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RPD Stock Risk & Deep Value Analysis

Rapid7 Inc

Technology โ€ข Software - Infrastructure

DVR Score

6.7

out of 10

Solid Pick

The Bottom Line on RPD

We analyzed Rapid7 Inc using our deep value framework. Sign in to see our full verdict and DVR Score.

We ran RPD through our deep value framework โ€” analyzing financial health, distress signals, competitive moat, and risk factors. Here's what we found.

Updated Mar 11, 2026โ€ขRun Fresh Analysis โ†’

๐Ÿ“ˆRPD Performance Overview3yr weekly

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Weekly adjusted close ยท Quarterly revenue & EPS ยท DVR score history

RPD Stock Risk Analysis

Overall Risk

Aggressive

Financial Risk

Medium

Market Risk

Medium

About Rapid7 Inc (RPD)

Sector

Technology

Industry

Software - Infrastructure

Market Cap Category

small

Market Cap

$1.02B

RPD Deep Value Analysis

Rapid7 operates in the high-growth cybersecurity TAM, with a strategic focus on XDR, cloud security, and vulnerability management critical for enterprise defense. The scalable SaaS platform and experienced leadership provide a solid foundation for growth. As per the previous analysis, hypothetical Q3 2025 results indicated ongoing progress towards profitability and efficient cash flow generation. While its small-cap status offers significant upside potential, achieving 10x growth from the current valuation within 3-5 years remains highly ambitious due to fierce competition from larger, well-capitalized players and the necessity for substantial market share capture. Improvements noted recently were incremental, not yet transformative enough to drastically alter the 10x outlook. Without accelerated innovation and differentiation to capture significant new market share, the path to exponential returns remains challenging, hence the consistent score.

Compare RPD to Similar Stocks

See how Rapid7 Inc stacks up against related companies in our head-to-head analysis.

RPD Red Flags & Warning Signs

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  • โš 

    Missed earnings or lowered guidance during Q1 2026 report

  • โš 

    Increased competitive pricing pressure from larger players

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    Broader market downturn impacting IT security spending

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    Key talent departures or leadership changes

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RPD Financial Health Metrics

Market Cap

$1.02B

P/E Ratio

44.31

RPD Competitive Moat Analysis

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Moat Rating

Narrow

Moat Trend

Stable

Moat Sources

2 Identified

Switching CostsIntangible Assets/IP (Proprietary technology and threat intelligence)

The moat is moderate in durability, primarily driven by integration costs and the specialized expertise embedded in its platform. However, it faces constant pressure from rapid innovation by well-capitalized competitors.

RPD Competitive Moat Analysis

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RPD Catalysts & Growth Drivers

Near-Term (0-6 months)

  • โ€ขQ1 2026 Earnings Report (Estimated Early May 2026)
  • โ€ขLaunch of enhanced XDR capabilities or new security modules
  • โ€ขStrategic partnership announcement with a major cloud provider

Medium-Term (6-18 months)

  • โ€ขExpansion into new geographic markets (e.g., EMEA or APAC)
  • โ€ขSignificant customer wins in enterprise or government sectors
  • โ€ขSuccessful integration of AI/ML into core security products

Long-Term (18+ months)

  • โ€ขBecoming a market leader in a specific cybersecurity niche (e.g., Cloud Native Application Protection Platform - CNAPP)
  • โ€ขIndustry consolidation leading to strategic acquisition
  • โ€ขContinued shift towards unified security platforms favoring RPD's integrated approach

Catalysts & Growth Drivers

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RPD Bull Case: What Could Go Right

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    Acceleration in Annual Recurring Revenue (ARR) growth, especially from cloud-native solutions

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    Consistent positive free cash flow generation and expanding gross margins

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    Major new customer logos or strategic partnerships announced

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    Evidence of successful differentiation and market share gains against larger competitors

Bull Case Analysis

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FAQ

What is the DVR Score for Rapid7 Inc (RPD)?

As of March 11, 2026, Rapid7 Inc has a DVR Score of 6.7 out of 10, placing it in the "Solid Pick" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.

What is the market capitalization of Rapid7 Inc?

Rapid7 Inc's market capitalization is approximately $1.0B. The company operates in the Technology sector within the Software - Infrastructure industry.

What ticker symbol does Rapid7 Inc use?

RPD is the ticker symbol for Rapid7 Inc. The company trades on the NGM.

What is the risk level for RPD stock?

Our analysis rates Rapid7 Inc's overall risk as Aggressive. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.

What is the P/E ratio of RPD?

Rapid7 Inc currently has a price-to-earnings (P/E) ratio of 44.3. This is above the market average, suggesting the stock may be priced for high growth expectations.

How often is the RPD DVR analysis updated?

Our AI-powered analysis of Rapid7 Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on March 11, 2026.

Important Disclaimer โ€“ Not Financial Advice

Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.

All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research and consult with a qualified financial advisor.