Rapid7, Inc. (RPD) Stock

Rapid7, Inc. (RPD) is a Technology stock trading at $11.85 (as of 2026-08-21), with a market capitalization of $798.70M and a trailing P/E of 39.7. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Rapid7, Inc. provides cyber security solutions. The company offers a cloud-native insight platform that enables customers to create and manage analytics-driven cyber security risk management programs. Its platform includes InsightIDR, an incident detection and response solution; InsightCloudSec, a solution that integrates posture management, workload protection, infrastructure entitlements management, infrastructure-as-code security, and Kubernetes protection; InsightVM, a vulnerability risk management solution that is designed to provide a way to collect vulnerability data, prioritize risk, and automate remediation; InsightAppSec, which provides application security testing that analyzes web applications for security vulnerabilities; and InsightConnect, a security orchestration and automation response solution that is used by security professionals. The company's other products include DivvyCloud, a cloud security posture management solution; Nexpose, an on-premises version of company's vulnerability risk management solution; AppSpider, an on-premises version of company's application security testing solution; and Metasploit, a penetration testing software solution, as well as professional services. It offers its products through term or perpetual software licenses, cloud-based subscriptions, and managed services. The company serves customers in a range of industries, including technology, energy, financial services, healthcare and life sciences, manufacturing, media and entertainment, retail, education, real estate, transportation, government, and professional services industries through sales teams, and indirect channel partner relationships, as well as directly in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was incorporated in 2000 and is headquartered in Boston, Massachusetts.

Understand Rapid7, Inc.: how it makes money

Rapid7 provides cyber security solutions, selling a cloud-native insight platform with products like incident detection and response (InsightIDR), cloud workload and posture protection (InsightCloudSec), and vulnerability risk management (InsightVM), primarily through product subscriptions.

The business profit engine is subscription-led, so results are structurally tied to the level of Annual Recurring Revenue at End of Period.

Revenue by segment (latest quarter)
Product Subs$0.2B

Business quality (Weak): Subscription mix supports strong gross margin (69.1%), but the company is still operating at a slightly negative operating margin (-0.3%), meaning cost control and operating leverage remain key questions for investors.

Valuation: Trades at 22× trailing earnings · $1B market cap.

Bull case

  • Subscription-led revenue base: Product Subscriptions Revenue is 0.2B (vs. total revenue of 0.2B for the latest period), aligning the revenue stream with recurring platform usage.
  • Strong gross margin: Gross margin is 69.1%, indicating the core platform economics are healthy even though operating profit is not yet positive.

Bear case

  • Operating margin is negative: Operating margin is -0.3% in the latest period, so the company has not converted its gross margin strength into operating profitability.
  • Limited contribution from non-subscription revenue: Professional Services Revenue is 0.01B, implying most monetization is expected to come from subscriptions rather than services.
Valuation — source: SEC EDGAR (first-party)
Price$11.85
Market Cap$798.70M
P/E Ratio39.7
EV / EBITDA6.7
Price / Book4.06
Price / Sales0.93
FCF Yield18.1%
DCF Value (model)$33.36
DCF Upside vs Price181.5%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$859.79M
Net Margin2.7%
Revenue Growth (YoY)-1.5%
EPS Growth (YoY)-30.8%
FCF Growth (YoY)-23.1%
Financial Health — source: SEC EDGAR
Altman Z-Score0.15 (distress)
Valuation vs Sector & Industry
Stock P/E39.7
Sector P/E (Technology)34.0
Industry P/E (Business Services)30.2
vs Sector16.7%
vs Industry31.5%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderVANGUARD GROUP INC ($140.96M)
Institutional Holders Tracked10
Congressional Trades (recent)6
Company
SectorTechnology
IndustryBusiness Services
CEOCorey E. Thomas
Employees2,413
CountryUS
IPO Date2015-07-17

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RPD earnings history · RPD institutional & insider holders · RPD KPIs & operating metrics · RPD financials · RPD investor presentations & press releases · RPD SEC filings · RPD peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.