Rapid7 (NASDAQ:RPD) Releases FY 2025 Earnings Guidance

Rapid7 (NASDAQ:RPD) updated its FY 2025 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 2.020-2.090 for the period, compared to the consensus estimate of 1.420. The company issued revenue guidance of $856.0 million-$858.0 million, compared to the consensus revenue estimate of $858.7 million. Rapid7 also updated its Q4 2025 guidance to 0.370-0.44 EPS.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Jefferies Financial Group set a $27.00 target price on shares of Rapid7 and gave the stock a “buy” rating in a research note on Friday, August 8th. Canaccord Genuity Group lowered their target price on shares of Rapid7 from $39.00 to $32.00 and set a “hold” rating on the stock in a research note on Monday, August 11th. Raymond James Financial lowered their target price on shares of Rapid7 from $40.00 to $30.00 and set an “outperform” rating on the stock in a research note on Friday, August 8th. Morgan Stanley lowered their target price on shares of Rapid7 from $28.00 to $22.00 and set an “equal weight” rating on the stock in a research note on Tuesday, September 2nd. Finally, Zacks Research upgraded shares of Rapid7 from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, October 14th. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, thirteen have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $26.28.

Rapid7 Price Performance

Shares of RPD traded down $0.88 during mid-day trading on Tuesday, hitting $17.80. 1,474,973 shares of the company were exchanged, compared to its average volume of 871,004. Rapid7 has a 1-year low of $17.73 and a 1-year high of $44.48. The company has a debt-to-equity ratio of 9.84, a quick ratio of 1.36 and a current ratio of 1.36. The company has a 50 day moving average of $19.34 and a 200-day moving average of $21.62. The stock has a market cap of $1.15 billion, a price-to-earnings ratio of 43.42 and a beta of 0.92.

Rapid7 (NASDAQ:RPD) last released its quarterly earnings results on Tuesday, November 4th. The technology company reported $0.23 earnings per share for the quarter, missing the consensus estimate of $0.45 by ($0.22). Rapid7 had a return on equity of 149.12% and a net margin of 3.41%. Rapid7 has set its FY 2025 guidance at 2.020-2.090 EPS. Q4 2025 guidance at 0.370-0.44 EPS. Analysts expect that Rapid7 will post 0.35 EPS for the current fiscal year.

Insider Transactions at Rapid7

In other Rapid7 news, CAO Scott M. Murphy sold 1,370 shares of the stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $20.25, for a total value of $27,742.50. Following the completion of the sale, the chief accounting officer owned 27,592 shares in the company, valued at approximately $558,738. This represents a 4.73% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Jana Partners Management, Lp acquired 250,000 shares of the business’s stock in a transaction on Wednesday, August 13th. The stock was acquired at an average price of $21.26 per share, with a total value of $5,315,000.00. Following the acquisition, the director owned 6,518,604 shares in the company, valued at $138,585,521.04. The trade was a 3.99% increase in their position. The SEC filing for this purchase provides additional information. In the last quarter, insiders acquired 772,194 shares of company stock valued at $15,135,356. 2.40% of the stock is owned by insiders.

Institutional Trading of Rapid7

Hedge funds have recently bought and sold shares of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Rapid7 by 114.9% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,136,438 shares of the technology company’s stock valued at $49,409,000 after buying an additional 1,142,148 shares during the period. Qube Research & Technologies Ltd boosted its position in shares of Rapid7 by 37.0% during the 2nd quarter. Qube Research & Technologies Ltd now owns 535,121 shares of the technology company’s stock worth $12,377,000 after purchasing an additional 144,627 shares during the period. CANADA LIFE ASSURANCE Co boosted its position in shares of Rapid7 by 2.6% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 387,483 shares of the technology company’s stock worth $8,955,000 after purchasing an additional 9,827 shares during the period. Royal Bank of Canada boosted its position in shares of Rapid7 by 26.8% during the 1st quarter. Royal Bank of Canada now owns 326,910 shares of the technology company’s stock worth $8,667,000 after purchasing an additional 69,122 shares during the period. Finally, Vident Advisory LLC boosted its position in shares of Rapid7 by 138.3% during the 2nd quarter. Vident Advisory LLC now owns 207,639 shares of the technology company’s stock worth $4,803,000 after purchasing an additional 120,512 shares during the period. Institutional investors and hedge funds own 95.66% of the company’s stock.

About Rapid7

Rapid7, Inc provides cybersecurity solutions under the Rapid7, Nexpose, and Metasploit brand names. The company offers endpoint to cloud data collection and sharing applications, such as Rapid7 Insight Agent, a software-based agent that is used on assets across on-premises and cloud environments to centralize and monitor data on company's platform; Rapid7 Insight Network Sensor that analyzes raw end-to-end network traffic to increase visibility into user activity, pinpoint real threats, and investigations; Rapid7 Cloud Event Data Harvesting that offers visibility into changes made to cloud resources; and third-party integrations and ecosystem, as well as orchestration and automation solutions.