Rapid7, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $214.2 million, a 3% increase from $208.0 million in the same period last year. The growth was primarily driven by a 4% rise in product subscription revenue, which reached $208.1 million, while professional services revenue declined by 23% to $6.1 million. For the first half of 2025, total revenue was $424.4 million, up from $413.1 million in the prior year, reflecting a 2.7% increase. The company reported a net income of $8.3 million for the quarter, compared to $6.5 million in Q2 2024, resulting in a diluted earnings per share of $0.13.
In terms of operational metrics, Rapid7's customer base grew to over 11,000 as of June 30, 2025, with annualized recurring revenue (ARR) increasing by 3.1% year-over-year to $840.6 million. The company also noted a slight increase in ARR per customer, which rose to $72.2 from $71.0 a year earlier. The total cash and cash equivalents at the end of the quarter stood at $261.3 million, down from $334.7 million at the end of 2024, while investments increased to $338.4 million from $224.3 million.
Strategically, Rapid7 completed the acquisition of Noetic Cyber, Inc. in July 2024 for $51.2 million, aimed at enhancing its security operations platform. The company also entered into a $200 million revolving credit facility in June 2025 to support its operational and capital needs. This credit agreement allows for incremental facilities based on consolidated EBITDA, providing additional financial flexibility.
The filing also highlighted an increase in operating expenses, which totaled $147.6 million for the quarter, up from $141.8 million in Q2 2024. This increase was attributed to higher research and development costs, which rose by 16.8% to $47.2 million, and a slight increase in sales and marketing expenses. The company anticipates continued investment in its growth initiatives, which may lead to fluctuations in operating expenses as a percentage of revenue.
Looking ahead, Rapid7 remains focused on expanding its market presence and enhancing its product offerings. The company is optimistic about its growth trajectory, driven by the increasing demand for integrated security solutions amid a complex threat landscape. However, it acknowledges 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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