Rubrik revenues for Q3 2025 of $236.2 million have overtaken those of Commvault, which for its most recent quarter, Q2 2025, ended September 30, reported revenues of $233.3 million.
The Rubrik quarter, ended October 31, saw accelerated year-over-year revenue growth of 43 percent compared to last quarter’s 35 percent growth rate. It beat its $218.5 million high-point outlook but generated a GAAP net loss of $130.9 million, worse than the year-ago $86.3 million loss. However, Rubrik broke past the $1 billion subscription ARR (annual recurring revenue) mark with 38 percent year-over-year growth to $1.002 billion and break-even is anticipated.
CEO, chairman, and co-founder Bipul Sinha said on the earnings call: “Rubrik delivered another outstanding quarter. We not only achieved very strong growth at scale, but also generated positive free cash flow. We are incredibly proud to have surpassed $1 billion in subscription ARR, growing 38 percent year-over-year. And we did this in just over 10 years since Rubrik was founded, a big milestone for us.”
CFO Kiran Choudary said: “In addition to strong growth, our Subscription ARR Contribution Margin was up over 1,100 basis points year-over-year, and we generated positive free cash flow. These results demonstrate our ability to drive growth at scale with improving efficiency.”
Financial summary
- Gross margin: 76.2 percent vs 76 percent last quarter and 79.6 percent a year ago
- Operating cash flow: $23.1 million vs $6.9 million a year ago
- Free cash flow: $15.6 million vs $3.5 million a year ago
- Cash, cash equivalents & short-term investments: $632 million
- Debt: $316.9 million vs $306.8 million last quarter
Sinha said: “There are five key numbers that highlight yet another positive quarter for Rubrik. First, and this is a record, we added $83 million in net new subscription ARR … Second, our subscription revenue was over $221 million, growing 55 percent year-over-year. Third, our subscription ARR remained strong above 120 percent … Fourth, customers with $100,000 or more in subscription ARR reached 2,085 growing 32 percent year-over-year. And finally, on profitability, we once again made material improvement in subscription ARR contribution margin, up 1,100 basis points year-over-year.”
He attributes this growth to Rubrik’s focus on cyber-resilience: “Cyber Resilience is the number one topic in cybersecurity. There is a broad realization that cyberattacks and breaches are inevitable. And therefore, organizations have to be resilient against such attacks.” Rubrik’s software helps deal with this and “is what is powering our growth and market momentum.”
Choudary said: “The Q3 revenue out-performance relative to our guidance reflects our strong ARR growth and higher-than-expected upfront and non-recurring revenue. This is due to higher-than-expected new sales and renewals of RSC (Rubrik Security Cloud) offering from regulated and government verticals in Q3 as well as the extension of transition licenses to some of our customers as they progress through the adoption of Rubrik Security Cloud.”
Rubrik believes that GenAI is a significant catalyst for its growth, and its latest Annapurna announcement of a single API service for customers building GenAI apps, which will integrate with Amazon Bedrock and other clouds in the future, will help drive revenue even higher.
The outlook for Q4 is revenues of $232.5 million +/- $1 million, a 32.9 percent rise year-over-year, but a sequential decline. There is a raised full fiscal 2025 outlook from $834 million to $861 million +/- $1 million, 37.1 percent higher than a year ago at the midpoint. Choudary expects to see “modestly positive free cash flow for the fiscal year 2026.”
Commvault’s outlook for its current quarter, which overlaps Rubrik’s Q4, is for revenues of $245 million +/- $2 million, so it looks like it will get its revenue lead back. Whether it will keep its lead is another question.
