Free cash flow remains volatile, with margins fluctuating from 30.7% in 2023Q4 to 18.0% in 2026Q1, while the high ratio of operating cash flow to net income suggests earnings quality is heavily influenced by non-cash accruals.
| 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 | 163.48M | 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 % | 25.09% | -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 | 22.41M | 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 | 46.08M | 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 | 97.07M | 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 | -2.91M | -1.69M | 791K | -5.62M | 332K | 466K | 737K | -645K | -69K | -2.86M | 75K | 119K | 196K | 111K |
| Other Non-Cash Items | 5.3M | -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 | -4.46M | -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 | 5.4M | 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 | -32K | -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 | -74.97M | -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 | -16.39M | -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 | 1.91% | 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 | -8.18M | 1.79M | -13.8M | -15.88M | 300K | -9.85M | -6.13M | 0 | 0 | -200K | 1.39M | 0 | 0 | 0 |
| Cash from Financing | -47.2M | -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) | -45.99M | -45.99M | 0 | 73.04M | -12K | 278.7M | 195.1M | 0 | 196.21M | 0 | -68K | -18.79M | -256K | 17.7M |
| Equity Issued (Net) | 2.67M | 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 | -585K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.53M | 0 |
| Other Financing | -3.88M | -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 | 44.58M | -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 | 150.85M | 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 % | 17.56% | 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 % | -9.23% | -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 | 2.25 | 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) | 6.73x | 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 | 5.51M | 0 | 6.36M | 4.61M | 6.67M | 7.34M | 5.46M | 2.78M | 0 | 0 | 5K | 1.43M | 2.1M | 96K |
| Taxes Paid | 6.96M | 0 | 8.95M | 1.62M | 1.57M | 3.31M | 312K | 400K | 188K | 801K | 556K | 341K | 61K | 34K |
High stock-based compensation reliance
According to the provided quarterly data, the ratio of operating cash flow to net income frequently exceeds 10x, as seen in 2025Q1's 14.14x multiple, which suggests that Rapid7's reported net income is a poor proxy for the company's actual ability to generate cash from operations.
The massive divergence between net income and operating cash flow indicates that non-cash charges, primarily stock-based compensation, are heavily inflating the bottom line. Investors should monitor this gap, as it implies that the company's GAAP profitability is largely an accounting construct rather than a reflection of sustainable operational cash generation.
As reported in financial statements, free cash flow margins have fluctuated significantly, ranging from a low of 13.5% in 2025Q1 to a high of 30.7% in 2023Q4, indicating that Rapid7's cash generation trajectory remains highly sensitive to timing differences in working capital and operational spending cycles.
The lack of a stable FCF margin trend suggests that the company has yet to reach a predictable cash-flow maturity. This volatility warrants further investigation into whether the periodic spikes in FCF are driven by sustainable operational efficiencies or merely by the timing of large-scale customer renewals and deferred revenue recognition.
Based on reported figures, Rapid7 maintains a modest capital expenditure profile, with CapEx as a percentage of revenue consistently remaining below 4% across the last ten quarters, suggesting that the business model does not require heavy investment in physical infrastructure to support its current software-centric operations.
The low capital intensity is a positive indicator for potential long-term cash flow conversion, provided the company can control its operating expenses. However, investors should monitor if this low spending level is sufficient to maintain the competitive relevance of its cloud-native platform against more aggressive, higher-spending security peers.
Analysis of the cash flow statement reveals that stock-based compensation consistently exceeds $20 million per quarter, which, when adjusted for, significantly alters the perception of the company's true cash-generating capacity and highlights a reliance on equity-based incentives to manage its cost structure.
The persistent use of SBC as a primary compensation tool appears to be a mechanism for preserving cash in the face of thin operating margins. This practice may indicate that the company's reported cash flow is artificially bolstered, and investors should be cautious about the potential for future dilution if this trend continues.
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.