We Think You Can Look Beyond Rapid7's (NASDAQ:RPD) Lackluster Earnings

Simply Wall St.05-13

Rapid7, Inc.'s (NASDAQ:RPD) stock was strong despite it releasing a soft earnings report last week. However, we think the company is showing some signs that things are more promising than they seem. ...

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However, we think the company is showing some signs that things are more promising than they seem. ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-rpd/rapid7/news/we-think-you-can-look-beyond-rapid7s-nasdaqrpd-lackluster-ea\">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>We Think You Can Look Beyond Rapid7's (NASDAQ:RPD) Lackluster Earnings</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\">\nWe Think You Can Look Beyond Rapid7's (NASDAQ:RPD) Lackluster Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-05-13 18:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/software/nasdaq-rpd/rapid7/news/we-think-you-can-look-beyond-rapid7s-nasdaqrpd-lackluster-ea><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Rapid7, Inc.'s (NASDAQ:RPD) stock was strong despite it releasing a soft earnings report last week.  However, we think the company is showing some signs that things are more promising than they seem. ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-rpd/rapid7/news/we-think-you-can-look-beyond-rapid7s-nasdaqrpd-lackluster-ea\">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/we-think-you-can-look-beyond-rapid7s-nasdaqrpd-lackluster-ea","article_id":"2635178925","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/we-think-you-can-look-beyond-rapid7s-nasdaqrpd-lackluster-ea","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2635178925","pubTimestamp":1778669716,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Rapid7, Inc.'s ( NASDAQ:RPD ) stock was strong despite it releasing a soft earnings report last week. However, we think...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"RPD":"Rapid7, Inc.",".IXIC":"NASDAQ Composite"},"translate_title":"我们认为您可以超越Rapid7（纳斯达克：RPD）低迷的盈利","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".IXIC":1.5,"RPD":1.5},"content_text":"Rapid7, Inc.'s (NASDAQ:RPD) stock was strong despite it releasing a soft earnings report last week.  However, we think the company is showing some signs that things are more promising than they seem.    AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.NasdaqGM:RPD Earnings and Revenue History May 13th 2026 Advertisement A Closer Look At Rapid7's Earnings  Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period.  The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time.  You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'.  Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive.  While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio.  That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth.  For the year to March 2026, Rapid7 had an accrual ratio of -0.26.   Therefore, its statutory earnings were very significantly less than its free cashflow.    In fact, it had free cash flow of US$139m in the last year, which was a lot more than its statutory profit of US$22.4m.    Rapid7 did see its free cash flow drop year on year, which is less than ideal, like a Simpson's episode without Groundskeeper Willie.   That might leave you wondering what analysts are forecasting in terms of future profitability.  Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.   Our Take On Rapid7's Profit Performance As we discussed above, Rapid7's accrual ratio indicates strong conversion of profit to free cash flow, which is a positive for the company.      Because of this, we think Rapid7's underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem!     Unfortunately, though, its earnings per share actually fell back over the last year.     At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly.    Keep in mind, when it comes to analysing a stock it's worth noting the risks involved.    While conducting our analysis, we found that Rapid7 has 1 warning sign and it would be unwise to ignore this.   Today we've zoomed in on a single data point to better understand the nature of Rapid7's profit.   But there are plenty of other ways to inform your opinion of a company.  Some people consider a high return on equity to be a good sign of a quality business.  While it might take a little research on your behalf, you may find this free  collection of companies boasting high return on equity, or  this list of stocks with significant insider holdings to be useful.  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. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data 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 financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.42.2","shortVersion":"4.42.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2635178925","isCrawlerRequest":true}