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, both ahead of targets and flat year-over-year for ARR.

• Ended 2025 with over 11,500 customers and an average ARR per customer of ~$72,000.

• Strategic investments in AI-enabled security operations, product innovation, and MDR/Exposure Command platforms.

• Recognized as a leader by Gartner, Forrester, Frost & Sullivan, and IDC in multiple security categories.

• Leadership changes and organizational realignment to drive operational efficiency and growth.

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.

• Ending 2025 with $659M in cash, cash equivalents, and government securities.

Outlook and guidance

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

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

• FY2026 non-GAAP EPS: $1.50–$1.60; free cash flow: $125M–$135M.

• No full-year ARR guidance due to leadership changes and ongoing business transformation.