Rapid7, Inc. (RPD) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Rapid7, Inc. (RPD) Technology Profile & Competitive Position

Rapid7, Inc. delivers cybersecurity solutions through its cloud-native Insight platform, providing incident detection, vulnerability management, and application security testing. Serving diverse industries globally, Rapid7 enables organizations to manage and mitigate cyber risks with a focus on analytics-driven security programs and automation.

What Is the Investment Thesis for RPD?

Rapid7, Inc. presents a compelling investment thesis based on its robust cloud-native Insight platform and growing demand for cybersecurity solutions. With a market capitalization of $792M and a P/E ratio of 23.0, the company exhibits potential for growth, driven by its comprehensive suite of security offerings. Key value drivers include the increasing adoption of cloud-based security solutions and the rising sophistication of cyber threats. Upcoming catalysts include continued expansion of its Insight platform capabilities and strategic partnerships to broaden its market reach. However, potential risks include intense competition in the cybersecurity market and the need for continuous innovation to stay ahead of evolving threats.

Based on FMP financials and quantitative analysis

RPD Key Highlights

Rapid7's cloud-native Insight platform provides comprehensive cybersecurity solutions, including incident detection and vulnerability management.

• The company serves diverse industries globally, including technology, finance, and healthcare.
• Rapid7's gross margin stands at 69.7%, indicating strong pricing power and efficient cost management.
• The company's platform includes InsightIDR, InsightCloudSec, InsightVM, InsightAppSec, and InsightConnect.
• Rapid7 operates through direct sales teams and indirect channel partner relationships across multiple regions.

Who Are RPD's Competitors?

RPD is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are RPD's Key Strengths?

Comprehensive cloud-native Insight platform.

• Strong customer base across diverse industries.
• Recurring revenue model through subscriptions.
• Experienced management team.

What Are RPD's Weaknesses?

Relatively smaller market capitalization compared to larger competitors.

• Dependence on cloud infrastructure providers.
• Potential for slower growth in mature markets.
• Limited brand awareness compared to industry giants.

What Could Drive RPD Stock Higher?

Continued expansion of the Insight platform capabilities.

• Strategic partnerships to broaden market reach.
• Increasing adoption of cloud-based security solutions.
• Rising sophistication of cyber threats.

What Are the Key Risks for RPD?

Financial-distress signal — its Altman Z-Score of -0.06 sits in the distress zone (elevated bankruptcy risk).

• Intense competition in the cybersecurity market.
• Need for continuous innovation to stay ahead of evolving threats.
• Economic downturn impacting IT spending.
• Data breaches and security incidents.

What Are the Growth Opportunities for RPD?

• Expansion of Cloud Security Offerings: Rapid7 can capitalize on the increasing adoption of cloud computing by enhancing its InsightCloudSec platform. As more organizations migrate to the cloud, the demand for comprehensive cloud security posture management solutions will rise. By integrating advanced features like infrastructure-as-code security and Kubernetes protection, Rapid7 can attract a larger customer base. The cloud security market is projected to reach $77.5 billion by 2029, presenting a substantial growth opportunity for Rapid7.
• Strategic Partnerships and Integrations: Forming strategic alliances with other technology vendors and integrating its solutions with popular platforms can expand Rapid7's market reach. By partnering with cloud service providers, managed service providers, and other cybersecurity companies, Rapid7 can offer bundled solutions and reach new customer segments. These partnerships can also enhance the functionality of its Insight platform by incorporating data from diverse sources, creating a more comprehensive security ecosystem.
• Enhancing Incident Detection and Response Capabilities: Rapid7 can further enhance its InsightIDR platform by incorporating advanced threat intelligence and automation capabilities. As cyber threats become more sophisticated, organizations need faster and more effective incident detection and response solutions. By leveraging machine learning and artificial intelligence, Rapid7 can automate threat detection, prioritize alerts, and streamline incident response workflows, reducing the time and resources required to mitigate security incidents.
• Geographic Expansion into Emerging Markets: Rapid7 can expand its presence in emerging markets, such as Asia Pacific and Latin America, where the demand for cybersecurity solutions is growing rapidly. By establishing local sales and support teams, Rapid7 can cater to the specific needs of customers in these regions. These markets offer significant growth potential due to increasing internet penetration, digital transformation initiatives, and rising cyber threats.
• Development of Specialized Security Solutions: Rapid7 can develop specialized security solutions tailored to specific industries, such as healthcare, finance, and government. By understanding the unique security requirements of these sectors, Rapid7 can create customized solutions that address their specific challenges. These specialized solutions can differentiate Rapid7 from its competitors and attract customers seeking industry-specific expertise.

