Rapid7 (RPD) reported GAAP net income of $3.5 million in the third quarter of 2026, compared with $9.8 million in the same period of the prior year. Earnings per share (EPS) were $0.05, versus $0.15 in Q3 2025. In the quarter, the company had a restructuring expense of $9.988 million and a $5.5 million write-down of a strategic equity investment.
Total revenue was $212.4 million, down 2.5% from a year earlier. Product subscription revenue totaled $206.1 million, a decline of 1.9%. Annual recurring revenue (ARR) was $819.7 million, down 2.2%.
GAAP operating income was $9.0 million, compared with $5.9 million in Q3 2025. Adjusted operating income (non-GAAP, excludes items such as stock-based compensation and restructuring) was $46.2 million, and adjusted net income was $47.4 million, or $0.60 per diluted share. Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization and other items) was $52.6 million.
Operating cash flow was $30.1 million and free cash flow was $26.5 million. Cash, cash equivalents and government securities totaled $731.6 million as of September 30, 2026.
For Q4 2026, Rapid7 projects revenue of $208 million to $210 million, adjusted operating income of $40 million to $42 million and adjusted earnings per share of $0.53 to $0.55. For 2026, the revenue target is $841 million to $843 million, with free cash flow of about $130 million and ARR of about $812 million.
