Rapid7 Reports Weak Q4 Results and Projects Revenue Decline for Full-Year 2026
RPD is trading near its 52-week low of $10.2 (5.9% below the low) on elevated volume (2.1× avg).
Summary
Rapid7 reported weak Q4 2025 results and provided a negative revenue outlook for 2026, projecting a year-over-year decline, while a long-term director announced their departure.
Key Events · Earnings and Guidance · RPD
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Weak Q4 2025 Financial Performance
Rapid7 reported Q4 2025 revenue of $217 million, a modest 1% increase year-over-year, with Annual Recurring Revenue (ARR) remaining flat at $840 million.
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Negative Revenue Guidance for 2026
The company projects full-year 2026 revenue between $835 million and $843 million, representing a 2-3% year-over-year decline, signaling a significant slowdown in growth.
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Director Not Seeking Re-election
Mr. Michael Berry, a director for over 13 years, notified the Board that he will not stand for re-election at the 2026 Annual General Meeting, though his decision was not due to any disagreement with the company.
Analysis · RPD · Technology
Rapid7, Inc. announced disappointing financial results for the fourth quarter and full-year 2025, characterized by minimal revenue growth and flat Annual Recurring Revenue (ARR). More significantly, the company issued negative revenue guidance for both Q1 and the full-year 2026, projecting a 2-3% year-over-year decline. This outlook is a substantial negative signal for a technology company, indicating a significant slowdown in its core business. The stock is currently trading near its 52-week low, and this guidance is likely to exacerbate investor concerns about future growth and profitability. Additionally, a long-serving director, Mr. Michael Berry, will not seek re-election, though the company stated this was not due to any disagreement.
At the time of this filing, RPD was trading at $9.60 on NASDAQ in the Technology sector, with a market capitalization of approximately $680.3M. The 52-week trading range was $10.20 to $38.98. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.