Rapid7 Appoints New CEO, Maintains Positive Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 01 2026
0mins
Source: NASDAQ.COM
- Executive Change: Rapid7 has appointed board member Wael Mohamed as CEO, with current CEO Corey Thomas transitioning to Executive Chairman, aiming to leverage Mohamed's 30 years of cybersecurity experience to drive strategic transformation.
- Financial Outlook Confirmation: The company confirmed its second-quarter adjusted earnings expectations of $0.33 to $0.36 per share, with revenue projected between $207 million and $209 million, demonstrating confidence in future performance.
- Long-term Financial Forecast: Rapid7 anticipates adjusted earnings of $1.52 to $1.60 per share for fiscal 2027, with revenue expected between $836 million and $842 million, indicating a positive outlook for long-term growth.
- Stock Price Reaction: In pre-market trading, Rapid7 shares rose 4.44% to $8.75, reflecting market optimism regarding the new CEO and the company's future prospects.
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Analyst Views on RPD
Wall Street analysts forecast RPD stock price to rise
20 Analyst Rating
5 Buy
14 Hold
1 Sell
Hold
Current: 7.130
Low
21.00
Averages
30.19
High
40.00
Current: 7.130
Low
21.00
Averages
30.19
High
40.00
About RPD
Rapid7, Inc. is a global cybersecurity software and services provider. It has the expertise of the security operations center (SOC) across information security, cloud operations, development, and information technology (IT) teams, enabling them to understand the attacker and leverage that information to take control of their fragmented attack surface. Rapid7 Managed Threat Complete (MTC) is its flagship offering and unifies the leading detection and response of Rapid7 Managed Detection and Response (MDR) and the exposure management of Rapid7 Managed Vulnerability Management (MVM) to manage customer’s imminent risks, pinpoint and eliminate threats as early as possible and build resiliency for their future. Its Rapid7 Threat Complete unifies Rapid7 InsightIDR (InsightIDR) and Rapid7 InsightVM (InsightVM) to provide complete risk and threat coverage in a single offering. Its security solutions help more than 11,000 global customers unite cloud risk management and threat detection.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Job Data Surprises: The U.S. added 172,000 nonfarm payroll jobs in May, significantly exceeding economists' expectations of 85,000, while the unemployment rate remained steady at 4.3%, indicating strong economic momentum but reducing the likelihood of near-term interest rate cuts by the Federal Reserve.
- High Rate Pressure: A prolonged high-interest-rate environment can negatively impact growth-oriented sectors like technology by diminishing the present value of future earnings, prompting investors to reassess stock valuations and leading to a broad sell-off across the tech sector.
- Tech Stocks Decline: Stocks of MongoDB, Rapid7, and DigitalOcean fell by 4.7%, 4.8%, and 5.2% respectively, reflecting market concerns over sustained high rates, even as DigitalOcean's stock has surged 242% year-to-date.
- Investor Sentiment Fluctuates: While the market reacted strongly to the job data, causing significant price volatility, it also presents opportunities for investors to buy high-quality stocks, particularly in the context of the tech sector facing sell-offs.
See More
Rapid7 Appoints New CEO, Maintains Positive Outlook
- Executive Change: Rapid7 has appointed board member Wael Mohamed as CEO, with current CEO Corey Thomas transitioning to Executive Chairman, aiming to leverage Mohamed's 30 years of cybersecurity experience to drive strategic transformation.
- Financial Outlook Confirmation: The company confirmed its second-quarter adjusted earnings expectations of $0.33 to $0.36 per share, with revenue projected between $207 million and $209 million, demonstrating confidence in future performance.
- Long-term Financial Forecast: Rapid7 anticipates adjusted earnings of $1.52 to $1.60 per share for fiscal 2027, with revenue expected between $836 million and $842 million, indicating a positive outlook for long-term growth.
- Stock Price Reaction: In pre-market trading, Rapid7 shares rose 4.44% to $8.75, reflecting market optimism regarding the new CEO and the company's future prospects.
See More
Rapid7 Announces Leadership Transition with Wael Mohamed as New CEO
- Leadership Transition: Rapid7 announced that board member Wael Mohamed will immediately assume the role of CEO, while current CEO Corey Thomas transitions to executive chairman, aiming to enhance the company's strategic direction and market competitiveness.
- Mohamed's Background: Wael Mohamed founded Global Forward Capital, a cybersecurity-focused investment firm, and previously served as CEO of Forescout, bringing extensive industry experience that could drive new growth for Rapid7.
