Rapid7 (RPD) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $210.9 million, down 1.5% year-over-year, with ARR at $824 million, a 2% decrease year-over-year; recurring revenue comprised 97% of total revenue, and over 11,500 customers were served globally.

• Leadership emphasized a strategic transformation focused on core offerings, operational discipline, and leveraging AI to drive efficiency and growth, with a new CEO appointed June 1, 2026.

• Major restructuring plans were executed and announced, including a 12% workforce reduction, primarily in sales, marketing, and G&A, to align resources with core platform solutions and enable reinvestment in AI and product innovation.

• Acquired Kenzo Security, Inc. in March 2026 for $25.5 million to enhance AI-driven security operations and continued integration of Noetic Cyber, Inc.

• Participated in Anthropic's Project Glasswing and OpenAI's TAC program, integrating advanced AI models.

Financial highlights

• Q2 2026 ARR was $824 million, with core platform ARR growing ~1% year-over-year and Detection and Response up ~5%; non-core products (less than 20% of ARR) declined.

• Total revenue was $210.9 million, with non-GAAP operating income of $28.9 million (13.7% margin) and non-GAAP net income of $33.0 million ($0.44 per diluted share).

• Free cash flow was $31.9 million for Q2 2026; cash, equivalents, and short-term investments totaled $702.6 million.

• Adjusted EBITDA for Q2 2026 was $35.8 million, down from $42.6 million in Q2 2025.

Outlook and guidance

• Q3 2026 guidance: ARR of ~$812 million, revenue $208–$210 million (down 4–5% year-over-year), non-GAAP operating income $34–$36 million, and non-GAAP EPS $0.44–$0.47.

• Full-year 2026 guidance: revenue $837–$841 million (down 2–3% year-over-year), non-GAAP operating income $129–$133 million, non-GAAP EPS $1.78–$1.83, and free cash flow ~$130 million.

• Targeting 20% non-GAAP operating margin in Q4 2026.

• Restructuring charges of $10–$11 million expected, mostly in Q3 and Q4 2026.