Cyber security firm Rapid7 Q3 adj net income beats, partly driven by Microsoft partnership expansion

Rapid7

04/11/2025 21:32

Overview

Rapid7 Q3 revenue grows 2% yr/yr, with ARR also increasing by 2%

Adjusted net income beats analyst expectations, reflecting strong financial performance

Company appoints Rafe Brown as new CFO, effective December 1, 2025

Outlook

Rapid7 expects Q4 2025 revenue between $214 mln and $216 mln

Company projects full-year 2025 revenue of $856 mln to $858 mln

Rapid7 anticipates full-year 2025 free cash flow of $125 mln to $135 mln

Result Drivers

AI-DRIVEN PLATFORM - Rapid7 attributes ARR growth to market validation of its AI-driven Command Platform

GO-TO-MARKET ENHANCEMENTS - Strategic go-to-market enhancements positioned Rapid7 to capitalize on demand for integrated security operations platforms

PARTNERSHIP EXPANSION - Expanded partnership with Microsoft aimed at advancing modern detection and response contributed to results

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
$0.15
Q3 Adjusted Net Income
Beat
$41.91 mln
$34.19 mln (22 Analysts)
Q3 Net Income
$9.80 mln
Q3 Adjusted EBITDA
$43.51 mln
Q3 Gross Margin
70%
Q3 Adjusted Operating Margin
17%
Q3 Basic EPS
$0.15
Q3 Gross Profit
$152.97 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 17 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy."

Wall Street's median 12-month price target for Rapid7 Inc is $23.00, about 18.8% above its November 3 closing price of $18.68

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNX22hsml

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)