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Pinnacle Financial Partners, Inc. (PNFP) Q1 2026 Earnings Call Transcript

Pinnacle Financial Partners remains a buy as Synovus integration progresses and accretive benefits materialize. PNFP delivered strong Q1 results, with 10% organic loan growth, robust deposit inflows, and NIM at 3.53%, near the high end of guidance. Private credit exposure is under 10%, conservatively structured, and nonperforming loans remain low, supporting credit quality confidence.

ATLANTA--(BUSINESS WIRE)--Pinnacle Financial Partners (NYSE: PNFP) has named Douglas Hromco as its new chief security officer. He will lead enterprise cybersecurity, fraud prevention and physical and information security strategies across the combined company and will be based at the firm's holding company headquarters in Atlanta. “Doug has spent his career building and leading security programs inside complex financial institutions, and he's earned the trust of boards, regulators and executive.

Pinnacle Financial Partners, Inc. (PNFP) Presents at Morgan Stanley US Financials Conference 2026 Transcript

Issued on behalf of Quantum Secure Encryption Corp.

, /PRNewswire/ -- Equity-Insider.com News Commentary — Anthropic just proved that even the company building the most powerful offensive cyber tool ever created can't keep its own front door locked. A CMS misconfiguration exposed Claude Mythos, a frontier AI model that autonomously finds and exploits zero-day vulnerabilities across every major operating system and browser[1]. The Global X Cybersecurity ETF dropped 4.5% in a single session as Wall Street repriced the entire defensive stack overnight[2]. Anthropic responded with Project Glasswing: restricted Mythos Preview access for 40+ organizations to patch critical infrastructure before adversaries catch up. Five companies sit at pivotal points along that defensive rebuild: Quantum Secure Encryption Corp. (CSE: QSE) (OTCQB: QSEGF) (FSE: VN8), SentinelOne (NYSE: S), Elastic (NYSE: ESTC), Rapid7 (NASDAQ: RPD), and Broadcom (NASDAQ: AVGO).

A Trusted Computing Group survey found 91% of businesses still lack a formal roadmap for quantum-safe encryption migration, even as NIST deprecation timelines and NSA compliance deadlines narrow the window to months[3]. The 2026 Thales Data Threat Report sharpens the picture: only 47% of sensitive cloud data is encrypted today, down from 51% a year ago, while 61% of organizations rank harvest-now-decrypt-later attacks as their top quantum concern[4]. Institutional capital is flowing toward the convergence of cryptographic modernization and AI-native defense, where platforms already in production carry scalable, asymmetric upside.

Quantum Secure Encryption (CSE: QSE) (OTCQB: QSEGF) (FSE: VN8) just launched QPA v2, an enterprise platform that helps large organizations find the weak spots in their encryption and build a clear plan to upgrade before quantum computing turns those weak spots into open doors.

The Vancouver-based company says QPA v2 moves the conversation from 'we know there's a problem' to 'here's how we fix it.' The platform includes a planning wizard for governance, budgets, and migration timelines, AI-powered modules that evaluate how ready an organization's cryptography actually is, and inventory tools that scan software, hardware, and encryption components to flag what needs replacing. An executive dashboard pulls it all together, giving leadership real-time visibility into risk levels and upgrade progress. QSE says the platform is already live and in use with both existing and prospective clients.

"Organizations are now moving from understanding quantum risk to actively planning for it," said Ted Carefoot, CEO of QSE. "QPA v2 is designed to support that transition by providing a structured, repeatable framework that enables enterprises and public-sector organizations to assess their current state, prioritize risk, and plan their migration toward post-quantum cryptographic standards."

That shift into execution has been building since late 2025. QSE recently secured its first municipal government pilot for post-quantum cybersecurity through its membership in MISA (Municipal Information Systems Association), a national network connecting Canadian municipalities with new technology. The participating municipality is using QPA to identify which of its systems rely on encryption that future quantum computers could break, and to start planning upgrades now. QSE noted it is already in conversations with additional municipalities exploring similar assessments.

