Good afternoon, ladies and gentlemen, and welcome to the Rubrik, Inc. Fourth Quarter and Fiscal Year 2026 Results Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press 0 for the operator. This call is being recorded on Thursday, 03/12/2026. I would now like to turn the conference over to Melissa Franchi, Vice President of Investor Relations. Please go ahead.

Hello, everyone. Welcome to Rubrik, Inc.'s fourth quarter and fiscal year 2026 financial results conference call. On the call with me today are Bipul Sinha, CEO, Chairman, and Co-Founder of Rubrik, Inc., and Kiran Kumar Choudary, Chief Financial Officer. Our earnings press release was issued today after the market closed and may be downloaded from the Investor Relations page at investors.rubrik.com. Also on this page, you will be able to find a slide deck with financial highlights that along with our earnings release includes a reconciliation of GAAP to non-GAAP financial results. These measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. During this call, we will make forward-looking statements, including statements regarding our financial outlook for the first quarter and full fiscal year 2027, our expectations regarding market trends, our market position, opportunities, including with respect to generative AI, growth strategy, product initiatives, and expectations regarding those initiatives we discussed in detail with our filings with the SEC. Rubrik, Inc. assumes no obligation to update any forward-looking statements we make on today's call. With that, I will hand the call over to Bipul. Thank you, Melissa.

And thank you all for joining us today. Let me start by saying we ended the year that significantly exceeded our expectations. A spectacular Q4. We accelerated net new subscription ARR growth to a record $115,000,000. For the full fiscal year, we generated tremendous free cash flow of about $238,000,000, which is more than 10 times the free cash flow for the prior fiscal year. This is a clear indication that we are indeed laying the foundation of a long-term, highly profitable growth business. With that, we have once again exceeded all guided metrics across top line and profitability. Here are five key numbers. First, subscription ARR reached $1,460,000,000, growing 34% year over year. Second, our subscription revenue was $365,000,000, growing 50% year over year. Third, our subscription NRR remained strong once again above 120%. Fourth, customers with $100,000 or more in subscription ARR reached 2,805, growing 25% year over year. And finally, on profitability, once again we made material improvement in subscription ARR contribution margin, up over 950 basis points year over year. We generated $70,000,000 in free cash flow this quarter. Accelerating growth while improving margins and growing free cash flow at our scale is not only very impressive, but a rare combination. Now let me explain why and how we got here. Enterprise AI and agentic work disruptions are creating significant opportunities for us, and we are leaning into it. Rubrik, Inc. is a multiproduct company built on a unique and highly differentiated platform that solves the most consequential problem across data, identity, and AI. We continue to deliver phenomenal results quarter after quarter because we are comprehensively winning against the competition and enabling enterprise AI acceleration. In fact, our competitive win rates have crossed 90% in Q4 as we continue to disrupt the data and identity…

Thank you, Bipul. Good afternoon, everyone. Thank you for joining us today. I am pleased to note that we conclude this year with an exceptionally strong performance. This included record net new subscription ARR with accelerated growth and continued improvement in subscription contribution margin. This robust financial outcome demonstrates our focused execution and solidifies our leading position in the mission-critical cyber resilience market, a market that is benefiting from the ramping AI transformation. I will start by briefly recapping our fourth quarter fiscal 2026 financial results and key operating metrics, and then I will provide guidance for the first quarter and full year fiscal 2027. All comparisons, unless otherwise noted, are on a year-over-year basis. We are very pleased to have ended Q4 with subscription ARR of $1,460,000,000, growing 34%. We added over $115,000,000 in net new subscription ARR, another record amount for Rubrik, Inc. Continued adoption of Rubrik Security Cloud resulted in $1,290,000,000 of cloud ARR, up 48%. We are at the tail end of our cloud transition, with cloud ARR now representing 88% of subscription ARR as of Q4. We continue to see strong subscription net retention rate, which remained over 120% in the fourth quarter. We are very proud of the high customer retention and expansion dynamics of our business. Expansion occurs through data growth in existing applications, securing more applications or identities, or adding more security products. In fact, adoption of additional security products contributed over 45% of our subscription net retention rate in the quarter, up from 34% in the year-ago period. In the fourth quarter, we saw significant growth in our largest accounts, with the number of customers contributing $100,000 or more in subscription ARR rising 25% to 2,805. These large customers now represent 87% of our subscription ARR, an increase from 84% a…

Thank you, ladies and gentlemen. We will now begin the question-and-answer session. To join the queue, please press star one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star key followed by the number two. In the interest of time, we ask you please limit yourselves to one question each. Thank you. One moment, please, while we assemble the queue. Your first question comes from Matthew Martino of Goldman Sachs. Please go ahead.

