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Jun 30, 2025
Rapid7 Q2 2025 Earnings Report
Rapid7 reported its second quarter 2025 financial results, showing modest revenue and ARR growth, alongside improvements in GAAP net income and free cash flow.
Key Takeaways
Rapid7 delivered a solid second quarter in 2025, with total revenue increasing by 3% year-over-year to $214.193 million and annualized recurring revenue (ARR) reaching $840.610 million, also up 3%. The company saw a significant increase in free cash flow to $42.280 million and reported GAAP net income of $8.338 million, demonstrating improved profitability.
Total revenue grew 3% year-over-year to $214.193 million, driven primarily by product subscriptions.
Annualized Recurring Revenue (ARR) increased by 3% year-over-year, reaching $840.610 million.
GAAP net income improved to $8.338 million, up from $6.538 million in the prior year period.
Free cash flow saw a substantial increase to $42.280 million, compared to $29.205 million in the same quarter last year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Rapid7 provided guidance for the third quarter and full-year 2025, anticipating continued growth in ARR and revenue, along with positive non-GAAP income from operations and free cash flow.
Positive Outlook
- Anticipated ARR for Q3 2025 is between $850 million and $865 million, with 1% to 3% year-over-year growth.
- Full-year 2025 revenue is projected to be between $853 million and $863 million, indicating 1% to 2% year-over-year growth.
- Non-GAAP income from operations for Q3 2025 is expected to be $29 million to $31 million.
- Full-year 2025 non-GAAP net income per share is guided to be $1.90 to $2.03.
- Full-year 2025 free cash flow is anticipated to be strong, ranging from $125 million to $135 million.
Challenges Ahead
- Anticipated GAAP operating income for Q3 2025 is a loss of $(4) million to $(2) million.
- Anticipated GAAP net income for Q3 2025 is a loss of $(2) million to $0 million.
- The guidance does not include any potential impact of foreign exchange gains or losses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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