Threat detection firm Rapid7 reports Q2 revenue rise, CFO to retire

Rapid7

07/08/2025 21:10

Overview

Rapid7 Q2 2025 revenue rises 3% yr/yr to $214 mln

ARR grows 3% to $841 mln, highlighting consistent subscription growth

CFO Tim Adams to retire; search for successor underway

Outlook

Rapid7 sees Q3 ARR between $850 mln and $865 mln

Company expects full-year revenue between $853 mln and $863 mln

Rapid7 anticipates Q3 non-GAAP EPS between $0.44 and $0.47

Company forecasts full-year free cash flow of $125 mln to $135 mln

Result Drivers

DETECTION AND RESPONSE - CEO Corey Thomas cites Detection and Response business as a consistent growth engine

COMMAND PLATFORM STRATEGY - Growing customer interest in integrated solutions for unified visibility and better security outcomes

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Rev
$214 mln
Q2 EPS
$0.13
Q2 Adjusted Net Income
$42.19 mln
Q2 Net Income
$8.34 mln
Q2 Adjusted EBITDA
$42.65 mln
Q2 Gross Margin
71.0%
Q2 Adjusted Operating Margin
17.0%
Q2 Basic EPS
$0.13
Q2 Gross Profit
$151.13 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 $29.00, about 31.1% above its August 6 closing price of $19.99

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX8fgylV

(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.)