Financial Performance & Guidance - The company's 2024 revenue grew by 9% year-over-year[45] - The company's revenue Compound Annual Growth Rate (CAGR) from 2020 to 2024 was 20%[45] - The company's non-GAAP operating margin scaled to over 19% in 2024[45] - The company's Annual Recurring Revenue (ARR) grew by 3% year-over-year in Q2 2025[47] - The company's ARR Compound Annual Growth Rate (CAGR) from Q2 2021 to Q2 2025 was 15%[47] - The company's ARR per customer was approximately $72,000 in Q2 2025[52] - The company's ARR per customer Compound Annual Growth Rate (CAGR) from Q2 2021 to Q2 2025 was 8%[52] - The company anticipates full year 2025 Annualized Recurring Revenue between $850 million and $865 million, representing a year-over-year growth of 1% to 3%[56] - The company anticipates full year 2025 revenue between $853 million and $863 million, representing a year-over-year growth of 1% to 2%[56] - The company anticipates full year 2025 non-GAAP operating income between $125 million and $135 million[56] Market Opportunity - The Total Addressable Market (TAM) for SecOps is over $54 billion[7] - The Total Addressable Market (TAM) for SecOps is expected to reach $85 billion by 2027[20] - The Total Addressable Market (TAM) for SecOps has a Compound Annual Growth Rate (CAGR) of 16%[20]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Rapid7 reported 3% YoY growth in Q2 2025 ARR and total revenue, alongside strong cash flow and strategic focus on its Detection and Response business and Command Platform [Second Quarter 2025 Highlights](index=1&type=section&id=1.1%20Second%20Quarter%202025%20Highlights) Rapid7 reported a 3% year-over-year increase in both Annualized Recurring Revenue (ARR) and total revenue for Q2 2025, reaching $841 million and $214 million respectively, with product subscriptions revenue growing 4% to $208 million, and generating $48 million in net cash from operating activities and $42 million in free cash flow Q2 2025 Key Financial Highlights | Metric | Q2 2025 (in millions) | YoY Change | Source | | :-------------------------------- | :-------------------- | :--------- | :----- | | Annualized Recurring Revenue (ARR) | $841 | 3% | chunk_num: [3] | | Total Revenue | $214 | 3% | chunk_num: [3] | | Product Subscriptions Revenue | $208 | 4% | chunk_num: [3] | | GAAP Operating Income | $3.5 | - | chunk_num: [3] | | Non-GAAP Operating Income | $36 | - | chunk_num: [3] | | Net Cash Provided by Operating Activities | $48 | - | chunk_num: [3] | | Free Cash Flow | $42 | - | chunk_num: [3] | [CEO Commentary](index=1&type=section&id=1.2%20CEO%20Commentary) CEO Corey Thomas highlighted the consistent growth of the Detection and Response business and increasing customer interest in the Command Platform strategy, emphasizing the company's focus on delivering integrated solutions with unified visibility, expert-guided AI, and improved security outcomes to address increasing complexity for security teams - Rapid7's Detection and Response business is a consistent growth engine, with growing customer interest in the Command Platform strategy. The company focuses on integrated solutions providing unified visibility, expert-guided AI, and better security outcomes for complex security environments[2](index=2&type=chunk) [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance) Rapid7's Q2 2025 financial performance shows 3% ARR and total revenue growth, driven by product subscriptions, alongside stable gross margins, increased net income, and strong cash flow, despite a slight decline in operating income [Key Financial and Operational Metrics](index=1&type=section&id=2.1%20Key%20Financial%20and%20Operational%20Metrics) Rapid7's Annualized Recurring Revenue (ARR) grew 3% year-over-year to $840.6 million, while the number of customers increased by 1% to 11,643, and ARR per customer saw a slight decrease of 2% year-over-year Q2 2025 Key Metrics | Metric | As of June 30, 2025 | As of June 30, 2024 | % Change | | :---------------- | :------------------ | :------------------ | :------- | | ARR (in thousands) | $840,610 | $815,630 | 3% | | Number of customers | 11,643 | 11,484 | 1% | | ARR per customer (in thousands) | $71.0 | $72.2 | (2%) | [Detailed Revenue Breakdown](index=2&type=section&id=2.2%20Detailed%20Revenue%20Breakdown) Total revenue for Q2 2025 increased by 3% year-over-year to $214.2 million, with product subscriptions revenue growing 4% to $208.1 million, professional services revenue declining 23% to $6.1 million, North America revenue growing 1%, and Rest of World revenue increasing 10% Q2 2025 Revenue Breakdown (Three Months Ended June 30, in thousands) | Revenue Category | 2025 (in thousands) | 2024 (in thousands) | % Change | | :----------------------- | :------------------ | :------------------ | :------- | | Product subscriptions revenue | $208,097 | $200,067 | 4% | | Professional services revenue | $6,096 | $7,924 | (23%) | | **Total