Hey, good afternoon. Thank you guys for letting me ask a question here. Bipul, you mentioned ongoing Agent Cloud POCs with the Fortune 500 and AI startups. Can you help us understand what those two customer sets are each trying to solve for, and whether the early pull is showing up more around the monitoring and guardrail side or around remediate and rewind? Thank you.

Thanks, Matt. So as you would anticipate, customers first are trying to understand how many agents they have in the SaaS system, both sanctioned ones as well as shadow IT unsanctioned ones. So first understanding of all the agents in the platform, then they want to understand what these agents are actually doing. And then once they have understanding of this kind of monitoring observability, then the second step for them is to understand how they control it. And this is where the real-time dynamic guardrail that Rubrik, Inc. has developed, which is a unique solution, we are actually demonstrating to our customers as how you can stop agentic interactions in real time. The rewind piece will be a day-two problem, so to say. Once the customers get fully operationalized at scale with agents, then they will work on agentic rewind and how you undo the effects of unwanted action. But I think the first and the second piece is the high priority right now. Thanks a lot.

Thanks, Matt.

Your next question comes from Fatima Boolani of Citi. Please go ahead.

Good afternoon. Thank you for taking my question. Bipul, I wanted to talk to you about the sovereign cloud opportunity and the release of a Rubrik sovereign cloud. We have in principle seen this notion of sovereignty and data sovereignty up in other pockets of software and other domains of cybersecurity. So I wanted to get to the bottom of what has been the customer impetus in order for you to formalize and really build a dedicated product effort around this. And, you know, bringing that into kind of the numbers and how we think about the incremental opportunity, what is that incremental or new TAM that is now capturable as a result of this form factor or flavor of RSC being available? Thank you. Thanks, Fatima. Very, very insightful question.

What has really happened is given the geopolitics of the world and how things have evolved in the last, call it, five to ten years, every country is concerned about containing the supply chain, containing the economic infrastructure, which is data center, compute infrastructure, and actual data within their own borders. And so they have two kinds of requirements. The requirement number one is where they want the government infrastructure to be totally sovereign and constrained and in their own data center, controlled by very high ring-fenced security. So that is one. And then the second one is the public cloud infrastructure located in their country but with additional control of what data can go out and what can come in within those infrastructures. So the two flavors of sovereign kind of infrastructure or cloud, if you can call so. And AI is adding a new angle to this. In many countries, they are also thinking about creating AI infrastructure in a way that they can rent it out to other countries. And that AI infrastructure will be about like a digital embassy. And that digital embassy will run the AI infrastructure plus a sovereign way. So this is a new space. It is a fast emerging space. There are significant product changes, development, adaptation required because of the additional control and on-premises data center nature of it. But we are engaged with a number of customers on this. We are watching this market. TAM is still evolving. I do not have a good sense of how big the TAM would be. But whether it is net new, it is also unclear because before the sovereign concept, the customers were consuming IT services, but in a more shared way or cloud way. So it is also unclear if it is net new. But this architectural shift will require modernization of infrastructure, maybe cloud transformation. We believe that it is an interesting opportunity for us, and we are actively working on it. Thank you.

Your next question comes from John DiFucci of Guggenheim Securities. Please go ahead.

