📊 RPD Key Takeaways
Is Rapid7, Inc. (RPD) a Good Investment?
Rapid7 operates a stable, cash-generative software business with fortress balance sheet strength, but is hampered by anemic revenue growth (1.9% YoY) and razor-thin profitability (net margin 0.5%, operating margin -0.3%). The company's poor capital efficiency (ROE 0.6%, ROA 0.1%) and sub-1.0x current ratio despite $343M cash indicate operational maturity without meaningful growth or profitability expansion.
Rapid7 generates strong free cash flow on high gross margins with minimal leverage, but revenue growth has slowed and GAAP profitability remains thin with declining EPS. Liquidity is adequate, yet the small equity base versus large liabilities reduces resilience. Waiting for sustained margin expansion alongside a reacceleration in growth is prudent.
Why Buy Rapid7, Inc. Stock? RPD Key Strengths
- Strong gross margins (69.1%) demonstrate product pricing power and cost structure
- Fortress balance sheet: $343.3M cash with minimal debt (0.08x D/E ratio)
- Positive free cash flow generation ($37.7M, 18% FCF margin) with low capex needs
- Strong free cash flow (17% FCF margin)
- High gross margin (70.3%) supporting scalability
- Low leverage with cash exceeding long-term debt; acceptable interest coverage
RPD Stock Risks: Rapid7, Inc. Investment Risks
- Stagnant revenue growth (1.9% YoY) is concerning for software sector peer performance
- Operating margin negative (-0.3%) with minimal net profitability (0.5% net margin)
- Severely low capital returns: ROE 0.6%, ROA 0.1% indicate inefficient capital deployment
- Current ratio below 1.0x suggests liquidity pressure or working capital challenges despite large cash position
- EPS declining 10% YoY despite flat net income signals shareholder dilution
- Muted top-line growth (+1.9% YoY)
- Very thin operating margin (1.3%) and EPS down 10%
- Small equity base vs. liabilities limits shock absorption
Key Metrics to Watch
- Revenue growth rate - must accelerate from 1.9% to justify software company valuation
- Operating margin trajectory - need recovery from negative territory
- Current ratio normalization - understand drivers of sub-1.0x ratio
- Free cash flow sustainability - confirm 18% FCF margin continues amid growth stagnation
- Operating margin
- Revenue growth YoY
Rapid7, Inc. (RPD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
RPD Profit Margin, ROE & Profitability Analysis
RPD vs Technology Sector: How Rapid7, Inc. Compares
How Rapid7, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Rapid7, Inc. Stock Overvalued? RPD Valuation Analysis 2026
Based on fundamental analysis, Rapid7, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Rapid7, Inc. Balance Sheet: RPD Debt, Cash & Liquidity
RPD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Rapid7, Inc.'s revenue has grown significantly by 61% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.44 indicates the company is currently unprofitable.
RPD Revenue Growth, EPS Growth & YoY Performance
RPD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $209.7M | $1.1M | $0.02 |
| Q3 2025 | $214.7M | $9.8M | $0.15 |
| Q2 2025 | $208.0M | $6.5M | $0.09 |
| Q1 2025 | $205.1M | $1.4M | $0.02 |
| Q3 2024 | $198.8M | $16.6M | $0.22 |
| Q2 2024 | $190.4M | $8.2M | $0.11 |
| Q1 2024 | $183.2M | $2.3M | $0.03 |
| Q3 2023 | $175.8M | -$28.7M | $-0.49 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Rapid7, Inc. Dividends, Buybacks & Capital Allocation
RPD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Rapid7, Inc. (CIK: 0001560327)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RPD
What is the AI rating for RPD?
Rapid7, Inc. (RPD) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are RPD's key strengths?
Claude: Strong gross margins (69.1%) demonstrate product pricing power and cost structure. Fortress balance sheet: $343.3M cash with minimal debt (0.08x D/E ratio). ChatGPT: Strong free cash flow (17% FCF margin). High gross margin (70.3%) supporting scalability.
What are the risks of investing in RPD?
Claude: Stagnant revenue growth (1.9% YoY) is concerning for software sector peer performance. Operating margin negative (-0.3%) with minimal net profitability (0.5% net margin). ChatGPT: Muted top-line growth (+1.9% YoY). Very thin operating margin (1.3%) and EPS down 10%.
What is RPD's revenue and growth?
Rapid7, Inc. reported revenue of $209.7M.
Does RPD pay dividends?
Rapid7, Inc. does not currently pay dividends.
Where can I find RPD SEC filings?
Official SEC filings for Rapid7, Inc. (CIK: 0001560327) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RPD's EPS?
Rapid7, Inc. has a diluted EPS of $0.02.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is RPD a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Rapid7, Inc. has a HOLD rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is RPD stock overvalued or undervalued?
Valuation metrics for RPD: ROE of 0.6% (sector avg: 22%), net margin of 0.5% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy RPD stock in 2026?
Our dual AI analysis gives Rapid7, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RPD's free cash flow?
Rapid7, Inc.'s operating cash flow is $39.8M, with capital expenditures of $2.1M. FCF margin is 18.0%.
How does RPD compare to other Technology stocks?
Vs Technology sector averages: Net margin 0.5% (avg: 18%), ROE 0.6% (avg: 22%), current ratio 0.78 (avg: 2.5).