revenue** | **$214,193** | **$207,991** | **3%** | | North America revenue | $160,622 | $159,322 | 1% | | Rest of world revenue | $53,571 | $48,669 | 10% | [Profitability and Cash Flow](index=2&type=section&id=2.3%20Profitability%20and%20Cash%20Flow) GAAP gross profit for Q2 2025 was $151.1 million with a 71% margin, consistent with the prior year, while GAAP income from operations decreased to $3.5 million (2% margin), GAAP net income increased to $8.3 million (diluted EPS of $0.13), and net cash provided by operating activities significantly increased to $47.5 million, with free cash flow rising to $42.3 million Q2 2025 Profitability and Cash Flow (Three Months Ended June 30, in thousands) | Metric | 2025 (in thousands) | 2024 (in thousands) | % Change | | :-------------------------------- | :------------------ | :------------------ | :------- | | GAAP gross profit | $151,134 | $146,999 | - | | GAAP gross margin | 71% | 71% | - | | Non-GAAP gross profit | $158,137 | $154,281 | - | | Non-GAAP gross margin | 74% | 74% | - | | GAAP income from operations | $3,494 | $5,223 | - | | GAAP operating margin | 2% | 3% | - | | Non-GAAP income from operations | $36,348 | $39,276 | - | | Non-GAAP operating margin | 17% | 19% | - | | GAAP net income | $8,338 | $6,538 | - | | GAAP net income per share, diluted | $0.13 | $0.09 | - | | Non-GAAP net income | $42,191 | $41,646 | - | | Non-GAAP net income per share, diluted | $0.58 | $0.58 | - | | Adjusted EBITDA | $42,648 | $45,438 | - | | Net cash provided by operating activities | $47,542 | $32,858 | - | | Free cash flow | $42,280 | $29,205 | - | [Business Developments & Leadership](index=2&type=section&id=Business%20Developments%20%26%20Leadership) Rapid7 introduced new AI-native security products and achieved FedRAMP authorization, while its CFO announced retirement, prompting a search for a successor [Recent Business Highlights](index=2&type=section&id=3.1%20Recent%20Business%20Highlights) Rapid7 launched several new products and achieved significant milestones in July and June 2025, including an AI-native SIEM called Incident Command, FedRAMP Authorization for its InsightGovCloud Platform, and the introduction of Active Patching, while also being recognized as a Leader in the 2025 Frost Radar™ for Managed Detection and Response (MDR) and embedding agentic AI workflows into its SIEM and XDR platform - In July, Rapid7 launched Incident Command, an AI-native SIEM for detection, automation, attack surface context, and threat intelligence[6](index=6&type=chunk) - Rapid7's InsightGovCloud Platform achieved Federal Risk and Authorization Management Program (FedRAMP®) Authorization in July, strengthening its position for U.S. federal agencies[6](index=6&type=chunk) - Rapid7 introduced Active Patching, powered by Automox, a fully automated patching and remediation solution integrated into Exposure Command, and announced InsightCloudSec and InsightAppSec availability in the new AWS Marketplace AI Agents and Tools category in July[11](index=11&type=chunk) - Rapid7 was named a Leader in the **2025 Frost Radar™** for Managed Detection and Response (MDR) in July, recognized for deep integration between MDR and Exposure Management, and AI-powered SOC innovation[11](index=11&type=chunk) - In June, Rapid7 embedded agentic AI workflows into its next-gen SIEM and XDR platform, enhancing threat investigation in MDR customer environments[11](index=11&type=chunk) [CFO Retirement Announcement](index=2&type=section&id=3.2%20CFO%20Retirement%20Announcement) Tim Adams, Rapid7's Chief Financial Officer since January 2022, announced his intent to retire, with the company initiating a search for a successor and Adams remaining in his role to ensure a smooth transition - Tim Adams, Rapid7's CFO since **January 2022**, plans to retire. A search for a new CFO is underway, and Adams will stay until a successor is named to facilitate a smooth transition[5](index=5&type=chunk) [Financial Outlook & Guidance](index=3&type=section&id=Financial%20Outlook%20%26%20Guidance) Rapid7 provided Q3 and full-year 2025 guidance, projecting modest revenue and ARR growth, along with anticipated non-GAAP income from operations and free cash flow [Third Quarter 2025 Guidance](index=3&type=section&id=4.1%20Third%20Quarter%202025%20Guidance) For the third quarter of 2025, Rapid7 anticipates revenue between $215 million and $217 million, representing 0% to 1% year-over-year growth, with non-GAAP income from operations projected to be $29 million to $31 million, and non-GAAP net income per share between $0.44 and $0.47 Third Quarter 2025 Guidance | Metric | Range (in millions, except per share data) | | :-------------------------- | :--------------------------------------- | | Revenue | $215 to $217 | | Year-over-year growth | 0% to 1% | | Non-GAAP income from operations | $29 to $31 | | Non-GAAP net income per share | $0.44 to $0.47 | [Full Year 2025 