Rapid7(NASDAQ) RPD

Rapid7, Inc. protects computer networks and data from hackers. Its tools find security weaknesses and watch for suspicious activity. These services help businesses stop cyberattacks before damage occurs.

Finding the Digital Holes

• Cloud Subscriptions: Software-as-a-service tools for managing security risks and detecting threats; accounted for 97.3% of revenue in the first half of 2026 alongside other subscription products.
• Managed Services: Professional security teams who monitor systems and respond to incidents on behalf of clients; provides continuous expertise to augment internal security departments.
• Licensed Software: On-premise tools for identifying vulnerabilities and testing defenses, often sold as one-year or multiyear term licenses.
• Professional Services: Deployment, training, and advisory services; represented 2.7% of revenue in the six-month period ended June 30, 2026.

Growing the Security Shield

• Acquired Noetic in July 2024 to enhance exposure management and asset visibility capabilities.
• Purchased Kenzo in the first quarter of 2026 to strengthen artificial intelligence security operations.
• Appointed Wael Mohamed as Chief Executive Officer effective June 1, 2026.
• Approved a restructuring plan on Aug. 7, 2026, to reduce the workforce by 12% and focus on core platform investments.

Global Reach and Expertise

Rapid7 operates an open platform that integrates security data from various sources and uses artificial intelligence to prioritize risks. The company serves over 11,500 customers across 149 countries, including 34% of the Fortune 100.

A Look at the Numbers

• Total revenue was $210.9 million for the three-month period ended June 30, 2026, down 1.5% year over year.
• Annualized recurring revenue reached $824.0 million as of June 30, 2026, down 2.0% year over year.
• Free cash flow was $65.3 million for the six-month period ended June 30, 2026.
• Market capitalization was $542.9 million in the second quarter of 2026, down 63.6% year over year.

Bottom Line

Rapid7 has transitioned from providing individual security tools to offering an integrated platform for managed security operations. This evolution focuses on consolidating technology and human expertise to help organizations manage modern cyber threats.