Highlights

  • The August 7, 2026 restructuring plan reduces the workforce by approximately 12%, with charges estimated at $10 million to $11 million.
  • Second quarter 2026 revenue was $210,883 thousand, and net income was $6,073 thousand, or $0.09 per diluted share.
  • Annualized recurring revenue was $824,020 thousand at June 30, 2026, compared with $840,610 thousand a year earlier.
  • The company has $600 million of 2027 Notes due March 15, 2027 and held $425.6 million in cash and cash equivalents.

Rapid7, Inc. (NASDAQ: RPD) shares were trading at USD 17.86 on October 27, 2026, down 0.39%, with a relative volume at time of 2.37. The cybersecurity company named Wael Mohamed Chief Executive Officer effective June 1, 2026, acquired Kenzo Security, Inc. on March 26, 2026, approved a 2026 Restructuring Plan on August 7, 2026, and filed its quarterly report for the period ended June 30, 2026 on August 10, 2026.

Rapid7 is incorporated in Delaware and lists its principal executive offices in Boston, Massachusetts. It describes itself as a provider of AI-powered managed cybersecurity operations built on the Rapid7 Command Platform. Its offerings include managed detection and response, next-gen SIEM and exposure management. As of June 30, 2026, it had over 11,500 customers in 149 countries. Recurring revenue was 97% of total revenue for the three and six months ended June 30, 2026. Its fiscal year ends December 31.

Second Quarter 2026 Results

For the three months ended June 30, 2026, unaudited total revenue was $210,883 thousand, compared with $214,193 thousand in the same quarter of 2025. Gross profit was $145,338 thousand. Income from operations was $3,019 thousand, compared with $3,494 thousand, and non-GAAP income from operations was $28,885 thousand, compared with $36,348 thousand.

Net income was $6,073 thousand, or $0.09 per diluted share, compared with $8,338 thousand, or $0.13. Net cash provided by operating activities was $36,988 thousand and non-GAAP free cash flow was $31,925 thousand.

Annualized recurring revenue was $824,020 thousand, compared with $840,610 thousand, and ARR per customer was $70.0 thousand, compared with $72.2 thousand. For the six months, revenue was $420,574 thousand and net income was $7,203 thousand.

Restructuring and Leadership

In June 2026, the company carried out a limited restructuring, primarily in sales and marketing, and recorded $1.7 million of termination benefit charges. On August 7, 2026, the board approved the 2026 Restructuring Plan, which includes a reduction of the workforce by approximately 12%. The company estimates charges of approximately $10 million to $11 million, consisting primarily of cash charges for severance and related costs, with the majority expected in the third and fourth quarters of 2026.

Effective June 1, 2026, Wael Mohamed became Chief Executive Officer, Corey Thomas became Executive Chairman and Marc Brown became Lead Independent Director. On March 26, 2026, the company acquired Kenzo Security, Inc. at an aggregate fair value of $25.5 million.

Liquidity, Debt and Capital

At June 30, 2026, Rapid7 had $425.6 million in cash and cash equivalents, $277.0 million in investments and an accumulated deficit of $957.5 million. Convertible senior notes, current portion, net were $598,206 thousand, and the non-current portion was $296,020 thousand. The company must repay the $600 million 2027 Notes on March 15, 2027, and said it expects a reduction in interest income as a result. It has a Credit Agreement for a senior secured revolving facility of up to $200 million and said it was in compliance with applicable covenants.

The company said it believes its cash, investments, operating cash flow and available borrowings will be sufficient for at least the next 12 months.

Outlook

The 10-Q does not provide numerical guidance. On its August 10, 2026 earnings call, management gave third quarter guidance of total revenue of $208 million to $210 million, ending ARR of approximately $812 million, non-GAAP operating income of $34 million to $36 million and non-GAAP earnings per diluted share of $0.44 to $0.47.

For full-year 2026, management expects total revenue of $837 million to $841 million, non-GAAP operating income of $129 million to $133 million, non-GAAP earnings per share of $1.78 to $1.83 and free cash flow of approximately $130 million. Management said it expects a non-GAAP operating margin of 20% in the fourth quarter. It also said sequential ARR declines are expected to come from noncore offerings.