A Business at a Glance
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Rapid7, Inc.
RPD
$616M
Mkt Cap
$9.49
-0.73%
Rapid7, Inc. (RPD) has a current P/E ratio of 26.4, compared to its historical median P/E of 42.8. The stock is currently considered Cheap based on its historical valuation range.
Rapid7, Inc. (RPD) has a 5-year average return on invested capital (ROIC) of -11.6%. This is below average and may indicate limited pricing power.
Rapid7, Inc. (RPD) has a market capitalization of $634M. It is classified as a small-cap stock.
Rapid7, Inc. (RPD) does not currently pay a regular dividend.
Based on historical P/E analysis, Rapid7, Inc. (RPD) appears cheap. The current P/E of 26.4 is 38% below its historical median of 42.8. The estimated fair value CAGR (P/E method) is 3.0%.
Rapid7, Inc. (RPD) operates in the Services-Prepackaged Software industry, within the Technology sector.
Rapid7, Inc. (RPD) reported annual revenue of $860 million in its most recent fiscal year, based on SEC EDGAR filings.
Table of Contents PART I Item 1. Business 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”). In today's rapidly evolving IT environment, customers are encountering escalating challenges due to the widening spectrum of attackers and techniques, including the proliferation of cyberattacks leveraging AI. We empower security professionals to manage a modern attack surface through our best-in-class AI-driven technology, leading-edge research, and broad, strategic expertise.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 859M | 860M | 844M | 778M | 685M | 535M |
| Net Income | 22M | 23M | 26M | -153M | -125M | -146M |
| EPS | $0.34 | $0.36 | $0.40 | $-2.52 | $-2.13 | $-2.65 |
| Free Cash Flow | 156M | 146M | 168M | 100M | 58M | 45M |
| ROIC | 2.3% | 1.7% | 4.6% | -20.3% | -18.0% | -25.8% |
| Gross Margin | 69.7% | 70.3% | 70.3% | 70.2% | 68.7% | 68.4% |
| Debt/Equity | 5.11 | 6.26 | 57.49 | -8.67 | -7.61 | -7.24 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 11M | 12M | 35M | -84M | -112M | -120M |
| Operating Margin | 1.3% | 1.3% | 4.2% | -10.8% | -16.3% | -22.4% |
| ROE | 12.8% | 27.1% | -50.8% | 128.3% | 101.4% | - |
| Shares Outstanding | 67M | 65M | 64M | 61M | 59M | 55M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 77M | 111M | 157M | 201M | 244M | 327M | 411M | 535M | 685M | 778M | 844M | 860M | 859M |
| Gross Margin | 76.0% | 73.5% | 74.8% | 71.7% | 70.9% | 72.1% | 70.5% | 68.4% | 68.7% | 70.2% | 70.3% | 70.3% | 69.7% |
| R&D | 26M | 39M | 48M | 51M | 68M | 79M | 109M | 161M | 190M | 178M | 173M | 191M | 191M |
| SG&A | 13M | 22M | 28M | 30M | 35M | 45M | 60M | 78M | 85M | 85M | 86M | 85M | 79M |
| EBIT | -29M | -47M | -49M | -49M | -53M | -46M | -74M | -120M | -112M | -84M | 35M | 12M | 11M |
| Op. Margin | -37.9% | -42.1% | -31.2% | -24.3% | -21.7% | -14.1% | -18.0% | -22.4% | -16.3% | -10.8% | 4.2% | 1.3% | 1.3% |
| Net Income | -85M | -99M | -49M | -45M | -56M | -54M | -99M | -146M | -125M | -153M | 26M | 23M | 22M |
