Rapid7 is trading 5.7% down at $11.24, extending a sharp post-earnings selloff triggered by a disappointing long-term outlook.
- Management guided for 2026 revenue to decline by 2–3%, citing weaker Annual Recurring Revenue (ARR) growth and contracting margins.
- Multiple analysts have since downgraded the stock and slashed price targets, reflecting heightened concerns over the company's growth trajectory.
- The stock is facing additional pressure from a broader decline in software equities as investors worry about shifts in enterprise spending.