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Rapid7 is a global cybersecurity operations software and service provider on a mission to create a safer digital world by making cybersecurity simpler and more accessible. For twenty-five years, Rapid7 has partnered with customers across the globe representing a diverse range of industries and sizes to improve the efficacy and productivity of their security operations ( SecOps ).
$8.74
+$0.36 (+4.30%)
Price from 4 days ago
Operating margin is thin at 1.35%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 1.9%, essentially flat. Margins also contracted 2.8pp. This is a business that needs a catalyst.
Free cash flow declined 13% versus the prior year, cash generation momentum has weakened.
25.0x earnings, 3.8x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$859M
▲ +1.9% YoY
Net Income (TTM)
$22M
▼ -8.4% YoY
Op. Margin
1.29%
▼ -2.8pp YoY
ROIC
0.66%
▼ -1.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$156M
▼ -13.1% YoY
Op. Cash Flow (TTM)
$164M
▼ -10.4% YoY
Net Debt
-$303M
Net Cash Position
Cash & Equiv.
$670M
5Y CAGR: +15.9%
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