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Dec 31, 2025
Rapid7 Q4 2025 Earnings Report
Rapid7 reported its financial results for the fourth quarter and full year 2025, showing outperformance against guidance for ARR, revenue, and profitability.
Key Takeaways
Rapid7 delivered a strong performance in Q4 2025, exceeding its own guidance for ARR, revenue, and profitability. The company reported total revenue of $217 million, a 1% increase year-over-year, and an annualized recurring revenue (ARR) of $840 million. GAAP net income was $3.1 million, or $0.05 per diluted share, with non-GAAP net income reaching $32.1 million, or $0.44 per diluted share.
Total revenue for Q4 2025 was $217 million, a 1% increase compared to the previous year.
Annualized Recurring Revenue (ARR) stood at $840 million, remaining flat year-over-year.
GAAP net income for the quarter was $3.1 million, with non-GAAP net income at $32.1 million.
Net cash provided by operating activities was $37.6 million, contributing to a free cash flow of $32.3 million.
Revenue by Segment
Forward Guidance
Rapid7 provided guidance for the first quarter and full-year 2026, anticipating continued growth in revenue and non-GAAP income from operations, while expecting a slight decrease in ARR for Q1 2026.
Positive Outlook
- Full-year 2026 revenue is projected to be between $835 million and $843 million.
- Full-year 2026 non-GAAP income from operations is expected to range from $108 million to $116 million.
- Full-year 2026 non-GAAP net income per share is anticipated to be between $1.50 and $1.60.
- Full-year 2026 free cash flow is projected to be between $125 million and $135 million.
- The company expects to continue driving innovation and scaling execution in 2026.
Challenges Ahead
- First quarter 2026 ARR is expected to decrease by 1% year-over-year, approximately $830 million.
- First quarter 2026 revenue is projected to decrease by 1% to 2% year-over-year, ranging from $207 million to $209 million.
- Anticipated GAAP income from operations for Q1 2026 is a loss, ranging from $(7) million to $(5) million.
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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