S&P 500
7,441.40
+0.13%
Dow Jones
52,091.40
-0.08%
Nasdaq 100
29,957.70
+0.30%
Russell 2000
3,004.67
+0.01%
FTSE 100
10,478.30
+0.02%
Nikkei 225
72,618.80
+2.10%
Rapid7

RPD Q1 2026 Earnings

Reported May 5, 2026 at 4:09 PM ET · SEC Source

Q1 26 EPS

$0.36

BEAT +18.77%

Est. $0.30

Q1 26 Revenue

$209.7M

BEAT +0.86%

Est. $207.9M

vs S&P Since Q1 26

+6.5%

BEATING MARKET

RPD +6.5% vs S&P -0.1%

Market Reaction

Did RPD Beat Earnings? Q1 2026 Results

Rapid7 delivered a beat-and-lower quarter in Q1 2026, posting non-GAAP diluted EPS of $0.36 against the $0.30 consensus estimate, an 18.77% beat, while revenue of $209.69 million edged past the $207.90 million forecast by 0.86%, even as total revenue… Read more Rapid7 delivered a beat-and-lower quarter in Q1 2026, posting non-GAAP diluted EPS of $0.36 against the $0.30 consensus estimate, an 18.77% beat, while revenue of $209.69 million edged past the $207.90 million forecast by 0.86%, even as total revenue slipped 0.3% year over year. The headline outperformance masked meaningful underlying pressure: annualized recurring revenue fell 0.6% year over year to $832.00 million, signaling softness in net customer retention, and non-GAAP operating income contracted to $24.43 million from $32.35 million a year ago as gross margins compressed to 72% from 75%, driven by higher product subscription costs. A strategic bright spot was the $23.34 million acquisition of AI security platform Kenzo Security, which the company is positioning as a cornerstone of its autonomous threat investigation push. Despite the earnings beat, shares fell sharply in premarket trading, reflecting investor concern over the full-year 2026 revenue outlook of $836 to $842 million, implying a 2-3% year-over-year decline, with Q2 revenue guided at $207 to $209 million and non-GAAP EPS of $0.33 to $0.36.

Key Takeaways

  • • Exceeded guidance expectations across all metrics
  • • Strong free cash flow generation of $33.4 million
  • • Exposure Management and Detection and Response capabilities increasingly important to customers
  • • Significant reduction in stock-based compensation expense from $27.2 million to $19.9 million

RPD Forward Guidance & Outlook

For Q2 2026, Rapid7 expects ARR of approximately $820 million (down ~2% YoY), revenue of $207-$209 million (down 2-3% YoY), non-GAAP operating income of $24-$26 million, and non-GAAP diluted EPS of $0.33-$0.36 on 78.3 million weighted average diluted shares. For full-year 2026, the company expects revenue of $836-$842 million (down 2-3% YoY), non-GAAP operating income of $112-$118 million, non-GAAP diluted EPS of $1.52-$1.60 on 79.4 million weighted average diluted shares, and free cash flow of $125-$135 million.

24/7 Wall St

RPD YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

RPD Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26
24/7 Wall St

RPD Revenue by Geography

With YoY comparisons, source: SEC Filings

Q2 25 Q3 25

“As frontier models reshape the cybersecurity landscape, Rapid7's AI SOC and preemptive security infrastructure are more essential than ever. Our Exposure Management and Detection and Response capabilities are increasingly important to customers facing a groundswell of new vulnerabilities and attacks. And Rapid7's business is well positioned to meet that demand.”

— Corey Thomas, Q1 2026 Earnings Press Release

Back to RPD Stock Page