Despite near-zero revenue growth, Rapid7 demonstrated a robust 17.0% FCF margin in Q2 2026, supported by minimal capex of 0.5% of revenue and volatile working capital swings that provided a $32.3 million tailwind, though cash flow quality is heavily masked by over $25 million in quarterly stock-based compensation add-backs.
Rapid7, Inc. (RPD) cash flow statement — 13-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Cash from Operations | 152.93M | 152.13M | 171.67M | 104.28M | 78.2M | 53.92M | 4.89M | -1.42M | 6.07M | 13.29M | 9.11M | -1.91M | -3.36M | -613K |
| Operating CF Margin % | - | 17.69% | 20.34% | 13.41% | 11.42% | 10.07% | 1.19% | -0.43% | 2.49% | 6.61% | 5.79% | -1.73% | -4.37% | -1.02% |
| Operating CF Growth % | -41.8% | -11.38% | 64.63% | 33.34% | 45.05% | 1003.27% | 444.15% | -123.41% | -54.34% | 45.81% | 577.82% | 43.18% | -447.47% | - |
| Net Income | 20.14M | 23.38M | 25.53M | -149.26M | -124.72M | -146.33M | -98.85M | -53.84M | -55.55M | -45.47M | -49M | -49.86M | -32.63M | -18.87M |
| Depreciation & Amortization | 45.92M | 45.44M | 44.89M | 45.94M | 41.04M | 33.5M | 22.63M | 16.53M | 11.1M | 7.63M | 6.72M | 5.35M | 4.14M | 2.63M |
| Stock-Based Compensation | 89.32M | 104.33M | 107.96M | 108.08M | 119.9M | 102.58M | 63.89M | 40.66M | 27.59M | 19.54M | 17.32M | 10.69M | 2.16M | 2.05M |
| Deferred Taxes | -4.68M | -1.69M | 791K | -5.62M | 332K | 466K | 737K | -645K | -69K | -2.86M | 75K | 119K | 196K | 111K |
| Other Non-Cash Items | -29.11M | -3.84M | 2.94M | 104.79M | 2.11M | 8.64M | 19.95M | 11.12M | 4.82M | 750K | 1.21M | 2.8M | 1.13M | 460K |
| Working Capital Changes | 31.35M | -15.49M | -10.45M | 351K | 39.54M | 55.06M | -3.47M | -15.24M | 18.17M | 33.7M | 32.78M | 28.99M | 21.64M | 13.01M |
| Change in Receivables | 9.33M | 1.67M | -5.48M | -14.02M | -9.05M | -25.48M | -24.38M | -14.8M | -1.69M | -25.22M | -6.2M | -18.37M | -7.13M | -4.01M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -7.91M | 6.1M | 5.73M | -1.39M | 4.8M | 3M | 833K |
| Change in Payables | 405K | -8.93M | 2.78M | 5.45M | 7.98M | -2.08M | -2.39M | 92K | 3.67M | -2.26M | 1.62M | -2.3M | 567K | 1.06M |
| Cash from Investing | 11.18M | -209.44M | -46.52M | -178.75M | -39.99M | -325.38M | -156.29M | 16.81M | -193.73M | -22.42M | -43.48M | -42.95M | -7.08M | -2.78M |
| Capital Expenditures | -12.48M | -23.7M | -3.42M | -4.37M | -37.53M | -9.01M | -13.8M | -35.52M | -16.08M | -5.99M | -4.5M | -4.14M | -7.08M | -2.78M |
| CapEx % of Revenue | 1.46% | 2.76% | 0.41% | 0.56% | 5.48% | 1.68% | 3.35% | 10.86% | 6.59% | 2.98% | 2.86% | 3.74% | 9.21% | 4.63% |
| Acquisitions | -23.34M | 0 | -37.3M | -34.84M | -300K | -358.42M | -125.83M | -14.61M | -14.46M | -14.72M | -1.39M | -38.81M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -11.99M | 1.79M | -13.8M | -15.88M | 300K | -9.85M | -6.13M | 0 | 0 | -200K | 1.39M | 0 | 0 | 0 |
| Cash from Financing | -124K | -43.81M | 5.58M | 79.6M | 7.42M | 264.13M | 200.93M | 8.79M | 236.16M | 7.27M | 1.16M | 94.79M | 26.67M | 16.32M |
| Debt Issued (Net) | 0 | -45.99M | 0 | 73.04M | -12K | 278.7M | 195.1M | 0 | 196.21M | 0 | -68K | -18.79M | -256K | 17.7M |
| Equity Issued (Net) | 4.76M | 9.29M | 10.81M | 14.38M | 15.26M | 13.59M | 14.89M | 15.74M | 42.15M | 8.76M | 6.65M | 113.58M | 27.78M | 257K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -632K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.53M | 0 |
| Other Financing | -4.88M | -7.11M | -5.23M | -7.82M | -7.83M | -28.16M | -9.07M | -6.95M | -2.2M | -1.49M | -5.42M | 0 | -856K | -1.64M |
| Net Change in Cash | 164.28M | -95.42M | 128.46M | 6.34M | 42.7M | -9.04M | 50.2M | 23.85M | 48M | -1.59M | -33.41M | 49.73M | 16.21M | 20.61M |
| Free Cash Flow | 140.28M | 144.53M | 168.25M | 99.91M | 57.82M | 44.91M | -8.91M | -30.85M | -6.75M | 8.46M | 4.61M | -6.04M | -10.44M | -3.39M |
| FCF Margin % | 16.39% | 16.81% | 19.93% | 12.85% | 8.44% | 8.39% | -2.17% | -9.44% | -2.76% | 4.21% | 2.93% | -5.47% | -13.58% | -5.65% |
| FCF Growth % | -20.25% | -14.09% | 68.39% | 72.79% | 28.76% | 603.72% | 71.1% | -357.21% | -179.73% | 83.44% | 176.34% | 42.11% | -207.81% | - |
| FCF per Share | 2.07 | 2.22 | 2.66 | 1.64 | 0.99 | 0.81 | -0.17 | -0.63 | -0.15 | 0.20 | 0.11 | -0.24 | -0.34 | -0.11 |
| FCF Conversion (FCF/Net Income) | 6.97x | 6.51x | 6.73x | -0.70x | -0.63x | -0.37x | -0.05x | 0.03x | -0.11x | -0.29x | -0.19x | 0.04x | 0.10x | 0.03x |
| Interest Paid | 4.11M | 0 | 6.36M | 4.61M | 6.67M | 7.34M | 5.46M | 2.78M | 0 | 0 | 5K | 1.43M | 2.1M | 96K |
| Taxes Paid | 2.24M | 0 | 8.95M | 1.62M | 1.57M | 3.31M | 312K | 400K | 188K | 801K | 556K | 341K | 61K | 34K |
Quick answers to the most common questions about buying RPD stock.
