Rapid7, Inc. Q3 2026 Earnings Recap

Rapid7’s shares rose 2.7%, a roughly flat reaction. The company met Q3 ARR guidance and said core ARR was flat sequentially, but management stressed that this is not yet a return to growth.

Key Takeaways

• Q3 ARR met guidance; core ARR was flat from Q2, which management described as an early sign of stability rather than growth.
• Management reaffirmed approximately $130 million in full-year free cash flow guidance and expects to exit 2026 at approximately 20% non-GAAP operating margin.
• Rapid7 plans to use cash on hand to retire its convertible notes due in March 2027; afterward, interest income on that cash will fall away.
• Management said exposure management is still “not where it needs to be” and is reviewing the long-term path for non-core businesses, including ending sales of selected standalone versions.
• The company plans to focus new growth investment on detection and response, exposure management, and an AI-first service layer; management framed durable growth as work still ahead.