Guidance](index=3&type=section&id=4.2%20Full%20Year%202025%20Guidance) Rapid7's full-year 2025 guidance includes ARR of $850 million to $865 million (1% to 3% YoY growth) and total revenue of $853 million to $863 million (1% to 2% YoY growth), with non-GAAP income from operations expected to be $125 million to $135 million, non-GAAP net income per share ranging from $1.90 to $2.03, and free cash flow projected to be $125 million to $135 million Full-Year 2025 Guidance | Metric | Range (in millions, except per share data) | | :-------------------------- | :--------------------------------------- | | ARR | $850 to $865 | | Year-over-year growth (ARR) | 1% to 3% | | Revenue | $853 to $863 | | Year-over-year growth (Revenue) | 1% to 2% | | Non-GAAP income from operations | $125 to $135 | | Non-GAAP net income per share | $1.90 to $2.03 | | Free cash flow | $125 to $135 | [Company Overview](index=3&type=section&id=Company%20Overview) Rapid7, Inc. (NASDAQ: RPD) simplifies cybersecurity for over 11,000 global customers through comprehensive solutions, technology, and expertise [About Rapid7](index=3&type=section&id=5.1%20About%20Rapid7) Rapid7, Inc. (NASDAQ: RPD) aims to simplify cybersecurity and make it more accessible, providing comprehensive security solutions, including best-in-class technology, leading-edge research, and strategic expertise, to help over 11,000 global customers manage modern attack surfaces, unite cloud risk management with threat detection and response, and eliminate threats efficiently - Rapid7's mission is to create a safer digital world by making cybersecurity simpler and more accessible[10](index=10&type=chunk) - The company empowers security professionals to manage modern attack surfaces through best-in-class technology, leading-edge research, and strategic expertise[10](index=10&type=chunk) - Rapid7 serves over **11,000** global customers with solutions that unite cloud risk management with threat detection and response[10](index=10&type=chunk) [Non-GAAP Financial Measures & Other Metrics](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Other%20Metrics) Rapid7 utilizes non-GAAP financial measures to provide clearer insights into core operating performance, excluding specific non-cash and non-recurring items, and defines key operating metrics like ARR and customer count [Purpose and Definitions of Non-GAAP Measures](index=4&type=section&id=6.1%20Purpose%20and%20Definitions%20of%20Non-GAAP%20Measures) Rapid7 uses non-GAAP financial measures to supplement GAAP statements, believing they offer useful insights into operating results, enhance understanding of financial performance, and provide transparency for management's decision-making, with these measures, including non-GAAP gross profit, income from operations, net income, and EPS, excluding specific items like stock-based compensation and amortization of acquired intangibles - Non-GAAP financial measures are used to supplement GAAP statements, providing investors with helpful information for financial and operational decision-making and period-to-period comparisons[12](index=12&type=chunk) - Rapid7 discloses **non-GAAP gross profit**, **non-GAAP income from operations**, **non-GAAP net income**, **non-GAAP net income per share**, **adjusted EBITDA**, and **free cash flow**, along with derived non-GAAP gross and operating margins[14](index=14&type=chunk) - **Non-GAAP gross profit**, **income from operations**, **net income**, and **net income per share** exclude stock-based compensation, amortization of acquired intangible assets, amortization of debt issuance costs, and certain other items[15](index=15&type=chunk) [Rationale for Non-GAAP Adjustments](index=4&type=section&id=6.2%20Rationale%20for%20Non-GAAP%20Adjustments) Rapid7 excludes various items from its non-GAAP measures to provide a clearer view of core operating performance and facilitate meaningful period-to-period comparisons, including non-cash expenses like stock-based compensation and amortization of acquired intangibles, as well as non-recurring or non-ordinary course items such as induced conversion expense, non-ordinary course litigation, acquisition-related expenses, impairment of long-lived assets, restructuring expense, and discrete tax items - Stock-based compensation expense is excluded due to varying valuation methodologies and subjective assumptions, allowing for more meaningful comparisons of operating results[16](index=16&type=chunk) - Amortization of acquired intangible assets is excluded to enable more meaningful comparisons, as these assets are valued at acquisition and amortized over several years[17](index=17&type=chunk) - Non-ordinary course litigation-related expenses, acquisition-related expenses, impairment of long-lived assets, and restructuring expenses are excluded as they are not indicative of core operating performance or comparable to prior periods[20](index=20&type=chunk)[21](index=21&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk) - **Adjusted EBITDA** is defined as net income (loss) before interest income/expense, other (income) expense, provision for income taxes, depreciation, amortization of intangibles, stock-based compensation, acquisition-related expenses, and restructuring expense[28](index=28&type=chunk) - **Free cash flow** is defined as cash provided by operating activities less purchases of property and equipment and capitalization of internal-use software costs[29](index=29&type=chunk) [Other Key Operating Metrics Definitions](index=5&type=section&id=6.3%20Other%20Key%20Operating%20Metrics%20Definitions) Rapid7 defines Annualized Recurring Revenue (ARR) as the annual value of all recurring revenue contracts at period-end, distinct from GAAP revenue, with a customer defined as an entity with an active recurring revenue contract (excluding small InsightOps and Logentries customers), and ARR per customer calculated by dividing total ARR by the number of customers - **ARR (Annualized Recurring Revenue)** is the annual value of all recurring revenue related to contracts in place at the end of the period, viewed independently of revenue and deferred revenue[32](index=32&type=chunk) - A customer is defined as any entity with an active Rapid7 recurring revenue contract as of the measurement date, excluding InsightOps and Logentries customers with contract values under **$2,400** per year[33](index=33&type=chunk) - **ARR per customer** is calculated by dividing ARR by the number of customers at the end of the period[33](index=33&type=chunk) [Forward-Looking Statements & Contacts](index=6&type=section&id=Forward-Looking%20Statements%20%26%20Contacts) This section provides cautionary language regarding forward-looking statements and lists contact information for investor relations and press inquiries [Cautionary Language Regarding Forward-Looking Statements](index=6&type=section&id=7.1%20Cautionary%20Language%20Regarding%20Forward-Looking%20Statements) This section highlights that the press release contains forward-looking statements, particularly concerning financial guidance for Q3 and full-year 2025, warning that actual results may differ materially due to various risks and uncertainties, including macroeconomic conditions, market fluctuations, sales growth, product effectiveness, competition, and other factors detailed in SEC filings, with Rapid7 disclaiming any obligation to update these statements - The press release includes forward-looking statements, such as financial guidance for **Q3** and **full-year 2025**, which are subject to risks and uncertainties[34](index=34&type=chunk) - Actual results may differ materially due to factors like macroeconomic uncertainty, market conditions, sales growth, product effectiveness, competition, and other risks outlined in SEC filings[34](index=34&type=chunk) - Rapid7 undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of the statements[34](index=34&type=chunk) [Investor and Press Contact Information](index=6&type=section&id=7.2%20Investor%20and%20Press%20Contact%20Information) Contact details for investor relations and global corporate communications are provided for inquiries regarding Rapid7's financial results and company information - Investor contact: Elizabeth Chwalk, Vice President, Investor Relations, **investors@rapid7.com**, **(617) 865-4277**[35](index=35&type=chunk) - Press contact: Alice Randall, Director, Global Corporate Communications, **press@rapid7.com**, **(214) 693-4727**[35](index=35&type=chunk) [Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) This section presents Rapid7's unaudited consolidated balance sheets, statements of operations, and cash flows, detailing assets, liabilities, equity, revenue, profitability, and cash movements for Q2 2025 [Consolidated Balance Sheets](index=7&type=section&id=8.1%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Rapid7 reported total assets of $1,648.7 million, a slight decrease from $1,652.0 million at December 31, 2024, with total liabilities also decreasing to $1,558.3 million from $1,634.3 million primarily due to a reduction in current convertible senior notes, and total stockholders' equity significantly increasing to $90.4 million from $17.7 million Consolidated Balance Sheet Highlights (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :-------------- | :---------------- | | Cash and cash equivalents | $261,327 | $334,686 | | Total current assets | $754,517 | $786,111 | | Total assets | $1,648,740 | $1,652,034 | | Total current liabilities | $555,941 | $630,216 | | Convertible senior notes, current portion, net | — | $45,895 | | Total liabilities | $1,558,293 | $1,634,323 | | Total stockholders' equity | $90,447 | $17,711 | [Consolidated Statements of Operations](index=8&type=section&id=8.2%20Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, total revenue was $214.2 