Revenue growth has stalled, evidenced by a -0.3% year-over-year decline in 2026Q1, while operating margins remain compressed near 0% due to high human-capital intensity.
| 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 |
|---|
| Sales/Revenue | 859.23M | 859.79M | 844.01M | 777.71M | 685.08M | 535.4M | 411.49M | 326.95M | 244.09M | 200.94M | 157.44M | 110.53M | 76.88M | 60.03M |
| Revenue Growth % | 1.19% | 1.87% | 8.53% | 13.52% | 27.96% | 30.11% | 25.86% | 33.94% | 21.47% | 27.63% | 42.44% | 43.76% | 28.07% | - |
| Cost of Goods Sold | 260.31M | 255.04M | 251.03M | 231.74M | 214.35M | 168.95M | 121.52M | 91.15M | 71.08M | 56.91M | 39.73M | 29.24M | 18.47M | 12.88M |
| COGS % of Revenue | - | 29.66% | 29.74% | 29.8% | 31.29% | 31.56% | 29.53% | 27.88% | 29.12% | 28.32% | 25.23% | 26.46% | 24.03% | 21.45% |
| Gross Profit | 598.92M | 604.75M | 592.97M | 545.97M | 470.73M | 366.46M | 289.97M | 235.8M | 173.01M | 144.03M | 117.71M | 81.28M | 58.41M | 47.15M |
| Gross Margin % | 69.7% | 70.34% | 70.26% | 70.2% | 68.71% | 68.44% | 70.47% | 72.12% | 70.88% | 71.68% | 74.77% | 73.54% | 75.97% | 78.55% |
| Gross Profit Growth % | - | 1.99% | 8.61% | 15.98% | 28.46% | 26.38% | 22.97% | 36.29% | 20.12% | 22.36% | 44.82% | 39.16% | 23.87% | - |
| Operating Expenses | 587.81M | 593.19M | 557.94M | 626.7M | 582.35M | 486.52M | 364.07M | 281.8M | 226.05M | 192.82M | 166.76M | 127.84M | 87.55M | 65.78M |
| OpEx % of Revenue | - | 68.99% | 66.11% | 80.58% | 85% | 90.87% | 88.48% | 86.19% | 92.61% | 95.96% | 105.92% | 115.67% | 113.88% | 109.57% |
| Selling, General & Admin | 398.77M | 402.53M | 384.81M | 396.91M | 392.38M | 325.74M | 255.5M | 202.43M | 158.3M | 141.89M | 118.81M | 89.1M | 61.98M | 44.37M |
| SG&A % of Revenue | - | 46.82% | 45.59% | 51.04% | 57.27% | 60.84% | 62.09% | 61.92% | 64.85% | 70.61% | 75.46% | 80.61% | 80.62% | 73.9% |
| Research & Development | 191.13M | 190.66M | 173.13M | 176.78M | 189.97M | 160.78M | 108.57M | 79.36M | 67.74M | 50.94M | 47.95M | 38.75M | 25.57M | 21.41M |
| R&D % of Revenue | - | 22.18% | 20.51% | 22.73% | 27.73% | 30.03% | 26.38% | 24.27% | 27.75% | 25.35% | 30.46% | 35.06% | 33.26% | 35.67% |
| Other Operating Expenses | 1000K | 0 | 0 | 53.01M | 0 | 0 | 0 | 0 | -336K | 313K | -109K | -278K | -305K | 43K |
| Operating Income | 11.11M | 11.57M | 35.03M | -80.73M | -111.61M | -120.06M | -74.1M | -45.99M | -53.04M | -48.79M | -49.05M | -46.56M | -29.14M | -18.62M |
| Operating Margin % | 1.29% | 1.35% | 4.15% | -10.38% | -16.29% | -22.43% | -18.01% | -14.07% | -21.73% | -24.28% | -31.15% | -42.13% | -37.9% | -31.02% |
| Operating Income Growth % | - | -66.98% | 143.4% | 27.67% | 7.04% | -62.03% | -61.1% | 13.28% | -8.7% | 0.52% | -5.35% | -59.77% | -56.47% | - |
| EBITDA | 44.88M | 57M | 79.93M | -34.79M | -70.58M | -86.56M | -51.47M | -29.47M | -41.94M | -41.17M | -42.32M | -41.21M | -25M | -15.99M |
| EBITDA Margin % | 5.22% | 6.63% | 9.47% | -4.47% | -10.3% | -16.17% | -12.51% | -9.01% | -17.18% | -20.49% | -26.88% | -37.28% | -32.52% | -26.64% |
