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Rapid7: Expansion of Managed Detection & Response Services: A Deep Dive Into AI-Led SOC Automation, Margin Upside & Scalable Security Operations!

Rapid7, a company focused on AI-powered security operations, reported its financial results for Q3 2025. The company achieved an annual recurring revenue (ARR) of $838 million, reflecting a modest 2% year-over-year increase. Revenue for the quarter totaled $218 million, also growing by 2% year-over-year, and exceeded the company’s expectations. Rapid7 generated an operating income of $37 million and a robust free cash flow of $30 million for the quarter. Despite these positive financial indicators, the company acknowledged variability in deal timings within its large deal pipeline, which has impacted growth. Rapid7’s strategy is heavily focused on its AI-driven Security Operations Center (SOC) vision, emphasizing a unified platform approach that integrates exposure management and threat detection response. This platform, branded as Rapid7’s Command Platform, aims to provide a more holistic view of security threats, leveraging AI to improve situational awareness of risks and threats across a customer’s attack surface.