Rapid7, Inc. (RPD) generated $152.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Rapid7, Inc. (RPD) generated $144.5M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Rapid7, Inc. (RPD) spent $23.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Growth stagnation with high leverage
Metrics are mathematically derived from official filings.
Cash Flow Quality Masked by Accounting Accruals
Rapid7's operating cash flow consistently exceeds net income by a wide margin, with the OCF/NI ratio averaging over 9.0x in the last four quarters, suggesting significant non-cash items like deferred revenue and stock-based compensation are inflating cash generation relative to GAAP earnings.
The substantial and persistent gap between net income and operating cash flow, as reported in the financial statements, is primarily driven by the add-back of over $19 million in quarterly stock-based compensation and the recognition of deferred revenue from subscription prepayments. This pattern indicates that the company's cash generation is structurally stronger than its near-breakeven GAAP profitability suggests, though the quality of this conversion depends on the sustainability of the underlying subscription billings and the collection cycle.
Free Cash Flow Resilience Amidst Revenue Stagnation
Despite reported revenue growth decelerating to negative 1.5% in Q2 2026, Rapid7 maintained a robust FCF margin of 17.0%, indicating that operational efficiencies and favorable working capital dynamics are currently supporting cash generation independent of top-line expansion.
The company's free cash flow has remained resilient, averaging over $35 million per quarter in the first half of 2026, a trend that appears disconnected from the weakening revenue trajectory. This suggests management is successfully extracting cash from the business through cost control and likely favorable terms with suppliers or customers, but this level of FCF may not be sustainable if revenue continues to contract, as the fixed cost base would eventually become a drag on cash flow.
Volatile Working Capital Swings Distorting Core Cash Flow
Working capital changes have been highly volatile, swinging from a $32.3 million tailwind in Q2 2026 to a $11.0 million headwind in Q1 2025, indicating that the timing of collections and payments is a major, and potentially unpredictable, driver of quarterly operating cash flow.
The large positive working capital contribution in Q2 2026, which accounted for over 87% of that quarter's operating cash flow, suggests a significant acceleration in collections or a delay in payments. Investors should monitor this closely, as such lumpy movements can obscure the underlying cash generation trend; a reversal or normalization could lead to a sharp quarterly decline in operating cash flow, even if the business fundamentals remain stable.
Minimal Capex Intensity Preserves Cash Generation
Capital expenditures have remained extremely low, consistently below 1% of revenue in seven of the last ten quarters, which is a key structural support for Rapid7's strong free cash flow conversion in a period of near-flat revenue growth.
The company's asset-light software model requires minimal reinvestment in physical infrastructure, with CapEx focused primarily on capitalizing internal-use software development. This low capital intensity is a critical feature that allows operating cash flow to translate almost directly into free cash flow, providing significant flexibility for debt service or strategic investments even when operating margins are thin.
Acquisition-Driven Deployment Amidst Debt Overhang
Rapid7's capital deployment has recently shifted toward strategic acquisitions, as seen in the $23.3 million outflow in Q1 2026 and the $37.2 million in Q3 2024, while the persistent high debt-to-equity ratio of 6.65% may limit future financial flexibility for such moves.
Based on the cash flow statements, management has used a portion of its strong free cash flow for inorganic expansion, likely to fill gaps in its platform strategy. However, the combination of this ongoing M&A activity and the elevated leverage profile suggests the company is operating with limited margin for error; any deterioration in organic cash flow could force a trade-off between deleveraging and pursuing growth.
SBC and Deferred Revenue Obscure True Cash Burn
The cash flow statement is materially affected by over $25 million in quarterly stock-based compensation add-backs and the timing of subscription billings, which together inflate operating cash flow and mask the underlying economic cost of employee compensation and the real cash collection cycle.
When adjusted for SBC, Rapid7's cash flow from operations is significantly lower, highlighting that a substantial portion of its apparent cash generation is non-cash in nature. Furthermore, the heavy reliance on deferred revenue growth means that reported operating cash flow is sensitive to new bookings and renewal timing; a slowdown in billings growth could quickly erode this key source of cash inflow without an immediate impact on recognized revenue.