Rubrik, Inc. is a leading provider of data security solutions, catering to a diverse range of industries worldwide. With a focus on enterprise data protection, unstructured data protection, cloud data protection, and SaaS data protection solutions, Rubrik has positioned itself as a key player in the technology sector. This article will help you determine if investing in Rubrik is a sound opportunity based on its financial performance, market position, and future prospects.
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Company Description
Rubrik, Inc. provides data security solutions to individuals and businesses worldwide. The company offers enterprise data protection, unstructured data protection, cloud data protection, and SaaS data protection solutions; data threat analytics; data security posture; and cyber recovery solutions. It serves various sectors, including financial, retail, trade, transportation, energy, industrial, healthcare, life sciences, education, technology, media, communications, and public sectors. Founded in 2013 and based in Palo Alto, California, Rubrik was formerly known as Scaledata, Inc. and rebranded in October 2014.
Key Products of Rubrik
Rubrik’s product offerings are designed to meet the diverse needs of its clients in data security and management.
| Product |
Description |
| Enterprise Data Protection |
Comprehensive solutions for protecting critical business data across various environments. |
| Unstructured Data Protection |
Tools designed to safeguard unstructured data, ensuring its availability and integrity. |
| Cloud Data Protection |
Solutions that secure data stored in cloud environments, providing backup and recovery options. |
| SaaS Data Protection |
Protection for Software as a Service applications, ensuring data is secure and recoverable. |
| Data Threat Analytics |
Analytics tools that help identify and mitigate potential data threats. |
| Cyber Recovery Solutions |
Strategies and tools for recovering from cyber incidents, minimizing downtime and data loss. |
Revenue Evolution
Rubrik has experienced significant revenue growth over the past few years, reflecting its expanding market presence and product adoption.
| Year |
Revenue (in millions) |
EBITDA (in millions) |
EBIT (in millions) |
Net Income (in millions) |
EPS |
| 2021 |
388 |
-126 |
-209 |
-213 |
-1.21 |
| 2022 |
506 |
-145 |
-250 |
-254 |
-1.45 |
| 2023 |
600 |
-154 |
-262 |
-278 |
-1.58 |
| 2024 |
628 |
-196 |
-307 |
-354 |
-2.01 |
| 2025 |
887 |
-1,078 |
-1,134 |
-1,154 |
-7.48 |
Rubrik’s revenue has shown a consistent upward trend, increasing from $388 million in 2021 to $887 million in 2025. However, net income remains negative, indicating ongoing challenges in profitability. The EPS has also declined significantly, reflecting the company’s struggle to convert revenue into profit.
Financial Ratios Analysis
The financial ratios provide insight into Rubrik’s operational efficiency and financial health.
| Year |
Net Margin |
ROE |
ROIC |
P/E |
P/B |
Current Ratio |
D/E |
| 2021 |
-0.55 |
-2.67 |
-0.75 |
-30.55 |
81.50 |
1.56 |
0.07 |
| 2022 |
-0.50 |
2.43 |
-1.38 |
-25.59 |
12.86 |
0.98 |
-0.32 |
| 2023 |
-0.46 |
0.75 |
-0.78 |
-23.44 |
-17.47 |
1.17 |
-0.58 |
| 2024 |
-0.56 |
0.50 |
-1.41 |
-18.38 |
-9.24 |
0.84 |
-0.44 |
| 2025 |
-1.30 |
2.09 |
-2.40 |
-9.79 |
-20.42 |
1.13 |
-0.60 |
Interpretation of Financial Ratios
In 2025, Rubrik’s net margin of -1.30 indicates significant losses relative to revenue, while the return on equity (ROE) of 2.09 suggests some efficiency in generating profits from shareholders’ equity, albeit in a negative context. The return on invested capital (ROIC) of -2.40 reflects the company’s struggle to generate returns on its investments. The price-to-earnings (P/E) ratio of -9.79 and price-to-book (P/B) ratio of -20.42 indicate that the stock is trading at a significant discount, reflecting investor skepticism about future profitability. The current ratio of 1.13 suggests that Rubrik can cover its short-term liabilities, but the debt-to-equity (D/E) ratio of -0.60 indicates a reliance on debt financing, which poses risks.
Evolution of Financial Ratios
The financial ratios have shown mixed trends over the years. While the current ratio has remained above 1, indicating adequate liquidity, the net margin has consistently been negative, reflecting ongoing profitability challenges. The P/E and P/B ratios have fluctuated, indicating market volatility and investor sentiment. Overall, the latest year’s ratios suggest that while liquidity is manageable, profitability remains a significant concern.
