Rapid7 Reports Q2 2026 Revenue Decline to $210.9 Million, Net Income of $6.1 Million

Rapid7, Inc. reported its financial results for the second quarter of 2026, revealing a total revenue of $210.9 million, a decrease of 1.5% from $214.2 million in the same period last year. For the first half of 2026, revenue was $420.6 million, down 0.9% from $424.4 million in the first half of 2025. The decline in revenue was primarily attributed to a decrease in non-core standalone products, although this was partially offset by an increase in managed detection and response (MDR) services. The company reported a net income of $6.1 million for the quarter, compared to $8.3 million in the prior year, resulting in a diluted net income per share of $0.09, down from $0.13.

In terms of operational metrics, Rapid7's customer base grew to over 11,500 as of June 30, 2026, reflecting a 1.1% increase from the previous year. The company also reported an annualized recurring revenue (ARR) of $824.0 million, a decrease of 2.0% year-over-year. The average ARR per customer fell to $70.0, down from $72.2 in the prior year. The company’s total cash and cash equivalents increased significantly to $425.6 million, up from $246.7 million at the end of 2025, bolstered by cash generated from operations and investment maturities.

Strategically, Rapid7 completed the acquisition of Kenzo Security, Inc. for $25.5 million in March 2026, enhancing its AI capabilities in cybersecurity. The acquisition is expected to accelerate the company’s managed detection and response services. Additionally, Rapid7 has initiated a restructuring plan aimed at improving operational efficiencies, which includes a workforce reduction of approximately 12%. This restructuring is anticipated to incur costs between $10 million and $11 million, primarily related to employee transition and severance payments.

The company’s operating expenses for the second quarter were $142.3 million, down from $147.6 million in the same quarter last year. This reduction was driven by lower general and administrative expenses, which fell by 17.9% to $17.4 million, and a new restructuring charge of $1.7 million. Research and development expenses remained stable, while sales and marketing expenses decreased by 3.9%. The company continues to focus on aligning its resources with its core platform and enhancing customer experience.

Looking ahead, Rapid7 expressed optimism about its growth potential, emphasizing its commitment to expanding its integrated security solutions and enhancing its market position. The company plans to leverage its strong cash position and operational efficiencies to navigate the evolving cybersecurity landscape and meet customer demands for consolidated security operations.