Rapid7, Inc.

Rapid7, Inc.

RPDInfrastructure

Rapid7 helps companies find and fix security weak spots before attackers do.

Key figures

Data as of Jun 2026 · Pills compare vs Mar 2026
ARR Multiple
1.0x
+0.3x
ARR
$844M
+0.6%
YoY Growth
-1.6%
-1.3pp
Market Cap
$821M
+50.5%
Revenue (Q)
$211M
+0.6%
Gross Margin
68.9%
-0.2pp
Op. Margin
1.4%
+2.3pp
Rule of 40
-0.1
+1.0
Magic Number
0.06
+0.45

Revenue, margins & ratios from SEC filings; market cap & ARR multiple from market data. Market cap & ARR multiple use the close of 2 Oct 2026; their pills compare vs the Jun 2026 quarter-end (0.7x).

Valuation by quarter

Current ARR Multiple: 0.7x· Forward at Q3 FY2026 guidance: 0.7x

Calculated valuation

FRAMEWORK EST.
Valuation data is not available for this company.

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AI Replacement RiskLOW
8/ 100
LowModerateElevatedHigh

Estimated likelihood that general-purpose AI replaces this product.

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Why this rating

From the AI Risk Calculator model

Structural moats (regulation, integration depth, or proprietary data) make AI-only replacement unlikely in the near term.

What's driving the score
SecurityCategory baseline
low base
Workflow complexity5/5
-12 risk
Data moat3/5
-1 risk
Integration depthHigh
-10 risk
SegmentEnterprise
-8 risk
IndustryOther
neutral
Own AI integration3/5
-1.6 risk

Company overview

Rapid7 helps companies find and fix security weak spots before attackers do. The company was founded in 2000 in Boston. It went public in 2015.

The whole business rests on one honest idea. You cannot protect what you cannot see. So Rapid7 starts by mapping a customer environment, then hunts for the holes.

InsightVM scans for vulnerabilities across servers, laptops, and cloud systems. It ranks them by real risk, not just raw counts. InsightIDR watches for intruders and flags strange behavior, acting as a modern detection and response system. InsightCloudSec keeps cloud setups from drifting into unsafe states.

Say a new flaw hits a popular web server on a Friday night. Thousands of machines are suddenly exposed. Rapid7 shows a security team exactly which machines are at risk and which to patch first. That focus saves precious hours.

Rapid7 also gives back to the community through Metasploit, a widely used open source hacking framework that testers rely on around the world. That tool builds goodwill and pulls talent toward the brand.

Revenue runs around $800 million a year, and roughly 11,000 customers rely on the platform. Gross margins sit near 70 percent. Rapid7 competes with bigger names, so it keeps sharpening its focus on clear, practical risk reduction.

Entity information

Industry7372: Services-Prepackaged Software
Fiscal YearDec 31
IncorporatedDelaware
Phone(617) 247-1717
Address120 CAUSEWAY STREET, BOSTON, MA, 02114
Mailing address120 CAUSEWAY STREET, BOSTON, MA, 02114
EIN35-2423994
Entity typeoperating
SEC industry framework06 Technology
Former namesRapid7 Inc (to 2015-06-11)

SaaS KPIs

Reported in at least 3 quarters

Free Cash Flow

22 quarters
$31.9M
Q2 FY2026-4.5%

ARR per Customer

21 quarters
$70.0K
Q2 FY2026+97665.4%

Number of Customers

21 quarters
11,772
Q2 FY2026+1.2%

Annualized Recurring Revenue (ARR)

19 quarters
$824.0M
Q2 FY2026-1.0%

Non-GAAP Operating Margin

19 quarters
13.7%
Q2 FY2026+2.0pp

Non-GAAP Income from Operations

11 quarters
$28.9M
Q2 FY2026-10.7%

Management outlook

Given with Q2 FY2026 results (Jun 2026)
ReportedGuidance

Guided revenue, Q3 FY2026$208.0M – $210.0M
Midpoint$209.0M
Growth vs Q2 FY2026-0.9%
Growth vs Q3 FY2025-4.1%
Q3 2026
ARRApproximately $812 million
ARR year-over-year growth(3)%
Revenue year-over-year growth(5)% to (4)%
Non-GAAP income from operations$34 to $36
Non-GAAP net income per share, diluted$0.44 to $0.47
Weighted average shares used in non-GAAP earnings per share calculation, diluted80.1
Full-Year 2026
Revenue$837 to $841
Revenue year-over-year growth(3)% to (2)%
Non-GAAP income from operations$129 to $133
Non-GAAP net income per share, diluted$1.78 to $1.83
Weighted average shares used in non-GAAP earnings per share calculation, diluted79.4
Free cash flowApproximately $130 million

Quarterly financials

Left axis in $ (Revenue, Gross profit, Net income, S&M); right axis for ratios (Rule of 40, Magic number). Click a legend item to toggle it.

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