| Net Margin | -110.5% | -89.6% | -31.1% | -22.6% | -22.8% | -16.5% | -24.0% | -27.3% | -18.2% | -19.6% | 3.0% | 2.7% | 2.6% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 22M | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | -33.5% | -20.2% | -76.2% | -137.4% | -38.8% | -20.3% | -27.5% | -25.8% | -18.0% | -20.3% | 4.6% | 1.7% | 2.3% |
| ROE | 41.7% | 110.8% | -89.0% | -137.4% | -99.7% | -63.2% | -127.8% | N/A | 101.4% | 128.3% | -50.8% | 27.1% | 12.8% |
| ROA | -193.4% | -62.4% | -20.7% | -17.2% | -13.2% | -8.8% | -12.5% | -13.2% | -9.4% | -10.7% | 1.6% | 1.4% | 1.3% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | -3.4M | -1.9M | 9.1M | 13M | 6.1M | -1.4M | 4.9M | 54M | 78M | 104M | 172M | 154M | 164M |
| Free Cash Flow | -10M | -6.0M | 4.6M | 8.5M | -6.7M | -31M | -8.9M | 45M | 58M | 100M | 168M | 146M | 156M |
| Owner Earnings | -9.7M | -18M | -15M | -14M | -33M | -59M | -82M | -82M | -83M | -53M | 19M | 4.1M | 22M |
| CapEx | 7.1M | 4.1M | 4.5M | 4.8M | 13M | 29M | 14M | 9.0M | 20M | 4.4M | 3.4M | 7.6M | 8.3M |
| Maint. CapEx | 4.1M | 5.4M | 6.7M | 7.6M | 11M | 17M | 23M | 34M | 41M | 46M | 45M | 45M | 45M |
| Growth CapEx | 2.9M | 0 | 0 | 0 | 1.7M | 13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 4.1M | 5.4M | 6.7M | 7.6M | 11M | 17M | 23M | 34M | 41M | 46M | 45M | 45M | 45M |
| CapEx/OCF | N/A | N/A | 49.4% | 36.3% | 211.2% | N/A | 282.4% | 16.7% | 26.1% | 4.2% | 2.0% | 4.9% | 5.1% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 3.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 2.2M | 11M | 17M | 20M | 28M | 41M | 64M | 103M | 120M | 112M | 108M | 104M | 97M |
| Debt Repayment | 256K | 19M | 0 | 0 | 0 | 0 | 440K | 230M | 71K | 200M | 0 | 46M | 46M |
| Balance Sheet | |||||||||||||
| Net Debt | -20M | -68M | -72M | -91M | -84M | 25M | 151M | 689M | 623M | 641M | 496M | 494M | 223M |
| Cash & Equiv. | 37M | 87M | 53M | 52M | 100M | 123M | 174M | 165M | 207M | 214M | 335M | 247M | 670M |
| Long-Term Debt | 17M | 19M | 0 | 0 | 175M | 185M | 379M | 812M | 816M | 930M | 888M | 892M | 296M |
| Debt/Equity | -0.07 | 0.27 | 0.00 | 0.00 | 2.00 | 3.18 | 6.49 | -7.24 | -7.61 | -8.67 | 57.49 | 6.26 | 5.11 |
| Interest Coverage | -13.9 | -32.6 | -232.5 | -560.9 | -10.7 | -3.4 | -3.1 | -8.4 | -10.2 | -1.3 | 3.2 | 1.1 | 1.1 |
| Equity | -247M | 68M | 42M | 24M | 87M | 83M | 72M | -126M | -120M | -118M | 18M | 155M | 175M |
| Total Assets | 87M | 231M | 243M | 284M | 559M | 665M | 913M | 1.3B | 1.4B | 1.5B | 1.7B | 1.7B | 1.7B |
| Total Liabilities | 334M | 162M | 201M | 260M | 472M | 582M | 842M | 1.4B | 1.5B | 1.6B | 1.6B | 1.6B | 1.5B |
| Intangibles | 1.2M | 11M | 8.9M | 17M | 24M | 29M | 44M | 112M | 101M | 95M | 86M | 65M | 68M |
| Retained Earnings | -243M | -340M | -389M | -435M | -465M | -518M | -617M | -736M | -861M | -1.0B | -988M | -965M | -964M |
| Working Capital | -7.8M | 21M | -15M | -16M | 121M | 78M | 120M | -36M | -21M | 65M | 156M | 162M | -254M |
