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Sep 30
Rapid7 Q3 2025 Earnings Report
Rapid7 reported its third quarter 2025 financial results, with a 2% increase in total revenue and annualized recurring revenue year-over-year, alongside the appointment of a new CFO.
Key Takeaways
Rapid7 concluded the third quarter of 2025 with a 2% year-over-year increase in both total revenue, reaching $218 million, and annualized recurring revenue (ARR) of $838 million. The company also announced the appointment of Rafe Brown as its new Chief Financial Officer, effective December 1, 2025.
Total revenue for Q3 2025 increased by 2% year-over-year to $217,960,000.
Annualized Recurring Revenue (ARR) grew by 2% year-over-year, reaching $837,730,000.
GAAP net income was $9,809,000, with non-GAAP net income at $41,910,000.
The company announced Rafe Brown as the new Chief Financial Officer, effective December 1, 2025.
Rapid7
Rapid7
Rapid7 Revenue by Segment
Rapid7 Revenue by Geographic Location
Revenue by Segment
Product subscriptions Revenue
CapyFin.comProfessional services Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comRest of world Revenue
CapyFin.com Forward Guidance
For the fourth quarter of 2025, Rapid7 anticipates ARR to be approximately flat compared to Q3 2025, with total revenue projected between $214 million and $216 million. Non-GAAP income from operations is expected to be between $25 million and $30 million, and non-GAAP net income per share between $0.37 and $0.44. Full-year 2025 guidance includes revenue between $856 million and $858 million and free cash flow between $125 million and $135 million.
Positive Outlook
- Anticipated full-year 2025 revenue growth of 1% to 2%.
- Projected full-year 2025 non-GAAP income from operations between $130 million and $135 million.
- Expected full-year 2025 non-GAAP net income per share between $2.02 and $2.09.
- Anticipated full-year 2025 free cash flow between $125 million and $135 million.
- Fourth quarter non-GAAP income from operations expected to be between $25 million and $30 million.
Challenges Ahead
- Fourth quarter 2025 revenue is projected to be flat to a 1% decrease year-over-year.
- Anticipated GAAP (loss) income from operations for Q4 2025 is between $(10) million and $(5) million.
- Anticipated GAAP net (loss) income for Q4 2025 is between $(9) million and $(4) million.
- Anticipated GAAP net (loss) income per share for Q4 2025 is between $(0.14) and $(0.06).
- The guidance does not include any potential impact of foreign exchange gains or losses, which could affect actual results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income