The revenue and ARR declines confirm a shrinking top line; the EPS beat is non-operational. Monitor customer retention and ARR trajectory in Q3; the restructuring may improve margins but does not address the core growth problem. Watch for further guidance cuts if the revenue decline accelerates.
Price Chart
Executive Summary
Rapid7 reported Q2 2026 revenue of $210.9M (-1.5% YoY), slightly above the $208.2M consensus, and non-GAAP EPS of $0.44, beating the $0.35 estimate by 25.7%. However, ARR declined 2% YoY to $824M, and the company announced a restructuring plan cutting 12% of the workforce, signaling persistent top-line challenges. Full-year revenue guidance of $837-841M implies continued contraction, making the EPS beat a cost-driven artifact rather than operational strength.
Key Financial Metrics
Key Facts
- Total revenue $210.9M, down 1.5% YoY, vs consensus $208.2M (beat by 1.3%)
- Non-GAAP diluted EPS $0.44 vs consensus $0.35 (beat by 25.7%)
- ARR $824M, down 2% YoY
- Product subscriptions revenue $205.1M, down 1.5% YoY
- Restructuring plan: ~12% workforce reduction with $10-11M charges
- Q3 2026 revenue guidance $208-210M (down 5-4% YoY)
- Full-year 2026 revenue guidance $837-841M (down 3-2% YoY)
- Free cash flow $31.9M, down from $42.3M in Q2 2025
Financial Impact
Revenue decline of 1.5% YoY and ARR decline of 2% YoY; non-GAAP EPS beat driven by cost cuts and share buybacks, not organic growth
Risk Factors
- Further ARR erosion and customer churn
- Inability to stabilize revenue growth despite cost cuts
- Restructuring execution risk and potential for additional charges
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3342193 |
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%) |
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