Rapid7, Inc. Earnings Recaps
Q1 2026
May 6, 2026
Shares rose modestly by 1.2% following the report, reflecting investor caution despite solid execution in key areas. While ARR and revenue growth in detection and response supported results, ongoing headwinds in non-core segments and a mixed outlook tempered enthusiasm.
Key takeaways
- ARR reached $832 million, driven by approximately 7% growth in detection and response, notably aided by strength in MDR and a new seven-figure Fortune 500 deal.
- Revenue totaled $210 million, balancing growth in core areas against softness in standalone non-core offerings.
- Non-GAAP operating income of $24 million and free cash flow of $33 million exceeded internal guidance, reflecting focused operational execution.
- The acquisition of Kensile Security boosts AI SOC capabilities and supports a shift toward autonomous, machine-speed security operations with potential margin leverage.
- Innovation continues on the Exposure Command platform with new runtime validation and data security posture management features, enhancing proactive vulnerability detection.
Q3 2025
Nov 5, 2025
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.
Key takeaways
- 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.