Rubrik (NYSE:RBRK) saw its shares fall more than 4% in premarket U.S. trading Tuesday, even after reporting a quarterly loss narrower than anticipated and providing an optimistic outlook.
Analysts at BMO Capital Markets noted that net new subscription annual recurring revenue (ARR) — which reflects sales from new clients and upgrades minus revenue lost from cancellations and downgrades — came in at $71 million, surpassing the consensus forecast of $44 million. However, this figure was below the roughly $89 million recorded in the previous quarter, offering insight into customer acquisition and retention trends.
The cloud data management company posted a second-quarter loss of $0.03 per share, well below analysts’ average estimate of a 34-cent loss. Revenue climbed to $309.9 million, beating the $282 million expectation.
Looking ahead to fiscal 2026, Rubrik anticipates a loss of $0.50 to $0.44 per share, smaller than Wall Street’s projected 97-cent loss. The company also forecast revenue between $1.23 billion and $1.24 billion, exceeding estimates of $1.19 billion.
CEO Bipul Sinha said the Microsoft-backed firm, which provides a software-as-a-service platform to detect digital security risks, delivered “exceptional top-line growth,” highlighting the acquisition of Predibase to enhance its artificial intelligence capabilities. CFO Kiran Choudary added that free cash flow margin reached 19%.
BMO analysts commented, “[M]anagement continues to execute well in a large market with an expanding portfolio.”
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