As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the cybersecurity industry, including Rapid7 (NASDAQ:RPD) and its peers.
Cybersecurity continues to be one of the fastest-growing segments within software for good reason. Almost every company is slowly finding itself becoming a technology company and facing rising cybersecurity risks. Businesses are accelerating adoption of cloud-based software, moving data and applications into the cloud to save costs while improving performance. This migration has opened them to a multitude of new threats, like employees accessing data via their smartphone while on an open network, or logging into a web-based interface from a laptop in a new location.
The 9 cybersecurity stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9% since the latest earnings results.
With its name inspired by the need for quick responses to cyber threats, Rapid7 (NASDAQ:RPD) provides cybersecurity software and services that help organizations detect vulnerabilities, monitor threats, and respond to security incidents.
Rapid7 reported revenues of $217.4 million, flat year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a softer quarter for the company with full-year guidance of slowing revenue growth and full-year revenue guidance missing analysts’ expectations significantly.
“Rapid7 exited 2025 delivering outperformance against fourth quarter ARR, revenue, and profitability guidance,” said Corey Thomas, CEO of Rapid7.
Rapid7 achieved the highest full-year guidance raise but had the slowest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 13.8% since reporting and currently trades at $5.83.
Read our full report on Rapid7 here, it’s free.
Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike (NASDAQ:CRWD) provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform.
CrowdStrike reported revenues of $1.31 billion, up 23.3% year on year, outperforming analysts’ expectations by 0.6%. The business had a strong quarter with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.