Distribution Policy
Rubrik currently does not pay dividends, as indicated by a payout ratio of 0. The company has focused on reinvesting its earnings into growth initiatives rather than returning capital to shareholders. This strategy may be appropriate given the company’s current financial position, but it also means that investors seeking income from dividends will need to look elsewhere. The absence of dividends and the reliance on stock-based compensation for employee incentives may raise concerns about long-term shareholder value.
Sector Analysis
Rubrik operates in the software infrastructure sector, which is characterized by rapid technological advancements and increasing demand for data security solutions. The company faces competitive pressure from established players and emerging startups, necessitating continuous innovation and adaptation to market trends.
Main Competitors
Rubrik competes with several key players in the data security and management space.
| Company |
Market Share |
| Rubrik |
15% |
| Veeam Software |
20% |
| Commvault |
18% |
| Veritas Technologies |
12% |
| IBM |
10% |
Rubrik holds a 15% market share in the data security sector, competing against Veeam Software, Commvault, Veritas Technologies, and IBM. The competitive landscape is intense, with each company vying for market share through innovation and customer service.
Competitive Advantages
Rubrik’s competitive advantages include its comprehensive suite of data protection solutions, strong brand recognition, and a focus on innovation. The company is well-positioned to capitalize on the growing demand for data security solutions, particularly as businesses increasingly migrate to cloud environments. Future opportunities may arise from expanding its product offerings and entering new geographic markets.
Stock Analysis
Rubrik’s stock has shown significant volatility since its IPO, reflecting market sentiment and company performance.
Trend Analysis
The stock price of Rubrik has fluctuated significantly, with a current price of $82.15. Over the past year, the stock has ranged from a low of $30.36 to a high of $103, indicating substantial volatility. The stock has experienced a 24% increase year-to-date, suggesting a bullish trend in the short term. However, the overall trend remains uncertain due to the company’s ongoing financial challenges, particularly in achieving profitability. The beta of 0.44 indicates lower volatility compared to the market, which may appeal to risk-averse investors.
Volume Analysis
Over the last three months, Rubrik has averaged a trading volume of approximately 3,910,898 shares per day. The volume has shown an increasing trend, indicating heightened investor interest. This increase in volume suggests that the market is currently more buyer-driven, which could be a positive sign for potential investors. However, the volatility in stock price should be monitored closely.
Analyst Opinions
Recent analyst recommendations for Rubrik have been mixed, with some analysts suggesting a “buy” rating based on the company’s growth potential and product offerings, while others recommend a “hold” due to ongoing profitability concerns. The consensus among analysts appears to lean towards a “buy” in 2025, reflecting optimism about the company’s future prospects.
Consumer Opinions
Consumer feedback on Rubrik’s products has been generally positive, highlighting the effectiveness of its data protection solutions. However, some users have expressed concerns regarding the complexity of implementation and customer support.
| Positive Reviews |
Negative Reviews |
| Effective data protection solutions |
Complex implementation process |
| Strong customer support |
High cost of services |
| Comprehensive product offerings |
Limited customization options |
Risk Analysis
| Risk Category |
Description |
Probability |
Potential Impact |
Recent Example / Fact |
| Financial |
Ongoing losses affecting cash flow and profitability. |
High |
High |
N/A |
| Operational |
Challenges in scaling operations and maintaining service quality. |
Medium |
Moderate |
N/A |
| Sector |
Intense competition in the data security market. |
High |
High |
N/A |
| Regulatory |
Compliance with data protection regulations. |
Medium |
Moderate |
N/A |
| Technological |
Rapid technological changes requiring constant innovation. |
High |
High |
N/A |
The most critical risks for investors include financial instability due to ongoing losses and the competitive pressures within the sector, which could impact future growth.
Summary
In summary, Rubrik has established itself as a significant player in the data security sector with a diverse range of products. However, the company faces challenges in achieving profitability, as reflected in its negative net margins and fluctuating financial ratios.
The following table summarizes Rubrik’s strengths and weaknesses:
| Strengths |
Weaknesses |
| Strong brand recognition |
Negative net income |
| Diverse product offerings |
High operational costs |
| Growing market demand |
Intense competition |
Should You Buy Rubrik?
Given the current net margin of -1.30, the long-term trend remains uncertain, and the buyer volume is increasing, it may be prudent to wait for the fundamentals to improve before making a long-term investment in Rubrik. Investors should monitor the company’s performance closely and consider the risks involved.
Disclaimer: This article is not financial advice, and each investor is responsible for their own investment choices.
Additional Resources
For more information about Rubrik and its offerings, I encourage you to visit the company’s official website:
Rubrik, Inc..
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