Thank you. Bipul, I have a question for you. So I listened closely to your prepared remarks. And Rubrik, Inc. sort of redefined its core market, right? Not only with the new modern architecture that was needed because of shifts in the IT infrastructure of the world, but you also expanded it beyond its traditional boundaries from backup and recovery to security against ransomware to be what became what you guys defined as cyber resilience platform. And it sounds like you are doing it again from an identity perspective. So my question, though, is on AI. It is something I do not like to ask about because I think it is asked too much and I think people talk about it too much. But should we be thinking about AI as another technology shift that will need the IT infrastructure of the world to adjust, which would require something you have talked about all the time, and that is continuous innovation to address not simply the application of old technology, which I think is sometimes what is happening out there. I guess, in other words, is there more to come from Rubrik, Inc. on this topic, and even others from a technology perspective that have similar DNA to adjust to a changing world? I am sorry for the long-winded question.

No, that is a good question, John. Thank you so much. Rubrik, Inc. is not a traditional company. Rubrik, Inc. is a living and breathing entity that has no finish line, and we are always thinking about how we help our customers as they adopt newer technology. They go through their own platform transition, and how we are two miles ahead of them, not 200 miles ahead of them, but positively surprise them with newer and newer solutions. And our original vision was that natural disaster and human error does not happen every day, but cyber disaster is the biggest problem in our industry, and we built Rubrik, Inc. to solve for cyber disaster in terms of cyber recovery and cyber resilience. And we created that market. We are dominating that market. And then we saw that identity-based attacks had become a real problem for our customers. And if you look at the recent attacks with BlackCat/ALPHV and Scattered Spider, they are attacking identity-based systems. So we built an identity solution, the most comprehensive identity recovery, identity resilience set of products. And I am very happy to report we crossed 900 customers in Q4, just on identity. So in just three, four quarters of selling, we have now crossed 900 customers. In Q3, we had reported that we had crossed 400 customers. Now we have crossed 900 customers. And it is the fastest-growing product in the history of our company. Identity we built two years ago. We are now building a new S-curve in AI. Because our customers want to adopt AI. They are concerned about the risk of AI because if the agents get compromised, then somebody can be controlling their business sitting in North Korea. And they do not want that. So they want agentic guardrails. The guardrails to be in real time. For example, even if you have an agent that has access to sending emails, you do not want them to send an email to everybody in Guggenheim all the time. So every agentic action has to be judged and stopped or allowed based on every action. We are building a very comprehensive platform for agentic operation for management, control, and rewind of AI agents. And we believe our platform’s unique ability around data, identity, and applications gives us a very natural position to really create the most important solutions to accelerate enterprise AI adoption. I always am a huge believer in non-consensus ideas, and we are building the most important AI company that nobody is focused on. And we will continue to build Rubrik, Inc. into where our customers are going and where our markets are going, and continue to be on the leading edge.

That sounds exciting. We will be watching, but one subtle thing in everything you said was I at least I take away from it is listening closely to your customers. Thank you very much.

Your next question comes from Eric Michael Heath of KeyBanc Capital Markets. Please go ahead.

Hey, thanks for taking the question and nice set of results here and guidance as well. Kind of taking a different direction in the question here. And obviously, broader outside of Rubrik, Inc. and software, there are some concerns on memory pricing. So, Kiran, I wanted to get some of your thoughts and feedback on how we should think about your indirect exposure to memory pricing. Are there any risks from higher memory pricing, or longer lead times affecting customers procuring Rubrik, Inc.'s appliances through your partners, or willingness to engage in infrastructure modernization projects? So just high level, how should we think about it? And then if there are any assumptions embedded in the guide, just curious to hear any thoughts there. Thanks.

