Rapid7, Inc. reported its financial results for the first quarter of 2026, revealing total revenue of $209.7 million, a slight decrease of 0.3% compared to $210.3 million in the same period last year. The company's product subscription revenue remained stable at $204.0 million, while professional services revenue fell to $5.6 million from $6.3 million. The gross profit for the quarter was $144.9 million, resulting in a gross margin of 69.1%, down from 71.7% in the prior year. The company recorded a net income of $1.1 million, or $0.02 per share, compared to $2.1 million, or $0.03 per share, in the previous year.
In terms of operational metrics, Rapid7's customer base slightly decreased to 11,629 from 11,685 year-over-year. The company reported a year-over-year decline in annualized recurring revenue (ARR) of 0.6%, totaling $832.1 million as of March 31, 2026. The company’s cash and cash equivalents increased to $343.3 million, up from $246.7 million at the end of 2025, bolstered by strong cash flow from operations of $39.8 million during the quarter.
Strategically, Rapid7 completed the acquisition of Kenzo Security, Inc. on March 26, 2026, for an aggregate purchase price of $25.5 million. This acquisition is expected to enhance Rapid7's Command Platform by integrating AI-driven security operations capabilities. The company also reported a significant increase in stock-based compensation expenses, totaling $19.9 million, down from $27.2 million in the previous year, reflecting a reduction in the number of awards granted.
Looking ahead, Rapid7 anticipates continued investment in its product development and sales efforts, particularly in managed detection and response services. The company remains focused on expanding its market presence and enhancing its cybersecurity offerings to meet growing customer demand. Despite the challenges posed by a competitive landscape and economic uncertainties, Rapid7 is committed to leveraging its integrated platform to drive future growth and improve operational efficiency.
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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