million, up from $208.0 million in the prior year, GAAP gross profit increased to $151.1 million, income from operations decreased to $3.5 million from $5.2 million, and net income for the quarter was $8.3 million, up from $6.5 million, resulting in diluted EPS of $0.13 Consolidated Statements of Operations Highlights (Three Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Total revenue | $214,193 | $207,991 | | Total gross profit | $151,134 | $146,999 | | Income from operations | $3,494 | $5,223 | | Net income | $8,338 | $6,538 | | Net income per share, diluted | $0.13 | $0.09 | Consolidated Statements of Operations Highlights (Six Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Total revenue | $424,446 | $413,092 | | Total gross profit | $301,907 | $291,106 | | Income from operations | $3,393 | $14,939 | | Net income | $10,443 | $7,944 | | Net income per share, diluted | $0.16 | $0.11 | [Consolidated Statements of Cash Flows](index=9&type=section&id=8.3%20Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended June 30, 2025, net cash provided by operating activities increased to $47.5 million from $32.9 million in the prior year, net cash used in investing activities was $41.3 million primarily due to purchases of investments, and net cash used in financing activities was $47.1 million largely due to payments for maturity of convertible senior notes Consolidated Statements of Cash Flows Highlights (Three Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :------------------------------------ | :----- | :----- | | Net cash provided by operating activities | $47,542 | $32,858 | | Net cash (used in) provided by investing activities | $(41,317) | $6,899 | | Net cash (used in) provided by financing activities | $(47,122) | $(1,001) | | Net (decrease) increase in cash | $(37,384) | $38,173 | | Cash, cash equivalents and restricted cash, end of period | $261,327 | $244,548 | Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :------------------------------------ | :----- | :----- | | Net cash provided by operating activities | $77,299 | $63,928 | | Net cash (used in) provided by investing activities | $(120,530) | $(34,795) | | Net cash (used in) provided by financing activities | $(42,390) | $3,361 | | Net (decrease) increase in cash | $(80,774) | $30,418 | | Cash, cash equivalents and restricted cash, end of period | $261,327 | $244,548 | [GAAP to Non-GAAP Reconciliations (Unaudited)](index=11&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations%20%28Unaudited%29) This section provides detailed reconciliations from GAAP to non-GAAP financial measures, including gross profit, income from operations, net income, EPS, Adjusted EBITDA, and free cash flow, along with guidance reconciliations [Gross Profit Reconciliation](index=12&type=section&id=9.1%20Gross%20Profit%20Reconciliation) The reconciliation shows adjustments from GAAP to Non-GAAP gross profit, primarily by adding back stock-based compensation expense and amortization of acquired intangible assets, with Q2 2025 Non-GAAP gross profit at $158.1 million (73.8% margin) compared to GAAP gross profit of $151.1 million (71% margin) GAAP to Non-GAAP Gross Profit Reconciliation (Three Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :---------------------------------- | :----- | :----- | | GAAP gross profit | $151,134 | $146,999 | | Add: Stock-based compensation expense | $2,580 | $3,270 | | Add: Amortization of acquired intangible assets | $4,423 | $4,012 | | **Non-GAAP gross profit** | **$158,137** | **$154,281** | | Non-GAAP gross margin | 73.8% | 74.2% | [Income from Operations Reconciliation](index=12&type=section&id=9.2%20Income%20from%20Operations%20Reconciliation) Non-GAAP income from operations is derived from GAAP income by adding back stock-based compensation expense, amortization of acquired intangible assets, acquisition-related expenses, and restructuring expense, resulting in Q2 2025 Non-GAAP income from operations of $36.3 million compared to GAAP income from operations of $3.5 million GAAP to Non-GAAP Income from Operations Reconciliation (Three Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :---------------------------------- | :----- | :----- | | GAAP income from operations | $3,494 | $5,223 | | Add: Stock-based compensation expense | $27,581 | $29,066 | | Add: Amortization of acquired intangible assets | $5,090 | $4,709 | | Add: Acquisition-related expenses | $183 | $278 | | Add: Restructuring expense | — | — | | **Non-GAAP income from operations** | **$36,348** | **$39,276** | [Net Income and EPS Reconciliation](index=12&type=section&id=9.3%20Net%20Income%20and%20EPS%20Reconciliation) Non-GAAP net income and EPS are reconciled from their GAAP counterparts by adjusting for stock-based compensation, amortization of acquired intangibles, amortization of debt issuance costs, acquisition-related expenses, restructuring expense, and discrete tax items, resulting