RPDNasdaqServices-Prepackaged SoftwareUS GAAP · USD

Rapid7, Inc.

Rapid7 is a U.S.-based cybersecurity software and services company focused on helping organizations manage exposure, detect threats, and respond to incidents across modern IT environments. Its platform combines cloud security, SIEM, vulnerability management, managed detection and response, and professional services for customers in many industries and countries.

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Revenue860m USD
+1.9 %y/y
Operating profit (EBIT)11.6m USD
−67.0 %y/y
EBIT margin1.3%
−2.8 ppy/y
Net income23.4m USD
−8.4 %y/y
Free cash flow146m USD
−13.1 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-20002004006008001,000m USD2020: 411 m USD2020: EBIT -74 m USD20202021: 535 m USD2021: EBIT -120 m USD20212022: 685 m USD2022: EBIT -112 m USD20222023: 778 m USD2023: EBIT -84 m USD20232024: 844 m USD2024: EBIT 35 m USD20242025: 860 m USD2025: EBIT 12 m USD202586012
RevenueOperating profit (EBIT)
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Business

Share of revenue
Security software platform70 %

Cloud and on-prem security tools for exposure management, SIEM, and detection/response.

Managed security services20 %

Managed detection and response services that monitor, detect, and help contain threats.

Professional services10 %

Pen testing, assessments, incident response, threat modeling, and training services.

Products

Reported · share of revenue
96.7%FY2025100 %
  • Products96.7 %
  • Services3.3 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Rapid7 sells to organizations of all sizes, with a mix of enterprises, mid-market businesses, small organizations, non-profits, educational institutions, and government agencies. Customers buy the platform to consolidate security tools, improve SecOps productivity, and reduce material cyber risk across a fragmented attack surface.

Enterprise organizations

Large companies buying integrated exposure management, SIEM, and MDR to standardize security operations.

Mid-market businesses

Mid-sized firms that want a consolidated security platform without building large in-house teams.

Government and public sector

Agencies and public institutions buying security tools and services for compliance and threat response.

Regulated industries

Healthcare, financial services, and other regulated buyers using vulnerability and incident-response offerings.

Professional services and technology customers

Organizations that purchase testing, assessments, and platform services to mature security programs.

Strategy

Rapid7’s strategy centers on unifying exposure management with threat detection and response in a single security operations platform. It also emphasizes managed services, AI-infused technology, and research-backed expertise to help customers consolidate vendors and improve security outcomes.

Platform consolidationMedium term

Customers want fewer security vendors and integrated workflows, which favors broader platforms.

Managed services growthMedium term

Managed offerings deepen customer relationships and increase the value of the platform.

AI-enabled security operationsShort term

AI-driven analysis helps customers prioritize risk and respond faster to threats.

Geography

Q2/2026

Rapid7 operates globally and serves customers in 150 countries, with a broad international footprint rather than reliance on one market. The company’s customer base spans North America, Europe, and other regions, and its global reach matters because cyber risk, compliance needs, and buying patterns differ by jurisdiction and industry.

United States70 %
Other countries (US filing)30 %

Share of the revenue the company reports by geography.

Risks

Rapid7 faces intense competition in fragmented cybersecurity markets, where customers can switch among platform vendors, MDR providers, and point solutions. Its results also depend on renewal rates, new customer additions, and the ability to keep pace with fast-changing threats, regulations, and customer expectations for integrated security operations.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Customer consolidation and longer sales cycles1Competitive pressure from platform and point-solution vendors2Rapid technology and threat evolution3Regulatory and compliance dependence4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Customer consolidation and longer sales cyclesImpact: HighLikelihood: High

    Fewer strategic vendors can lengthen buying decisions and increase scrutiny of platform fit.

    Exposure: Revenue growth and conversion rates

  2. Competitive pressure from platform and point-solution vendorsImpact: HighLikelihood: Medium

    Customers compare Rapid7 against large security suites, MDR providers, and niche tools.

    ExposurePricingRenewalsMarket share
  3. Rapid technology and threat evolutionImpact: HighLikelihood: Medium

    AI-driven attacks and new techniques require constant product updates and research investment.

    Exposure: Product relevance and customer retention

  4. Regulatory and compliance dependenceImpact: MediumLikelihood: Medium

    Demand for vulnerability and security tools is tied to privacy, security, and industry rules.

    ExposureHealthcarePaymentsGovernment
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Accounting

Judgemental items
ARR versus revenue recognition

ARR measures recurring contract value at period-end, while revenue depends on timing of delivery and contract terms.

Impact: Can create differences between operating momentum and reported revenue

Deferred revenue and contract timing

Subscription billing and service delivery timing can shift revenue between quarters.

Impact: Quarterly comparability and cash conversion

Non-GAAP restructuring and impairment adjustments

Management excludes these items from adjusted results, affecting perceived operating performance.

Impact: Adjusted margin and earnings comparisons

Capped call and diluted EPS treatment

Convertible note hedges can affect share dilution presentation in non-GAAP EPS.

Impact: Per-share earnings comparability

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Last updated: 24/09/2026