million from $297.0 million in the second quarter of the previous fiscal year. Subscription annual recurring revenue reached $1.66 billion as of July 31, up 33% year over year. Cloud annual recurring revenue reached $1.48 billion, up 39%. The company said net new subscription ARR grew 35%, while adjusted net new cloud ARR rose 20%. Net new subscriptions totaled $96 million, exceeding the market estimate of $75.9 million, according to Investing.com.
On profitability, Rubrik posted a GAAP net loss of $61.8 million for the quarter, while non-GAAP net income was about $44.7 million, or $0.20 per diluted share. Its GAAP loss per share narrowed to $0.30 from $0.49 in the corresponding period of fiscal 2026. By contrast, adjusted earnings per share turned to a profit of $0.20 from a loss of $0.03. The non-GAAP gross margin was 81.0%, compared with 81.6% a year earlier, while the GAAP margin fell to 78.4% from 79.5%. The Subscription ARR contribution margin improved to 14.0% from 9.4% in the corresponding period, the company said.
Liquidity metrics showed improved cash generation: free cash flow was $65.7 million, compared with $57.5 million in the second quarter of fiscal 2026, with a margin of 15%. Operating cash flow rose to $76.8 million from $64.7 million a year earlier. Cash, cash equivalents and short-term investments totaled $1.75 billion as of July 31. Chief Financial Officer Kiran Choudary said the company was entering the second half of fiscal 2027 "from a position of strength," linking that to ARR growth, an improved contribution margin and the raised forecast. Rubrik also said revenue grew 43% year over year excluding the impact of revenue from material rights.
The company raised its fiscal 2027 forecast to revenue of between $1.685 billion and $1.693 billion, non-GAAP net income of between $0.47 and $0.53 per share, and free cash flow of between $323 million and $333 million. For the third fiscal quarter, it expects revenue of between $429 million and $431 million and non-GAAP earnings of between $0.07 and $0.09 per share. Regarding trading after the August announcement, Investing.com reported that the stock fell 10.5% in after-hours trading to $95.76. The report said the stock had risen about 85% over the previous six months and reached a record intraday level of $107.91 on the day of the announcement. It quoted BTIG analyst Gray Powell as saying expectations were high ahead of the results, particularly after strong performances by CrowdStrike and Okta; the report also said the stock fell more than 8% in premarket trading on August 28, despite the higher annual forecast.