Rapid7 Reports Weak Q4 Results and Projects Revenue Decline for Full-Year 2026
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
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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
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.