- Strategic Outlook: Rapid7 projects non-GAAP operating income of $112M-$118M for FY2026, while guiding Q2 ARR to approximately $820M, indicating strong confidence in future performance amidst leadership changes.
- Market Implications: This leadership change may influence investor sentiment, particularly as Mohamed's extensive background aligns with Rapid7's growth expectations, making market reactions to the strategic shift particularly noteworthy.
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- New Additions: Newly added information technology firms include Xerox (XRX), Commerce.com (CMRC), Rapid7 (RPD), XTI Aerospace (XTIA), and Sprout Social (SPT), which are expected to gain increased market visibility and liquidity through their inclusion in the index.
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- Market Impact Analysis: This reconstitution will influence micro-cap investors' strategies, particularly increasing focus on the newly added companies, which may lead to stock price volatility, while investors in excluded firms will need to reassess their portfolios.
See More
Rapid7 Under Investigation for Securities Fraud Claims
- Weak Financial Performance: Rapid7 reported an annual recurring revenue (ARR) of $840 million for 2025, remaining flat year-over-year, indicating a lack of growth that could undermine investor confidence in the company.
- Revenue Guidance Downgrade: The company issued a declining revenue outlook for 2026, with first-quarter revenue guidance of $207 million to $209 million and full-year guidance of $835 million to $843 million, raising concerns about Rapid7's future performance in the market.
- Significant Stock Price Drop: Following the disappointing financial results, Rapid7's stock price plummeted by $3.01, or 28.97%, closing at $7.38 per share on February 11, 2026, reflecting strong investor dissatisfaction with the company's outlook.
- Legal Investigation Initiated: Pomerantz LLP is investigating claims against Rapid7 and its executives for potential securities fraud or other unlawful business practices, which could expose the company to legal risks and further impact its market performance.
See More
Rapid7 Under Investigation for Securities Fraud Claims
- Weak Financial Performance: Rapid7's financial results released on February 10, 2026, revealed an annual recurring revenue (ARR) of $840 million, flat year-over-year, and total quarterly revenue of $217 million, reflecting only a 1% increase year-over-year, indicating significant revenue growth challenges that could undermine investor confidence.
- Downward Guidance: The company's 2026 revenue guidance indicates declining expectations, with first-quarter revenue projected between $207 million and $209 million and full-year guidance of $835 million to $843 million, suggesting Rapid7 is facing greater market challenges that may lead to further stock price volatility.
- Significant Stock Drop: Following the disappointing earnings report, Rapid7's stock price fell by $3.01, or 28.97%, closing at $7.38 per share on February 11, 2026, raising concerns among investors regarding corporate governance and management effectiveness.
- Legal Investigation Initiated: Pomerantz LLP is investigating claims of securities fraud against Rapid7 and its executives, advising investors to contact the firm for information on joining the class action, which could expose the company to legal risks and potential financial liabilities.
See More
Strong Jobs Report Impacts Stock Market
- Job Data Surprises: The U.S. added 172,000 nonfarm payroll jobs in May, significantly exceeding economists' expectations of 85,000, while the unemployment rate remained steady at 4.3%, indicating strong economic momentum but reducing the likelihood of near-term interest rate cuts by the Federal Reserve.
- High Rate Pressure: A prolonged high-interest-rate environment can negatively impact growth-oriented sectors like technology by diminishing the present value of future earnings, prompting investors to reassess stock valuations and leading to a broad sell-off across the tech sector.
- Tech Stocks Decline: Stocks of MongoDB, Rapid7, and DigitalOcean fell by 4.7%, 4.8%, and 5.2% respectively, reflecting market concerns over sustained high rates, even as DigitalOcean's stock has surged 242% year-to-date.
- Investor Sentiment Fluctuates: While the market reacted strongly to the job data, causing significant price volatility, it also presents opportunities for investors to buy high-quality stocks, particularly in the context of the tech sector facing sell-offs.
See More
Rapid7 Appoints New CEO, Maintains Positive Outlook
- Executive Change: Rapid7 has appointed board member Wael Mohamed as CEO, with current CEO Corey Thomas transitioning to Executive Chairman, aiming to leverage Mohamed's 30 years of cybersecurity experience to drive strategic transformation.
- Financial Outlook Confirmation: The company confirmed its second-quarter adjusted earnings expectations of $0.33 to $0.36 per share, with revenue projected between $207 million and $209 million, demonstrating confidence in future performance.
