# Rapid7 Targets About $130 Million in 2026 Free Cash Flow

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/49689
Published: 2026-11-06T01:06:46.000Z
Updated: 2026-11-06T01:06:46.000Z
Section: Business

> The company plans its first autonomous security operations center release for general availability around RSAC 2027 and expects total fourth-quarter ARR of about $812 million.

Rapid7 set a 2026 free cash flow target of about $130 million and plans to make its first autonomous security operations center release generally available around RSAC 2027, while core annual recurring revenue remained flat sequentially.

CEO Wael Mohamed said Rapid7 met its third-quarter ARR guidance and kept core ARR level from the second quarter. “We delivered what we said,” Mohamed said. New bookings were better than management expected, and engagement improved among accounts at risk. Management gave no timeline for a return to growth.

Rapid7 guided to about $812 million in total fourth-quarter ARR, with noncore offerings expected to pull the figure down. Core platform ARR is forecast to stay roughly flat from the third quarter. Selected standalone products are moving toward end-of-sale as the company develops a plan to manage the resulting runoff.

Costs tied to AWS and artificial intelligence are expected to weigh on gross margins in the fourth quarter and beyond. Rapid7 is developing an AI-first service model, with management expecting service efficiencies to become visible over 2027.