RPDRapid7, Inc.
Is the business good?
The checks split: margins widening, but returns that lean on debt.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 14% = margin × turnover × leverage.
All from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is RPD?
Rapid7, Inc. keeps 1.2% of every revenue dollar as operating profit, against 5.8% for the median Software - Infrastructure name.
Operating margin · Software - Infrastructure median 5.8% · 12 months to Q2 2026
- Share count, year on year
- +5.0%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 22%
R&D as % of revenue
- Gross margin
- 69%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | −18% |
| FY2021 | −22% |
| FY2022 | −16% |
| FY2023 | −11% |
| FY2024 | 4.2% |
| FY2025 | 1.4% |
Details›
- Gross margin12 months to Q2 2026
- 69%
- Operating margin12 months to Q2 2026
- 1.2%
- Net margin12 months to Q2 2026
- 2.4%
- Free cash flow margin
- 17%
- R&D as % of revenue
- 22%
- Revenue, trailing twelve months
- $856M
- Free cash flow, trailing twelve months
- $145M
- Net income, trailing twelve months
- $20M
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Infrastructure
Ranks #45 of 80 by RyuScore