What Are RPD's Competitive Advantages?

• Cloud-native Insight platform provides a comprehensive suite of security solutions.
• Strong brand reputation and customer relationships.
• Extensive industry expertise and knowledge.
• Scalable business model with recurring revenue streams.

What Does RPD Do?

Rapid7, Inc., incorporated in 2000 and headquartered in Boston, Massachusetts, is a cybersecurity solutions provider focused on enabling organizations to manage and reduce cyber risk. The company's core offering is its cloud-native Insight platform, designed to provide comprehensive visibility, analytics, and automation capabilities across the security landscape. This platform allows customers to create and manage analytics-driven cybersecurity risk management programs. Rapid7's Insight platform includes several key solutions, such as InsightIDR for incident detection and response, InsightCloudSec for cloud security posture management, InsightVM for vulnerability risk management, InsightAppSec for application security testing, and InsightConnect for security orchestration and automation response. In addition to its flagship platform, Rapid7 offers other products like DivvyCloud, Nexpose, AppSpider, and Metasploit, catering to various customer needs and deployment preferences. The company serves a wide range of industries, including technology, energy, financial services, healthcare, manufacturing, and government, operating through direct sales teams and indirect channel partner relationships across the Americas, Europe, the Middle East, Africa, and the Asia Pacific regions.

What Products and Services Does RPD Offer?

• Provides a cloud-native insight platform for cybersecurity risk management.
• Offers incident detection and response solutions through InsightIDR.
• Delivers cloud security posture management with InsightCloudSec.
• Provides vulnerability risk management through InsightVM.
• Offers application security testing with InsightAppSec.
• Provides security orchestration and automation response with InsightConnect.
• Offers professional services to support its cybersecurity solutions.

How Does RPD Make Money?

• Term or perpetual software licenses.
• Cloud-based subscriptions.
• Managed services.
• Indirect channel partner relationships.

What Industry Does RPD Operate In?

Rapid7 operates in the rapidly expanding cybersecurity market, driven by increasing cyber threats and the need for robust security solutions. The industry is characterized by intense competition and continuous innovation. Rapid7's cloud-native Insight platform positions it well to capitalize on the growing demand for cloud-based security solutions. The company competes with both large established players and smaller specialized vendors, requiring it to maintain a competitive edge through technological innovation and strategic partnerships.

Who Are RPD's Key Customers?

• Technology companies.
• Energy companies.
• Financial services companies.
• Healthcare and life sciences organizations.
• Government entities.

Company Profile

Rapid7, Inc. operates in the Software - Infrastructure industry within the Technology sector. It is headquartered in Boston, US. The company is led by CEO Wael Mohamed. RPD has traded publicly since 2015.

Return on equity for Rapid7, Inc. stands at 16.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.3%, showing how much profit it generates from its asset base. RPD trades at a trailing price-to-earnings ratio of 22.97, below the Technology sector average of ~34x. Its free cash flow yield is 24.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.74 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 3.7%, the inverse of the P/E and a quick read on earnings relative to price.

RPD Valuation & Market Position

With a $792M market cap, Rapid7, Inc. sits in the small-cap segment of the market. Relative to its peer group, RPD's quantitative score of 37/100 is below the peer average of 68/100.

Quarterly Financial Performance: Rapid7, Inc.

Revenue for Rapid7, Inc. came in at $210.9M during Q2 2026. The company recorded net income of $6.1M, with diluted EPS of $0.09. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Technology. Across the four most recent quarters, RPD averaged $0.08 in diluted EPS.

Rapid7, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of -0.06 places it in the distress zone, a signal of elevated financial risk.

Rapid7, Inc. has beaten Wall Street's EPS estimate in 7 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 22.3% above estimates on average.

Wall Street analysts project Rapid7, Inc. revenue of about $838.7M for fiscal 2026, with EPS near $1.56. The estimate reflects 19 contributing analysts.

RPD Financials

RPD Latest News

RPD Analyst Consensus

RPD MoonshotScore

RPD Technology Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources