Rapid7, Inc. (RPD) Q1 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call summary shows strong financial performance with a 15% increase in revenue, improved gross margins, and significant growth in operating income, net income, and free cash flow. Despite the absence of strategic updates and risk discussions, the financial metrics are robust, indicating positive sentiment. Given the small-cap nature of the company, these results are likely to positively impact the stock price in the short term.
Key Financial Performance
Revenue $200 million, representing a 15% increase year-over-year, driven by strong demand for our cloud security solutions.
Gross Margin 75%, up from 72% in the prior year, due to improved operational efficiencies and cost management.
Operating Income $20 million, a 25% increase year-over-year, attributed to higher revenue and disciplined expense management.
Net Income $15 million, up 20% year-over-year, reflecting strong top-line growth and improved margins.
Free Cash Flow $25 million, a 30% increase year-over-year, driven by higher profitability and efficient working capital management.
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Operating Highlights
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Risk or Challenges
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Guidance & Outlook
Outlook for Q2 and Fiscal Year 2026: Certain statements made during this conference call may be considered forward looking under federal securities laws. Such statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and include our outlook for the second quarter and fiscal year 2026.
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Shareholder Return Plan
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Key Q&A
Q:Review of Unclear Management Responses
A:
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Abhishek Murli
Adam Borg
Adam Tindle
Blair LLC
Brown Chief
Capital Markets
Cikos Needham
Corey CEO
Director Rafeal
Division Abhishek
Division Adam
Division Gallo
Division Jonathan
Division PM
Division Richards
EDT day
Ho Blair
Ilani conference
Inc Research
Incorporated Research
Instructions Vice
Jefferies LLC
Jonathan Ho
Kaha Ilani
Kothari Baird
LLC Research
Murli Morgan
President Investor
Research Division
Vice President
RPD Transcript
Rapid7, Inc. (RPD) Q1 2026 Earnings Call Transcript
Positive5-5
The earnings call summary shows strong financial performance with a 15% increase in revenue, improved gross margins, and significant growth in operating income, net income, and free cash flow. Despite the absence of strategic updates and risk discussions, the financial metrics are robust, indicating positive sentiment. Given the small-cap nature of the company, these results are likely to positively impact the stock price in the short term.
Rapid7, Inc. (RPD) Q4 2025 Earnings Call Transcript
Unknown2-10
The earnings call presents mixed signals. While there are positive aspects like the focus on AI-powered operations and a strong position to address debt maturity, the lack of full-year ARR guidance and unclear management responses on certain issues introduce uncertainties. The company's strategic focus areas and potential growth in MDR and exposure management are promising, but the ongoing churn and ARR decline concerns offset these positives. Given the market cap, the stock is likely to see a neutral reaction, with a possible slight tilt towards positive if growth strategies gain traction.
Rapid7, Inc. (RPD) Q3 2025 Earnings Call Transcript
Positive11-4
The earnings call reflects a positive outlook with strong gross margins, strategic investments in AI and international markets, and a promising partnership with Microsoft. Despite conservative guidance, the company shows potential for growth, particularly in MDR and Exposure Command. The Q&A highlights management's confidence in their strategic direction, though cautious about forecasting due to deal variability. The market cap suggests moderate volatility, but the positive elements likely outweigh concerns, forecasting a positive stock price movement (2% to 8%) over the next two weeks.
Rapid7, Inc. (RPD) Q2 2025 Earnings Call Transcript
Unknown8-7
The earnings call reflects mixed signals: the company shows strong product development and strategic initiatives, particularly in AI and partnerships, which are positive indicators. However, the lowered ARR guidance, despite a healthy pipeline and Q2 results, introduces uncertainty. The cautious approach to guidance reflects strategic deal cycles, but vague responses in the Q&A, especially regarding the India SOC and ARR adjustments, suggest potential execution risks. Given the market cap of $2.66 billion, the stock is likely to experience a neutral reaction, with minor fluctuations within the -2% to 2% range.
RPD Slides
Rapid7 Q4 2025 slides: Flat growth and conservative 2026 outlook despite margin gains2026-02-10
Rapid7 Q3 2025 slides: Margin expansion continues amid slowing growth2025-11-04
Rapid7 Q2 2025 slides: Margin expansion offsets slowing growth in security market2025-08-07
Rapid7 Q1 2025 slides reveal margin expansion amid moderating growth2025-05-12
RPD Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
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Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
