Rapid7 (NASDAQ:RPD) Issues Quarterly Earnings Results

Rapid7 (NASDAQ:RPD) announced its quarterly earnings data on Tuesday. The technology company reported $0.36 EPS for the quarter, beating the consensus estimate of $0.30 by $0.06, FiscalAI reports. Rapid7 had a net margin of 2.61% and a return on equity of 37.85%. The business had revenue of $209.69 million during the quarter, compared to the consensus estimate of $207.94 million. During the same period in the previous year, the business earned $0.49 earnings per share. The company’s revenue was down .3% on a year-over-year basis. Rapid7 updated its FY 2026 guidance to 1.520-1.600 EPS and its Q2 2026 guidance to 0.330-0.360 EPS.

Here are the key takeaways from Rapid7’s conference call:

• Rapid7 beat guidance across all guided metrics in Q1 with ARR of $832M, revenue of $209.7M, non-GAAP operating income of $24.4M, and free cash flow of $33.4M.
• The acquisition of Kenzo Security is positioned as an accelerant for the company’s AI SOC and autonomous MDR capabilities, which management says should drive MDR growth and improve contribution margins over time.
• Management frames the business as >80% “core platform” (Detection & Response and Exposure Management); D&R grew ~7% YoY while Exposure Management is stabilizing but not yet a growth driver.
• Declines in standalone non-platform products drove sequential ARR deterioration and an ARR guide for Q2 of ~$820M, with management citing accelerated churn in those non-core offerings.
• Revenue was down 0.3% YoY and non-GAAP gross margin fell ~280 bps to 72% (attributed to SOC staffing), and full-year revenue guidance was trimmed (midpoint down ~2.4% YoY), signaling near-term pressure on top-line growth.

Rapid7 Trading Up 2.1%

NASDAQ RPD traded up $0.14 on Thursday, reaching $6.71. The company had a trading volume of 2,002,733 shares, compared to its average volume of 1,966,871. The firm has a market cap of $448.03 million, a price-to-earnings ratio of 19.17 and a beta of 0.89. Rapid7 has a fifty-two week low of $4.97 and a fifty-two week high of $27.10. The business has a 50 day moving average of $6.03 and a two-hundred day moving average of $11.24. The company has a debt-to-equity ratio of 5.77, a current ratio of 1.28 and a quick ratio of 1.28.

Institutional Investors Weigh In On Rapid7

Institutional investors and hedge funds have recently made changes to their positions in the stock. Headlands Technologies LLC acquired a new stake in shares of Rapid7 in the second quarter valued at about $44,000. Parallel Advisors LLC increased its stake in shares of Rapid7 by 81.6% in the fourth quarter. Parallel Advisors LLC now owns 3,036 shares of the technology company’s stock valued at $46,000 after buying an additional 1,364 shares during the period. Los Angeles Capital Management LLC acquired a new stake in Rapid7 during the 4th quarter valued at approximately $71,000. Advisors Asset Management Inc. acquired a new stake in Rapid7 during the 4th quarter valued at approximately $79,000. Finally, Marex Group plc bought a new position in Rapid7 during the 4th quarter worth approximately $162,000. Institutional investors and hedge funds own 95.66% of the company’s stock.

Analysts Set New Price Targets

RPD has been the subject of several research analyst reports. Canaccord Genuity Group lowered their price objective on shares of Rapid7 from $10.00 to $7.00 and set a “hold” rating for the company in a research report on Wednesday. Zacks Research downgraded shares of Rapid7 from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, January 27th. DA Davidson lowered their price objective on shares of Rapid7 from $14.00 to $6.50 and set an “underperform” rating for the company in a research report on Wednesday, February 11th. Jefferies Financial Group set a $9.00 price objective on shares of Rapid7 in a research report on Wednesday, February 11th. Finally, Robert W. Baird set a $8.00 price objective on shares of Rapid7 in a research report on Wednesday. Two equities research analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Reduce” and an average price target of $9.39.

Rapid7 Company Profile

Rapid7, Inc is a publicly traded cybersecurity company headquartered in Boston, Massachusetts. Since its founding in 2000, the company has specialized in delivering cloud-based security data and analytics solutions designed to help organizations detect, investigate, and remediate cyber threats. Rapid7 operates under the NASDAQ symbol “RPD” and serves a broad range of industries, including technology, financial services, healthcare, retail, and the public sector.

The core of Rapid7’s offering is its Insight platform, a unified, cloud-native security operations and analytics suite.