Forensic Analysis · Software & SaaS · as of Nov 8, 2026
Rapid7, Inc. (RPD)
A forensic read on Rapid7, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-1.1
Distress distance
Clean
Earnings quality
3
Forensic signals
27.1%
ROE
1.9%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Rapid7, Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads -1.1, placing it in the Distress zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
1.1%
FY2025
Return on invested capital.Return on invested capital is 1.1% in the latest fiscal year, against -9.2% in FY2023, having run between -9.2% and 3.2% across FY2023–FY2025 with no direction held. After-tax operating profit was ($67M) in FY2023 and $9M in FY2025, with operating income at -10.8% of revenue in FY2023, 4.2% in FY2024 and 1.3% in FY2025. The capital base behind it grew +10% across FY2023–FY2025, from $722M to $796M, and the return did not fall doing it, so the dollars added over that window earned at least the -9.2% the older base was already earning. $208M of the $796M base at FY2025 is short-term investments (26.1%) — securities held beside cash, which the base keeps because only cash is subtracted from it; they earn the balance sheet's yield, which is not in the operating profit above, so this rate understates what the operating capital earns.
+3.4%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +7% over the last 2 years to FY2025 (+3.4%/yr). The count is growing — 60.8M shares in FY2023, 65.0M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~3.4% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~7%.
12% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 12% of revenue and 80% of free cash flow in FY2025 — about $1.61 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 3.4% a year across FY2023–FY2025, and the rate is falling. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$859.8M
Revenue Growth YoY+1.9%
Revenue CAGR (2yr)+5.1%
Net Margin2.7%
Free Cash Flow$130.1M
Return on Equity27.1%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Rapid7, Inc.'s actual 10-K/10-Q/8-K filings?