Rapid7's Q2 revenue, adj EPS beat analyst estimates
RPD•Analyst view
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 18 "hold" and 4 "sell" or "strong sell".
The average consensus recommendation for the software peer group is "buy." Wall Street's median 12-month price target for Rapid7, Inc. is $8.00, about 30.9% below its Aug. 7 closing price of $11.57.
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 4 three months ago.
Restructuring plan
The company initiated a restructuring plan to streamline operations and align resources with core platform solutions, affecting about 12% of its workforce.
Outlook for Q3 and full year
Rapid7 sees Q3 revenue between $208 mln and $210 mln. The company expects full-year 2026 revenue between $837 mln and $841 mln.
Rapid7 anticipates Q3 ARR of approximately $812 mln.
Quarterly results beat estimates
Rapid7's Q2 revenue declined 1.5% year over year but beat analyst expectations. Adjusted EPS for Q2 also beat analyst expectations.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $210.88 mln | $208.25 mln (22 Analysts) |
| Q2 Adjusted EPS | Beat | $0.44 | $0.35 (23 Analysts) |
