REAL-TIME GLOBAL RESEARCH
Rapid7 Inc (RPD.O): C2Q26 Review + Callback Color: Still Finding Its Footing
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11 Aug 2026 08:30:15 ET │ 17 pages
Rapid7 Inc (RPD.O)
C2Q26 Review + Callback Color: Still Finding Its Footing
CITI'S TAKE
ARR continued to decline YoY/QoQ albeit 2Q26 landed above-consensus,
as RPD navigates the necessary execution/operational turnaround for
topline growth re-invigoration. Total revenue also outperformed (still -2%
YoY), with this flowing through the P&L, while the CY26E OPM guidance
raise is the most positive surprise. New CEO Mohamed (~2-months in;
RPD board member) outlined the vision for core vs non-core business with
non-core receiving little to no focus/attention/investment-dollars, this
coming with a 12% RIF to create room for resource re-allocation. Given
RPD has undergone recent strategic/operational pivots that’ve failed to
produce sustainable improvements, skepticism on this new initiative will
likely prevail, especially considering ~20% of the business is set to
deteriorate over the near-/med-term while the growth engine business
decelerated in-Q. That said, we acknowledge incrementally better
profitability outlook, and that new CEO could breathe new life into the
turnaround story. CitiE profitability improves with PT to $13 on tweakedup multiples.
Neutral
Price (10 Aug 26 16:00)
US$11.61
Target price
US$13.00↑
from US$7.00
Expected share price return
12.0%
Expected dividend yield
0.0%
Expected total return
12.0%
Market Cap
US$783M
Fatima BoolaniAC
Mark Zhang
Joel Omino
EPS (US$)
Q1
Q2
Q3
Q4
FY
FC Cons
VA Cons
2025A
0.49A
0.58A
0.57A
0.44A
2.08A
2026E
0.36A
0.44A
0.45E
0.53E
1.79E
1.67E
1.80E
Previous
0.36A
0.33E
0.40E
0.43E
1.52E
na
2027E
0.36E
0.42E
0.49E
0.56E
1.82E
1.69E
1.81E
Previous
0.34E
0.35E
0.42E
0.46E
1.57E
na
2028E
0.40E
0.44E
0.51E
0.56E
1.92E
1.71E
1.72E
Previous
0.37E
0.38E
0.45E
0.49E
1.68E
na
Source: Company Reports and dataCentral, Citi Research. FC Cons: First Call Consensus. VA Cons: Visible Alpha Consensus.
Click here for Visible Alpha consensus data
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