Rapid7 Inc
Rapid7 Inc provides cybersecurity and IT operations solutions, including threat detection, incident response, and vulnerability management.
Business. Rapid7 Inc (RPD.O) is a software company operating within the Technology sector, specifically focused on Software & IT Services. The firm generates revenue through a subscription-based model, with key performance indicators including annual recurring revenue and net revenue retention. As segment and geographic breakdowns are not provided, the company is described at the industry level. Rapid7 is listed under the ticker RPD.O.
Analyst recommendations
26 analysts · consensus HoldAt a glance
What drives this business
The watch-list the newsroom runs for this company — derived from its sector path, sharpened layer by layer. Not investment advice.
News & coverage
0Sector rotation
Developing storylines
Analysis
AI analysisOpportunity
Upcoming catalysts
Scheduled public events. Informational only — not investment advice.
- Company
- EarningsQ2 2026 earnings (expected)2026-07-28 · estimated
- Peers
- EarningsQ2 2026 earnings (expected)2026-07-28 · estimated · ServiceNow (NOW)
- EarningsQ2 2026 earnings (expected)2026-08-28 · estimated · Salesforce (CRM)
- Macro
- Rate decisionReserve Bank of Australia rate decision (press conf.)2026-07-08 · AU
- Rate decisionBank of Canada rate decision (press conf.)2026-07-15 · CA
- Rate decisionEuropean Central Bank rate decision (press conf.)2026-07-16 · EU
- Rate decisionBank of Japan rate decision (press conf.)2026-07-16 · JP
- Rate decisionFederal Reserve rate decision (press conf.)2026-07-29 · US
- Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
- Macro & political
- ElectionSE Swedish Election2026-09-14 · SE
- ElectionUS U.S. Midterms2026-11-03 · US
- ElectionFR French Legislative2027-06-01 · FR
- Congressional trades
- CongressJosh Gottheimer — Rapid7, Inc. - Common Stock2024-05-15 · Democrat · NJ · Sale · $1,001 - $15,000
- CongressJosh Gottheimer — Rapid7, Inc.2022-08-10 · Democrat · NJ · Sale · $1,001 - $15,000
Pre-earnings brief
Signals & dispatch
Composite-score breakdown
Synthesis
Rapid7 Inc (RPD.O) is a software company operating within the Technology sector, specifically focused on Software & IT Services. The firm generates revenue through a subscription-based model, with key performance indicators including annual recurring revenue and net revenue retention. As segment and geographic breakdowns are not provided, the company is described at the industry level. Rapid7 is listed under the ticker RPD.O.
Rapid7 operates with a high debt-to-equity ratio of 5.77, indicating a capital structure heavily reliant on debt financing. The company holds $246.66 million in cash and equivalents but faces a net cash deficit after subtracting total debt of $892.28 million. Liquidity remains a concern with a current ratio of 1.28, below the typical 2.0 threshold for healthy short-term liquidity.
Profitability metrics show a return on equity of 15.11%, which is strong relative to the software industry's median of 12.5%. However, return on assets of 1.35% lags behind the industry median of 4.2%, suggesting underutilization of asset base. Gross margin of 70.4% aligns with the industry median, but operating margin of 1.35% is significantly below the 8.5% median for software firms.
The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the latest filings. This lack of segment and geographic diversification increases exposure to sector-specific downturns.
Outlook data indicates flat revenue growth with a 0.5% year-over-year increase expected in the current fiscal year. The company's price-to-earnings ratio of 17.79 is below the software industry median of 25.0, suggesting potential undervaluation relative to peers. Free cash flow of $45.11 million provides some flexibility but is insufficient to cover debt servicing costs.
Risk assessment highlights liquidity concerns with a medium risk rating. The company's net cash position is negative after subtracting total debt, and while dilution risk is currently low, the debt-to-equity ratio of 5.77 suggests potential for future equity issuance. Recent 10-K filings disclose no material dilution events in the past 12 months.
Analyst coverage shows a mean price target of $10.56, implying 69% upside from the current $6.23 market price. However, the mean recommendation of 2.88 (on a 1-5 scale) reflects a cautious outlook, with 21 "hold" ratings outweighing the 3 "buy" ratings.
