(RPD) Rapid7 - Overview
Sector: Technology | Industry: Software - Infrastructure | Exchange: NASDAQ (USA) | Market Cap: 441m USD | Total Return: -68.4% in 12m
Avg Turnover: 13.9M
EPS Trend: 36.0%
Qual. Beats: 1
Rev. Trend: 93.3%
Qual. Beats: 8
Warnings
Altman Z'' -3.48 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
Rapid7, Inc. (RPD) is a Boston-based cybersecurity firm specializing in visibility, analytics, and automation solutions across cloud and on-premises environments. The company operates within the Systems Software sub-industry, primarily utilizing a Software-as-a-Service (SaaS) model to deliver its Insight platform, which integrates vulnerability management, incident response, and threat intelligence. Its portfolio includes well-known security tools such as Metasploit for penetration testing and Nexpose for vulnerability assessment.
The business model focuses on consolidating disparate security data through software agents and network sensors to provide real-time monitoring and automated remediation. This approach addresses the growing complexity of hybrid IT infrastructures, where organizations face a high volume of security telemetry. Cybersecurity firms in this sector often benefit from high switching costs and recurring revenue streams as clients integrate these tools into their core security operations centers.
To better understand how these operational strengths translate into financial performance, you may wish to examine the historical trends available on ValueRay. Rapid7 continues to expand its market share by offering managed detection and response (MDR) services, which offload day-to-day security monitoring for enterprises facing a global shortage of cybersecurity talent.
- Transition to consolidated platform licensing drives annual recurring revenue growth
- Competitive pricing pressure in vulnerability management market impacts gross margins
- Expansion of managed detection and response services offsets slowing software sales
- Enterprise adoption of cloud security modules accelerates cross-selling opportunities
- High interest rates and cautious IT spending lengthen sales cycles for mid-market customers
| Net Income: 22.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA -1.33 > 1.0 |
| NWC/Revenue: -35.09% < 20% (prev 16.90%; Δ -51.99% < -1%) |
| CFO/TA 0.10 > 3% & CFO 163.5m > Net Income 22.4m |
| Net Debt (366.9m) to EBITDA (82.5m): 4.45 < 3 |
| Current Ratio: 0.74 > 1.5 & < 3 |
| Outstanding Shares: last quarter (66.9m) vs 12m ago 4.17% < -2% |
| Gross Margin: 69.70% > 18% (prev 0.71%; Δ 6.90k% > 0.5%) |
| Asset Turnover: 51.08% > 50% (prev 51.63%; Δ -0.55% > 0%) |
| Interest Coverage Ratio: 3.65 > 6 (EBITDA TTM 82.5m / Interest Expense TTM 10.3m) |
| A: -0.18 (Total Current Assets 853.0m - Total Current Liabilities 1.15b) / Total Assets 1.72b |
| B: -0.56 (Retained Earnings -963.5m / Total Assets 1.72b) |
| C: 0.02 (EBIT TTM 37.5m / Avg Total Assets 1.68b) |
| D: -0.62 (Book Value of Equity -962.8m / Total Liabilities 1.54b) |
| Altman-Z'' = -3.48 = D |
| DSRI: 0.97 (Receivables 138.5m/140.5m, Revenue 859.2m/849.2m) |
| GMI: 1.01 (GM 69.70% / 70.59%) |
| AQI: 0.91 (AQ_t 0.46 / AQ_t-1 0.51) |
| SGI: 1.01 (Revenue 859.2m / 849.2m) |
| TATA: -0.08 (NI 22.4m - CFO 163.5m) / TA 1.72b) |
| Beneish M = -3.17 (Cap -4..+1) = AA |
As of May 23, 2026, the stock is trading at USD 7.08 with a total of 2,205,808 shares traded.
Over the past week, the price has changed by +11.85%,
over one month by +15.03%,
over three months by +18.79% and
over the past year by -68.41%.
Rapid7 has received a consensus analysts rating of 3.56. Therefore, it is recommended to hold RPD.
