Rapid7 (RPD) Q4 2025 earnings summary

Executive summary

• Exceeded Q4 and FY2025 guidance for ARR, revenue, and profitability, with ARR at $840M and total revenue at $860M, serving over 11,500 customers and recognized as a leader by major industry analysts.

• Strategic investments in AI-enabled security operations, product innovation, and global capacity drove platform enhancements and operational scale.

• Focused on integrating exposure management with detection and response, leveraging proprietary data, AI, and expert services.

• Leadership changes and organizational realignment, including a new CFO and rebuilt go-to-market team, aim to accelerate growth and improve execution.

• Maintains a robust partner and integration ecosystem, with over 500 integrations and notable customer wins in Q4.

Financial highlights

• Q4 2025 revenue: $217.4M, up 0.5% year-over-year; full-year revenue: $859.8M–$860M, up 1.9%–2% year-over-year.

• Q4 product revenue: $209.1M, up 1.4% year-over-year; full-year product revenue: $831M, up 3% year-over-year.

• Q4 non-GAAP operating income: $30.1M (13.9% margin); full-year non-GAAP operating income: $135.7M (15.8% margin).

• Q4 non-GAAP EPS: $0.44; full-year non-GAAP EPS: $2.08.

• Q4 free cash flow: $32.3M; full-year free cash flow: $130M–$130.1M.

• Ended 2025 with $659M in cash, cash equivalents, and government securities, and a $200M undrawn revolver.

Outlook and guidance

• Q1 2026 ARR expected at ~$830M, down 1% year-over-year; Q1 2026 revenue guidance: $207–$209M.

• FY2026 revenue guidance: $835–$843M, down 2%–3% year-over-year; non-GAAP operating income: $108–$116M; non-GAAP EPS: $1.50–$1.60.

• FY2026 free cash flow expected at $125–$135M (15.5% margin midpoint), flat year-over-year.

• No full-year ARR guidance due to leadership changes and ongoing improvement initiatives; visibility to be provided quarterly.