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Rapid7 Q3 revenue, adjusted EPS beat expectations

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$212.4 mln

$209.03 mln (20 Analysts)

Q3 Adjusted EPS

Beat

$0.60

$0.46 (21 Analysts)


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.)

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