The earnings call highlighted Rapid7's achievements in exceeding revenue and operating income expectations, strong free cash flow generation, and strategic partnerships, particularly with Microsoft, to enhance its AI-powered SOC vision. However, challenges with ARR growth, large deal timing variability, and ongoing operational and leadership transitions contributed to a cautious outlook. The company's decision to reduce its 2025 ARR target reflects an acknowledgment of these challenges.
Company Guidance
During the Q3 2025 earnings call, Rapid7 provided financial guidance and strategic insights for the company's future. The guidance highlighted a 2% year-over-year increase in Annual Recurring Revenue (ARR), bringing it to $838 million, although the company acknowledged falling short of previous ARR guidance. The revenue for the quarter was reported at $218 million, with an operating income of $37 million, both exceeding the company's outlook. Rapid7 also generated $30 million in free cash flow during the quarter. For the full fiscal year 2025, the company has revised its ARR target, reflecting a more conservative outlook due to leadership changes and operational adjustments. Rapid7 expects full-year revenue to be between $856 million and $858 million, with an operating income of $130 million to $135 million, representing an operating margin of 15% to 16%. The call also emphasized Rapid7's strategic focus on their AI-powered Security Operations Center (SOC), organizational changes to accelerate market capture, and the introduction of new leadership, including Allan Peters as Chief Commercial Officer and Rafe Brown as the incoming Chief Financial Officer.
Strong Free Cash Flow
Rapid7 generated $30 million in free cash flow in Q3 2025, contributing to a year-to-date total of $98 million, indicating strong cash flow management.
Revenue and Operating Income Exceed Expectations
Revenue for the quarter was $218 million and operating income was $37 million, both ahead of the company's outlook.
Expansion with Microsoft Partnership
Rapid7 announced an expanding partnership with Microsoft to enhance detection and response capabilities across Microsoft environments, integrating Rapid7's SOC expertise with Microsoft's security ecosystem.
AI-Powered SOC Vision
The company continues to innovate on its AI-powered SOC vision, focusing on integrating AI to consolidate core elements of exposure and response in the SOC.
Rapid7 (RPD) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
RPD Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Nov 04, 2025
$17.80
$14.25
-19.94%
Aug 07, 2025
$19.82
$17.88
-9.79%
May 12, 2025
$26.74
$24.56
-8.15%
Feb 12, 2025
$36.79
$34.82
-5.35%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Rapid7 Inc. (RPD) report earnings?
Rapid7 Inc. (RPD) is schdueled to report earning on Feb 11, 2026, After Close (Confirmed).
What is Rapid7 Inc. (RPD) earnings time?
Rapid7 Inc. (RPD) earnings time is at Feb 11, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.