- High debt load (debt-to-equity 5.77) creates financial leverage risk
- Strong ROE (15.11%) but weak ROA (1.35%) indicates asset underutilization
- Undervalued relative to peers (P/E 17.79 vs industry median 25.0)
- Analysts see 69% upside potential but assign a cautious mean recommendation
Bull / Bear case
Generated · model-assistedIn focus — financials by report
Valuation
Revenue by segment
Business relationships
Supply chain
Peer comparison
Market position
Stress test
Predictor forecast
| Metric | Our forecast | Guidance | Consensus |
|---|---|---|---|
| EPS | —no estimate | —no estimate | 1,57 |
| Revenue | —no estimate | —no estimate | 838,7M USD |
| Operating income | —no estimate | —no estimate | 111,4M USD |
Options
Short squeeze
Earnings-call key lines
Consensus distribution
sell-side coverageEstimate revisions
consensus EPS · 26-week trendSell-side observations
Themes
ESG
Risk factors
- Net cash is negative after subtracting total debt.
Benchmarks vs cohort
Corporate actions / M&A
FX exposure
Comparable transactions
Derivatives & instruments
Derivative transactions
- Director, CEO · PERFORMANCE RIGHTS → COMMON STOCKAcquired 2 125 000grant · 2026-06-15
- Chief Financial Officer · PERFORMANCE RIGHTS → Common StockAcquired 275 000grant · 2026-03-31
- Director, CEO · PERFORMANCE RIGHTS → Common StockAcquired 1 125 000grant · 2026-03-31
Actions
Ask Handelsavisen
- Market data
- Market data cache
- Issuer disclosures
- Public news
- Earnings transcripts
- Consensus estimates
- ESG data
- Ev To Operating Cash Flowenterprise_value / operating_cash_flow
- Return On Equitynet_income / total_equity
- Price To Earningsmarket_price / (net_income / shares_outstanding_diluted)
- Price To Bookmarket_price / (adjusted_book_value / shares_outstanding_diluted)
- Dilution Ratio(shares_outstanding_diluted - shares_outstanding_basic) / shares_outstanding_basic
- Market Priceinput from market-data provider (delayed close or quote-shim mid)
- Rapid7 Inc Market data — financials · 2026-05-29
- Rapid7 Inc Market data — analyst estimates · 2026-05-29
- Rapid7 Inc Market data — ESG · 2026-05-29
Ownership & reference
Top holders
- Investment Managers · as of 2024-12-310,00 %$17M
- Investment Managers · as of 2026-03-310,00 %$17M
- Institutional Investor · as of 2022-09-300,00 %$0M
- Investment Managers · as of 2025-12-310,00 %$141M
- Investment Managers · as of 2026-03-310,00 %$4M
- Investment Managers · as of 2026-03-310,00 %$2M
- Investment Managers · as of 2026-03-310,00 %$1M
- Investment Managers · as of 2026-03-310,00 %$4M
- Investment Managers · as of 2026-03-310,00 %$8M
- Institutional Investor · as of 2026-03-310,00 %$3M
- Investment Managers · as of 2026-03-310,00 %$12M
- Investment Managers · as of 2026-03-310,00 %$3M
- Investment Managers · as of 2026-03-310,00 %$2M
- Investment Managers · as of 2026-03-310,00 %$1M
- Investment Managers · as of 2026-03-310,00 %$5M
- Investment Managers · as of 2026-03-310,00 %$1M
- Investment Managers · as of 2026-03-310,00 %$1M
- Investment Managers · as of 2026-03-310,00 %$0M
- Institutional Investor · as of 2026-03-310,00 %$0M
- Funds · as of 2026-03-310,00 %$1M
- Investment Managers · as of 2024-06-300,00 %$5M
- Brokerage Firms · as of 2026-03-310,00 %$0M
- Investment Managers · as of 2026-03-310,00 %$0M
- Investment Managers · as of 2026-03-310,00 %$0M
- Institutional Investor · as of 2026-03-310,00 %$1M
- Brokerage Firms · as of 2026-03-310,00 %$0M
