Rapid7 Stock Earnings Reports

Rapid7 reported Q1 FY2026 results that beat guidance across all guided metrics. Total ARR was $832M and revenue was $209.7M (essentially flat year-over-year). The company emphasized that its core platform solutions—detection & response (DNR, ~55% of ARR) and exposure management (VM/Exposure Command)—now represent over 80% of ARR. DNR grew ~7% YoY, driven by MDR strength, while standalone non-platform (non-core) offerings continue to decline and are the main driver of recent sequential ARR declines. Rapid7 acquired Kensile Security (Kenzo/Kinzo) to accelerate its AI SOC and agentic capabilities for autonomous investigation and remediation. Product innovations this quarter include runtime validation for cloud and data security posture management (DSPM) for Exposure Command, aiming to shift customers from discovery to exploitability/validation and remediation at machine speed. Q1 non-GAAP operating income was $24.4M and free cash flow was $33.4M. Cash and short-term investments were $670M with a $200M undrawn revolver. Q2 guidance: ending ARR ~ $820M, revenue $207M–$209M, non-GAAP operating income $24M–$26M. Full-year 2026 guidance: revenue $836M–$842M (midpoint down ~2.4% YoY), non-GAAP operating income raised to $112M–$118M (mid-teens margin by year-end), EPS $1.52–$1.60, and FCF $125M–$135M. Management reiterated a strategic shift toward AI-enabled, preemptive security (unifying exposure and response) and a focus on margin expansion while prioritizing investment in core platform growth.