Rapid7, Inc. reported its financial results for the third quarter of 2025, revealing a total revenue of $217.96 million, a 1.5% increase from $214.65 million in the same period last year. The growth was primarily driven by a 2.2% rise in product subscription revenue, which reached $210.15 million, while professional services revenue decreased by 13.8% to $7.81 million. For the nine months ending September 30, 2025, total revenue was $642.41 million, up 2.3% from $627.75 million in the prior year. The company reported a net income of $9.81 million, down from $15.41 million in Q3 2024, reflecting a decrease in profitability.
In terms of operational metrics, Rapid7's customer base remained stable with over 11,000 customers across 150 countries, including 36% of the Fortune 100. The company noted a slight decline in new customer revenue, which fell by $8.5 million compared to the previous year, impacting overall growth. The annualized recurring revenue (ARR) per customer increased to $72.10, a 1.8% rise year-over-year. The company also reported a total cash and cash equivalents balance of $130.61 million as of September 30, 2025, down from $342.10 million at the beginning of the year.
Strategically, Rapid7 has focused on enhancing its product offerings and expanding its market presence. The company entered into a credit agreement in June 2025, establishing a $200 million revolving credit facility to support its operational and capital needs. Additionally, Rapid7 continues to invest in research and development, with expenses rising to $46.91 million in Q3 2025, reflecting a 4.3% increase from the previous year. This investment is aimed at driving innovation and improving product capabilities in response to evolving cybersecurity threats.
The company also reported a significant increase in operating expenses, which totaled $147.07 million for the quarter, up from $138.68 million in Q3 2024. This increase was attributed to higher personnel costs and investments in sales and marketing. Despite the rise in expenses, Rapid7's gross margin remained relatively stable at 70.2%, slightly down from 70.6% in the prior year. The company anticipates continued investment in its growth strategy, which may lead to fluctuations in operating expenses as it seeks to enhance its competitive position in the cybersecurity market.
Looking ahead, Rapid7 expressed optimism about its growth trajectory, emphasizing its commitment to expanding its integrated security operations solutions. The company aims to leverage its existing customer relationships while pursuing new opportunities in both domestic and international markets. However, it acknowledged potential challenges, including economic uncertainties and competitive pressures, which could impact its performance in the coming quarters.
About Rapid7, Inc.
Rapid7 is a global cybersecurity software provider specializing in security information and event management, vulnerability management, threat detection, and response solutions. Its cloud-based Command Platform integrates exposure, threat, and risk management across on-premise and cloud environments. Serving diverse industries worldwide, Rapid7 offers SaaS, managed, and professional services to help organizations proactively secure their attack surfaces and improve security operations.
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