Rubrik Reports Strong Revenue Growth But Free Cash Flow Efficiency Declines
Rubrik (RBRK) reported second-quarter revenue growth of 38% year-over-year to $427.3 million, with subscription revenue rising by 37%. Subscription Annual Recurring Revenue (ARR) reached $1.66 billion, up 33%, and the company raised its full-year guidance for both revenue and free cash flow. However, despite an increase in absolute terms, free cash flow margin fell to 15% from 19%, indicating a decline in cash efficiency relative to growth. The drop was attributed to lower operating cash flow margins (from 21% to 18%) and increased capital expenditures for property and internal-use software. GAAP gross margin also declined slightly, while the company remained unprofitable under GAAP standards with a net loss of $61.8 million due largely to stock-based compensation expenses. Despite these challenges, Rubrik's subscription ARR Contribution Margin improved from 9.4% to 14%, and customer expansion continued positively. The raised guidance suggests an expected recovery in free cash flow margin toward the end of the year.
Tickers: $RBRK
Topics: free cash flow margin revenue growth subscription ARR