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Rapid7 Inc. (RPD): Solid Earnings Beat, Growth Concerns Ahead

Rapid7, Inc. (NASDAQ:RPD) is one of the best high-growth cybersecurity stocks to buy. Rapid7, Inc. (NASDAQ:RPD) released its fourth-quarter 2025 results on February 10, posting earnings per share of $0.44—$0.03 above Wall Street expectations. Revenue came in at $217.39 million, narrowly topping consensus estimates. However, annualized recurring revenue held steady at $840 million, raising concern about the company’s ability to add new customers and grow existing accounts. On a positive note, ARR per customer has climbed significantly over the past few years, increasing to $72,000 from $58,000 in 2021.

The company continues to focus on operational efficiency and platform consolidation, serving over 11,500 customers and integrating with more than 500 partners in the $85 billion security operations market.

For 2026, Rapid7 expects Q1 revenue of $207–209 million and full-year revenue of $835–843 million, slightly below 2025 levels. ARR is projected to fall to $830 million, while profitability remains solid, with operating income of $108–116 million and free cash flow of $125–135 million. CEO Corey Thomas emphasized the company’s focus on delivering measurable business results to maintain a competitive edge.

On January 14, Rapid7 announced a partnership with ARMO to add cloud and application runtime security to its Command platform. The deal is designed to improve visibility into cloud environments and strengthen threat detection, giving IT teams clearer, prioritized insights and helping them respond to risks more quickly.

The integration will also allow security teams to detect active threats in real time and respond instantly by isolating compromised workloads.

Rapid7 Inc. (NASDAQ:RPD) is a cybersecurity company that provides cloud-native solutions for vulnerability management, incident detection and response (SIEM/XDR), application security, and threat intelligence.

While we acknowledge the potential of RPD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RPD and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: Top 10 Materials Stocks to Buy According to Analysts and 10 Best Organic Food and Farming Stocks to Buy Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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