Rapid7, Inc.RPD

Rapid7, Inc. Segments Disclosure

10-KFiled Feb 19, 20262 min read
(17)    Segment Information and Information about Geographic Areas
We operate in a single reportable operating segment, providing product subscriptions and professional services to our customers. The operating segment’s accounting policies are consistent with those described in Note 2, Summary of Significant Accounting Policies. Our chief operating decision maker (“CODM”) is our Chief Executive Officer. One of the measures of profit or loss that is used by our CODM to assess performance and allocate resources is consolidated net income, as reported in the consolidated statements of operations. Consolidated net income is used by our CODM in monitoring actual versus budgeted results as well as in benchmarking against our competitors, which are used in assessing performance of the segment.
The following table includes segment revenue, segment profit or loss, significant segment expenses and other segment expenses for the years ended December 31, 2025, 2024 and 2023 (in thousands):
Year Ended December 31,
202520242023
Total revenue$859,794 $844,007 $777,707 
Adjusted total cost of revenue(1)
227,706 221,664 202,655 
Adjusted research and development(1)
151,303 135,560 138,754 
Adjusted sales and marketing(1)
287,892 267,483 280,703 
Adjusted general and administrative(1)
57,161 55,792 53,374 
Other segment expense, net(2)
112,351 137,982 255,036 
Net income (loss)$23,381 $25,526 $(152,815)
(1) Adjusted total cost of revenue excludes the impact of stock-based compensation expense and amortization of acquired intangible assets. Adjusted research and development excludes the impact of stock-based compensation expense. Adjusted sales and marketing excludes the impact of stock-based compensation and amortization of acquired intangible assets. Adjusted general and administrative excludes the impact of stock-based compensation, amortization of acquired intangible assets and acquisition-related expenses.
(2) Other segment expenses include stock-based compensation expense, amortization of acquired intangible assets, acquisition-related expenses, restructuring expense, interest income, interest expense, other income (expense) and provision for income taxes. See the consolidated financial statements for other financial information regarding our operating segment.
Property and equipment, net by geographic area was as follows (in thousands):
Year Ended December 31,
20252024
United States$18,243 $22,613 
Rest of World13,747 9,632 
Total$31,990 $32,245 

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 28, 2025
2023Feb 26, 2024
2022Feb 24, 2023
2021Feb 24, 2022
2020Feb 26, 2021
2019Feb 28, 2020
2018Feb 28, 2019
2017Mar 8, 2018
2016Mar 9, 2017
2015Mar 10, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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