RPD (Rapid7, Inc.): Themes, ETFs, and Basket Ideas
Last updated June 2026
Short answer
What does Rapid7, Inc. do?
Rapid7 (RPD) is a cybersecurity company providing a cloud-based platform for security operations, vulnerability management, and threat detection. Its Insight platform spans several products: InsightVM for vulnerability management, InsightIDR for detection and response (SIEM and XDR), InsightCloudSec for cloud security posture, and application security testing. Increasingly, Rapid7 packages these into managed detection and response (MDR) services, where its analysts monitor customer environments around the clock, which appeals to mid-market companies that lack large in-house security teams.
Rapid7 sells predominantly through subscriptions, so revenue is recurring and measured by annual recurring revenue (ARR). Its sweet spot is mid-size enterprises seeking consolidated, easier-to-operate security rather than assembling many point tools. Founded in 2000 and headquartered in Boston, Massachusetts, Rapid7 competes in a crowded, consolidating market where larger platforms are bundling vulnerability, SIEM, and cloud security together, putting a premium on its ability to show platform breadth and improving profitability.
Where is Rapid7, Inc. heading?
1. Platform consolidation.
Rapid7's Insight platform spans vulnerability management, detection and response, cloud security, and app security. Mid-market customers increasingly want fewer vendors, and a unified platform lets Rapid7 cross-sell modules and lift revenue per customer through the classic land-and-expand SaaS motion.
2. Managed detection and response.
MDR, where Rapid7 analysts monitor customer environments around the clock, is a fast-growing offering that suits mid-size companies without large security teams. Bundling software with managed services deepens stickiness, raises ARR per account, and differentiates Rapid7 from pure-tooling vendors.
3. Vulnerability management core.
InsightVM is a recognized vulnerability-management product and a durable foundation. As attack surfaces expand across cloud and remote work, continuous vulnerability and exposure management remains a structural growth category that anchors customer relationships.
4. Margin improvement.
Rapid7 has been prioritizing profitability and free cash flow after years of growth-first spending. Improving operating margins and cash generation, while sustaining recurring revenue, can re-rate the stock and reduce reliance on capital markets.
Risks worth tracking: Rapid7 competes against larger, better-capitalized platforms (CrowdStrike, Palo Alto Networks, Microsoft, Tenable, Qualys) that bundle overlapping vulnerability, SIEM, and cloud-security capabilities, pressuring pricing and growth. Its growth has decelerated, and the market has at times questioned whether it can keep pace as security consolidates around a few mega-platforms. Net retention and new-logo momentum can soften in tighter IT-budget environments. The shift to balancing growth with profitability is a delicate transition that can disappoint on either axis. As a mid-cap in a momentum-driven sector, Rapid7 is sensitive to growth-rate changes, competitive bundling, and shifts in security-spending priorities.
Earnings and valuation (approximate, early 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Rapid7, Inc.'s investor relations page or your broker.
- Revenue (TTM): ~$850 million
- Annual recurring revenue: Around or above $800 million
- Revenue growth: Modest (mid-single to low-double-digit)
- Operating margin: Near breakeven GAAP; positive non-GAAP
- Free cash flow: Positive and improving
- Price to sales: Low single digits
- Dividend yield: None
- Net retention: Moderate (land-and-expand)
Rapid7 trades at a more modest multiple than fast-growing security peers, reflecting decelerating growth offset by improving free cash flow and profitability. The valuation embeds skepticism about competing with mega-platforms, so the stock tends to re-rate on signs of reaccelerating ARR or stronger margins, and de-rate when growth or retention soften.
RPD's competitors
Vulnerability management
Tenable and Qualys are the closest direct competitors in vulnerability and exposure management, alongside Microsoft Defender Vulnerability Management bundled into broader licensing.
Detection and response (SIEM/XDR)
CrowdStrike, Palo Alto Networks (Cortex), Microsoft Sentinel, and Splunk compete in security operations, SIEM, and extended detection and response, the InsightIDR market.
Cloud security
Wiz, Palo Alto Networks (Prisma Cloud), CrowdStrike, and Microsoft compete in cloud security posture management, where InsightCloudSec operates.
