Rubrik, Inc. (NYSE: RBRK) is a cybersecurity company specializing in data security and cyber resilience solutions. The company focuses on protecting enterprise data across multiple environments, including on-premises, cloud, and SaaS applications.

In the fourth quarter of fiscal year 2025, Rubrik reported strong financial growth, indicating a rising condition for the company. Subscription Annual Recurring Revenue (ARR) reached $1.093 billion, showing a 39% year-over-year increase. Subscription revenue for the quarter stood at $244 million, an increase of 54% compared to the same period last year. Total revenue for the fourth quarter was recorded at $258 million, a growth of 47% year-over-year.

The company’s profitability metrics also demonstrated improvement. The non-GAAP gross margin for Q4 was 80%, compared to 78% in Q4 of fiscal 2024. Notably, the Subscription ARR Contribution Margin turned positive at 2%, a significant recovery from the negative 12% margin reported in the previous year. Free cash flow was reported at $75 million for the quarter, an increase from $9 million in Q4 of fiscal 2024. For the full fiscal year 2025, Rubrik achieved approximately $22 million in free cash flow, a recovery from the negative $25 million seen in the prior fiscal year.

Rubrik’s subscription ARR net retention rate (NRR) remained strong, exceeding 120%. The number of customers contributing more than $100,000 in subscription ARR reached 2,246, marking a 29% increase from the same period last year. Additionally, customers generating over $1 million in subscription ARR grew by 64% year-over-year, totaling 162 clients.

Looking ahead, Rubrik provided guidance for the first quarter and full fiscal year of 2026. For Q1, the company anticipates revenue between $259 million and $261 million, representing a year-over-year increase of approximately 38% to 39%. The company expects non-GAAP subscription ARR contribution margins of 4% to 5%, and non-GAAP earnings per share (EPS) is projected to be between negative $0.33 and negative $0.31.

For the full fiscal year 2026, Rubrik targets subscription ARR in the range of $1.350 billion to $1.360 billion, indicating a year-over-year growth rate of around 24%. Total revenue is forecasted to range from $1.145 billion to $1.161 billion, reflecting approximately 30% growth. Non-GAAP subscription ARR contribution margins are expected to be between 4.5% and 5.5%, with non-GAAP EPS estimated at negative $1.23 to negative $1.13. Free cash flow for the year is projected at between $45 million and $65 million.