Rapid7 (RPD) Profit Margin Turns Positive, Reinforcing Bullish Narratives on Earnings Growth Versus Sales

Simply Wall St.11-06

Rapid7 (RPD) has shifted into profitability over the past five years, with earnings growing at an average of 26.2% annually according to recent filings. The firm’s net profit margin turned positive in...

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The firm’s net profit margin turned positive in...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-rpd/rapid7/news/rapid7-rpd-profit-margin-turns-positive-reinforcing-bullish\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Rapid7 (RPD) Profit Margin Turns Positive, Reinforcing Bullish Narratives on Earnings Growth Versus Sales</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nRapid7 (RPD) Profit Margin Turns Positive, Reinforcing Bullish Narratives on Earnings Growth Versus Sales\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-06 11:58 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/software/nasdaq-rpd/rapid7/news/rapid7-rpd-profit-margin-turns-positive-reinforcing-bullish><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Rapid7 (RPD) has shifted into profitability over the past five years, with earnings growing at an average of 26.2% annually according to recent filings. The firm’s net profit margin turned positive in...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-rpd/rapid7/news/rapid7-rpd-profit-margin-turns-positive-reinforcing-bullish\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"RPD","symbol_name":"Rapid7, Inc.","start_time":0,"source_url":"https://simplywall.st/stocks/us/software/nasdaq-rpd/rapid7/news/rapid7-rpd-profit-margin-turns-positive-reinforcing-bullish","article_id":"2581051488","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8042000-choice2-main-header/1585186807378"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/software/nasdaq-rpd/rapid7/news/rapid7-rpd-profit-margin-turns-positive-reinforcing-bullish","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2581051488","pubTimestamp":1762401501,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Rapid7 (RPD) has shifted into profitability over the past five years, with earnings growing at an average of 26.2% annually according to recent filings. The firm’s net profit margin turned positive in the past year, and analysts are forecasting earnings to accelerate by 43.5% per year, outpacing the US market’s 16% average. Revenue growth is expected to moderate at 3.1% per year against a 10.5% market average. With a price-to-earnings ratio of 32.9x that trails peer and industry averages, and...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"RPD":"Rapid7, Inc.","BLSH":"Bullish"},"translate_title":"Rapid7(RPD)利润率转正，强化了盈利增长与销售额的看涨叙事","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BLSH":1.5,"RPD":1.5},"content_text":"Rapid7 (RPD) has shifted into profitability over the past five years, with earnings growing at an average of 26.2% annually according to recent filings. The firm’s net profit margin turned positive in the past year, and analysts are forecasting earnings to accelerate by 43.5% per year, outpacing the US market’s 16% average. Revenue growth is expected to moderate at 3.1% per year against a 10.5% market average. With a price-to-earnings ratio of 32.9x that trails peer and industry averages, and shares trading below fair value, the company’s strong profit momentum, growth forecasts, and valuation discount are likely to be the main focus for investors sizing up the latest results. See our full analysis for Rapid7. Next, we will break down how these fundamentals stack up against the core market narratives, highlighting which assumptions hold up and where expectations are put to the test. See what the community is saying about Rapid7 NasdaqGM:RPD Earnings & Revenue History as at Nov 2025 AdvertisementMargin Expansion Outpaces Revenue Growth  The company’s net profit margin moved from negative to positive in the latest year, now at 3.3%. Analysts expect this to rise further to 7.0% within three years, which is well above peer averages for a software name that just crossed into profitability.  According to the analysts’ consensus view, margin improvement is being driven by a blend of higher-margin SaaS subscription growth and cost discipline. What stands out is that\n     investments in recurring revenue models and improved sales execution are positioning Rapid7 for more durable profit gains than the modest 3.1% revenue growth alone might suggest management’s focus on risk solutions and automation could help protect margins even as top-line growth lags industry standards   The combination of profit margin expansion and longer-term SaaS scaling reinforces the consensus view that margin gains may matter more than headline sales velocity at this stage. See what the community is saying about Rapid7 See what the community is saying about Rapid7.  PE Ratio Remains Below Peers  Rapid7 trades at a price-to-earnings (PE) ratio of 32.9x, trailing both software industry peers and the broader industry average, which stands at 36.6x.  The consensus narrative highlights that\n     the valuation discount could give the share price upward potential if margin gains continue and earnings forecasts of 43.5% annual growth are achieved however, analysts caution that even at this lower PE, revenue forecasts remain meaningfully below the broader US software market, making continued margin improvement critical to unlocking value    Analyst Target Overshoots by 54%  The most recent analyst consensus price target is $21.95, compared to a current share price of $14.25. This implies a 54% potential upside if forecasts hold true.  According to analysts’ consensus view,\n     for this upside to materialize, Rapid7 would need to hit projected 2028 earnings of $65.7 million and achieve a PE ratio of 35.1x. Both of these hinge on sustained improvements in margin and top-line execution while there is an apparent discount, the wide gap between current and target prices reflects not just optimism about future earnings but also embedded risks around growth execution and competitive pressure     Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Rapid7 on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. Spotting something new in the data? In just a few minutes, you can share your perspective and shape your own interpretation. Do it your way A great starting point for your Rapid7 research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. See What Else Is Out There Rapid7’s moderate revenue growth and forecasts trailing industry averages raise questions about its ability to deliver the steady expansion some investors want. If stable, reliable performance is what matters to you, focus on companies showing consistent results through cycles by using our stable growth stocks screener (2074 results).  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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