Eric, this is Kiran. I will take that question. So we are obviously a software company, and we are in the business of selling software to our customers, whether self-hosted or in the cloud. But all software runs on some powered hardware, which requires components, including memory. So far, we are watching the situation closely, and we have not seen a significant impact on our business. Obviously, there is a portion of our business where customers self-host and they procure hardware, and we work with our customers when needed to ease for them. But, so far, we have not seen any material impact on our business as reflected in the results. Now coming to your question on guidance, I can again make some broad comments there, beyond just the assumptions on weighted hardware. But we have been very pleased with our Q4 and fiscal year 2026 results. It was a quarter of record net new ARR in terms of $115,000,000 as well as acceleration of growth. And when you look at our guidance, the subscription ARR metric, which is the key metric in which we measure success and momentum in our business, the net new growth guide was higher than the start of last year, and that is really a reflection of the momentum we see in the business. I will also add that we talk about our company in terms of three businesses. One is the largest business: data protection and cyber resilience business, which is mission critical, large, still growing, and we believe is largely underpenetrated. And we are very well positioned competitively there. So that is going to be a key driver for growth when you look at this year. We talked about the identity business earlier on the call. Lots of momentum there. That is our business where we sell products more so to the CISO, and lots to build there. The assumption on AI, while we are very excited, is we have not assumed much when we talk about fiscal 2027. The feedback is promising, but we will have to see how the year goes. We have also considered the overall environment, business macro environment, as well as the hardware supply issues you mentioned, and we have taken into account what we see right now and do not see a lot of impact at this very point. In terms of guidance, our approach has been similar. We want to put forward numbers based on all the inputs we have today, but want to put forward something we feel really good about in terms of delivering. And as we have progressed in the public markets, and now entering the third year, it is natural as in other software businesses that the results will tend to converge a little bit closer to guidance over time, and you would expect to see that as well. Hopefully, that has given you context on how we thought about guidance.

Yep. Very thorough. Thanks, Kiran.

Thank you, Eric. Next question comes from Brad Zelnick of Deutsche Bank. Please go ahead.

Great. Thank you so much and congrats on just a blowout Q4 and a phenomenal year. Kiran, I guess my question is for you. I appreciate all the reasons why the handoff in go-to-market leadership to Jesse Green should be seamless. But how should we think about the possibility of any pause, you know, any interruption, and the extent you may have contemplated this in your guidance? Thanks.

Brad, thank you so much for the question. Let me give you a little bit of a sense of how we thought about it. We hired Jesse almost three years ago with this in mind, that he will start as leader of Americas, then over time will be the successor for Brian. And so he has been a CRO in training for the last almost three years. Because he was running Americas in MongoDB, so he came to Rubrik, Inc. with this kind of clear path to be the CRO. So it was a very natural and easy transition for us. Obviously, we are always paranoid about every aspect of our business and keep thinking about what are different risks. But the transition has gone very smoothly. The team is stable and in place and executing. And again, the opportunity in front of us with respect to three lines of business—data protection, identity resilience, and AI—all three are very exciting, and we have six, seven different ways to land our platform to our customers. Customers do not have to buy our core product or first product to start with Rubrik, Inc. They can buy either just cloud, just identity, just on-prem. So our sellers see multiple different ways to succeed, and now they are selling a true portfolio of products, which actually creates opportunities for them and also stability in the team.

Very helpful. Thank you.

Next question comes from Gregg Steven Moskowitz of Mizuho. Please go ahead.

Great. Thank you for taking the question. So really terrific identity momentum and certainly an exciting opportunity ahead with Agent Cloud. That being said, Bipul, at a time when seemingly every investor is questioning the durability of their software portfolios, have any concerns about data recovery and resilience being meaningfully automated by AI over time, potentially impacting your core business value prop or wallet share with customers over the long term? It would just be helpful to get your perspective on this.

Rubrik, Inc. is a very large and complex piece of software, and it is an enterprise-scale boat with about a dozen years of soaking time with thousands of customer feedback and customer use cases in a large enterprise environment that has been built into this. And so it is not something that you can wipe code on, an LLM can solve. And we are the system of record of last resort around data and identity. When a large bank or large hospital faces a ransomware attack, at that time, Rubrik, Inc. is there to help their business come back online and get going. Moreover, as I said in my prepared remarks, Rubrik, Inc. is a hardware-optimized, platform-optimized software. And we have a thousand engineers working on it on a daily basis to enhance it and take customer feedback and soak in time with our product. So I do not believe that we have any disruption risk at all from AI. The second important thing is we are also not an orchestration application software. We are a data infrastructure company. And, you know, system of record, data management is the most important capability you need for this AI transformation. Because if you have no data or the integrity or confidence in the data or the availability of the data, then you have no AI. Data is the foundation of AI. And Rubrik, Inc. is the foundation data infrastructure software. We do not price our product based on number of employees in the company. We price our product based on the size and volume of the data. So Rubrik, Inc.’s importance only grows with the growth of AI and AI transformation of the enterprise. And we want to accelerate that transformation. That is why we introduced Rubrik Agent Cloud. Rubrik, Inc.’s stated mission is to secure and accelerate the world’s AI transformation. Because when the world goes through more AI transformation, it has more data, more software, more cyber threat, larger surface area of attack. More agents means more surface area of attack, more cyber compromise, you need more cyber resilience. You need more cyber recovery. We believe that our opportunity is only growing, and that is reflected in our result. If you look at our result, we deliver the most clean and complete results of any cybersecurity company. And that is not an accident.