in Q2 2025 Non-GAAP net income of $42.2 million and diluted EPS of $0.58, compared to GAAP net income of $8.3 million and diluted EPS of $0.13 GAAP to Non-GAAP Net Income Reconciliation (Three Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :---------------------------------- | :----- | :----- | | GAAP net income | $8,338 | $6,538 | | Add: Stock-based compensation expense | $27,581 | $29,066 | | Add: Amortization of acquired intangible assets | $5,090 | $4,709 | | Add: Amortization of debt issuance costs | $999 | $1,055 | | Add: Acquisition-related expenses | $183 | $278 | | Add: Restructuring expense | — | — | | Add: Discrete tax items | — | — | | **Non-GAAP net income** | **$42,191** | **$41,646** | Non-GAAP Net Income Per Share (Three Months Ended June 30) | Item | 2025 | 2024 | | :-------------------------- | :----- | :----- | | Basic | $0.65 | $0.67 | | Diluted | $0.58 | $0.58 | [Adjusted EBITDA Reconciliation](index=14&type=section&id=9.4%20Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA is reconciled from GAAP net income by adding back interest income/expense, other (income) expense, provision for income taxes, depreciation, amortization of intangible assets, stock-based compensation expense, acquisition-related expenses, and restructuring expense, resulting in Q2 2025 Adjusted EBITDA of $42.6 million, down from $45.4 million in Q2 2024 Net Income to Adjusted EBITDA Reconciliation (Three Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :---------------------------------- | :----- | :----- | | GAAP net income | $8,338 | $6,538 | | Interest income | $(5,514) | $(5,221) | | Interest expense | $2,627 | $2,673 | | Other (income) expense, net | $(3,957) | $695 | | Provision for income taxes | $2,000 | $538 | | Depreciation expense | $2,349 | $2,775 | | Amortization of intangible assets | $9,041 | $8,096 | | Stock-based compensation expense | $27,581 | $29,066 | | Acquisition-related expenses | $183 | $278 | | Restructuring expense | — | — | | **Adjusted EBITDA** | **$42,648** | **$45,438** | [Free Cash Flow Reconciliation](index=14&type=section&id=9.5%20Free%20Cash%20Flow%20Reconciliation) Free cash flow is calculated by subtracting purchases of property and equipment and capitalized internal-use software costs from net cash provided by operating activities, resulting in Q2 2025 free cash flow of $42.3 million, a significant increase from $29.2 million in Q2 2024 Net Cash Provided by Operating Activities to Free Cash Flow Reconciliation (Three Months Ended June 30, in thousands) | Item | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Net cash provided by operating activities | $47,542 | $32,858 | | Less: Purchases of property and equipment | $(948) | $(280) | | Less: Capitalized internal-use software costs | $(4,314) | $(3,373) | | **Free cash flow** | **$42,280** | **$29,205** | [Guidance Reconciliations](index=15&type=section&id=9.6%20Guidance%20Reconciliations) Rapid7 provides reconciliations for its Q3 and full-year 2025 guidance, showing the adjustments from anticipated GAAP figures to non-GAAP income from operations, net income, and free cash flow, with these adjustments primarily involving adding back anticipated stock-based compensation expense, amortization of acquired intangible assets, and amortization of debt issuance costs Q3 2025 Guidance Reconciliation (in millions) | Item | Range | | :------------------------------------------ | :---------- | | Anticipated GAAP (loss) income from operations | $(4) to $(2) | | Add: Anticipated stock-based compensation expense | $28 to $28 | | Add: Anticipated amortization of acquired intangible assets | $5 to $5 | | **Anticipated non-GAAP income from operations** | **$29 to $31** | | Anticipated GAAP net (loss) income | $(2) to $0 | | Add: Anticipated stock-based compensation expense | $28 to $28 | | Add: Anticipated amortization of acquired intangible assets | $5 to $5 | | Add: Anticipated amortization of debt issuance costs | $1 to $1 | | **Anticipated non-GAAP net income** | **$32 to $34** | Full-Year 2025 Guidance Reconciliation (in millions) | Item | Range | | :------------------------------------------ | :---------- | | Anticipated GAAP (loss) income from operations | $(5) to $5 | | Add: Anticipated stock-based compensation expense | $110 to $110 | | Add: Anticipated amortization of acquired intangible assets | $20 to $20 | | **Anticipated non-GAAP income from operations** | **$125 to $135** | | Anticipated GAAP net (loss) income | $4 to $14 | | Add: Anticipated stock-based compensation expense | $110 to $110 | | Add: Anticipated amortization of acquired intangible assets | $20 to $20 | | Add: Anticipated amortization of debt issuance costs | $4 to $4 | | **Anticipated non-GAAP net income** | **$138 to $148** | | Anticipated net cash provided by operating activities | $148 to $158 | | Less: Anticipated purchases of property and equipment | $(7) to $(7) | | Less: Anticipated capitalized internal-use software costs | $(16) to $(16) | | **Anticipated free cash flow** | **$125 to $135** |

