Cybersecurity software maker Rapid7 (NASDAQ:RPD) will be reporting earnings this Thursday afternoon. Here’s what to expect.
Rapid7 beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $210.3 million, up 2.5% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but decelerating customer growth. It lost -42 customers and ended up with a total of 11,685.
Is Rapid7 a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Rapid7’s revenue to grow 1.9% year on year to $212 million, slowing from the 9.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.44 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Rapid7 has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.3% on average.
Looking at Rapid7’s peers in the cybersecurity segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Qualys delivered year-on-year revenue growth of 10.3%, beating analysts’ expectations by 1.7%, and Tenable reported revenues up 11.8%, topping estimates by 2.2%. Tenable traded down 3% following the results.
Read our full analysis of Qualys’s results here and Tenable’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the cybersecurity stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.4% on average over the last month. Rapid7 is down 11.4% during the same time and is heading into earnings with an average analyst price target of $30.33 (compared to the current share price of $21.16).
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