| Current Assets | 66M | 137M | 130M | 173M | 356M | 365M | 473M | 433M | 510M | 634M | 786M | 737M | 900M |
| Current Liabilities | 74M | 116M | 146M | 189M | 235M | 287M | 354M | 469M | 531M | 570M | 630M | 575M | 1.2B |
| Per Share Data | |||||||||||||
| EPS | -6.65 | -4.00 | -1.19 | -1.06 | -1.20 | -1.10 | -1.94 | -2.65 | -2.13 | -2.52 | 0.40 | 0.36 | 0.34 |
| Owner EPS | -0.76 | -0.72 | -0.36 | -0.32 | -0.70 | -1.20 | -1.60 | -1.49 | -1.41 | -0.88 | 0.29 | 0.06 | 0.33 |
| Book Value | -19.32 | 2.75 | 1.02 | 0.56 | 1.89 | 1.70 | 1.40 | -2.28 | -2.05 | -1.95 | 0.28 | 2.38 | 2.62 |
| Cash Flow/Share | -0.26 | -0.08 | 0.22 | 0.31 | 0.13 | -0.03 | 0.10 | 0.98 | 1.34 | 1.72 | 2.69 | 2.37 | 1.01 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 12.8M | 24.8M | 41.2M | 42.9M | 46.3M | 49.0M | 51.0M | 55.2M | 58.6M | 60.6M | 63.8M | 64.9M | 66.8M |
| Valuation | |||||||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 100.5 | 42.8 | 27.6 |
| P/FCF | N/A | N/A | 108.0 | 96.1 | N/A | N/A | N/A | 146.0 | 32.4 | 35.2 | 15.2 | 6.8 | 4.1 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 86.3 | 122.6 | 77.1 |
| Price/Book | N/A | 5.6 | 11.9 | 33.7 | 16.3 | 33.7 | 64.7 | N/A | N/A | N/A | 144.8 | 6.5 | 3.6 |
| Price/Sales | N/A | 4.6 | 3.6 | 3.5 | 5.7 | 7.6 | 7.1 | 10.4 | 6.1 | 3.6 | 3.3 | 1.8 | 0.7 |
| FCF Yield | N/A | -1.6% | 0.9% | 1.0% | -0.5% | -1.1% | -0.2% | 0.7% | 3.1% | 2.8% | 6.6% | 14.6% | 24.6% |
| Market Cap | N/A | 381M | 498M | 813M | 1.4B | 2.8B | 4.6B | 6.6B | 1.9B | 3.5B | 2.6B | 1.0B | 634M |
| Avg. Price | N/A | 20.55 | 13.80 | 16.53 | 30.01 | 50.80 | 57.18 | 100.88 | 71.00 | 46.65 | 43.62 | 23.89 | 9.49 |
| Year-End Price | N/A | 15.39 | 12.10 | 18.95 | 30.83 | 57.28 | 90.88 | 118.74 | 32.00 | 58.02 | 40.19 | 15.40 | 9.49 |
Rapid7, Inc. passes 3 of 9 quality checks, indicating weak fundamentals.
Rapid7, Inc. trades at 26.4x trailing earnings, compared to its 15-year median P/E of 42.8x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 4.3x vs a median of 32.4x. The company's 5-year average gross margin is 69.6%. At current prices, the estimated annualized return to fair value is +65.7%.
Rapid7, Inc. (RPD) has a net profit margin of 2.7%. This is a modest margin.
Rapid7, Inc. (RPD) generated $146 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Rapid7, Inc. (RPD) has a debt-to-equity ratio of 6.26. This indicates higher leverage, which may increase financial risk.
Rapid7, Inc. (RPD) reported earnings per share (EPS) of $0.36 in its most recent fiscal year.
Rapid7, Inc. (RPD) has a return on equity (ROE) of 27.1%. This indicates the company generates strong returns for shareholders.
Rapid7, Inc. (RPD) has a 5-year average gross margin of 69.6%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 13 years of financial data for Rapid7, Inc. (RPD), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Rapid7, Inc. (RPD) has a book value per share of $2.38, based on its most recent annual SEC filing.