Rapid7 Shares Fall 29.5% on Q1 Revenue Miss, Full-Year EPS Guidance Cut
Rapid7 shares plunged 29.5% after forecasting Q1 revenue 2.5% below estimates and full-year EPS 21.8% beneath analysts’ projections, overshadowing its Q4 beat. The company reported Q4 revenue of $217.4 million and $0.44 EPS but forecast Q1 sales at $207–209 million and guided 2026 revenue to $835–843 million.
1. Fourth-Quarter Results
Rapid7 posted Q4 revenue of $217.4 million, modestly above consensus forecasts, and adjusted earnings of $0.44 per share. Annualized recurring revenue remained flat at $840 million, while ARR per customer climbed to $72,000 from $58,000 in 2021.
2. 2026 Guidance and Forecast Miss
For Q1 2026, Rapid7 guided revenue to $207–209 million, roughly 2.5% below analyst estimates, and set full-year EPS guidance that missed projections by 21.8%. The company also forecast full-year revenue of $835–843 million, slightly below 2025 levels.
3. Market Reaction and Stock Performance
Shares tumbled 29.5% in afternoon trading on the weak outlook, extending a 49.1% year-to-date decline. At $7.27 per share, the stock trades about 80.8% below its 52-week high of $37.93.
4. Strategic Partnerships and ARR Trends
Rapid7 serves over 11,500 customers and integrates with more than 500 partners in the $85 billion security operations market. The company recently partnered with ARMO to enhance cloud and application runtime security within its Command platform.