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Rapid7 Inc

Rapid7 Inc

RPD
$12.20USD↑+0.25%+0.03 today

MARKET CAP

815.3M

P/E (TTM)

6.3x

FWD P/E

7.5x

DAY RANGE

$12 – $13

52W RANGE

$5
$23

AI Summary

Stalk
StalkMedium

RPD is in a medium-term bullish Stage 2 advance following a momentum breakout, but extreme overbought readings and a significant extension above rising EMAs warrant a deferred entry. Waiting for a pullback into the rising EMA zone offers a lower-risk opportunity to participate in the ongoing uptrend while avoiding chasing the current extremes.

  • ↑Detection response accounts for >50% of $841M ARR, growing ~15% YoY
  • ↑ARR reached $832M in Q1, +2% YoY led by DNR segment
  • ↓Weak profitability factors hinder margin expansion despite revenue growth
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

Rapid7, Inc. (NASDAQ: RPD) is a leading provider in the cybersecurity sector, specializing in threat detection, incident response, and operational management solutions. As organizations confront increasingly sophisticated cyber threats, Rapid7 focuses on enhancing its integrated platform to deliver comprehensive security measures. The company's primary offering includes its Managed Detection and Response (MDR) services, enhancing its capabilities through the recent acquisition of Kenzo Security, positioning itself strongly in the emerging AI-driven security landscape.

Bull says

  • ↑Detection response accounts for >50% of $841M ARR, growing ~15% YoY
  • ↑ARR reached $832M in Q1, +2% YoY led by DNR segment
  • ↑Kenzo Security deal boosts AI-driven MDR capabilities and market access
  • ↑Guiding free cash flow of $125M–$135M supports profitability potential
  • ↑Strong liquidity with robust cash balances underpins debt maturities
  • ↑Non-GAAP operating margin at 11.7% on $210M Q1 revenue

Bear says

  • ↓Weak profitability factors hinder margin expansion despite revenue growth
  • ↓High short interest exacerbates volatility and downside pressure
  • ↓Momentum has deteriorated, signaling bearish investor sentiment
  • ↓Exposure management segment stabilized but not contributing to growth
  • ↓Macro headwinds lengthen deal cycles amid customer budget scrutiny
  • ↓Convertible debt due Mar 2027 adds leverage risk despite cash cushions

Investment themes with RPD

Software↓ -1.57%

Cloud-based digital tools powering business productivity and innovation

MSFT · ORCL · PLTR

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-09-2026bullish

Transcript signals

Bull points

  • We finished the first quarter with total ARR of $832 million.
  • Our core platform solutions, which now total over 80% of our overall ARR, as I shared moments ago, grew approximately 2% on a year-over-year basis.
  • Led by our strongest offer in the group, our detection response business, which had approximately 55% of total ARR, grew approximately 7% on a year-over-year basis.

Bear points

  • Total revenue of $209.7 million declined 0.3% year over year.
  • We expect total revenue in the range of $207 million to $209 million, or down approximately 2.9% at the midpoint on a year-on-year basis.
  • Updating our full-year fiscal 2026 guidance, we expect total revenue in the range of $836 million to $842 million, a year-on-year decline of approximately 2.4% at the midpoint.
Read full transcript analysis ›