Rapid7 (RPD) Q1 2026 earnings summary

Executive summary

• Q1 2026 ARR reached $832M, with revenue of $209.7M–$210M, driven by detection and response growth, while non-core offerings declined; ARR per customer was ~$72K, with over 11,500 customers globally.

• Strategic focus on AI-driven security operations, preemptive exposure management, and platform unification, highlighted by the $25.5M acquisition of Kenzo Security to accelerate AI SOC vision.

• Customer wins included multiple Fortune 500 companies selecting the platform for MDR and exposure management in large deals.

• Operating discipline and go-to-market changes are improving productivity and efficiency.

• Recognized as a leader or strong performer by Gartner, Forrester, Frost & Sullivan, and IDC in multiple security categories.

Financial highlights

• Q1 2026 ARR was $832M, with core platform solutions (over 80% of ARR) up 2% YoY and detection and response (55% of ARR) up 7% YoY.

• Total revenue was $209.7M–$210M, down 0.3% YoY; product subscriptions revenue was $204M, nearly flat YoY, while professional services declined.

• Non-GAAP operating income was $24.4M (11.7% margin), above guidance; non-GAAP EPS $0.36; adjusted EBITDA was $31.1M.

• Free cash flow was $33.4M; total cash, cash equivalents, and investments stood at $670M, with a $200M undrawn revolver.

• Non-GAAP gross margin was 72%, down from 75% YoY.

Outlook and guidance

• Q2 2026 revenue guidance: $207M–$209M, down ~2.9% YoY at midpoint; ARR expected at ~$820M; non-GAAP operating income $24M–$26M; EPS $0.33–$0.36.

• FY26 revenue guidance: $836M–$842M (down ~2.4% YoY midpoint); non-GAAP operating income $112M–$118M; EPS $1.52–$1.60; free cash flow $125M–$135M.

• Management expects continued investment in R&D and sales, with operating expenses anticipated to increase as a percentage of revenue in the near term.

• Existing liquidity and credit facilities are expected to be sufficient for at least the next 12 months.