- StrongBuy: 6
- Buy: 3
- Hold: 15
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 7.3 | 2.4% |
P/E Forward = 4.4287
P/S = 0.5133
P/B = 2.6423
P/EG = 0.3754
Revenue TTM = 859.2m USD
EBIT TTM = 37.5m USD
EBITDA TTM = 82.5m USD
Long Term Debt = 295.7m USD (from longTermDebt, last quarter)
Short Term Debt = 615.5m USD (from shortTermDebt, last quarter)
Debt = 1.04b USD (from shortLongTermDebtTotal, last quarter) + Leases 72.0m
Net Debt = 366.9m USD (calculated: Debt 1.04b - CCE 670.3m)
Enterprise Value = 808.0m USD (441.1m + Debt 1.04b - CCE 670.3m)
Interest Coverage Ratio = 3.65 (Ebit TTM 37.5m / Interest Expense TTM 10.3m)
EV/FCF = 5.36x (Enterprise Value 808.0m / FCF TTM 150.9m)
FCF Yield = 18.67% (FCF TTM 150.9m / Enterprise Value 808.0m)
FCF Margin = 17.56% (FCF TTM 150.9m / Revenue TTM 859.2m)
Net Margin = 2.61% (Net Income TTM 22.4m / Revenue TTM 859.2m)
Gross Margin = 69.70% ((Revenue TTM 859.2m - Cost of Revenue TTM 260.3m) / Revenue TTM)
Gross Margin QoQ = 69.12% (prev 68.94%)
Tobins Q-Ratio = 0.47 (Enterprise Value 808.0m / Total Assets 1.72b)
Interest Expense / Debt = 0.99% (Interest Expense 10.3m / Debt 1.04b)
Taxrate = 38.25% (700k / 1.83m)
NOPAT = 23.1m (EBIT 37.5m * (1 - 38.25%))
Current Ratio = 0.74 (Total Current Assets 853.0m / Total Current Liabilities 1.15b)
Debt / Equity = 5.93 (Debt 1.04b / totalStockholderEquity, last quarter 174.8m)
Debt / EBITDA = 4.45 (Net Debt 366.9m / EBITDA 82.5m)
Debt / FCF = 2.43 (Net Debt 366.9m / FCF TTM 150.9m)
Total Stockholder Equity = 136.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.33% (Net Income 22.4m / Total Assets 1.72b)
RoE = 2.04% (Net Income TTM 22.4m / Total Stockholder Equity 1.10b)
RoCE = 2.69% (EBIT 37.5m / Capital Employed (Equity 1.10b + L.T.Debt 295.7m))
RoIC = 1.99% (NOPAT 23.1m / Invested Capital 1.17b)
WACC = 3.44% (E(441.1m)/V(1.48b) * Re(10.08%) + D(1.04b)/V(1.48b) * Rd(0.99%) * (1-Tc(0.38)))
Discount Rate = 10.08% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 11.11 | Cagr: -4.22%
[DCF] Terminal Value 74.09% ; FCFF base≈157.0m ; Y1≈145.4m ; Y5≈131.1m
[DCF] Fair Price = 25.57 (EV 2.08b - Net Debt 366.9m = Equity 1.71b / Shares 66.8m; r=8.35% [WACC [floored]]; 5y FCF grow -9.23% → 2.50% )
EPS Correlation: 36.05 | EPS CAGR: 13.45% | SUE: 0.95 | # QB: 1
Revenue Correlation: 93.27 | Revenue CAGR: 5.81% | SUE: 1.10 | # QB: 8
EPS current Quarter (2026-06-30): EPS=0.35 | Chg30d=-7.47% | Revisions=-58% | Analysts=24
EPS next Quarter (2026-09-30): EPS=0.42 | Chg30d=-3.32% | Revisions=-52% | Analysts=24
EPS current Year (2026-12-31): EPS=1.56 | Chg30d=-0.01% | Revisions=+8% | GrowthEPS=-25.2% | GrowthRev=-2.5%
EPS next Year (2027-12-31): EPS=1.55 | Chg30d=-1.25% | Revisions=-21% | GrowthEPS=-0.2% | GrowthRev=-0.2%
[Analyst] Revisions Ratio: -58%