Rapid7 (NASDAQ:RPD) Issues Q4 2025 Earnings Guidance

Rapid7 (NASDAQ:RPD) issued an update on its fourth quarter 2025 earnings guidance on Tuesday morning. The company provided EPS guidance of 0.370-0.44 for the period, compared to the consensus EPS estimate of 0.310. The company issued revenue guidance of $214.0 million-$216.0 million, compared to the consensus revenue estimate of $218.2 million. Rapid7 also updated its FY 2025 guidance to 2.020-2.090 EPS.

Rapid7 Stock Down 4.7%

Shares of NASDAQ RPD traded down $0.88 during mid-day trading on Tuesday, reaching $17.80. 1,475,098 shares of the company’s stock traded hands, compared to its average volume of 871,221. The stock has a market cap of $1.15 billion, a P/E ratio of 43.42 and a beta of 0.92. The business has a 50-day simple moving average of $19.34 and a 200 day simple moving average of $21.62. Rapid7 has a 1-year low of $17.73 and a 1-year high of $44.48. The company has a debt-to-equity ratio of 9.84, a current ratio of 1.36 and a quick ratio of 1.36.

Rapid7 (NASDAQ:RPD) last issued its quarterly earnings data on Tuesday, November 4th. The technology company reported $0.23 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.22). Rapid7 had a net margin of 3.41% and a return on equity of 149.12%. Rapid7 has set its FY 2025 guidance at 2.020-2.090 EPS. Q4 2025 guidance at 0.370-0.44 EPS. On average, analysts expect that Rapid7 will post 0.35 EPS for the current fiscal year.

Analyst Ratings Changes

RPD has been the subject of a number of analyst reports. Mizuho reduced their price objective on shares of Rapid7 from $27.00 to $25.00 and set a “neutral” rating for the company in a report on Friday, August 8th. Weiss Ratings restated a “sell (d)” rating on shares of Rapid7 in a report on Tuesday, October 14th. JPMorgan Chase & Co. cut their price target on shares of Rapid7 from $28.00 to $23.00 and set a “neutral” rating on the stock in a report on Monday, August 4th. Canaccord Genuity Group cut their price target on shares of Rapid7 from $39.00 to $32.00 and set a “hold” rating on the stock in a report on Monday, August 11th. Finally, Susquehanna cut their price target on shares of Rapid7 from $30.00 to $18.00 and set a “neutral” rating on the stock in a report on Monday, August 11th. Two investment analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, thirteen have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Rapid7 has a consensus rating of “Hold” and an average target price of $26.28.

Insider Transactions at Rapid7

In other Rapid7 news, CAO Scott M. Murphy sold 1,370 shares of the business’s stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $20.25, for a total value of $27,742.50. Following the transaction, the chief accounting officer directly owned 27,592 shares in the company, valued at $558,738. The trade was a 4.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Jana Partners Management, Lp bought 358,738 shares of the company’s stock in a transaction on Monday, August 11th. The stock was bought at an average price of $18.23 per share, for a total transaction of $6,539,793.74. Following the completion of the purchase, the director owned 6,105,148 shares of the company’s stock, valued at approximately $111,296,848.04. The trade was a 6.24% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders acquired 772,194 shares of company stock worth $15,135,356. Corporate insiders own 2.40% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Headlands Technologies LLC purchased a new position in Rapid7 in the second quarter valued at about $44,000. Prudential Financial Inc. lifted its stake in shares of Rapid7 by 8.8% during the 2nd quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company’s stock valued at $197,000 after buying an additional 690 shares in the last quarter. Tower Research Capital LLC TRC increased its holdings in Rapid7 by 547.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 8,530 shares of the technology company’s stock worth $197,000 after acquiring an additional 7,212 shares during the period. State of Wyoming increased its holdings in Rapid7 by 35.5% during the 2nd quarter. State of Wyoming now owns 14,339 shares of the technology company’s stock worth $332,000 after acquiring an additional 3,757 shares during the period. Finally, AQR Capital Management LLC bought a new stake in Rapid7 during the 1st quarter worth approximately $424,000. 95.66% of the stock is currently owned by hedge funds and other institutional investors.

About Rapid7

Rapid7, Inc provides cybersecurity solutions under the Rapid7, Nexpose, and Metasploit brand names. The company offers endpoint to cloud data collection and sharing applications, such as Rapid7 Insight Agent, a software-based agent that is used on assets across on-premises and cloud environments to centralize and monitor data on company's platform; Rapid7 Insight Network Sensor that analyzes raw end-to-end network traffic to increase visibility into user activity, pinpoint real threats, and investigations; Rapid7 Cloud Event Data Harvesting that offers visibility into changes made to cloud resources; and third-party integrations and ecosystem, as well as orchestration and automation solutions.