Group 1 - The article discusses the services provided by IPO Edge, which includes actionable information on growth stocks, first-look IPO filings, previews on upcoming IPOs, an IPO calendar, a database of U.S. IPOs, and a comprehensive guide to IPO investing [1]

Core Insights - Rapid7, Inc. has launched Incident Command, a next-gen SIEM designed to enhance threat detection and response capabilities for security teams [1][3] - The platform integrates attack surface management with threat detection, utilizing Agentic AI workflows to streamline operations and improve efficiency [2][4] Product Features - Incident Command automates triage with an accuracy of 99.93%, saving over 200 SOC hours per week [3][7] - The platform unifies various security functions, including SIEM, SOAR, ASM, and threat intelligence, into a single interface for improved analyst workflows [7] - It offers deep exposure visibility and integrated threat intelligence for actionable insights during threat detection and incident response [7] Market Positioning - Rapid7 aims to differentiate itself in the crowded SIEM market by combining exposure management with threat detection capabilities [4] - The launch aligns with the company's mission to simplify access to security outcomes and enhance the measurable impact of security teams [3] Upcoming Events - Incident Command will be showcased at Black Hat USA on August 6-7, 2025, in Las Vegas [5]

Core Insights - Rapid7, Inc. has achieved FedRAMP Authorization for its InsightGovCloud Platform, enhancing its credibility as a Cloud Service Offering for U.S. federal agencies [1][2] - The FedRAMP Authorization Moderate Impact Level 2 confirms the security of Rapid7's platform, enabling it to support federal agencies in managing cybersecurity needs [2][3] Company Developments - The authorization allows Rapid7's solutions to be deployed across various government environments, providing proactive threat exposure management and automated response capabilities [2][3] - Rapid7 aims to strengthen partnerships with federal agencies, addressing the need for a continuous threat exposure management platform in compliance with CISA's Binding Operational Directive 22-01 [3][4] Product Features - The Rapid7 Platform includes tools for vulnerability management, CNAPP, and SOAR solutions, enabling federal agencies to assess attack surfaces and automate response workflows [4][5] - Key features of the platform include dynamic asset discovery, threat-aware vulnerability prioritization, closed-loop exploitability validation, real-time cloud security assessment, and streamlined collaboration for remediation [5][6] Industry Context - FedRAMP is a government-wide initiative that standardizes security and risk assessment for cloud technologies, promoting secure cloud service adoption across federal agencies [8]

Core Insights - Rapid7, Inc. announced its participation in Black Hat USA 2025 and DEF CON 33, showcasing a lineup of speakers from Rapid7 Labs who will present groundbreaking research on emerging cybersecurity threats and vulnerabilities [1][10]. Company Overview - Rapid7 Labs is recognized for its community-driven approach to cybersecurity, providing open-source tools and curated intelligence to help teams effectively identify, assess, and mitigate threats [2]. - The company has introduced the Intelligence Hub, which consolidates global threat intelligence curated by Rapid7 Labs researchers [2]. Event Details - Black Hat USA 2025 will occur from August 2 to August 7, while DEF CON 33 will take place from August 7 to August 10, focusing on cutting-edge research and community collaboration in information security [10]. - Rapid7 will feature sessions that leverage 25 years of security program expertise to address pressing cybersecurity challenges [3]. Session Highlights - **Metasploit's Latest Attack Capability**: This session will cover new capabilities in Metasploit, including SMB-to-LDAP relaying and new process injection techniques, with live demonstrations [4]. - **Akheron Proxy**: A session on security testing methods using Akheron proxy, which facilitates real-time communication between microprocessors on hardware circuit boards [5]. - **Weaponization of Cellular-Based IoT Technology**: This briefing will analyze how adversaries exploit IoT devices with cellular technology, including live demonstrations and mitigation techniques [6]. - **Exploiting Synology NAS**: A presentation revealing a critical vulnerability in Synology NAS devices, allowing unauthenticated attackers to achieve root-level remote code execution [7][8]. Community Engagement - Rapid7 emphasizes the importance of face-to-face interactions at these conferences for fostering collaboration and sharing actionable insights within the cybersecurity community [9].

