Rapid7 (NASDAQ:RPD) Releases Q4 2025 Earnings Guidance

Rapid7 (NASDAQ:RPD) issued an update on its fourth quarter 2025 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 0.370-0.44 for the period, compared to the consensus estimate of 0.310. The company issued revenue guidance of $214.0 million-$216.0 million, compared to the consensus revenue estimate of $218.2 million. Rapid7 also updated its FY 2025 guidance to 2.020-2.090 EPS.

Rapid7 Price Performance

NASDAQ:RPD traded down $0.88 on Tuesday, hitting $17.80. The company had a trading volume of 1,475,098 shares, compared to its average volume of 871,221. The stock has a market capitalization of $1.15 billion, a price-to-earnings ratio of 43.42 and a beta of 0.92. The company has a current ratio of 1.36, a quick ratio of 1.36 and a debt-to-equity ratio of 9.84. The firm has a 50 day moving average of $19.34 and a two-hundred day moving average of $21.62. Rapid7 has a 52 week low of $17.73 and a 52 week high of $44.48.

Rapid7 (NASDAQ:RPD) last issued its quarterly earnings data on Tuesday, November 4th. The technology company reported $0.23 EPS for the quarter, missing the consensus estimate of $0.45 by ($0.22). Rapid7 had a net margin of 3.41% and a return on equity of 149.12%. Rapid7 has set its FY 2025 guidance at 2.020-2.090 EPS. Q4 2025 guidance at 0.370-0.44 EPS. On average, research analysts anticipate that Rapid7 will post 0.35 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. Canaccord Genuity Group dropped their price target on shares of Rapid7 from $39.00 to $32.00 and set a “hold” rating for the company in a research note on Monday, August 11th. Wall Street Zen raised shares of Rapid7 from a “hold” rating to a “buy” rating in a research note on Sunday, August 3rd. Stifel Nicolaus dropped their price target on shares of Rapid7 from $29.00 to $22.00 and set a “hold” rating for the company in a research note on Friday, August 8th. Royal Bank Of Canada dropped their price target on shares of Rapid7 from $27.00 to $23.00 and set a “sector perform” rating for the company in a research note on Friday, August 8th. Finally, Morgan Stanley dropped their price target on shares of Rapid7 from $28.00 to $22.00 and set an “equal weight” rating for the company in a research note on Tuesday, September 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $26.28.

Insider Buying and Selling at Rapid7

In other news, CAO Scott M. Murphy sold 1,370 shares of the stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $20.25, for a total transaction of $27,742.50. Following the completion of the sale, the chief accounting officer directly owned 27,592 shares in the company, valued at $558,738. This represents a 4.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Jana Partners Management, Lp purchased 250,000 shares of Rapid7 stock in a transaction on Wednesday, August 13th. The stock was bought at an average price of $21.26 per share, with a total value of $5,315,000.00. Following the completion of the acquisition, the director directly owned 6,518,604 shares of the company’s stock, valued at approximately $138,585,521.04. This trade represents a 3.99% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders have bought 772,194 shares of company stock valued at $15,135,356. 2.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Rapid7

Large investors have recently bought and sold shares of the stock. Woodline Partners LP grew its holdings in Rapid7 by 48.0% in the first quarter. Woodline Partners LP now owns 86,712 shares of the technology company’s stock worth $2,299,000 after purchasing an additional 28,115 shares during the period. Prudential Financial Inc. grew its holdings in Rapid7 by 8.8% in the second quarter. Prudential Financial Inc. now owns 8,513 shares of the technology company’s stock worth $197,000 after purchasing an additional 690 shares during the period. Invesco Ltd. grew its holdings in Rapid7 by 27.2% in the second quarter. Invesco Ltd. now owns 62,786 shares of the technology company’s stock worth $1,452,000 after purchasing an additional 13,418 shares during the period. Qube Research & Technologies Ltd grew its holdings in Rapid7 by 37.0% in the second quarter. Qube Research & Technologies Ltd now owns 535,121 shares of the technology company’s stock worth $12,377,000 after purchasing an additional 144,627 shares during the period. Finally, Caption Management LLC acquired a new stake in Rapid7 in the second quarter worth $971,000. 95.66% of the stock is currently owned by institutional investors and hedge funds.

About Rapid7

Rapid7, Inc provides cybersecurity solutions under the Rapid7, Nexpose, and Metasploit brand names. The company offers endpoint to cloud data collection and sharing applications, such as Rapid7 Insight Agent, a software-based agent that is used on assets across on-premises and cloud environments to centralize and monitor data on company's platform; Rapid7 Insight Network Sensor that analyzes raw end-to-end network traffic to increase visibility into user activity, pinpoint real threats, and investigations; Rapid7 Cloud Event Data Harvesting that offers visibility into changes made to cloud resources; and third-party integrations and ecosystem, as well as orchestration and automation solutions.