Companies /Technology

Rapid7 Inc

NASDAQ: RPD Software - Infrastructure
$11.00
▼ $0.47 (−4.10%) today
Markets closed · 1:08am ET

Q2 2025 Earnings

Reported Aug 7, 2025, 4:05pm ET · SEC source
$0.58
Beat +30.84%
EPS · est. $0.44
$214.2M
Beat +1.01%
Revenue · est. $212.1M
+6.6%
Beating market
RPD vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0Aug 7Aug 8report 4:05pm ETearnings+0.9%−10.8%
−8%−4%0Aug 7Aug 8earnings+0.9%−10.8%
RPD −10.8%S&P 500 +0.9%
−8%−4%0Aug 7Aug 8report 4:05pm ETearnings+1.1%−10.8%
−8%−4%0Aug 7Aug 8earnings+1.1%−10.8%
RPD −10.8%NASDAQ +1.1%
−6%0+6%Aug 6Aug 15report 4:05pm ETearnings+1.7%+7.3%
−6%0+6%Aug 6Aug 15earnings+1.7%+7.3%
RPD +7.3%S&P 500 +1.7%
−6%0+6%Aug 6Aug 15report 4:05pm ETearnings+1.3%+7.3%
−6%0+6%Aug 6Aug 15earnings+1.3%+7.3%
RPD +7.3%NASDAQ +1.3%
−9.81%
Day of report
+5.01%
Next session
+18.99%
One week
+8.92%
30 days

S&P 500 over the same 30 days: +2.36%.

Did RPD Beat Earnings? Q2 2025 Results

Rapid7 delivered a stronger-than-expected second quarter, posting non-GAAP diluted EPS of $0.58 against a consensus estimate of $0.44, a beat of 30.84%, while revenue of $214.19 million edged past expectations by 1.01% and grew 3.0% year-over-year. The primary engine behind the result was product subscriptions revenue, which climbed 4% to $208.10 million, more than offsetting a sharp 23% decline in professional services. Annualized recurring revenue reached $840.61 million, up 3% from a year ago, as the company's customer base grew to 11,643. Perhaps as telling as the headline numbers was the cash generation story, with operating cash flow surging to $47.54 million from $32.86 million in Q2 2024, a sign analysts noted points to earnings quality well above what statutory figures suggest. UBS lifted its price target on the stock following the print, maintaining a Buy rating. Looking ahead, Rapid7 guided Q3 revenue of $215 to $217 million and set full-year free cash flow expectations of $125 to $135 million, signaling steady if measured forward momentum.

Key Takeaways
  • Detection and Response business remains a consistent growth engine
  • Growing customer interest in the Command Platform strategy
  • Product subscriptions revenue grew 4% YoY to $208 million
  • Rest of world revenue grew 10% YoY
  • Strong free cash flow of $42 million, up from $29 million YoY

“Our Detection and Response business remains a consistent growth engine, and we are encouraged by growing customer interest in our Command Platform strategy.”

Rapid7 CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2025, Rapid7 guides revenue of $215–$217 million (flat to 1% YoY growth), non-GAAP operating income of $29–$31 million, and non-GAAP EPS of $0.44–$0.47 on 75.8 million diluted shares. For full-year 2025, the company expects ARR of $850–$865 million (1–3% growth), revenue of $853–$863 million (1–2% growth), non-GAAP operating income of $125–$135 million, non-GAAP EPS of $1.90–$2.03, and free cash flow of $125–$135 million.

RPD YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$60.0M$120.0M$180.0M$208.0M$214.2MRevenue$147.0M$151.1MGross Profit$5.2M$3.5MOperating Income$6.5M$8.3MNet Income
$0$60.0M$120.0M$180.0MRevenueGross ProfitOperating IncomeNet Income

RPD Revenue by Segment

Product Subscriptions$208.1M+4.0%
Professional Services$6.1M−23.0%

RPD Revenue by Geography

North America$160.6M+1.0%
Rest of World$53.6M+10.0%

Figures from SEC filings and company reports. Not investment advice.