Rapid7 (RPD) Q1 2026 earnings summary

Executive summary

• Outperformed all guided metrics in Q1 2026, with ARR of $832M and revenue of $210M, driven by detection and response growth, offset by declines in non-core offerings.

• Strategic focus on AI-driven security operations, preemptive exposure management, and unified platform capabilities, supported by the acquisition of Kenzo Security for $25.5M.

• Over 11,500 global customers, with ARR per customer at ~$72K and no single customer accounting for more than 1% of revenue.

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

• Customer wins include multiple Fortune 500 companies and expansion in exposure management and MDR.

Financial highlights

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

• Total revenue: $209.7M–$210M, down 0.3% YoY; product subscriptions revenue flat at $204M, professional services declined to $5.6M.

• Non-GAAP operating income: $24.4M (11.7% margin), above guidance; non-GAAP EPS: $0.36 per diluted share.

• Free cash flow: $33.4M; ended Q1 with $670M in cash, equivalents, and investments, plus $200M undrawn revolver.

• Adjusted EBITDA: $31.1M; GAAP net income: $1.1M.

Outlook and guidance

• Q2 2026 ARR expected at ~$820M; Q2 revenue guidance: $207M–$209M, down ~2.9% YoY at midpoint.

• Q2 non-GAAP operating income: $24M–$26M (12% margin midpoint); EPS: $0.33–$0.36.

• FY26 revenue guidance: $836M–$842M (down ~2.4% YoY at midpoint); non-GAAP operating income: $112M–$118M (13.7% margin midpoint).

• FY26 free cash flow: $125M–$135M (15.5% margin midpoint); non-GAAP EPS: $1.52–$1.60.

• Management expects continued investment in R&D and sales to drive growth.