That is very helpful. Thank you.

Thank you very much. Appreciate it. Your next question comes from Todd Adair Coupland of CIBC. Please go ahead.

Yes. Good evening, everyone. You had record net new in the quarter. As we think about the coming year, any, I guess, pull forward in Q4? Looks like the Q1 guide is seasonally lower by quite a bit. Could you just talk about those dynamics and whether or not you had any pull forward in Q4? Thanks a lot.

Todd, this is Kiran. I will take that one. So we had a very strong Q4, $115,000,000, accelerating growth. But I would say there is broad momentum across the quarter, both large and small deals. And, you know, we have spoken about earlier, you always have some deals which close earlier, close later. That is the nature of the enterprise software business. That is why we look at our business from a net new add on an annual basis. I am very pleased with the 20% growth there. And I will not call out anything from Q4 impacting Q1. Just a reminder that last year, Q1 was fairly unique. When you look at Q4 in the previous year versus Q1, there was a small dip. So it is a tougher compare when you look at growth rate, but from an overall scale perspective, and again, if you look at it on a full-year net new ARR basis, the starting point for the guide is stronger than, in terms of growth, than last year.

Thank you, Todd. We will take our next question from Junaid Siddiqui from Truist. Please go ahead.

Great. Your growth shows that you are continuing to take market share and making significant inroads in displacing these legacy vendors, as you cited. You know, how much of a runway do you think is left in displacing that legacy base? And maybe if you could just touch upon the competitive environment in the quarter. Thank you.

Thank you, Junaid. We are very early in legacy replacement. This is a very large and deep market. And as we are doing cyber resiliency transformation, specifically for the data center environment, we have a tremendous opportunity to continue to displace legacy vendors. Our win rate against the data protection vendors across the board is, I will repeat, north of 90%. North of 90% in Q4. The only deal that we are losing is the fight that we are not in. We are figuring out how we get in more fights, more routes to market, more parts of the world, and continue to disrupt this market. While we are disrupting the legacy space, we are opening up markets around cloud, around M365, around identity, and with AI, this new Rubrik Agent Cloud. So not only have we disrupted the legacy backup and recovery data protection market, but we have vastly expanded this market and completely redefined it to position this towards AI. And we are leaning into that AI and agentic disruption to really create, again, as I said, the most important security and AI operations company. Thank you.

Your next call comes from Keith Frances Bachman of BMO. Please go ahead.

Hi, many thanks for taking the question. Bipul, this is also for you. I wanted to go back to the Agent Cloud. Seems like a very interesting opportunity as we look out over the horizon, but I wanted to get your perspective on a few things. A, who do you see as the competition? There are lots of companies that you talk about the monitoring control plane, if you will, of agents. And, therefore, who do you see as your competition for this particular sector? And B, how do you think about how your go-to-market may transition? So, for instance, at BMO, the folks who buy Rubrik, Inc. for our backup, they are not the same people who would be buying a tool for monitoring and controlling agents. And just wondering how you think about how you might need to make, if any, any changes to go to market. And then C, when do you think we would be in position to talk about contribution of Agent Cloud to your results, even at any kind of metrics you may be able to provide? When do you think that will be? That is it for me. Many thanks.

