0001560327-26-000008
SEC filingRapid7, Inc. reported total revenue of $859.8 million for fiscal year 2025, generating a gross profit of $604.8 million. The company achieved net income of $23.4 million, a significant improvement from prior periods, driven by operational income of $11.6 million and strong interest income of $23.0 million. Operating expenses totaled $593.2 million, with sales and marketing being the largest component at $317.7 million. The balance sheet shows total assets of $1.73 billion, with substantial liabilities of $1.57 billion primarily from convertible senior notes ($892.3 million). Operating cash flow was robust at $153.8 million, though overall cash decreased by $95.4 million due to significant investment activities. The company maintains a solid liquidity position with $246.7 million in cash and equivalents.
Rapid7 reported total revenue of $859.8 million for fiscal year 2025, with cost of revenue at $255.0 million resulting in gross profit of $604.8 million. The company achieved operating income of $11.6 million, a positive result driven by effective cost management despite operating expenses of $593.2 million. Net income reached $23.4 million, supported by interest income of $23.0 million and other income of $6.0 million, offset by interest expense of $10.4 million and income tax provision of $6.8 million. The company's operating margin was 1.3%, while gross margin stood at 70.4%, indicating strong pricing power and efficient cost structure in its core business operations.
The filing does not provide segment breakdown or geographic revenue mix data. Revenue growth drivers are not explicitly detailed in the provided financial data. The company's revenue model appears to be subscription-based given the presence of deferred revenue ($451.2M current portion, $30.0M non-current portion) and deferred contract acquisition costs. No specific product or service revenue breakdown is provided in the XBRL data or document text, limiting detailed revenue analysis beyond the aggregate $859.8 million figure.
Gross margin was 70.4% for fiscal year 2025, calculated from gross profit of $604.8 million on revenue of $859.8 million. Operating margin was 1.3%, derived from operating income of $11.6 million. The cost structure shows research and development expense of $190.7 million (22.2% of revenue), sales and marketing expense of $317.7 million (37.0% of revenue), and general and administrative expense of $84.9 million (9.9% of revenue). Stock-based compensation expense was significant at $104.3 million, representing 12.1% of total revenue and impacting overall profitability metrics.
Operating cash flow was strong at $153.8 million, significantly higher than net income of $23.4 million due to non-cash adjustments including stock-based compensation ($104.3M) and depreciation/amortization ($45.4M). Investing activities used $209.4 million primarily for purchases of investments ($533.3M) partially offset by sales/maturities ($351.3M). Financing activities used $45.5 million mainly for payments on convertible notes ($46.0M). The balance sheet shows total assets of $1.73 billion with current assets of $737.3 million including cash ($246.7M) and short-term investments ($228.0M). Total liabilities are $1.57 billion with convertible senior notes comprising $892.3 million. Stockholders' equity is $154.7 million with accumulated deficit of -$964.7 million.
The filing does not provide specific management guidance, forward-looking statements, or explicit strategic priorities in the provided content. No risk factors or future projections are included in the extracted financial data. The company's financial position suggests continued focus on investment activities as evidenced by significant purchases of investments ($533.3M) and capitalization of internal-use software ($16.1M). The substantial convertible debt ($892.3M) and accumulated deficit (-$964.7M) represent ongoing financial considerations, though the company maintains solid liquidity with $246.7 million in cash and equivalents.