Rapid7 Inc. (RPD)
NASDAQ:RPD
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Rapid7
(NASDAQ:RPD)
Select Model
Select Model
Rating:49Neutral
Price Target:
$5.00
▼(-1.38% Downside)
Action:ReiteratedDate:04/11/26
The score is held back primarily by balance-sheet leverage risk and weak technical momentum (broad downtrend). Improving profitability and positive free cash flow provide support, but valuation (high P/E) and earnings-call guidance signaling flat-to-down ARR/revenue with near-term margin pressure limit upside in the near term.
Positive Factors
Recurring subscription model
A subscription-centric business with recurring contracts creates durable revenue visibility and retention leverage. With modular cloud/security offerings, the model supports predictable renewals, cross-sell opportunities and higher lifetime value versus one-off sales, underpinning steady cash conversion.
Negative Factors
High leverage and thin equity
A capital structure with elevated debt and previously negative equity constrains flexibility and raises refinancing and covenant risk. Even with cash on hand, high leverage limits ability to absorb shocks or invest opportunistically and elevates downside in prolonged revenue weakness.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscription model
A subscription-centric business with recurring contracts creates durable revenue visibility and retention leverage. With modular cloud/security offerings, the model supports predictable renewals, cross-sell opportunities and higher lifetime value versus one-off sales, underpinning steady cash conversion.
Read all positive factors
Rapid7 (RPD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$334.08M
Dividend YieldN/A
Average Volume (3M)2.21M
Price to Earnings (P/E)42.1
Beta (1Y)1.06
Revenue Growth3.08%
EPS Growth-54.07%
CountryUS
Employees2,413
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.44
Shares Outstanding65,893,110
10 Day Avg. Volume1,740,468
30 Day Avg. Volume2,211,543
Financial Highlights & Ratios
PEG Ratio-3.45
Price to Book (P/B)6.36
Price to Sales (P/S)1.14
P/FCF Ratio6.81
Enterprise Value/Market Cap3.37
Enterprise Value/Revenue1.31
Enterprise Value/Gross Profit1.86
Enterprise Value/Ebitda13.10
Forecast
1Y Price Target
$9.08Price Target Upside79.16% Upside
Rating ConsensusHold
Number of Analyst Covering21
EPS Forecast (FY)1.55
Revenue Forecast (FY)$838.73M
Rapid7 Business Overview & Revenue Model
Company Description
Rapid7, Inc. provides cyber security solutions. The company offers a cloud-native insight platform that enables customers to create and manage analytics-driven cyber security risk management programs. Its platform includes InsightIDR, an incident ...
How the Company Makes Money
Rapid7 primarily makes money by selling subscriptions to its cybersecurity software and cloud services. Revenue is largely generated from recurring subscription contracts for access to its security platforms and modules (e.g., capabilities for vul...
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 Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call presented a mix of constructive operational and financial fundamentals—beating guidance on ARR, revenue and profitability, generating strong free cash flow, and advancing AI, MDR and partnership initiatives—while flagging near-term headwinds including flat ARR, modest revenue growth, margin pressure in Q1, and reduced visibility (no full-year ARR guidance). Management emphasized strategic investments intended to drive medium-term growth but acknowledged execution and timing risks in exposure management, professional services transition, and sales conversion. Overall, the company shows durability in cash generation and strategic positioning but faces meaningful near-term execution and growth challenges.Positive Updates
ARR and Revenue Exceeded Guidance at Year-End
Exited fiscal 2025 with ARR of $839.9M (reported as ~$840M) and total revenue of $859.8M (reported as $860M), both ahead of company guidance.
Negative Updates
Modest Revenue Growth and Flat ARR
Full-year 2025 revenue grew only 1.9% YoY and Q4 revenue grew 0.5% YoY. Ending ARR was roughly flat year-over-year (~$839.9M), indicating limited near-term growth acceleration.
Read all updates
Q4-2025 Updates
Positive
Negative
ARR and Revenue Exceeded Guidance at Year-End
Exited fiscal 2025 with ARR of $839.9M (reported as ~$840M) and total revenue of $859.8M (reported as $860M), both ahead of company guidance.