Since November 2025, QSE has expanded from four to thirteen operational markets worldwide, with eleven value-added distributors now active and two more partnerships expected to close shortly. The company also joined CADSI (Canadian Association of Defence and Security Industries), opening pathways into Canadian defence and public-sector procurement.

QPA v2 integrates with QSE's broader product suite, including its quantum-resilient key infrastructure, QAuth identity platform, and encrypted storage solutions. QSE is a Canadian post-quantum security company building tools to help organizations protect sensitive data from the next generation of cyberattacks that quantum computing is expected to enable, targeting commercial, enterprise, and government clients preparing for a fundamental shift in how encryption works.

CONTINUED… Read this and more on QSE at: https://equity-insider.com/2025/03/18/is-scope-technologies-corp-cse-scpe-otcqb-scpcf-the-next-big-player-in-quantum-cybersecurity/

Other industry developments and happenings in the market include:

SentinelOne (NYSE: S) has expanded its strategic collaboration with Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) through a multi-year agreement to develop AI-powered cybersecurity solutions at global scale. The partnership integrates SentinelOne's autonomous endpoint detection and response platform with Alphabet's Google Cloud infrastructure, expanding availability across three strategic regions: North America, Frankfurt, and the Kingdom of Saudi Arabia.

"Customers are under growing pressure to defend increasingly complex environments and protect their highly sensitive data while reducing operational friction," said Melissa Smith, SVP of Global Strategic Partnerships & Initiatives at SentinelOne. "With Google Cloud, we have chosen a highly secure and sophisticated platform for a data sovereignty strategy, and a strategic partner for intelligence sharing."

The collaboration targets enterprises operating in regulated markets, combining SentinelOne's AI-native Singularity Platform with Google Cloud's threat intelligence and generative AI capabilities to replace legacy antivirus and first-generation EDR tooling. SentinelOne currently protects nearly one-fifth of the Fortune 500 and positions the expanded partnership as a path toward autonomous security operations for the AI era.

Elastic (NYSE: ESTC) has achieved FedRAMP High authorization for its Elastic Cloud Hosted platform on AWS GovCloud (US), unlocking access to the most sensitive, unclassified government workloads across law enforcement, emergency response, public health, and national security operations. The FedRAMP High baseline requires more than 400 security controls to protect controlled unclassified information, making it the program's most rigorous certification tier.

"FedRAMP High expands our ability to support agencies operating in highly sensitive environments and underscores Elastic's enduring commitment to help improve our national security posture while driving operational efficiencies," said Chris Townsend, global vice president of public sector at Elastic.

The authorization builds on Elastic's growing federal footprint, including a collaboration with the Cybersecurity and Infrastructure Security Agency and ECS to support a unified SIEM-as-a-Service program for Federal Civilian Executive Branch Agencies, and a volume-based discount agreement with the General Services Administration to streamline procurement across federal agencies. Elastic's open, standards-based architecture supports Kubernetes, OpenTelemetry, and other cloud-native projects, helping agencies reduce vendor lock-in and meet federal data mandates while enabling GenAI use cases through retrieval augmented generation techniques.

Rapid7 (NASDAQ: RPD) announced the acquisition of Kenzo Security, an agentic AI security platform built to scale autonomous security investigations, further enhancing the Rapid7 Command Platform. The deal advances Rapid7's managed detection and response capabilities from AI-assisted workflows to machine-speed security operations, with Kenzo customers reporting a 94% reduction in investigation time and alert coverage increasing from 12% to 100%.

"Reactive security models have reached their limits," said Corey Thomas, CEO of Rapid7. "Attackers are using AI to move faster, attack surface complexity is accelerating, and security teams are expected to improve outcomes without additional resources. Kenzo Security advances our mission to enable security operations that preempt attackers with predictive precision and machine-scale."

By integrating Kenzo's entity-centric data mesh with the Rapid7 Command Platform, the combined offering will deliver full alert coverage at machine speed, 100% decision transparency, and continuous exposure management across endpoint, identity, cloud, and SaaS environments. Rapid7 does not anticipate a material impact to revenue, ARR, profitability, or free cash flows from the transaction, and the company serves more than 11,500 customers worldwide.

