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