Rapid7, Inc. (RPD) AI Stock Analysis

Rapid7, Inc. specializes in cybersecurity solutions built around its cloud-native insight platform, helping organizations establish analytics-driven risk management programs. Core solutions include InsightIDR for incident detection and response, InsightCloudSec for cloud workload and posture management, InsightVM for vulnerability management, and InsightAppSec for web application testing. The company also offers InsightConnect for security orchestration and automation, along with DivvyCloud, Nexpose, AppSpider, and the Metasploit penetration testing framework. Rapid7 delivers products via cloud-based subscriptions and term or perpetual licenses to clients across technology, healthcare, financial services, energy, and government sectors, backed by professional services.

Rapid7 expanded annual revenue from $535.4M in FY2021 to $859.8M in FY2025, achieving a 5-year revenue CAGR of 15.9%. Growth slowed from 30.1% in FY2021 to 1.9% in FY2025. After net losses of -$146.3M in FY2021, -$124.7M in FY2022, and -$149.3M in FY2023, the business achieved profitability with net income of $25.5M in FY2024 and $23.4M in FY2025. Gross margin held stable at 70.3% in both FY2024 and FY2025. Over the trailing twelve months ending June 30, 2026, revenue stood at $855.9M with a net profit margin of 2.4%, though latest quarterly revenue declined 1.5% and quarterly earnings dropped 30.4%.

As of June 30, 2026, Rapid7 held $702.6M in cash and short-term investments against $961.6M in total debt, resulting in net debt of $259.1M. Shareholders' equity was $196.7M, giving a debt-to-equity ratio of 4.89 and a current ratio of 0.80. The company generated $152.1M in operating cash flow and $144.5M in free cash flow in FY2025, while capital expenditures were $7.6M. Over 5 years, common share count expanded by 19.7%.

Rapid7 trades at a trailing price-to-earnings multiple of 40.7x, compared to 28.1x for the median of its US-listed Technology peers. However, its forward P/E is 7.2x versus the peer median of 18.8x, and its enterprise value-to-revenue multiple is 1.3x. Price-to-sales stands at 1.0x, below the peer median of 2.8x. Over the past year, the stock returned -30.1%, while the S&P 500 (SPY) returned 16.8%. Over a 5-year period, the stock delivered a -89.5% return compared to an 83.0% gain for the benchmark.

Wall Street coverage includes 1 Strong Buy, 1 Buy, 17 Holds, 4 Sells, and 2 Strong Sells. The mean price target of $11.81 implies an expected downside of 6.4% from the last close of $12.61. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $1.83 on revenue of $839.2M, followed by EPS of $2.03 on revenue of $843.0M for next fiscal year. Rapid7 exceeded EPS expectations in each of the last 4 quarters, with next earnings scheduled for November 4, 2026.

This page is an AI-written research summary of Rapid7, Inc. (RPD). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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