Filing Flows › Rapid7 (RPD) › Q2 2025
Rapid7 (RPD) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 8, 2025
Rapid7 (RPD) reported revenue of $214M for the second quarter 2025 (Q2 2025), +3% from a year earlier and +2% from the quarter before. Operating margin was 1.6%, net earnings $8.3M (3.9% of revenue).
Rapid7, Q2 2025: revenue $214M (+3% year over year), operating margin 1.6%, net earnings $8.3M, operating cash flow $47.5M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $214M | +2% | +3% |
| Gross profit | $151M | +0.2% | +3% |
| Operating profit | $3.5M | — | -33% |
| Net earnings | $8.3M | +296% | +28% |
| Operating cash flow | $47.5M | +60% | +45% |
| Free cash flow | $42.3M | — | +45% |
What changed
Revenue was $214.2M in Q2 2025, up 3% year over year and up 2% from the previous quarter. Product subscriptions was the largest line at 97% of revenue. Product subscriptions added $8.0M year over year (up 4%), 129% of the total change. Professional services declined 23%.
Gross margin was 70.6%, down 0.1 points from a year earlier. Operating profit was $3.5M, a 1.6% margin (down 0.9 points year over year). Operating profit fell $1.7M even though revenue rose $6.2M versus a year earlier, so costs grew faster than sales. Operating expenses grew 4% against revenue growth of 3%. The fastest-growing cost line was Research & development (+17%). Net earnings were $8.3M, up 28% year over year. The effective tax rate was 19.3%. Non-operating items added $6.8M, 66% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $47.5M (up 45% year over year), 570% of net earnings. Non-cash charges added back $11.4M of depreciation and amortization and $27.6M of share-based compensation. After capitalized internal-use software costs ($4.3M) and purchases of property and equipment ($948K), free cash flow as the company reports it was $42.3M.
Questions
What was Rapid7's revenue in the second quarter 2025?
Rapid7 (RPD) reported revenue of $214M for the second quarter 2025 (Q2 2025), +3% from a year earlier and +2% from the quarter before.
Was Rapid7 profitable in the second quarter 2025?
Operating profit was $3.5M (1.6% of revenue) and net earnings $8.3M.
Source: Rapid7 10-Q on SEC EDGAR.