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Rapid7 Unlocks A New Phase With Kenzo Security, MDR & Exposure Management!

Rapid7, Inc. reported its first quarter fiscal 2026 financial results with a focus on its core platform solutions—Detection and Response (D&R) and Exposure Management—while continuing to manage decline in its non-core stand-alone products. The company delivered an annual recurring revenue (ARR) of $832 million and revenue of $210 million, slightly declining 0.3% year-over-year. Non-GAAP operating income was $24.4 million, surpassing guidance and driven by a focus on balancing strategic investments. Free cash flow was strong at $33 million. The company ended the quarter with over 11,500 customers and an average ARR per customer of approximately $72,000. Growth in the D&R segment was approximately 7% year-over-year, led by momentum in its Managed Detection and Response (MDR) services, which benefited from advances in AI-enabled security operations center (SOC) capabilities. Exposure Management showed stabilization and early signs of improvement, though it did not materially contribute to growth this quarter.