Rapid7 Q1 Revenue $210M, ARR $832M, Free Cash Flow $33.4M
Rapid7’s Q1 revenue was $210 million (-0.3% Y/Y) with ARR of $832 million (-0.6% Y/Y) and product subscriptions up 0.1% to $204 million. The firm generated $33.4 million free cash flow and delivered $24.4 million non-GAAP operating income versus a $0.6 million GAAP operating loss.
1. Q1 Financial Performance
Rapid7 reported total revenue of $210 million for Q1 2026, a 0.3% year-over-year decline. Product subscriptions revenue rose 0.1% to $204 million while annualized recurring revenue reached $832 million, down 0.6% year-over-year.
2. Profitability and Cash Flow
The company posted a GAAP operating loss of $0.6 million but achieved $24.4 million in non-GAAP operating income. Net cash provided by operating activities was $39.8 million, resulting in free cash flow of $33.4 million.
3. Acquisition and Product Developments
In March, Rapid7 acquired Kenzo Security to integrate its agentic AI security platform into the Command Platform. The firm also expanded cloud security with runtime validation and Data Security Posture Management capabilities to enhance its AI-powered SOC offerings.
4. Q2 2026 Guidance
Rapid7 expects Q2 ARR of approximately $820 million (down about 2% Y/Y) with revenue of $207 million to $209 million (down 3% to 2% Y/Y). Non-GAAP operating income is projected at $24 million to $26 million with diluted non-GAAP EPS of $0.33 to $0.36.