Rapid7 Inc. Common Stock (RPD)

FairStock Score: 62/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Rapid7 sells cybersecurity software and services, a necessary expense for many businesses, but I see a narrow—not wide—moat. Revenue rose from $777.7M in fiscal 2023 to $844.0M in fiscal 2024 to $859.8M in fiscal 2025, so growth is decelerating sharply. In fiscal Q2 2026, the quarter ended June 30, 2026, revenue was $210.9M and net income was $6.1M, or diluted EPS $0.09; in fiscal Q2 2025, the quarter ended June 30, 2025, revenue was $214.2M, net income was $8.3M, or diluted EPS $0.13. That is a year-over-year revenue and profit decline, despite the big improvement from the fiscal 2023 net loss of $152.8M. Free cash flow is the most attractive number: $128.5M trailing, a 14.8% FCF yield on the $870.8M market cap at the 2026-10-13 close. But the balance sheet worries me. D/E is 4.89 and Altman Z is -0.46, both FairStock calculations; ROCE is only 0.49%. Valuation is not defensive: P/E 41.68, P/B 4.42, EV/EBITDA 18.10. The Graham Number is $4.51, which gives a margin of safety of -186.47% versus the $12.92 price. A PEG of 0.13 and Piotroski F-Score of 6/9 suggest some optionality, and FairStock categorizes the company as a TURNAROUND because it returned to profit after a loss within the last three years. Still, I prefer to buy turnarounds when they are cheap on assets and cash flow, not expensive on earnings. Rapid7 is a show-me story.

In plain English: Rapid7 sells cybersecurity software and services. The business has returned to small profits after a large loss a few years ago, but sales are nearly flat, profits slipped in the latest quarter, and it carries a lot of debt compared with its equity. At the recent price, the stock looks expensive relative to reported earnings and asset value, so it is not an obvious bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer