Want to see RPD full AI Analyst Report?
Top Page
Rapid7
(NASDAQ:RPD)
Select Model
Select Model
Rating:61Neutral
Price Target:
$12.00
▲(26.45% Upside)
Action:Reiterated
Date:08/11/26
The score is driven primarily by mixed fundamentals: strong cash generation and improving profitability are offset by very weak recent revenue momentum and high leverage. Technically, the stock shows a clear bullish trend above key moving averages, supporting the score. Valuation remains a modest headwind given the ~38 P/E alongside guidance for declining revenue, while the earnings call was cautiously constructive on margins/FCF but negative on near-term growth and ARR trajectory.
Positive Factors
Recurring subscription revenue & customer base
Rapid7’s business is built on subscription software with >11.5k customers and average ARR per customer of ~$70k, providing a durable recurring revenue base. This supports predictable renewals, upsell potential and enterprise stickiness that underpins long-term cash flow and retention.
Negative Factors
High leverage and near-term maturities
Elevated leverage (debt-to-equity ~4.9x and roughly $0.96B of debt) plus $600M of convertible notes maturing in March 2027 create structural refinancing and covenant risk. High leverage limits capital allocation flexibility and makes execution sensitive to cash flow and market conditions over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscription revenue & customer base
Rapid7’s business is built on subscription software with >11.5k customers and average ARR per customer of ~$70k, providing a durable recurring revenue base. This supports predictable renewals, upsell potential and enterprise stickiness that underpins long-term cash flow and retention.
Read all positive factors
Rapid7 Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyRapid7 (RPD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$833.75M
Dividend YieldN/A
Average Volume (3M)2.63M
Price to Earnings (P/E)40.6
Beta (1Y)1.43
Revenue Growth0.07%
EPS Growth-33.38%
CountryUS
Employees2,613
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.30
Shares Outstanding67,400,640
10 Day Avg. Volume2,589,908
30 Day Avg. Volume2,630,006
Financial Highlights & Ratios
PEG Ratio-3.46
Price to Book (P/B)6.36
Price to Sales (P/S)1.14
P/FCF Ratio6.81
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$11.84Price Target Upside24.78% Upside
Rating ConsensusHold
Number of Analyst Covering21
EPS Forecast (FY)1.56
Revenue Forecast (FY)$838.67M
Rapid7 Business Overview & Revenue Model
Company Description
Rapid7, Inc. specializes in delivering cutting-edge cybersecurity solutions. Central to its offerings is a sophisticated, cloud-native platform designed to equip organizations with analytics-driven programs for managing and mitigating cyber risks....
How the Company Makes Money
Rapid7 primarily makes money by selling cybersecurity software on a subscription basis, generating recurring revenue from customers who pay for access to its security platforms and modules over contract terms (often billed annually or multi-year)....
Rapid7 Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: clear operational progress on profitability, cash generation, margin guidance upgrades, and focused strategic direction (AI-first, core platform) are offset by near-term revenue/ARR declines, exposure management weakness, gross margin compression, and a meaningful restructuring that impacts ~12% of employees. Management beat guidance for the quarter and raised margin targets, but growth challenges and transformation timing create uncertainty. Overall, there is cautious optimism—improved financial discipline and cash position, but the company must execute over multiple quarters to translate investments into durable ARR growth.Positive Updates
ARR and Core Growth Stabilization
Total ARR ended Q2 at $824M. Core platform solutions (D&R + exposure management) represent over 80% of ARR and grew ~1% year-over-year, led by Detection & Response which grew ~5% YoY and represents ~55% of total ARR.
Negative Updates
Total Revenue and ARR Pressure
Total Q2 revenue was $210.9M, down ~1.5% year-over-year. Management signaled total ARR declined sequentially and expects ending ARR in Q3 of ~ $812M (sequential decline) with Q3 revenue guidance implying ~4% YoY decline at the midpoint.
Read all updates
Q2-2026 Updates
Positive
Negative
ARR and Core Growth Stabilization
Total ARR ended Q2 at $824M. Core platform solutions (D&R + exposure management) represent over 80% of ARR and grew ~1% year-over-year, led by Detection & Response which grew ~5% YoY and represents ~55% of total ARR.
