Rapid7 Q3 revenue, adjusted EPS beat expectations

Overview

• US cybersecurity firm's Q3 revenue fell 2.5% yr/yr but beat analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company says focus on core business and operational discipline supported results

Outlook

• Rapid7 sees Q4 revenue between $208 mln and $210 mln

• Company expects full-year 2026 revenue of $841 mln to $843 mln

• Rapid7 anticipates full-year 2026 free cash flow of about $130 mln

Result Drivers

• CORE BUSINESS FOCUS - Co said it took decisive action to focus resources and energy on its core business, contributing to greater stability

• OPERATIONAL DISCIPLINE - Co said it is operating with greater discipline, supporting improved cash generation and stability

• AI-FIRST SERVICE MODEL - Co highlighted investment in AI-powered platform and service model as a strategic priority

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 16 "hold" and 5 "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy."

• Wall Street's median 12-month price target for Rapid7, Inc. is $12.00, about 19.1% below its November 3 closing price of $14.84

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads

• Nov 2 - Israel's Check Point Software Q3 revenue slightly misses estimates

• Nov 3 - Varonis Q3 revenue rises 17%, beats analyst expectations

• Nov 4 - Datadog beats Q3 revenue, profit estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)