📌 Company Overview
Rubrik, Inc. is a cyber resilience software company focusing on data backup, recovery, and ransomware protection for hybrid and multi‑cloud environments. Its platform integrates cloud, SaaS, and on‑prem systems to safeguard enterprise data across environments. Rubrik has quickly scaled since its 2014 founding, and went public in September 2023. With a Subscription ARR over $1 billion and improving margins, it blends high growth with progress toward profitability. The company is headquartered in Palo Alto, California.
🗓️ Most Recent Earnings (Q1 FY 2026, ended April 30, 2025)
On June 5, 2025, Rubrik reported Q1 FY 2026 results:
- EPS (non‑GAAP) of $(0.15), beating the $(0.32) consensus by $0.176sense.com+13finance.yahoo.com+13stocktitan.net+13seekingalpha.com+4ir.rubrik.com+4marketbeat.com+4.
- Revenue of $278.5 M, beating the $260.4 M expectation and marking a 49% year‑over‑year increase .
- Subscription ARR grew 38% YoY, reaching $1.18 B ir.rubrik.com+1ir.rubrik.com+1.
- Non‑GAAP gross margin hit 80.5%, up from 75.4% year‑ago ir.rubrik.com.
- Cash flow from operations improved to $39.7 M and free cash flow to $33.3 M ir.rubrik.com.
Guidance for Q2 FY 2026 is revenue of $281–283 M and non‑GAAP EPS [–$0.35 to –$0.33]. Full‑year FY 2026 outlook includes ARR of $1.38–1.388 B, revenue of $1.179–1.189 B, non‑GAAP EPS [–$1.02 to –$0.96], and free cash flow of $65–75 M .
🏛️ Origins, Founders & Funding
Founded in 2014, Rubrik was created to solve the complexity of data protection across on‑prem and cloud architectures. Its co‑founders include Bipul Sinha, who currently serves as CEO and Chairman, along with several other enterprise‑storage veterans in Palo Alto. Prior to its IPO in September 2023, Rubrik raised over $553 M across multiple Series rounds (including a $261 M Series E), backed by investors like Softbank Vision Fund, Greylock, and Lightspeed. Its innovation centers on data backup, recovery automation, ransomware analytics, and zero‑trust security across hybrid environments. Key competitors are Acronis, Veeam, Cohesity, Commvault, Zerto, Dell EMC, and IBMtracxn.com+1leadiq.com+1. Headquarters remain in Palo Alto, with global offices.
🌍 Market & Growth Opportunity
Rubrik operates in the global enterprise data protection, backup/recovery, and cyber-resilience market. As organizations increasingly migrate workloads across hybrid environments and face mounting ransomware threats, demand for secure data services rises. Industry forecasts indicate a market growth reaching potentially $30–40 B+ by 2030, with a CAGR in the 15–20% range. Rubrik’s 38–49% top‑line growth in Q1 aligns well with broader industry expansion and the shift toward subscription-based SaaS models .
🏁 Competitors Breakdown
Major competitors include:
- Veeam: Leading backup for virtualized environments, robust features, but complex and pricier
- Commvault: Comprehensive data management across cloud/on‑prem, strong feature set, higher ERP complexity
- Cohesity / Zerto / IBM / Dell EMC: Varying strengths across integration, legacy systems, and enterprise-level functionality/
🎯 Differentiation
Rubrik stands out with its simplicity and unified architecture: integrated backup, recovery, ransomware detection, and compliance tools across hybrid environments. Its zero-trust data security ethos emphasizes immutable backups and policy-driven governance. Strategic partnerships—e.g., Google Cloud (Annapurna integration), Mandiant, Deloitte, Rackspace powered by Rubrik—highlight its focus on cloud-native resilience and seamless interoperability
🧑💼 Key Management Team
- Bipul Sinha, CEO & Co‑Founder – Former VMware exec, leads strategic direction and public‑company governance.
- Kiran Choudary, CFO – Oversees finance, shareholder communications, and recently guided cap‑table optimization initiatives.
- Brian McCarthy, CRO – Heads global sales; recently sold shares during insider activity, indicating confidence in current valuation.
📊 Financial Performance (Last 5 Years)
- Revenue Growth: From ~$300 M in FY 2021 to Q1 FY 2026 quarterly run‑rate > $1.1 B ARR, fiscal YoY growth consistently above 40%.
- Earnings Trajectory: GAAP losses narrowing—from heavy stock‑comp in IPO year (~$11/share GAAP EPS loss) to non‑GAAP EPS of –$0.15 in Q1 and guided full‑year range of –$1.02 to –$0.96.
- Cash Flow & Balance Sheet: Transitioned from negative operating cash in FY 2021 to Q1 positive $39.7 M; free cash flow positive. Q1 cash reserves exceed $760 M .
- Leverage & Discipline: No major debt on balance sheet, and a planned convertible note issuance up to $1B geared towards refinancing and growth investments .
📈 Bull Case
- Exceptional topline growth and strong gross margins (~80% non‑GAAP).
- Expanding ARR base (~$1.18 B) with high-dollar customers increasing 28% YoY.
- Strategic cloud partnerships position Rubrik for leadership in cyber resilience and data recovery.
⚠️ Bear Case
- Persistent GAAP losses and negative EPS extend into FY 2026.
- Competitive pressure from entrenched incumbents like Veeam and Commvault.
- Risks tied to convertible debt issuance (~$1 B), potentially dilutive or interest-burdened.
The stock is on a stage 3 consolidation with a move lower to the $79-$81 mark where there is a lot of support. We would expect the stock to move lower and the likely reverse. Until the reversal (and the ideal entry is at the $60 range, we are not going to take a position.