Rapid7, Inc. Due Diligence

Run due diligence on Rapid7, Inc.: check compliance and get alerts when suppliers or ownership change.

United States · owned by Independent (United States) · www.rapid7.com · 33 vendors

Rapid7 is a global leader in AI-powered managed cybersecurity operations, offering the Rapid7 Command Platform that integrates security data with AI, threat intelligence, and expert analysis to reduce risk and disrupt attackers. The company provides managed detection and response (MDR), exposure management, vulnerability management, and incident response services to more than 11,500 customers worldwide. Rapid7 also fosters major open-source security communities including Metasploit and Velociraptor.

Resilience scores

Technology vendors

Services catalogue

8 services in catalogue across 3 categories; runs on 33 sub-vendors.

Insights

Last updated 2026-09-13 · revision 8

33 direct vendors, 237 subvendors

Direct vendors by controlling owner country (sample)

Subvendors by controlling owner country (sample)

Compliance

9 in-scope frameworks identified; showing 3.

SOX — Evidence found

Evidence: https://www.rapid7.com/trust/compliance/, https://investors.rapid7.com/

BSI C5 — Evidence found

Evidence: https://www.rapid7.com/trust/compliance/

GDPR (source) — Evidence found

Evidence: https://www.rapid7.com/trust/compliance/, https://www.rapid7.com/privacy-policy/, https://www.rapid7.com/legal/dpa/

Financials

Three-year financials

Financial Resilience Score: 6/10

Rapid7 demonstrated a significant financial inflection in 2024, achieving GAAP profitability for the first time with $25.5M net income and $35.0M operating income, reversing losses of $152.8M and $124.7M in 2023 and 2022 respectively. The company's recurring revenue model (96% of FY2024 revenue) provides strong visibility and predictability, with $839.8M in ARR across 11,727 customers in 147 countries. Liquidity is robust with $334.7M in cash and equivalents plus $224.3M in investments, totaling approximately $559M. Free cash flow nearly doubled to $154.1M in 2024, and operating cash flow grew to $171.7M. However, the company carries a substantial debt load of approximately $946M in convertible senior notes (2025, 2027, and 2029 maturities), which significantly exceeds total equity of just $17.7M. The accumulated deficit stands at $(988.0M), reflecting historical losses, and total liabilities of $1.63B vastly outweigh total assets attributable to equity holders. Revenue growth has decelerated meaningfully from 28% (2022) to 8.5% (2024), and ARR growth slowed to 4.2% in 2024 from 12.8% in 2023, raising concerns about competitive positioning against larger platforms like Microsoft, Palo Alto Networks, and CrowdStrike. Additional risks include an unresolved Israeli tax assessment of ~$88M related to the Minerva acquisition, an activist investor (JANA Partners) with a 5.8% stake potentially pressuring strategy, and a new $660M cloud spend commitment over 5 years increasing fixed obligations. The combination of profitability improvement and strong cash generation offsets concerns about leverage and growth deceleration, resulting in a moderate resilience score.

Key strengths: 96% recurring revenue providing predictable cash flows, Achieved GAAP profitability in 2024 for the first time, Strong liquidity of ~$559M in cash and investments, Free cash flow nearly doubled to $154.1M in 2024, Diversified customer base of 11,727 across 147 countries with no customer >1% of revenue, Completed restructuring (16% workforce reduction) reducing cost base, 5-year revenue CAGR of ~20% (2020-2024)

Risk factors: High debt load of ~$946M in convertible senior notes vs. only $17.7M equity, Accumulated deficit of $(988.0M), Revenue growth deceleration from 28% (2022) to 8.5% (2024), ARR growth slowed to 4.2% in 2024, Unresolved Israeli tax assessment of ~$88M, Activist investor (JANA Partners 5.8% stake) pressure, New $660M cloud commitment over 5 years increasing fixed obligations, Intense competition from Microsoft, Palo Alto, CrowdStrike and other large platforms

Revenue by geography

Revenue by product/service

Workforce by country

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