Rapid7 faces securities fraud probe after revenue guidance disappoints, shares plunge 29%.

Pomerantz LLP is investigating Rapid7 and its executives for potential securities fraud following the company's disappointing 2025 financial results and cautious 2026 revenue guidance. Rapid7 reported flat annualized recurring revenue of $840 million and only a 1% increase in quarterly revenue, with 2026 guidance indicating declining revenue expectations. This news caused Rapid7's stock to drop nearly 29% in one day. The investigation could lead to a class action lawsuit if wrongdoing is found.