Rapid7: Cheap For A Reason As Growth Stalls And Turnaround Looks Uncertain

Rapid7 issued weak FY26 guidance, projecting $835-$843 million in revenue and $1.50-$1.60 non-GAAP EPS, implying declining earnings despite largely stable revenue. RPD management cited longer and less predictable sales cycles, pipeline execution issues, and limited visibility following go-to-market changes as key factors behind the weaker outlook. ARR growth has stalled, and the company's main growth engine, Managed Detection and Response (MDR) services, cannot scale aggressively without pressuring margins.