Broadcom (NASDAQ: AVGO) announced the launch of Symantec CBX, a cloud-based extended detection and response platform that unifies Broadcom's Symantec and Carbon Black technologies into a single solution. The platform targets under-resourced security operations teams facing enterprise-grade threats without the staffing, budget, or infrastructure to deploy complex security tools.

"This announcement marks a major milestone as we unite the strengths of Symantec and Carbon Black into a single, robust solution," said Jason Rolleston, Vice President and General Manager, Enterprise Security Group, Broadcom. "CBX empowers organizations of all sizes with the advanced, yet intuitive capabilities to tackle modern threats with confidence and efficiency through industry-first technologies and intelligent automation."

Symantec CBX combines Symantec's prevention, adaptive protection, data security, and incident prediction features with Carbon Black's endpoint detection and response technology, delivering correlated visibility across endpoints, networks, cloud, and identity attack surfaces. With 85% of incident flags now carrying AI-powered prediction recommendations, the platform is designed to accelerate investigations and reduce reliance on senior analyst expertise. Broadcom plans to make CBX available later this year through its Enterprise Security Group's Catalyst Partner Program, with migration pathways for existing customers.

FURTHER READING: https://equity-insider.com/2025/03/18/is-scope-technologies-corp-cse-scpe-otcqb-scpcf-the-next-big-player-in-quantum-cybersecurity/

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SOURCES:

https://www.anthropic.com/glasswing https://www.cnbc.com/2026/03/27/anthropic-cybersecurity-stocks-ai-mythos.html https://www.helpnetsecurity.com/2026/03/26/google-pqc-migration-timeline-2029/ https://www.helpnetsecurity.com/2026/03/02/ai-security-spending-budget-2026/ Logo: https://mma.prnewswire.com/media/2840019/5909776/Equity_Insider_Logo.jpg

Annualized recurring revenue (“ARR”) of $832 millionTotal revenue of $210 million; Product subscriptions revenue of $204 millionGAAP loss from operations of $0.6 million; Non-GAAP operating income of $24 millionNet cash provided by operating activities of $40 million; Free cash flow of $33 million BOSTON, May 05, 2026 (GLOBE NEWSWIRE) -- Rapid7, Inc. (Nasdaq: RPD), a global leader in AI-powered managed cybersecurity operations, today announced its financial results for the first quarter 2026.

"As frontier models reshape the cybersecurity landscape, Rapid7's AI SOC and preemptive security infrastructure are more essential than ever," said Corey Thomas, CEO of Rapid7. "Our Exposure Management and Detection and Response capabilities are increasingly important to customers facing a groundswell of new vulnerabilities and attacks. And Rapid7's business is well positioned to meet that demand."

“During the first quarter, Rapid7 exceeded guidance expectations across all metrics and delivered strong free cash flow,” said Rafe Brown, CFO of Rapid7. “Anchored around our accelerated strategy to deliver the AI SOC capabilities customers need, we are focused on growing our Managed Detection and Response business while improving margins over the medium-term.”

First Quarter 2026 Financial Highlights

Revenue: Total revenue of $210 million a decrease of 0.3% year-over-year. Product revenue of $204 million an increase of 0.1% year-over-year.ARR: Annualized recurring revenue of $832 million, a decrease of 0.6% year-over-year.Operating Income: GAAP loss from operations of $0.6 million; Non-GAAP operating income of $24.4 million.Net Income: GAAP net income of $1.1 million or $0.02 per diluted share and non-GAAP net income of $26.6 million or $0.36 per diluted share.Cash Flow: Net cash provided by operating activities of $39.8 million and free cash flow of $33.4 million.Total cash, cash equivalents, and government securities of $670 million as of March 31, 2026. Recent Business Highlights