- Long-term Financial Forecast: Rapid7 anticipates adjusted earnings of $1.52 to $1.60 per share for fiscal 2027, with revenue expected between $836 million and $842 million, indicating a positive outlook for long-term growth.
- Stock Price Reaction: In pre-market trading, Rapid7 shares rose 4.44% to $8.75, reflecting market optimism regarding the new CEO and the company's future prospects.
See More
Rapid7 Announces Leadership Transition with Wael Mohamed as New CEO
- Leadership Transition: Rapid7 announced that board member Wael Mohamed will immediately assume the role of CEO, while current CEO Corey Thomas transitions to executive chairman, aiming to enhance the company's strategic direction and market competitiveness.
- Mohamed's Background: Wael Mohamed founded Global Forward Capital, a cybersecurity-focused investment firm, and previously served as CEO of Forescout, bringing extensive industry experience that could drive new growth for Rapid7.
- Strategic Outlook: Rapid7 projects non-GAAP operating income of $112M-$118M for FY2026, while guiding Q2 ARR to approximately $820M, indicating strong confidence in future performance amidst leadership changes.
- Market Implications: This leadership change may influence investor sentiment, particularly as Mohamed's extensive background aligns with Rapid7's growth expectations, making market reactions to the strategic shift particularly noteworthy.
See More
FTSE Russell Announces Changes to Microcap Index
- Index Reconstitution Date: FTSE Russell's adjustments to the Microcap Index will take effect after the US market closes on June 26, aiming to better reflect the performance of the micro-cap segment by including the smallest 1,000 companies from the Russell 2000 and the next 1,000 eligible from the Russell 3000E.
- New Additions: Newly added information technology firms include Xerox (XRX), Commerce.com (CMRC), Rapid7 (RPD), XTI Aerospace (XTIA), and Sprout Social (SPT), which are expected to gain increased market visibility and liquidity through their inclusion in the index.
- Exclusions: Companies leaving the Microcap Index include Applied Digital (APLD), BigBear.ai (BBAI), Navitas Semiconductor (NVTS), Cipher Digital (CIFR), and Terawulf (WULF), and their removal may impact market performance and investor confidence.
- Market Impact Analysis: This reconstitution will influence micro-cap investors' strategies, particularly increasing focus on the newly added companies, which may lead to stock price volatility, while investors in excluded firms will need to reassess their portfolios.
See More
Rapid7 Under Investigation for Securities Fraud Claims
- Weak Financial Performance: Rapid7 reported an annual recurring revenue (ARR) of $840 million for 2025, remaining flat year-over-year, indicating a lack of growth that could undermine investor confidence in the company.
- Revenue Guidance Downgrade: The company issued a declining revenue outlook for 2026, with first-quarter revenue guidance of $207 million to $209 million and full-year guidance of $835 million to $843 million, raising concerns about Rapid7's future performance in the market.
- Significant Stock Price Drop: Following the disappointing financial results, Rapid7's stock price plummeted by $3.01, or 28.97%, closing at $7.38 per share on February 11, 2026, reflecting strong investor dissatisfaction with the company's outlook.
- Legal Investigation Initiated: Pomerantz LLP is investigating claims against Rapid7 and its executives for potential securities fraud or other unlawful business practices, which could expose the company to legal risks and further impact its market performance.
See More
Rapid7 Under Investigation for Securities Fraud Claims
- Weak Financial Performance: Rapid7's financial results released on February 10, 2026, revealed an annual recurring revenue (ARR) of $840 million, flat year-over-year, and total quarterly revenue of $217 million, reflecting only a 1% increase year-over-year, indicating significant revenue growth challenges that could undermine investor confidence.
- Downward Guidance: The company's 2026 revenue guidance indicates declining expectations, with first-quarter revenue projected between $207 million and $209 million and full-year guidance of $835 million to $843 million, suggesting Rapid7 is facing greater market challenges that may lead to further stock price volatility.
- Significant Stock Drop: Following the disappointing earnings report, Rapid7's stock price fell by $3.01, or 28.97%, closing at $7.38 per share on February 11, 2026, raising concerns among investors regarding corporate governance and management effectiveness.
- Legal Investigation Initiated: Pomerantz LLP is investigating claims of securities fraud against Rapid7 and its executives, advising investors to contact the firm for information on joining the class action, which could expose the company to legal risks and potential financial liabilities.
See More
