Rapid7 reported Q3 2025 revenue of $218 million, exceeding expectations, while its annual recurring revenue (ARR) grew modestly to $838 million amid internal leadership changes aimed at accelerating go-to-market strategies.
- ARR increased 2% year-over-year to $838 million, though the company acknowledged a need to scale back its previous guidance.
- Q3 operating income reached $37 million, highlighting effective cost management alongside revenue growth.
- Free cash flow remained robust at $30 million, reflecting strong operational efficiency.
- Recent leadership changes, including a new Chief Commercial Officer and planned operational adjustments, are intended to reinvigorate growth, particularly in the managed detection and response (MDR) sector.
- The company is focusing on its AI-powered security operations platform to deliver comprehensive solutions and improve deal cycles despite industry-wide challenges.
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