Read all positive updates
Company Guidance
Rapid7 guided ending Q3 FY26 ARR of approximately $812M (core D&R + exposure management roughly flat Q/Q, declines expected from non‑core), Q3 revenue of $208–210M (≈‑4% YoY at midpoint), Q3 non‑GAAP operating income of $34–36M (~16.7% margin at midpoint) and non‑GAAP diluted EPS of $0.44–0.47 on ~80M fully diluted shares. For full‑year FY26 they guided revenue of $837–841M (≈‑2% YoY at midpoint), non‑GAAP operating income of $129–133M (~15.6% margin at midpoint with an implied ~20% non‑GAAP operating margin in Q4), non‑GAAP EPS of $1.78–1.83 on ~79M shares, and free cash flow of about $130M (~15.5% FCF margin). Management expects restructuring charges of ~$10–11M (mostly cash in Q3–Q4) with roughly 12% of the workforce impacted; the company exited Q2 with ARR $824M, Q2 non‑GAAP operating income $28.9M, Q2 FCF $31.9M, cash & short‑term investments ≈$703M, and a $200M undrawn credit facility while planning to address $600M of convertible notes due March 2027.Rapid7 Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
38
Negative
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 855.92M | 859.79M | 844.01M | 777.71M | 685.08M | 535.40M |
| Gross Profit | 593.13M | 604.75M | 592.97M | 545.97M | 470.73M | 366.46M |
| EBITDA | 77.74M | 86.05M | 97.31M | -39.14M | -70.28M | -88.12M |
| Net Income | 20.14M | 23.38M | 25.53M | -149.26M | -124.72M | -146.33M |
Balance Sheet | ||||||
| Total Assets | 1.74B | 1.73B | 1.65B | 1.51B | 1.36B | 1.30B |
| Cash, Cash Equivalents and Short-Term Investments | 702.58M | 474.67M | 521.71M | 383.17M | 291.45M | 223.43M |
| Total Debt | 961.65M | 1.03B | 1.02B | 1.02B | 914.34M | 912.56M |
| Total Liabilities | 1.55B | 1.57B | 1.63B | 1.62B | 1.48B | 1.42B |
| Stockholders Equity | 196.70M | 154.73M | 17.71M | -118.18M | -120.07M | -126.00M |
Cash Flow | ||||||
| Free Cash Flow | 140.28M | 144.53M | 168.25M | 99.91M | 57.82M | 44.91M |
| Operating Cash Flow | 152.93M | 152.13M | 171.67M | 104.28M | 78.20M | 53.92M |
| Investing Cash Flow | 11.18M | -209.44M | -46.52M | -178.75M | -39.99M | -325.38M |
| Financing Cash Flow | -124.00K | -43.81M | 5.58M | 79.60M | 7.42M | 264.13M |
Rapid7 Technical Analysis
Positive
9.49
Price Trends
9.84
Positive
8.10
Positive
10.05
Positive
Market Momentum
0.82
Negative
59.34
Neutral
54.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RPD, the sentiment is Positive. The current price of 9.49 is below the 20-day moving average (MA) of 10.97, below the 50-day MA of 9.84, and below the 200-day MA of 10.05, indicating a bullish trend. The MACD of 0.82 indicates Negative momentum. The RSI at 59.34 is Neutral, neither overbought nor oversold. The STOCH value of 54.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RPD.
Rapid7 Risk Analysis
Rapid7 disclosed 52 risk factors in its most recent earnings report. Rapid7 reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rapid7 Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $6.34B | 31.61 | 37.17% | ― | 10.71% | 14.48% | |
75 Outperform | $24.90B | 102.31 | 3.59% | ― | 11.75% | 85.38% | |
64 Neutral | $4.96B | -35.39 | -26.91% | ― | 15.86% | -33.39% | |
62 Neutral | $20.79B | -69.19 | 55.24% | ― | 45.73% | 48.87% | |
61 Neutral | $833.75M | 40.58 | 12.33% | ― | 0.07% | -33.38% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
RPD
Rapid7
12.59
-8.55
-40.44%
QLYS
Qualys
187.98
54.88
41.23%
VRNS
Varonis Systems
43.72
-14.49
-24.89%
OKTA
Okta
143.92
52.77
57.89%
RBRK
Rubrik, Inc. Class A
100.55
16.58
19.75%
Rapid7 Corporate Events
Business Operations and StrategyFinancial Disclosures
Rapid7 Announces 2026 Restructuring to Refocus Core Platform
Negative
Aug 10, 2026
On August 7, 2026, Rapid7’s board approved a 2026 restructuring plan that simplifies operations and reallocates investment toward its core Command Platform, detection and response, and exposure management capabilities. The plan includes cutt...
Executive/Board ChangesShareholder Meetings
Rapid7 Shareholders Endorse Board, Auditor and Executive Pay
Positive
Jun 10, 2026
On June 9, 2026, Rapid7, Inc. held its 2026 Annual Meeting of Stockholders, where shareholders elected eleven directors to serve until the 2027 annual meeting, signaling continued support for the company’s current board composition and gover...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Rapid7 Appoints Wael Mohamed CEO in Leadership Transition
Positive
Jun 1, 2026
Rapid7 has announced a leadership transition effective June 1, 2026, with board member Wael Mohamed appointed chief executive officer and long-time CEO Corey Thomas moving to the role of executive chairman. The board also named Marc Brown lead ind...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.