RPD
Rapid7, Inc.

Rapid7, Inc.RPD

Technology · Software - Infrastructure
14.68USD
-4.92%
Nov 08, 2026
RPD overview ready
Exposure management and security operations platform for enterprises
Rapid7 is a direct platform vendor in exposure management and security operations.
Primary theme is weakening
Cybersecurity is weakening (-3.1pp vs SPY over 21 sessions; 8 of 20 members ahead of SPY).
Constructive pullback in an uptrend
Longer-term context reads early recovery, with a near-term setup of constructive pullback.
Attractive valuation
Current market expectations look undemanding relative to the cash the business actually produces.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Revenue growth remains modest and may stall.
Market Nov 6Filing Sep 30Price action Nov 7Research Oct 6

Conviction Level

PriceAction8.0BusinessPerformance2.0BusinessQuality6.0Valuation6.8ThemeMomentum3.0Weakening — Revenue fell 3% year over year in the latest quarter. Diluted EPS fell 67% year over year to $0.05. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
CybersecurityWeakening
vs SPY
−3.1pp
Theme return
−8.1%
Beating SPY
8 of 20
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Constructive pullback in an uptrend
Longer-term context reads early recovery, with a near-term setup of constructive pullback.
EntryEarly recovery

The structure is repairing early: weekly fast averages are being reclaimed and the daily chart is recovering constructively — an early-recovery entry profile.

Key Financials

Market Cap
$1.0B
Avg Volume (60D)
2.0M
60 sessions
Revenue Growth YoY
+1.9%
FY2025 vs FY2024
Gross Margin
+69.1%
Trailing twelve months
Operating Margin
+1.6%
Trailing twelve months
Free Cash Flow Yield
+13.9%
Distance from 200DMA
+54.4%
P/E
72.7x
EV / EBITDA
9.9x
EV / Sales
0.7x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Weakening

Revenue fell 3% year over year in the latest quarter. Diluted EPS fell 67% year over year to $0.05.

Latest reported: Q3 FY2026, ended Sep 30
Revenue growthDeclining
-2.5%
$212M in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. +0.5%
  2. -0.3%
  3. -1.5%
  4. -2.5%
Earnings growthDeclining
-67%
Diluted EPS $0.05 vs $0.15 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. n/a
  2. n/a
  3. -31%
  4. -67%
Operating marginStable
4.2%
+1.5 pp YoY · gross margin 69.6% (-0.6 pp)
The share count is rising

Business Quality

6.0 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

All three valuation perspectives agree this company is cheap.
Rapid7, Inc. has a Cheap valuation stance because current market expectations look undemanding relative to the cash the business actually produces. It trades at a 13.9% free-cash-flow yield and 9.9x EBITDA, which the underlying economics comfortably support.

What changed

  • Rapid7, Inc. — 8-K (items 2.02, 9.01)
    Reported on 8-K, dated 2026-11-04.
    2026-11-04 · source
  • RPD fell 10.3% in one session
    RPD closed -10.3% while the broad market was close to flat (-0.5%).
    2026-11-02
  • RPD rose 20.2% in one session
    RPD closed +20.2% while the broad market was close to flat (+0.7%).
    2026-10-26
  • RPD rose 9.0% in one session
    RPD closed +9.0% while the broad market was close to flat (-1.2%).
    2026-10-22

Company Research

Thesis
Rapid7 is a direct platform vendor in exposure management and security operations. Its current Command platform combines attack-surface management, vulnerability and cloud-security capabilities, risk-based prioritization, remediation automation, next-generation SIEM, managed detection and response, and related security services.
Opportunity
Moderate opportunity
Enterprise security budgets for continuous discovery of hybrid assets, contextual prioritization of exploitable exposures, and workflow-driven remediation across on-premises infrastructure, cloud, identities, applications, and external attack surfaces.
Key risk
Revenue growth remains modest and may stall.

Economic classification

Loading the economic classification…

Business & Markets

Technology · Software - Infrastructure
What they do

Rapid7, Inc. provides cybersecurity software and services that help organizations detect, prioritize, and remediate security vulnerabilities across on-premises and cloud environments through a centralized platform.

How it earns

The company primarily generates revenue through subscription-based software licenses and related security services.

Products & services
Rapid7 Agent
Rapid7 Network Sensor
Rapid7 Cloud Event Data Harvesting
Command platform including attack-surface management, vulnerability management, SIEM, and managed detection and response
Customers & end markets
Enterprises with hybrid IT environments
Organizations seeking continuous exposure management and security operations
Market position

Rapid7 is a direct platform vendor positioned as a challenger in the enterprise exposure management and security operations market.

Demand drivers
Medium cyclicality

Cybersecurity spending is somewhat resilient but can be influenced by broader IT budget cycles and economic conditions.

Related companies

Finding other covered companies in the same part of this story…