Thank you, Keith. So let me take the first question about this market. This agent control and governance market is a new market, and it is still very early days of this market. And as you can imagine, everybody with a mother is jumping into this market. And most of the cybersecurity observability, ML observability companies are now repositioning themselves as agentic observability, agentic governance model. My belief is that the traditional cybersecurity companies or people in those cybersecurity companies will not be suitable for this market because traditional cybersecurity is all about rule-based platforms, and they are not in the real-time control of action. This market is about dynamic control. And you need to bring in AI to control agentic action. And AI requires model engineers. And most of the cybersecurity companies, probably none of the cybersecurity companies or these startups have any model engineering. We brought Predibase to solve this problem. And we have what we believe is a unique solution to control agentic action with AI, to really drive intent-based understanding of action and stopping it. So the market is very crowded, a lot of noise. But we believe that we have a unique perspective and solution in this market. Time will tell how this develops, how we grow, but we are excited. In terms of the buyer, again, this is a new market. Somebody under the CIO organization will be the buyer. CIO is our ultimate buyer for our data protection business. So we have some convergence with the ultimate buyer. Some organizations we see chief data officer, chief AI officer interested in this space. Some organizations we see engineering teams interested in this space. We will figure out how it all develops. But we like what we see so far, and we will keep updating you as we make progress in this space.

Okay. Many thanks, Bipul.

Thank you.

Your next question comes from James Fish of Piper Sandler. Please go ahead.

Hey, guys. Thanks for the question. Bipul, for you, with the increasing tech workloads and data being created, are you seeing an exponential increase in the amount of data, even more so than that sort of traditional workload, and how you are able to kind of compress this down so that enterprises just are not overwhelmed with the data? And then just as a follow-up on the go-to-market side, you guys talked that up. How much capacity are you guys looking to add, and how did productivity finish for the year?

Thanks, James. Obviously, AI requires data, and there is definitely data growth associated with AI. Having said that, agentic deployment in the enterprise is still early, and the main hurdle has been governance and security. And that is the problem we are solving. So I anticipate when the enterprises get fully operational on agents, they will have again more usage and production of data. So we remain very excited about this market. In terms of how much we are going to add from this, again, this is early days for Rubrik Agent Cloud. We are still learning and going through our process, just like what we did for identity last year, where we went to work with the customer to understand their problems, understand how tuned our solution was before actually scaling. And we are going through that learning process right now.

Your next question comes from Srini Nandury from Baird. Please go ahead.

Hey, and thanks for taking my question. So, Bipul, I know you said time will tell, but you guys have been framing these products as the S-curve, and it already feels because identity recovery has moved from proof point to real growth factor, and I know you said it reflects multiple years of work versus Agent Cloud still early. Of course, I wanted to ask you just if you have to characterize where identity fits today versus your original expectations around the S-curve, and then how should we think about the difference overall from an S-curve perspective in terms of timing, relative magnitude, and size. Again, I mean, I know it is still early, but just curious how you are thinking about those.

Sure. Thank you. If you look at our history, Rubrik, Inc. is a multiproduct platform company. And as I said before, the value from the platform increases as our customers adopt more of the Rubrik platform. And over the years, we have multiple products that we have scaled to $100,000,000-plus ARR in a short period of time. And as I said, identity was the fastest-growing product for us. In fact, it did exceed our expectation of how fast the product has scaled. And also, our engineering team did a tremendous job of building an amazing product and also building an amazing set of capabilities, not just Identity Recovery but Identity Resilience, which is both before and during attack, plus also creating an Okta solution, which we are seeing, again, early, high interest from our customer base. So we are committed to building a long-term company. The long-term company can only be built by stacking S-curves. We are always looking over the horizon and thinking, what else should we be building, how else we can serve our customer better, how do we become a long-term strategic partner to our customers, so that we learn from them, we build for them, we serve them in a way that creates a multidecade partnership with them.

Great. Thanks a lot.

There will be no further questions at this time. I will now turn the call back over to Bipul Sinha. Please go ahead.

Thank you so much, everyone, for your time today. As I said on the call, we remain very excited about the opportunities in front of us. Both cyber resilience and AI resilience and AI operations remain strong opportunities in front of us. Our team is dedicated to making sure that our customers go through AI transformation in a low-risk, risk-free manner and really take advantage of the productivity promised by AI. Thank you so much again for your trust. See you in a quarter.

Ladies and gentlemen, that concludes today’s conference call. Thank you for your participation. You may now disconnect.