Rapid7 (RPD) Q3 2026 Earnings
Non-GAAP EPS excludes $9,988 thousand restructuring expense and a $5,500 thousand impairment of strategic equity investment (GAAP diluted EPS was $0.05).
How Did RPD Stock React to Q3 2026 Earnings?
Did RPD Beat Earnings? Q3 2026 Results
Yes. Rapid7 reported Q3 2026 earnings of $0.60 a share on Nov 4, 2026, beating the $0.48 consensus estimate by 25.0%. Revenue was $212.4M against a $209.3M estimate.
Rapid7 delivered a stronger-than-expected third quarter of 2026, posting adjusted non-GAAP EPS of $0.60 against a consensus estimate of $0.48, a 25% beat that extended the cybersecurity company's streak of exceeding EPS estimates to five consecutive quarters. Revenue of $212.40 million edged past the $209.27 million consensus by 1.5%, though the top line still contracted 2.5% year over year as total ARR slipped to $819.70 million, down 2.2%. The clearest driver behind the profit beat was aggressive cost discipline; sales and marketing expense fell to $65.64 million from $79.30 million a year earlier, and R&D dropped to $39.64 million from $46.91 million, lifting non-GAAP operating income to $46.19 million. CEO Wael Mohamed framed the quarter as early progress in a "multi-quarter journey," cautioning that "one quarter of stability is just a start." For the fourth quarter, management guided revenue to $208 million to $210 million and non-GAAP EPS to $0.53 to $0.55, with full-year free cash flow targeted at approximately $130 million.
- Cost discipline after restructuring: sales and marketing expense fell to $65.6M from $79.3M, and R&D to $39.6M from $46.9M
- Non-GAAP income from operations rose to $46.2M from $36.9M year over year
- Adjusted EBITDA of $52.6M vs $43.5M year over year
- Product subscriptions revenue declined 1.9% and professional services revenue fell to $6.3M from $7.8M
- ARR declined 2.2% year over year to $819.7M
“Last quarter, we took decisive action to focus resources and energy on our core business. This quarter, we delivered on some of our early goals in this multi-quarter journey. The company is operating with greater discipline, our core business is becoming more stable, and our cash generation outlook for the year remains on track. That is real progress, but one quarter of stability is just a start. Turning this execution into durable growth is the work ahead of us.”
Rapid7 CEO, on the earnings call
What Is Rapid7's Outlook?
For Q4 2026, Rapid7 expects: - ARR of approximately $812 million (down 3% YoY) - Revenue of $208 million to $210 million (down 4% to 3% YoY) - Non-GAAP income from operations of $40 million to $42 million - Non-GAAP diluted EPS of $0.53 to $0.55, on 82.1 million diluted shares For full-year 2026, it expects: - Revenue of $841 million to $843 million (down 2% YoY) - Non-GAAP income from operations of $140 million to $142 million - Non-GAAP diluted EPS of $1.94 to $1.96, on 79.6 million diluted shares - Free cash flow of approximately $130 million Management says the core business is stabilizing and the cash generation outlook remains on track. It frames turning this execution into durable growth as the remaining work.
RPD YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $212.4M | $218.0M | −2.6% |
| Gross Profit | $147.9M | $153.0M | −3.3% |
| Operating Income | $9.0M | $5.9M | +51.6% |
| Net Income | $3.5M | $9.8M | −64.2% |
RPD Revenue by Segment
RPD Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.