The CEO transition is orderly with the outgoing CEO staying on as Executive Chairman and guidance reaffirmed, removing near-term uncertainty. However, the 2.125M performance-based PSU award (up to ~3.19M shares at max) represents significant potential dilution relative to the ~$560M market cap. Watch for the next earnings report to see if the new CEO's strategy shifts financial targets or capital allocation.
Price Chart
Executive Summary
Rapid7 announced a CEO transition: board member Wael Mohamed becomes CEO effective June 1, 2026, succeeding Corey Thomas who becomes Executive Chairman. The company reaffirmed its Q2 and full-year 2026 guidance (previously provided May 5, 2026). The new CEO receives a $625K base salary, a $6M time-based RSU grant, and a performance-based PSU award covering 2,125,000 shares with price hurdles from $15 to $30+. The outgoing CEO staying on as Executive Chairman and the guidance reaffirmation signal an orderly transition, but the large performance-based equity grant creates significant potential dilution.
Key Facts
- Wael Mohamed appointed CEO effective June 1, 2026; Corey Thomas becomes Executive Chairman
- Company reaffirmed Q2 2026 and full-year 2026 financial guidance (previously provided May 5, 2026)
- New CEO receives $625,000 annual base salary with 100% target bonus
- New CEO receives $6,000,000 time-based RSU grant vesting over 3 years
- New CEO receives performance-based PSU award covering 2,125,000 shares with vesting at stock price thresholds of $15 (50% vest) to $30+ (150% vest)
- CFO Rafeal E. Brown signed the 8-K
Financial Impact
No financial results reported. Guidance reaffirmed but not disclosed. New CEO equity grants: $6M time-based RSUs + 2,125,000 performance-based PSUs (up to 3,187,500 shares at max vest). At ~$560M market cap, the max PSU dilution is material.
Risk Factors
- Large performance-based PSU award (2.125M shares) creates significant potential dilution if stock price reaches $15-$30+ thresholds
- CEO transition risk — new leadership may shift strategic direction or execution priorities
- Guidance reaffirmation provides no cushion — any miss would be amplified
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-249850 |
| Document: d109829dex102.htm | 0001193125-26-249850 |
| Document: d109829dex101.htm | 0001193125-26-249850 |
| Document: d109829dex991.htm | 0001193125-26-249850 |
| Document: 0001193125-26-249850-index-headers.html | 0001193125-26-249850 |
| Document: 0001193125-26-249850-index.html | 0001193125-26-249850 |
| Document: 0001193125-26-249850.txt | 0001193125-26-249850 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 4, 2026 7w ago | 144 | $11.00 $12.36 | ▲ +12.36% | ▲ +11.76% | $17.93 (+63.00%) |
Aug 31, 2026 8w ago | 8-K | $12.01 $12.22 | ▲ +1.75% | ▲ +1.43% | $17.93 (+49.29%) |
Aug 10, 2026 11w ago | 8-K | $13.38 $10.56 | ▲ +21.08% | ▲ +20.02% | $17.93 (−34.01%) |
Aug 10, 2026 11w ago | Press Release | $13.38 $10.56 | ▲ +21.08% | ▲ +20.02% | $17.93 (−34.01%) |
Jul 14, 2026 14w ago | Press Release | $12.25 $12.27 | ▲ +0.16% | ▼ −2.18% | $17.93 (+46.37%) |
Jun 1, 2026 21w ago | DEFA14A | $8.74 $8.10 | ▼ −7.32% | ▼ −6.02% | $17.93 (+105.15%) |
Jun 1, 2026 21w ago | 8-K | $8.74 $8.10 | ▼ −7.32% | ▼ −6.02% | $17.93 (+105.15%) |
Mar 30, 2026 30w ago | DEFA14A | $5.51 $5.76 | ▲ +4.54% | ▼ −4.89% | $17.93 (+225.41%) |
Mar 26, 2026 30w ago | Press Release | $5.27 $5.98 | ▲ +13.47% | ▲ +0.73% | $17.93 (+240.23%) |
Mar 26, 2026 30w ago | Press Release | $5.27 $5.98 | ▲ +13.47% | ▲ +0.73% | $17.93 (+240.23%) |
US Market Status
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