Filing Flows › Rapid7 (RPD) › Q1 2025
Rapid7 (RPD) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 12, 2025
Rapid7 (RPD) reported revenue of $210M for the first quarter 2025 (Q1 2025), +3% from a year earlier and -3% from the quarter before. Operating margin was 0.0%, net earnings $2.1M (1.0% of revenue).
Rapid7, Q1 2025: revenue $210M (+2% year over year), operating margin 0.0%, net earnings $2.1M, operating cash flow $29.8M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $210M | -3% | +3% |
| Operating profit | −$101K | — | — |
| Net earnings | $2.1M | — | — |
| Operating cash flow | $29.8M | -53% | -4% |
| Free cash flow | $24.7M | — | -10% |
What changed
Revenue was $210.3M in Q1 2025, up 3% year over year and down 3% from the previous quarter. Product subscriptions was the largest line at 97% of revenue. Product subscriptions added $7.0M year over year (up 4%), 136% of the total change. Professional services declined 23%.
Gross margin was 71.7%, up 1.4 points from a year earlier. Operating costs exceeded revenue by $101K, an operating margin of 0.0%. Operating expenses grew 12% against revenue growth of 3%. The fastest-growing cost line was General & admin (+18%). Net earnings were $2.1M, up 50% year over year. The effective tax rate was 56.2%. Non-operating items added $4.9M, 102% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $29.8M (down 4% year over year), 1414% of net earnings. Non-cash charges added back $11.7M of depreciation and amortization and $27.2M of share-based compensation. Working capital and other items used $11.2M. After capitalized internal-use software costs ($3.7M) and purchases of property and equipment ($1.4M), free cash flow as the company reports it was $24.7M.
Questions
What was Rapid7's revenue in the first quarter 2025?
Rapid7 (RPD) reported revenue of $210M for the first quarter 2025 (Q1 2025), +3% from a year earlier and -3% from the quarter before.
Was Rapid7 profitable in the first quarter 2025?
Operating loss was $101K (0.0% of revenue) and net earnings $2.1M.
Source: Rapid7 10-Q on SEC EDGAR.