Rapid7 Under Investigation for Possible Securities Fraud
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 12 2026
0mins
Source: Globenewswire
- 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, indicating pressure in the competitive market.
- Revenue Guidance Downgrade: The company's 2026 revenue guidance indicates a downward trend, with first-quarter revenue expectations set between $207 million and $209 million and full-year guidance between $835 million and $843 million, highlighting ongoing market challenges for Rapid7.
- Significant Stock Price Drop: Following the earnings report, Rapid7's stock price plummeted by $3.01, or 28.97%, closing at $7.38 per share on February 11, 2026, signaling investor concerns regarding the company's future outlook.
- Legal Investigation Initiated: Pomerantz LLP is investigating whether Rapid7 and its executives have engaged in securities fraud or other unlawful business practices, which could further impact the company's reputation and shareholder confidence.
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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: 7.080
Low
21.00
Averages
30.19
High
40.00
Current: 7.080
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.
- 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
- 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
- Investigation Launched: Pomerantz LLP is investigating claims against Rapid7 and its executives for potential securities fraud or unlawful business practices, which could lead to significant investor losses and damage the company's reputation and stock price.
- Weak Financial Performance: Rapid7 reported an annual recurring revenue (ARR) of $840 million for Q1 2026, flat year-over-year, indicating a lack of revenue growth that may erode investor confidence in the company's prospects.
- Revenue Guidance Downgrade: The company issued a revenue forecast for 2026 that reflects declining expectations, with Q1 revenue guidance of $207 million to $209 million and full-year guidance of $835 million to $843 million, raising concerns about its future performance.
- Significant Stock Price 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, signaling strong investor anxiety regarding the company's outlook.
See More
- New Compliance Initiative: 360 Advanced has announced its participation in Rapid7's Cyber Governance, Risk, and Compliance (GRC) Early Access Program, aimed at helping organizations align security operations with compliance and risk management workflows, thereby enhancing overall compliance efficiency.
- Real-Time Compliance Capability: Built on the Rapid7 Command Platform, this program provides real-time cybersecurity insights that enable organizations to move towards more continuous compliance models, addressing challenges posed by disconnected systems and fragmented evidence collection.
- Multi-Framework Support: 360 Advanced will support organizations through integrated advisory, assessment, and assurance services across multiple frameworks such as SOC 2, HITRUST, and ISO 27001, enhancing the compliance maturity of businesses.
- Enhanced Security Visibility: According to CRO Cameron Youngblood, organizations need to align real-time security insights with governance and compliance workflows to build more resilient compliance programs and defensible reporting mechanisms.
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- Collaboration Enhances Compliance Efficiency: 360 Advanced announces its participation in Rapid7's Cyber Governance, Risk, and Compliance (GRC) Early Access Program, aimed at improving compliance processes through real-time cybersecurity insights, thereby enhancing operational efficiency in complex regulatory environments.
- Addressing Compliance Challenges: The program integrates security operations, controls, and evidence collection to tackle compliance challenges faced by organizations under frameworks like SOC 2 and HITRUST, facilitating a shift towards more continuous compliance models and improving risk and control visibility.
- Enhanced Client Support: As part of the Rapid7 Cyber GRC ecosystem, 360 Advanced will provide integrated advisory, assessment, and assurance services across multiple frameworks, helping businesses enhance their compliance maturity to meet growing regulatory demands.
- Expanding Industry Influence: With services ranging from emerging tech firms to Fortune 500 companies, the implementation of this program is expected to further solidify 360 Advanced's market position in cybersecurity and compliance, driving business growth.
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- 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, indicating pressure in the competitive market.
- Revenue Guidance Downgrade: The company's 2026 revenue guidance indicates a downward trend, with first-quarter revenue expectations set between $207 million and $209 million and full-year guidance between $835 million and $843 million, highlighting ongoing market challenges for Rapid7.
- Significant Stock Price Drop: Following the earnings report, Rapid7's stock price plummeted by $3.01, or 28.97%, closing at $7.38 per share on February 11, 2026, signaling investor concerns regarding the company's future outlook.
- Legal Investigation Initiated: Pomerantz LLP is investigating whether Rapid7 and its executives have engaged in securities fraud or other unlawful business practices, which could further impact the company's reputation and shareholder confidence.
See More










