Rapid7 (NASDAQ:RPD) Issues Earnings Results, Beats Expectations By $0.09 EPS

Posted by Stanley Muller on Aug 12th, 2026

Rapid7 (NASDAQ:RPD – Get Free Report) issued its quarterly earnings results on Monday. The technology company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.35 by $0.09, FiscalAI reports. Rapid7 had a return on equity of 29.93% and a net margin of 2.35%.The firm had revenue of $210.88 million for the quarter, compared to the consensus estimate of $208.23 million. During the same period in the prior year, the business posted $0.58 earnings per share. The company’s revenue for the quarter was down 1.5% on a year-over-year basis. Rapid7 updated its Q3 2026 guidance to 0.440-0.470 EPS.

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

Total ARR declined to $824 million, with non-core products driving the sequential decline and total revenue falling 1.5% year over year to $210.9 million. Management acknowledged that the current ARR trajectory is “not good enough.”
Detection and Response ARR grew approximately 5% year over year, while the core platform represented more than 80% of total ARR and grew about 1%; management also cited healthy adoption of Exposure Command among new and upgrading customers.
Rapid7 announced a restructuring affecting approximately 12% of its workforce to focus resources on Detection and Response, Exposure Command, and AI capabilities. The company expects non-GAAP operating margin to reach approximately 20% in Q4 2026 and raised full-year operating income guidance to $129 million–$133 million.
Management is positioning Kenzo and an AI-first platform to connect exposure management, detection, response, automation, and human expertise, with product investments expected to produce meaningful capabilities through 2027. Executives emphasized that the transformation will take multiple quarters before durable growth becomes visible.
Q2 free cash flow was strong at $31.9 million, and Rapid7 ended the quarter with $702.6 million in cash and investments plus an undrawn $200 million credit facility, supporting repayment of its $600 million convertible notes due in March 2027.

Rapid7 Price Performance

Shares of RPD opened at $13.38 on Wednesday. The company has a 50 day moving average price of $9.34 and a 200-day moving average price of $7.96. Rapid7 has a fifty-two week low of $4.97 and a fifty-two week high of $21.78. The stock has a market capitalization of $894.19 million, a PE ratio of 43.16 and a beta of 0.97. The company has a debt-to-equity ratio of 1.69, a quick ratio of 0.78 and a current ratio of 0.78.

Hedge Funds Weigh In On Rapid7

A number of large investors have recently bought and sold shares of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Rapid7 by 114.9% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,136,438 shares of the technology company’s stock valued at $49,409,000 after acquiring an additional 1,142,148 shares during the last quarter. First Trust Advisors LP grew its holdings in Rapid7 by 48.3% in the fourth quarter. First Trust Advisors LP now owns 2,326,056 shares of the technology company’s stock worth $35,356,000 after purchasing an additional 758,009 shares during the last quarter. Marshall Wace LLP grew its holdings in Rapid7 by 60.9% in the third quarter. Marshall Wace LLP now owns 1,139,273 shares of the technology company’s stock worth $21,361,000 after purchasing an additional 431,195 shares during the last quarter. CANADA LIFE ASSURANCE Co increased its position in shares of Rapid7 by 81.0% during the third quarter. CANADA LIFE ASSURANCE Co now owns 701,200 shares of the technology company’s stock worth $13,624,000 after purchasing an additional 313,717 shares in the last quarter. Finally, Alyeska Investment Group L.P. increased its position in shares of Rapid7 by 27.9% during the fourth quarter. Alyeska Investment Group L.P. now owns 1,193,516 shares of the technology company’s stock worth $18,141,000 after purchasing an additional 260,168 shares in the last quarter. Institutional investors own 95.66% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms recently commented on RPD. Stephens reaffirmed a “positive” rating on shares of Rapid7 in a research note on Tuesday. Mizuho increased their price objective on Rapid7 from $8.00 to $11.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 15th. Piper Sandler raised their price objective on Rapid7 from $8.00 to $12.00 and gave the stock a “neutral” rating in a report on Tuesday. UBS Group lifted their target price on Rapid7 from $7.00 to $12.00 and gave the company a “neutral” rating in a research report on Tuesday. Finally, Wall Street Zen cut Rapid7 from a “buy” rating to a “hold” rating in a report on Tuesday, April 14th. One analyst has rated the stock with a Buy rating, seventeen have assigned a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat, Rapid7 currently has an average rating of “Reduce” and a consensus target price of $11.61.

View Our Latest Analysis on RPD

More Rapid7 News

Here are the key news stories impacting Rapid7 this week:

Positive Sentiment: Q2 earnings beat estimates: Rapid7 reported adjusted earnings of $0.44 per share, exceeding the $0.35 consensus estimate, while revenue of $210.88 million topped expectations of $208.23 million. The results helped drive the stock higher. Rapid7 Q2 Earnings and Revenues Top Estimates
Positive Sentiment: Raised quarterly profit outlook: Rapid7 guided to third-quarter adjusted EPS of $0.44-$0.47, above the $0.38 analyst consensus. The improved profitability outlook supports the bullish reaction despite a relatively modest revenue forecast. Rapid7 Analysts Boost Their Forecasts Following Better-Than-Expected Q2 Earnings
Positive Sentiment: Analysts lifted price targets: JPMorgan, Stephens and Robert W. Baird raised their targets to $12, $12 and $10, respectively, following the earnings report. The revisions suggest improved confidence in Rapid7’s execution, even though the firms retained neutral or equal-weight ratings. Rapid7 Analyst Price Target Updates
Neutral Sentiment: Cash position remains a support: Rapid7 ended the quarter with $425.6 million in cash and equivalents, while operating cash flow was $37.0 million. Strong liquidity may provide flexibility as the company restructures and concentrates on core security offerings.
Negative Sentiment: Growth and profitability remain pressured: Revenue declined approximately 1.5% year over year, EPS fell from $0.58 in the prior-year quarter, and third-quarter revenue guidance of $208 million-$210 million was slightly below the $210.5 million consensus. Analysts’ targets also remain below the current share price, signaling valuation concerns after the rally. Rapid7 Q2 Results and Outlook

About Rapid7

(Get Free Report)

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.