| EBITDA Growth % | -33.92% | -28.68% | 329.72% | 50.7% | 18.47% | -68.19% | -74.66% | 29.74% | -1.88% | 2.74% | -2.71% | -64.83% | -56.32% | - |
| D&A (Non-Cash Add-back) | 33.77M | 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 |
| EBIT | 32.6M | 40.62M | 52.42M | -85.08M | -111.32M | -121.62M | -72.73M | -40.41M | -50.15M | -47.62M | -49.03M | -46.84M | -29.14M | -18.62M |
| Net Interest Income | 9.48M | 12.58M | 10.1M | -54.52M | -9.17M | -13.93M | -22.68M | -7.38M | -1.71M | 775K | 131K | -2.52M | -2.8M | -122K |
| Interest Income | 22.87M | 23.02M | 21.06M | 10.18M | 1.81M | 365K | 1.45M | 6.01M | 3.23M | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 5.28M | 10.44M | 10.96M | 64.7M | 10.98M | 14.29M | 24.14M | 13.39M | 4.93M | 775K | 131K | 2.52M | 2.8M | 122K |
| Other Income/Expense | 16.09M | 18.61M | 6.42M | -69.05M | -10.69M | -15.85M | -22.76M | -7.81M | -2.04M | 1.09M | 22K | -2.8M | -3.11M | -79K |
| Pretax Income | 27.21M | 30.18M | 41.45M | -149.78M | -122.31M | -135.91M | -96.86M | -53.8M | -55.08M | -47.71M | -49.03M | -49.36M | -32.25M | -18.7M |
| Pretax Margin % | 3.17% | 3.51% | 4.91% | -19.26% | -17.85% | -25.39% | -23.54% | -16.46% | -22.56% | -23.74% | -31.14% | -44.66% | -41.95% | -31.16% |
| Income Tax | 4.8M | 6.8M | 15.93M | -518K | 2.41M | 10.42M | 1.99M | 42K | 466K | -2.24M | -27K | 496K | 379K | 170K |
| Effective Tax Rate % | 17.64% | 22.53% | 38.42% | 0.35% | -1.97% | -7.67% | -2.05% | -0.08% | -0.85% | 4.69% | 0.06% | -1% | -1.18% | -0.91% |
| 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 |
| Net Margin % | 2.61% | 2.72% | 3.02% | -19.19% | -18.2% | -27.33% | -24.02% | -16.47% | -22.76% | -22.63% | -31.12% | -45.11% | -42.44% | -31.44% |
| Net Income Growth % | -5.52% | -8.4% | 117.1% | -19.68% | 14.77% | -48.04% | -83.58% | 3.06% | -22.16% | 7.2% | 1.72% | -52.81% | -72.88% | - |
| Net Income (Continuing) | 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 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.33 | 0.36 | 0.40 | -2.46 | -2.13 | -2.65 | -1.94 | -1.10 | -1.20 | -1.06 | -1.19 | -2.02 | -1.05 | -0.61 |
| EPS Growth % | -15.2% | -10% | 116.26% | -15.49% | 19.62% | -36.6% | -76.36% | 8.33% | -13.21% | 10.92% | 41.09% | -92.38% | -72.13% | - |
| EPS (Basic) | - | 0.36 | 0.41 | -2.46 | -2.13 | -2.65 | -1.94 | -1.10 | -1.20 | -1.06 | -1.19 | -2.02 | -1.05 | -0.61 |
| Diluted Shares Outstanding | 66.9M | 65M | 63.18M | 60.76M | 58.55M | 55.27M | 51.04M | 48.73M | 46.46M | 42.95M | 41.25M | 24.74M | 30.96M | 30.96M |
| Basic Shares Outstanding | 66.17M | 64.73M | 62.61M | 60.76M | 58.55M | 55.27M | 51.04M | 48.73M | 46.29M | 42.9M | 41.25M | 24.74M | 30.96M | 30.96M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Stagnant revenue growth trajectory
As reported in recent financial statements, Rapid7's year-over-year revenue growth has decelerated significantly to just 1.87%, suggesting that the company's transition to a cloud-native platform is struggling to offset the saturation of its core vulnerability management market and potential weakness in new logo acquisition.
