Rapid7 Inc. (RPD) — RQD Stock Rating Cockpit

Per the Roarable RQD rating, RPD scores 64 out of 100, a letter grade of C, labeled "Roarable Hold — Fair / Balanced Risk-Reward." The five pillars are:

• Fundamental Cash Engine: 11 / 20. Per the RQD rating, this reflects ROIC of 15.9% and an FCF yield of 12.7%. These are real cash-generation strengths, but the pillar score sits in the lower half, which suggests the cash engine is not enough to carry the rating alone against weak operating margins.
• Whale 13F Flow: 17 / 20. Per the RQD rating, this reflects institutional accumulation and options positioning. This is the strongest pillar, indicating that large holders have been building or maintaining exposure.
• Insider Conviction: 14 / 20. Per the RQD rating, this reflects SEC Form 4 and Congressional PTR cluster flow. The score is moderately favorable, pointing to a mildly constructive insider signal.
• Macro Regime Fit: 12 / 20. Per the RQD rating, this reflects Beta of 1.0 and sector sensitivity. The stock moves in line with the broad market, so it neither cushions nor amplifies market direction, and the score is mid-range.
• Forensic Balance Sheet: 10 / 20. Per the RQD rating, this reflects Altman Z of 0.29, Piotroski F of 6/9, and Debt/Equity of 0.5. The Altman Z reading is low, which is the main balance-sheet caution in the rating.

For a prospective investor, the upside case rests mainly on institutional positioning and cash generation. The valuation tradeoff is significant: per the market data, the stock trades at a P/E (TTM) of 49.2 and an EV/EBITDA of 50.2, which leaves little room for error if growth or margins disappoint. The forensic pillar flags balance-sheet fragility that a careful investor would want to weigh against the cash-flow strength. The overall rating reads as balanced rather than compelling in either direction.

Rapid7 Inc. is a NASDAQ-listed issuer in the Technology sector, within the Computer Software: Prepackaged Software industry, per the profile. Per the profile, the company is described with a market capitalization of $1.2B. The source data does not specify its products, customers, or revenue model beyond the sector and industry classification.

Per the SEC financials, revenue rose from $777.7M in FY 2023 to $844.0M in FY 2024 and $859.8M in FY 2025, while operating income fell from $35.0M to $11.6M over the last two years. Per the market data, the operating margin is 1.3%, the net margin is 2.7%, and the gross margin is 70.3%. Per the RQD rating, the Altman Z-Score is 0.29, the Piotroski F-Score is 6/9, and Debt/Equity is 0.5. Per the market data, ROIC is 15.9%. The Altman Z reading is low, and the balance sheet posture is therefore flagged as a forensic concern, though the Piotroski score is comparatively supportive.

Per the recent news feed, all six items are flagged YELLOW on a market-wire basis and relate to RPD. The headlines include claims about AI-related security news and possible undervaluation, a GuruFocus GF Score of 56/100, a Stock Titan report on AI operational incidents, and Simply Wall St commentary asking whether the stock is fully valued. The feed presents a mix of valuation commentary and sector-theme coverage. The butterfly supply-chain graph reports no supply-chain links and no proprietary signals, so there are no structured signal catalysts to cite. The news flow contains no concrete earnings, guidance, or contract events in the source data, and the valuation framing across headlines is divergent, with some pieces calling the stock undervalued and another questioning its full valuation.

• What specific products, customers, and revenue drivers account for RPD's $859.8M of FY 2025 revenue?
• Why did operating income decline from $35.0M in FY 2024 to $11.6M in FY 2025, and is that trend expected to continue?
• What is the company's reported debt and EPS for the periods shown, given that both are listed as N/A in the financials?
• What is the source of the Altman Z-Score of 0.29, and how does the company's leverage profile support or contradict it?
• What institutional and insider ownership figures sit behind the whale and insider pillar scores, since the holders data is empty?