Read all positive updates
Company Guidance
Rapid7 guided Q1 2026 ARR of approximately $830 million (down ~1% YoY) and Q1 revenue of $207–$209 million (about -1% YoY at the midpoint), with Q1 non‑GAAP operating income of $19–$21 million (≈9.6% margin at midpoint) and non‑GAAP EPS of $0.29–$0.32 on roughly 77 million diluted shares; the company did not provide full‑year ARR guidance. For FY2026 Rapid7 guided revenue of $835–$843 million (≈ -2% YoY at the midpoint), non‑GAAP operating income of $108–$116 million (≈13.3% margin at midpoint), non‑GAAP EPS of $1.50–$1.60 on ~78 million shares, and free cash flow of $125–$135 million (flat YoY at midpoint, ≈15.5% FCF margin). Management noted a higher expense base entering 2026 (including the sales kickoff) that will Pressure near‑term margins but expects margins to expand into the mid‑teens as 2025 investments drive efficiencies; for context they exited FY2025 with ARR ~$839.9M, FY2025 revenue $859.8M, Q4 revenue $217.4M, Q4 non‑GAAP OI $30.1M (13.9%), FY2025 non‑GAAP OI $135.7M (15.8%), FY2025 non‑GAAP EPS $2.08, Q4 FCF $32.3M, FY2025 FCF $130M, ~11,500 customers (avg ARR/customer ≈ $72k), cash & securities ≈ $659M and a $200M undrawn revolver.Rapid7 Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
28
Negative
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 859.79M | 844.01M | 777.71M | 685.08M | 535.40M |
| Gross Profit | 604.75M | 592.97M | 545.97M | 470.73M | 366.46M |
| EBITDA | 86.05M | 97.31M | -39.14M | -70.28M | -88.12M |
| Net Income | 23.38M | 25.53M | -149.26M | -124.72M | -146.33M |
Balance Sheet | |||||
| Total Assets | 1.73B | 1.65B | 1.51B | 1.36B | 1.30B |
| Cash, Cash Equivalents and Short-Term Investments | 474.67M | 521.71M | 383.17M | 291.45M | 223.43M |
| Total Debt | 1.03B | 1.02B | 1.02B | 914.34M | 912.56M |
| Total Liabilities | 1.57B | 1.63B | 1.62B | 1.48B | 1.42B |
| Stockholders Equity | 154.73M | 17.71M | -118.18M | -120.07M | -126.00M |
Cash Flow | |||||
| Free Cash Flow | 144.53M | 168.25M | 99.91M | 57.82M | 44.91M |
| Operating Cash Flow | 152.13M | 171.67M | 104.28M | 78.20M | 53.92M |
| Investing Cash Flow | -209.44M | -46.52M | -178.75M | -39.99M | -325.38M |
| Financing Cash Flow | -43.81M | 5.58M | 79.60M | 7.42M | 264.13M |
Rapid7 Technical Analysis
Negative
5.07
Price Trends
7.13
Negative
10.88
Negative
15.48
Negative
Market Momentum
-0.57
Negative
30.96
Neutral
15.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RPD, the sentiment is Negative. The current price of 5.07 is below the 20-day moving average (MA) of 5.79, below the 50-day MA of 7.13, and below the 200-day MA of 15.48, indicating a bearish trend. The MACD of -0.57 indicates Negative momentum. The RSI at 30.96 is Neutral, neither overbought nor oversold. The STOCH value of 15.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $2.72B | 24.22 | 37.83% | ― | 9.95% | 12.72% | |
64 Neutral | $11.13B | 63.23 | 3.45% | ― | 12.12% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $2.37B | -38.13 | -27.04% | ― | 11.37% | -34.44% | |
54 Neutral | $8.86B | -31.51 | 64.45% | ― | 48.93% | 69.39% | |
49 Neutral | $334.08M | 42.08 | 22.00% | ― | 3.08% | -54.07% |
* Technology Sector Average
RPD
Rapid7
5.24
-18.42
-77.85%
QLYS
Qualys
81.40
-41.84
-33.95%
VRNS
Varonis Systems
21.97
-19.69
-47.26%
OKTA
Okta
65.46
-35.42
-35.11%
RBRK
Rubrik, Inc. Class A
48.61
-11.44
-19.05%
Rapid7 Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Rapid7 Reaches Board Nomination Agreement With JANA Partners
Neutral
Mar 31, 2026
On March 26, 2026, Rapid7, Inc. entered into a Nomination and Support Agreement with activist investor JANA Partners Management, LP under which the company will add JANA’s nominee, Kevin Galligan, to its slate of recommended directors for el...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Rapid7 Prioritizes Profitability Amid Slower 2026 Growth Outlook
Neutral
Feb 10, 2026
Rapid7 on February 5, 2026 disclosed that long‑time director Michael Berry will not stand for re‑election at the 2026 annual meeting, ending more than 13 years of board service, with the company emphasizing that his departure does not ...
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.