Rubrik Inc Q2 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Saket Kalia - Barclays Capital Inc - Analyst : Okay, great. Hey guys, thanks for taking my question here and another nice job this quarter. Okay. Absolutely. Guys, the number that really jumped out to me the most of all was the free cash flow margin at 19% in the quarter. I think that's now four consecutive quarters of positive free cash flow. B, maybe the question is what's changed strategically in driving that type of profitability? And Kiran, is there anything that we should think about in the second half on free cash flow as we fine tune our models?

Question: Saket Kalia - Barclays Capital Inc - Analyst : Super helpful guys thank you. Yes I can.

Question: Andrew Nowinski - Wells Fargo Securities, LLC - Analyst : Okay, good afternoon. I just wanted to say I think the net new in Q2 is really impressive considering you went through a sales comp change, moving to annual sales comp plans this year, and so I know I, the change really didn't have an impact on your year to year growth in Q2, but I was wondering if you could just talk about whether you saw any impact from that and, whether you're expecting higher seasonality in Q4 because of that change. Thank you.

Question: Unidentified Participant - Guggenheim Partners, LLC - Analyst : Great, thank you. This is Howard Ma on for John. I guess either for people or Karen, can you help us understand how you're leverage to data growth? For instance, there's an aspect to your pricing model that's based on volunteers, which you could argue is directly tied to data growth, and then there's a user-based element, especially with securing fast apps. So what is the mix today and is there opportunity for a purely consumption-driven component that gets bigger over time?

Question: Unidentified Participant - Guggenheim Partners, LLC - Analyst : Yes, it does.

Question: Eric Heath - KeyBanc Capital Market Inc - Analyst : Hey guys, thanks for taking the question and congrats on the results again. Karen. I want to ask a few different questions on the model if I could. Could you just help us understand maybe what drove some of the early renewal activity given some of the sales com structure changes to make it more year end? I would have thought the opposite would have happened given the com structure change and if you could just speak to what what's driving the decline in non-cloud air our recorders. A little bit bigger than one and and lastly if I could if I get a if I could push it, but on the material rights just what's driving that higher material rights activity that you're not necessarily expecting or you weren't expecting thanks.

Question: Eric Heath - KeyBanc Capital Market Inc - Analyst : Thanks, Kiran. I threw a lot at you, but I appreciate that thank you.

Question: Matthew Martino - Goldman Sachs - Analyst : Hey guys, this is [Matt Martino] on for Kash. Thanks for taking my question. B, Rubrik's brought to market a slew of new innovations across identity, AI, and data security. As you expand from a core product to a multi-product platform, how do you see your go to market and sales motion evolving to effectively sell this broader, more complex vision to the C-suite?

Question: Matthew Martino - Goldman Sachs - Analyst : Very helpful. Thank you, Ben.

Question: Gregg Moskowitz - Mizuho Securities Co., Ltd - Analyst : Great, thank you for taking the question and very nice quarter, guys. I wanted to ask about DSPM first of all, how it is in the, Q2, but, more broadly because it remains a hot area within cybersecurity, but these days almost all the larger vendors have. Some sort of offering, clearly a significant majority of enterprises have yet to implement SPM. When I think about Rubrik, I, you have a differentiated position here, but is there a point at which you think we'll see an inflection in the SPM market adoption? How do you think this will all evolve?

Question: Gregg Moskowitz - Mizuho Securities Co., Ltd - Analyst : Okay, that's helpful. Thank you.

Question: Todd Coupland - CIBC - Analyst : Great, good evening everyone. You gave a number of examples on competitive wins this quarter. Could you just talk about, the environment and, your major sources of share and, update us on your deal win rate. Thanks a lot.

Question: Todd Coupland - CIBC - Analyst : Great. Thanks for the color.

Question: Junaid Siddiqui - Truist Securities - Analyst : Great, thanks for taking my question. As the MCP protocol adoption gains traction across the cybersecurity ecosystem, do you view it as a strategic growth lever that could expand Rubrik's role from, data protection into a broader security orchestration platform?

Question: James Fish - Piper Sandler Companies - Analyst : Hey guys, sorry for any background noise here. Just want to go back to the DSPM side. Any way to think about the updated penetration here and what you're seeing competitively just within this part of the market and then additionally, what are you guys assuming you're thinking about the Fed here heading into, the big Fed and understanding it's been a small part historically, what opportunities do you actually see for maybe some disruption there. Thanks guys.

Question: Zach Schneider - Baird - Analyst : Great. Hey guys, this is Zach Schneider. I'm for Shrenik. Thanks for taking our question. So I believe nearly half of new deals are landing in Enterprise here with foundation still a key entry point for budget constrained customers, and please correct me if that number is wrong. But could you just walk us through how deal sizes, renewal patterns, or subsequent expansions differ across the tiers, especially over multi-year contracts.