Rapid7 Announces Fourth Quarter and Full-Year 2025 Financial Results

Core Insights - Rapid7, Inc. reported strong financial performance for Q4 and full year 2025, exceeding guidance in annual recurring revenue (ARR), revenue, and profitability metrics [2][5][6] - The company emphasizes its innovative approach to AI-powered cybersecurity operations, which is gaining traction in the market [2] Financial Highlights Fourth Quarter 2025 - Total revenue reached $217 million, a 1% increase year-over-year, with product revenue at $209 million, also up 1% [6] - GAAP operating income was $2.3 million, while non-GAAP operating income stood at $30.1 million [6] - GAAP net income was $3.1 million, or $0.05 per diluted share, with non-GAAP net income at $32.1 million, or $0.44 per diluted share [6] - Free cash flow for the quarter was $32.3 million, with net cash provided by operating activities at $37.6 million [6] Full Year Fiscal 2025 - Full-year revenue totaled $860 million, a 2% increase year-over-year, with product revenue at $831 million, up 3% [5][6] - GAAP operating income for the year was $11.6 million, while non-GAAP operating income was $135.7 million [6] - GAAP net income for the year was $23.4 million, or $0.36 per diluted share, with non-GAAP net income at $151.8 million, or $2.08 per diluted share [6] - Free cash flow for the year was $130.1 million, with net cash provided by operating activities at $153.8 million [6] Customer Metrics - Rapid7 has over 11,500 total customers, with an average ARR per customer of approximately $72,000 [6] - The company launched Managed Detection and Response (MDR) for Microsoft, enhancing its offerings within Microsoft's security ecosystem [6] Recent Business Developments - Strategic partnerships were formed with ARMO for cloud security capabilities and with HITRUST to automate cybersecurity assurance [6] - The company was recognized as a 2026 Best Place to Work by Built In, highlighting its presence in key cities [6] - Rapid7 achieved its 300th cybersecurity patent, focusing on advanced AI and machine learning technologies [6] Guidance for 2026 - For Q1 2026, Rapid7 anticipates ARR of approximately $830 million, with revenue guidance between $207 million and $209 million [8] - Full-year 2026 revenue is expected to be between $835 million and $843 million, with non-GAAP income from operations projected between $108 million and $116 million [8]