Filing Flows › Rapid7 (RPD) › Q3 2025
Rapid7 (RPD) Q3 2025 earnings results (third quarter 2025)
10-Q filed Nov 5, 2025
Rapid7 (RPD) reported revenue of $218M for the third quarter 2025 (Q3 2025), +2% from a year earlier and +2% from the quarter before. Operating margin was 2.7%, net earnings $9.8M (4.5% of revenue).
Rapid7, Q3 2025: revenue $218M (+2% year over year), operating margin 2.7%, net earnings $9.8M, operating cash flow $39.0M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $218M | +2% | +2% |
| Gross profit | $153M | +1% | +1% |
| Operating profit | $5.9M | +69% | -54% |
| Net earnings | $9.8M | +18% | -36% |
| Operating cash flow | $39.0M | -18% | -11% |
| Free cash flow | $34.8M | -25% | -18% |
What changed
Revenue was $218.0M in Q3 2025, up 2% year over year and up 2% from the previous quarter. Product subscriptions was the largest line at 96% of revenue. Product subscriptions added $4.6M year over year (up 2%), 138% of the total change. Professional services declined 14%.
Gross margin was 70.2%, down 0.4 points from a year earlier. Operating profit was $5.9M, a 2.7% margin (down 3.3 points year over year). Operating profit fell $6.9M even though revenue rose $3.3M versus a year earlier, so costs grew faster than sales. Operating expenses grew 6% against revenue growth of 2%. The fastest-growing cost line was General & admin (+10%). Net earnings were $9.8M, down 36% year over year. The effective tax rate was -5.3%. Non-operating items added $3.4M, 37% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $39.0M (down 11% year over year), 397% of net earnings. Non-cash charges added back $11.2M of depreciation and amortization and $26.3M of share-based compensation. Working capital and other items used $8.4M. Capital expenditures of $4.1M left free cash flow of $34.8M.
Questions
What was Rapid7's revenue in the third quarter 2025?
Rapid7 (RPD) reported revenue of $218M for the third quarter 2025 (Q3 2025), +2% from a year earlier and +2% from the quarter before.
Was Rapid7 profitable in the third quarter 2025?
Operating profit was $5.9M (2.7% of revenue) and net earnings $9.8M.
Source: Rapid7 10-Q on SEC EDGAR.