Revenue: As of FY2026 Q2, the actual value is USD 210.88 M, beating the estimate of USD 208.25 M.

EPS: As of FY2026 Q2, the actual value is USD 0.09.

EBIT: As of FY2026 Q2, the actual value is USD 13 K.

Second Quarter 2026 Financial Highlights

Segment Revenue

Annualized recurring revenue (ARR) was $824.0 million, representing a decrease of 2.0% year-over-year. Total revenue was $210.9 million, a decrease of 1.5% year-over-year. Product subscriptions revenue was $205.1 million, decreasing by 1.5% year-over-year. For the three months ended June 30, 2026, product subscriptions revenue was $205,051 thousand, and professional services revenue was $5,832 thousand. Total revenue for this period was $210,883 thousand.

Operational Metrics

GAAP income from operations was $3.0 million, while non-GAAP income from operations was $28.9 million. GAAP net income was $6.1 million for the three months ended June 30, 2026, and non-GAAP net income was $33.0 million for the same period. Total GAAP gross profit was $145,338 thousand. Non-GAAP total gross profit was $151,169 thousand, with a non-GAAP gross margin of 72%. Non-GAAP gross profit for product subscriptions was $150,653 thousand, achieving a non-GAAP gross margin of 73%. Non-GAAP gross profit for professional services was $516 thousand, with a non-GAAP gross margin of 9%.

Total operating expenses for the three months ended June 30, 2026, amounted to $142,319 thousand, which included $47,073 thousand for research and development, $76,186 thousand for sales and marketing, $17,385 thousand for general and administrative, and $1,675 thousand for restructuring expenses. Interest income was $5,539 thousand, interest expense was - $2,533 thousand, other expense, net was - $162 thousand, and provision for income taxes was - $210 thousand. Adjusted EBITDA for the period was $35,848 thousand.

Cash Flow

Net cash provided by operating activities was $37.0 million, or $36,988 thousand, for the three months ended June 30, 2026. Free cash flow was $31.9 million, or $31,925 thousand, for the same period. Unlevered free cash flow was $29,038 thousand for the three months ended June 30, 2026.

Balance Sheet Highlights

As of June 30, 2026, total cash, cash equivalents, and government securities stood at $702.6 million. Cash and cash equivalents were $425,607 thousand. Total assets were $1,743,563 thousand, and total liabilities were $1,546,859 thousand.

Restructuring Plan

On August 7, 2026, Rapid7, Inc. approved a restructuring plan to simplify operations, including a reduction of its workforce by approximately 12%. Rapid7, Inc. initiated a restructuring plan in Q2 2026 to streamline its organizational structure, affecting approximately 12% of its workforce. The company estimates incurring approximately $10-$11 million in charges, primarily cash charges for employee transition, notice period, and severance payments, with the majority expected in the third and fourth quarters of 2026. The company anticipates the plan’s execution, including cash payments, to be substantially complete by the end of the fourth quarter of 2026.

Outlook / Guidance

Rapid7, Inc. anticipates its third quarter 2026 ARR to be approximately $812 million, representing a -3% year-over-year growth, with revenue projected between $208 million and $210 million, and non-GAAP income from operations expected to range from $34 million to $36 million. For the full-year 2026, the company expects revenue to be between $837 million and $841 million, non-GAAP income from operations between $129 million and $133 million, and free cash flow to be approximately $130 million. The 2026 Restructuring Plan is expected to result in $10-$11 million in charges, primarily cash-based, with most incurred in the third and fourth quarters of 2026, and its execution is anticipated to be substantially complete by the end of the fourth quarter of 2026.