New automation capability enhances, continuous visibility and prioritization with active patching of vulnerabilities on exposed endpoints BOSTON, July 22, 2025 (GLOBE NEWSWIRE) -- Today, Rapid7, Inc. (NASDAQ: RPD), a leader in threat detection and exposure management, announced the release of Active Patching, a fully automated patching and remediation solution integrated into Rapid7's Exposure Command solution. Powered by Automox, Active Patching empowers security and IT teams to proactively mitigate risk a ...

Core Insights - Rapid7 has launched exposure management capabilities, InsightCloudSec and InsightAppSec, in the new AI Agents and Tools category of AWS Marketplace, enabling organizations to secure and scale generative AI solutions [1][5] Group 1: Product Offerings - InsightCloudSec provides real-time cloud posture and risk assessment to ensure security and compliance of cloud infrastructure supporting AI/ML resources [2] - InsightAppSec offers automated testing and attack simulation for large language models (LLMs) in web applications, helping to identify and prioritize vulnerabilities in AI solutions [2][3] Group 2: Strategic Importance - The combination of Rapid7's expertise in cloud and threat management with AWS's scale allows customers to enforce policies, monitor usage, and reduce risks throughout the AI development lifecycle [3] - InsightCloudSec and InsightAppSec are integral to Rapid7's Exposure Command offering, which helps organizations detect and prioritize exposures from endpoints to cloud [3] Group 3: Compliance and Control - The offerings provide visibility into user access across the organization, enabling the right-sizing of permissions according to least privilege access (LPA) [4] - Organizational policies based on Rapid7's AI/ML security best practices assist teams in implementing controls and enforcing compliance during the development of generative AI applications [4] Group 4: Procurement Efficiency - The introduction of AI Agents and Tools in AWS Marketplace streamlines the procurement process, reducing the time required for vendor evaluations and negotiations [5] - Centralized purchasing through AWS accounts allows customers to maintain visibility and control over licensing, payments, and access [5]

Core Insights - Rapid7 has been recognized as a Leader in the Frost Radar™ for Managed Detection and Response (MDR), highlighting its deep integration between MDR and exposure management, which enhances visibility and innovation in AI-powered Security Operations Centers (SOCs) [1][2][3] Group 1: MDR Service Features - Rapid7's MDR service includes 24/7 threat monitoring, unlimited incident response, proactive threat hunting, and active remediation, all delivered through a transparent platform [2][4] - The service is noted for its ability to provide deep visibility and third-party telemetry across various environments, including endpoint, network, cloud, and identities, tailored to each organization's needs [2][3] - AI automation is utilized for alert triage, achieving a market-leading accuracy of 99.93%, which saves over 200 SOC hours per week [2][3] Group 2: Strategic Focus and Innovation - Rapid7 emphasizes a unified platform approach that integrates managed services, automation, and visibility, evolving MDR in line with proactive and preventive strategies within Continuous Threat Exposure Management (CTEM) [3][4] - The company is committed to transparency, customer trust, and continuous innovation, which are key factors in its recognition as a leader in the MDR market [3][4] - Rapid7's global SOC enhances detection and response capabilities, enabling organizations to quickly identify and mitigate attacks [4] Group 3: Company Overview - Rapid7, Inc. aims to create a safer digital world by simplifying cybersecurity and making it more accessible, serving over 11,000 global customers [5] - The company provides comprehensive security solutions that integrate cloud risk management with threat detection and response, focusing on reducing attack surfaces and eliminating threats efficiently [5][6]

Core Viewpoint - Rapid7, Inc. will release its second quarter 2025 financial results on August 7, 2025, after market close, followed by a conference call to discuss the results and business outlook [1] Group 1: Financial Results Announcement - The financial results for Q2 2025 will be announced on August 7, 2025, after the financial markets close [1] - A conference call will be held on the same day at 4:30 p.m. Eastern Time to discuss the results and business outlook [1] Group 2: Access to Information - A live webcast of the conference call and the financial results press release will be available on the Rapid7 investor relations website [2] - A replay of the webcast will also be accessible on the investor relations website [2] Group 3: Company Overview - Rapid7, Inc. is focused on creating a safer digital world by simplifying and making cybersecurity more accessible [3] - The company provides comprehensive security solutions to over 11,000 global customers, helping them manage cloud risk and threat detection [3]