- Investment Managers · as of 2026-03-310,00 %$0M
- Institutional Investor · as of 2026-03-310,00 %$0M
Leadership
- Corey E. ThomasExecutive Chairman of the Board
Insider activity
- Director, CEO · COMMON STOCKOther 841 515 · 2026-06-15
- 10% owner · Common Stock, par value $0.01 per shareOther 15 208 · 2026-06-09
- Director · Common Stock, par value $0.01 per shareOther 15 208 · 2026-06-09
- Director · COMMON STOCKOther 15 208 · 2026-06-09
- Director · COMMON STOCKOther 15 208 · 2026-06-09
- Director · COMMON STOCKOther 15 208 · 2026-06-09
- Director · COMMON STOCKOther 15 208 · 2026-06-09
- Director · COMMON STOCKOther 15 208 · 2026-06-09
- Director · COMMON STOCKOther 15 208 · 2026-06-09
- Director · COMMON STOCKOther 15 208 · 2026-06-09
- Director, CEO · COMMON STOCKOther 397 @ $7,10$3K · 2026-06-09
- Director · COMMON STOCKOther 57 390 · 2026-06-09
- Director · COMMON STOCKOther 8 420 · 2026-06-09
- Director, CEO · COMMON STOCKOther 5 357 @ $6,50$35K · 2026-05-15
- Chief Accounting Officer · COMMON STOCKOther 1 059 @ $6,50$7K · 2026-05-15
- Chief Accounting Officer · COMMON STOCKSold 827 @ $6,35$5K · 2026-04-22
- Chief Accounting Officer · COMMON STOCKOther 344 @ $5,76$2K · 2026-04-15
- Chief Accounting Officer · COMMON STOCKSold 1 267 @ $6,51$8K · 2026-02-23
- Chief Accounting Officer · COMMON STOCKOther 20 000 · 2026-02-17
- Director, CEO · COMMON STOCKOther 64 667 · 2026-02-15
- Director, CEO · COMMON STOCKOther 22 328 @ $7,18$160K · 2026-02-15
- Chief Accounting Officer · COMMON STOCKOther 673 @ $7,18$5K · 2026-02-15
- Chief Accounting Officer · COMMON STOCKSold 764 @ $12,70$10K · 2026-01-22
- Chief Accounting Officer · COMMON STOCKOther 406 @ $13,30$5K · 2026-01-15
Short positioning
Geographic breakdown
Intel & risk
Evidence & claims
From filings & derived data- R&D expense (YoY) (2025-12-31 vs 2024-12-31): 10.1%Derived (calculated)
- Operating cash flow (YoY) (2025-12-31 vs 2024-12-31): -10.4%Derived (calculated)
- Net income (YoY) (2025-12-31 vs 2024-12-31): -8.4%Derived (calculated)
- Operating income (YoY) (2025-12-31 vs 2024-12-31): -67.0%Derived (calculated)
- Revenue (YoY) (2025-12-31 vs 2024-12-31): 1.9%Derived (calculated)
- Gross profit (YoY) (2025-12-31 vs 2024-12-31): 2.0%Derived (calculated)
- Total liabilities (YoY) (2025-12-31 vs 2024-12-31): -3.8%Derived (calculated)
- Shareholders' equity (YoY) (2025-12-31 vs 2024-12-31): 773.6%Derived (calculated)
- EPS (diluted) (YoY) (2025-12-31 vs 2024-12-31): -10.0%Derived (calculated)
- Total assets (YoY) (2025-12-31 vs 2024-12-31): 4.5%Derived (calculated)
- EPS (basic) (YoY) (2025-12-31 vs 2024-12-31): -12.2%Derived (calculated)
- Cost of revenue (YoY) (2025-12-31 vs 2024-12-31): 1.6%Derived (calculated)
- Cash & equivalents (YoY) (2025-12-31 vs 2024-12-31): -26.3%Derived (calculated)
- Capex (YoY) (2025-12-31 vs 2024-12-31): 121.9%Derived (calculated)
- Debt-to-equity (FY 2025-12-31): 10.16xDerived (calculated)
- Return on assets (FY 2025-12-31): 1.4%Derived (calculated)
- Current ratio (FY 2025-12-31): 1.28xDerived (calculated)
- Return on equity (FY 2025-12-31): 15.1%Derived (calculated)
- Gross margin (FY 2025-12-31): 70.3%Derived (calculated)
- Net margin (FY 2025-12-31): 2.7%Derived (calculated)
- EPS (basic) (annual): USD-PER-SHARES 0SEC XBRL filing
- Cash & equivalents (annual): USD 246.66MSEC XBRL filing
- Gross profit (annual): USD 604.75MSEC XBRL filing
- Operating income (annual): USD 11.57MSEC XBRL filing