Should You Go For This Small Cap Stock-RPD

Acrobull UK Advisory Services Ltd.

July 22			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
Rapid 7Inc.	RPD-NASDAQ	Technology		$1.46 Billion	Medium

Rapid7, Inc. offers cybersecurity software and services through its Rapid7, Nexpose, and Metasploit brands. One of its key products is the Rapid7 Insight Agent, a software-based tool deployed on assets across both on-premises and cloud environments. It enables centralized data collection and monitoring through the company’s platform.

Recent Highlights

Rapid7, a recognized leader in threat detection and exposure management, announced its designation as a Leader in the Frost Radar for Managed Detection and Response (MDR) by Frost & Sullivan.

The firm highlighted Rapid7's strengths in delivering industry-leading AI-powered triage accuracy and investigation support, a unified platform experience with robust visibility and control, and the seamless integration and analysis of both native and third-party detections across customers’ existing security toolsets.

First Quarter 2026 Highlights

Rapid7 reported Annualized Recurring Revenue (ARR) of $837 million, representing a 4% year-over-year increase.

Total revenue for the quarter reached $210 million, marking a 3% growth compared to the same period last year.

Product subscriptions revenue rose to $204 million, reflecting a 4% year-over-year increase.

The company recorded a GAAP operating loss of $0.1 million, while delivering a non-GAAP operating income of $32 million.

Net cash provided by operating activities totaled $30 million, and free cash flow came in at $25 million for the quarter.

Stock Observation- Rapid7 delivered solid Q1 growth, with both top and bottom lines outperforming expectations. While non‑GAAP profitability remained strong, the revenue forecast for Q2 fell just shy of street estimates, prompting some investor caution. Still, the company is focusing on efficiency, innovation (particularly in AI-driven vulnerability scoring), and consistent ARR expansion.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Stock Observation- The company has reported robust financial growth in the third quarter of 2025 and is expected to report better financial results in the next quarter. The RSI level for the stock is at 42 which shows close to oversold conditions.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull UK maintains Buy for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull UK only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull UK would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull UK is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull UK does not guarantee returns.

Acrobull UK Recommendation Based on Evaluation

Current Market Price	$22.67 USD
Acrobull Recommendation	Buy at $22.25
Target Price	$24.35 USD
RSI Level	14 Day RSI 40
Total Shares Outstanding	64.24 Million
Shares held by Insiders Shares held by Institutions Risk Factor Stop Loss	1.87% 101.24% Medium 5%