Using RPD in a Walnut basket
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Open the AI assistant on Walnut and describe a thesis (for example: “the AI infrastructure buildout”, “dividend growth large-caps”, “global semiconductors”) where RPD would naturally fit. The AI proposes 5 to 6 constituents with target weights, you review, and you can fund the basket through your broker once you're ready.
Build a basket around RPD with Walnut
Use Rapid7, Inc. as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What is RPD's ticker symbol?
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RPD, listed on Nasdaq. Officially Rapid7, Inc. Founded 2000, headquartered in Boston, Massachusetts. Publicly traded since 2015. It trades during US market hours and is available at every major US brokerage. It is a mid-cap cybersecurity name.
What does Rapid7 do?
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Rapid7 provides cloud-based cybersecurity through its Insight platform, covering vulnerability management (InsightVM), detection and response (InsightIDR), cloud security (InsightCloudSec), and application security. It increasingly packages these with managed detection and response services, where its analysts monitor customer environments around the clock.
Who are Rapid7's main competitors?
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By segment. Vulnerability management: Tenable, Qualys, and Microsoft. Detection and response: CrowdStrike, Palo Alto Networks, Microsoft Sentinel, and Splunk. Cloud security: Wiz, Palo Alto Networks (Prisma Cloud), CrowdStrike, and Microsoft. Larger platforms bundling these capabilities are the main strategic threat.
Is Rapid7 profitable?
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On a non-GAAP basis and in free cash flow, yes, and GAAP results have moved toward breakeven as the company prioritized profitability after years of growth-first spending. Improving margins and positive free cash flow now anchor the financial story, alongside more modest revenue growth than faster-expanding security peers.
What is managed detection and response?
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Managed detection and response (MDR) is a service where a security vendor's analysts continuously monitor a customer's environment, investigate alerts, and respond to threats on the customer's behalf. It suits organizations without large in-house security teams. Rapid7 offers MDR on top of its platform, combining software with human-led monitoring.
Is Rapid7 a cybersecurity stock?
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Yes. Rapid7 is a pure-play cybersecurity company spanning vulnerability management, security operations, and cloud security, plus managed services. Investors typically hold it within a cybersecurity theme, often as a mid-market-focused, profitability-oriented complement to faster-growing platform names.
How does Rapid7 make money?
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Rapid7 makes money primarily through recurring software subscriptions to its Insight platform and through managed detection and response services. Customers pay annual fees for vulnerability management, detection and response, cloud security, and app security, and expand spend by adding modules and managed offerings over time.
How does Rapid7 compare to Qualys and Tenable?
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All three compete in vulnerability management. Qualys is distinguished by very high profitability, Tenable emphasizes exposure-management breadth, and Rapid7 leans on a broader security-operations platform and managed detection and response for mid-market customers. All face pressure from mega-platforms bundling comparable capabilities.
Is Rapid7 in the S&P 500?
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No. Rapid7 is a mid-cap company and is not an S&P 500 constituent. It appears mainly in cybersecurity, software, and mid-cap thematic funds rather than the large-cap index.
Which thematic baskets typically include Rapid7?
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Cybersecurity themes on Walnut. Rapid7 is often used as a mid-market security-operations sleeve within a cybersecurity basket, complementing endpoint, cloud, and pure vulnerability-management names with a platform-plus-managed-services angle.
Which ETFs hold Rapid7?
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Cybersecurity-themed ETFs hold Rapid7, typically at modest weights given its mid-cap size, alongside broad software and small-to-mid-cap funds. It is generally not a meaningful weight in large-cap or S&P 500 index funds.
Is Rapid7 a good stock to buy?
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Descriptive, not a recommendation. Rapid7 offers cybersecurity exposure with a broad platform, growing managed services, and improving free cash flow, balanced against decelerating growth and intense competition from larger platforms bundling overlapping tools. Whether it suits a portfolio depends on views on security consolidation and growth versus profitability. Walnut is informational, not investment advice.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Rapid7, Inc.'s investor relations page or your broker before making investment decisions.