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

Rapid7 (NASDAQ:RPD) announced its earnings results on Monday. The technology company reported $0.44 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $0.09, FiscalAI reports. Rapid7 had a return on equity of 34.35% and a net margin of 2.61%.The business had revenue of $210.88 million during the quarter, compared to analysts’ expectations of $208.23 million. During the same quarter in the prior year, the firm earned $0.58 earnings per share. The business’s revenue was down 1.5% compared to the same quarter last year. 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 Stock Up 0.3%

Shares of NASDAQ:RPD opened at $11.61 on Tuesday. The company has a market capitalization of $775.90 million, a PE ratio of 33.17 and a beta of 0.97. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 1.69. Rapid7 has a twelve month low of $4.97 and a twelve month high of $21.78. The firm has a 50 day simple moving average of $9.24 and a 200-day simple moving average of $7.95.

Trending Headlines about Rapid7

Here are the key news stories impacting Rapid7 this week:

• Positive Sentiment: Adjusted earnings beat estimates: Rapid7 reported adjusted EPS of $0.44, above the $0.35 analyst consensus, while revenue of $210.9 million modestly exceeded the $208.2 million estimate. Rapid7 Q2 Earnings Snapshot
• Positive Sentiment: Profit outlook topped expectations: Rapid7 guided for third-quarter adjusted EPS of $0.44-$0.47, well above the $0.38 consensus estimate. The company expects third-quarter revenue of $208 million-$210 million, broadly near analysts’ forecast. Rapid7 Q2 Results
• Positive Sentiment: Balance sheet remains a support: Rapid7 ended the quarter with approximately $425.6 million in cash and equivalents, providing resources to fund operations and its transformation efforts. Rapid7 Announces Second Quarter 2026 Financial Results

Hedge Funds Weigh In On Rapid7

Several hedge funds have recently made changes to their positions in the company. Prudential Financial Inc. boosted its position in shares of Rapid7 by 8.8% in the 2nd quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company’s stock valued at $197,000 after purchasing an additional 690 shares during the period. Parallel Advisors LLC grew its position in Rapid7 by 81.6% during the 4th quarter. Parallel Advisors LLC now owns 3,036 shares of the technology company’s stock worth $46,000 after purchasing an additional 1,364 shares during the last quarter. Headlands Technologies LLC purchased a new position in Rapid7 during the 2nd quarter worth $44,000. Swiss National Bank increased its stake in Rapid7 by 1.8% in the third quarter. Swiss National Bank now owns 112,000 shares of the technology company’s stock valued at $2,100,000 after purchasing an additional 2,000 shares during the period. Finally, Russell Investments Group Ltd. raised its holdings in shares of Rapid7 by 1.8% in the fourth quarter. Russell Investments Group Ltd. now owns 124,134 shares of the technology company’s stock valued at $1,887,000 after buying an additional 2,150 shares during the last quarter. Hedge funds and other institutional investors own 95.66% of the company’s stock.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on RPD. Weiss Ratings restated a “sell (d)” rating on shares of Rapid7 in a research report on Wednesday, June 24th. Barclays restated an “underweight” rating and issued a $12.00 price objective on shares of Rapid7 in a report on Tuesday. Mizuho lifted their target price on shares of Rapid7 from $8.00 to $11.00 and gave the company a “neutral” rating in a report on Wednesday, July 15th. JPMorgan Chase & Co. lowered their price target on Rapid7 from $11.00 to $7.00 and set a “neutral” rating for the company in a research report on Monday, May 11th. Finally, Raymond James Financial set a $8.00 target price on Rapid7 in a report on Wednesday, May 6th. One research analyst has rated the stock with a Buy rating, sixteen have given a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat, Rapid7 presently has an average rating of “Reduce” and an average target price of $9.58.

About Rapid7

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.