The sharp decline from double-digit growth rates in early 2024 to near-flat performance in recent quarters indicates that the company's cross-sell strategy may be losing momentum. Investors should monitor whether this stagnation reflects a broader cyclical downturn in IT security spending or a fundamental loss of competitive differentiation against more agile, cloud-native security vendors.
Based on the provided income statement data, Rapid7 maintains a gross margin of approximately 70%, which appears structurally inferior to pure-play SaaS peers like Qualys, likely due to the higher human-capital intensity required to support its managed detection and response service offerings.
This margin profile suggests that the company's service-heavy model creates a drag on profitability that is difficult to scale without significant automation. The inability to consistently expand gross margins above the 70% threshold implies that the company may lack the pricing power necessary to offset rising labor costs in the cybersecurity talent market.
According to the company's quarterly filings, operating margins have fluctuated near zero, with the most recent period showing a 1.35% margin, indicating that Rapid7 has yet to achieve the operating leverage typically expected from a mature software-as-a-service provider at this stage of its lifecycle.
The persistent reliance on high SG&A spending to drive growth suggests that the company is trapped in a cycle of high customer acquisition costs that prevent meaningful bottom-line expansion. Without a clear path to decoupling revenue growth from aggressive sales and marketing investment, the company's profitability remains highly vulnerable to even minor fluctuations in top-line performance.
Analysis of the income statement reveals that Rapid7 consistently issues significant stock-based compensation, with quarterly figures often exceeding $20 million, which effectively obscures the company's true GAAP profitability and complicates the assessment of its underlying cash-generating capability for shareholders.
The discrepancy between reported net income and the high level of non-cash compensation suggests that the company's earnings quality is lower than headline figures might imply. Investors should be wary of relying on EPS metrics that do not fully account for the dilutive impact and economic cost of these equity-based incentives.
While the company's Metasploit framework provides a unique defensive moat, the recent deceleration in revenue growth to 1.87% warrants investigation, as it may indicate that the platform's value proposition is failing to resonate with enterprise customers in an increasingly crowded and competitive security landscape.
Short-term observers may argue that the company is becoming a legacy player, as its inability to accelerate growth despite heavy R&D investment suggests a potential loss of market relevance. If the company cannot demonstrate a return to meaningful growth, the market may continue to compress its valuation multiple, viewing it as a value trap rather than a growth-oriented security platform.
Quick answers to the most common questions about buying RPD stock.
For fiscal year 2025, Rapid7, Inc. (RPD) reported total revenue of $859.8M. This represents a 1332.3% increase compared to $60.0M in 2013.
Rapid7, Inc. (RPD) is profitable, generating $23.4M in net income for the fiscal year ending 2025 with a net profit margin of 2.7%.
Rapid7, Inc. (RPD) reported an operating income of $11.6M, resulting in an operating profit margin of 1.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Rapid7, Inc. (RPD) generated $604.8M in gross profit for the year, representing a gross profit margin of 70.3%. This demonstrates the company's core pricing power and production efficiency.