In March, Rapid7 announced the acquisition of Kenzo Security, an agentic AI security platform built to scale security investigations autonomously, to accelerate its preemptive, AI-powered security operations, further integrating automated risk prioritization and remediation into its Command Platform.In March, Rapid7 released its 2026 Global Threat Landscape Report, revealing a 105% surge in the exploitation of high and critical-severity vulnerabilities as attack timelines continue to collapse.In March, Rapid7 expanded its Exposure Command platform with new cloud security capabilities, introducing runtime validation and Data Security Posture Management (DSPM) to enable organizations to identify, validate, and prioritize risks based on actual exploitability.In March, Rapid7 Labs published breakthrough research identifying sleeper cells embedded in global telecommunications networks by a state-sponsored actor with implications for government communications and critical systems. Alongside the research, Rapid7 released a free, open-source scanning script to support defenders.In March, Rapid7 launched updates to its PACT Partner Program, introducing a new Platinum tier and streamlined deal motions to drive partner-led growth for its Managed Detection and Response (MDR) services.In February, Rapid7 hosted its 2026 Partner of the Year Awards, recognizing top-performing partners for their excellence in delivering outcomes and scaling security practices within the Rapid7 ecosystem. Second Quarter and Full Year 2026 Guidance

Non-GAAP guidance excludes estimates for stock-based compensation expense, amortization of acquired intangible assets, amortization of debt issuance costs, and certain other items such as acquisition-related expenses, impairment of long-lived assets, restructuring expense, induced conversion expense, change in the fair value of derivative assets, non-ordinary course litigation-related expenses and discrete tax items. Rapid7 has provided a reconciliation of each non-GAAP guidance measure to the most comparable GAAP measures in the financial statement tables included in this press release. The reconciliation does not reflect any items that are unknown at this time, including, but not limited to, non-ordinary course litigation-related expenses, which we are not able to predict without unreasonable effort due to their inherent uncertainty.

Rapid7 anticipates ARR, revenue, non-GAAP income from operations, non-GAAP net income per share and free cash flow to be in the following ranges:

 Second Quarter 2026 Full-Year 2026 (in millions, except per share data)ARRApproximately $820 million Not providedYear-over-year growth(2)% Not providedRevenue$207to$209 $836to$842Year-over-year growth(3)%to(2)% (3)%to(2)%Non-GAAP income from operations$24to$26 $112to$118Non-GAAP net income per share, diluted$0.33to$0.36 $1.52to$1.60Weighted average shares used in non-GAAP earnings per share calculation, diluted78.3 79.4Free cash flowNot provided $125to$135       The guidance provided above is forward-looking in nature. Actual results may differ materially. See the cautionary note regarding “Forward-Looking Statements” below. Guidance for the second quarter 2026 and full-year 2026 does not include any potential impact of foreign exchange gains or losses.

Conference Call and Webcast Information

Rapid7 will host a conference call today, May 5, 2026, to discuss its results at 4:30 p.m. Eastern Time. The call will be available live via webcast on Rapid7's website at https://investors.rapid7.com. A webcast replay of the conference call will be available at https://investors.rapid7.com.

About Rapid7

Rapid7, Inc. (NASDAQ: RPD) is a global leader in AI-powered managed cybersecurity operations, trusted to advance organizations’ cyber resilience. Open and extensible, the Rapid7 Command Platform integrates security data, enriching it with AI, threat intelligence, and 25 years of expertise and innovation to reduce risk and disrupt attackers. As a recognized leader in preemptive managed detection and response (MDR), Rapid7 unifies exposure and detection to transform the cybersecurity operations of more than 11,500 customers worldwide. For more information, visit our website, check out our blog, or follow us on LinkedIn or X.

Non-GAAP Financial Measures and Other Metrics

To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we provide investors with certain non-GAAP financial measures and other metrics, which we believe are helpful to our investors. We use these non-GAAP financial measures and other metrics for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. We also use certain non-GAAP financial measures as performance measures under our executive bonus plan. We believe that these non-GAAP financial measures and other metrics provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.

While our non-GAAP financial measures are an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, you should review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures included below, and not rely on any single financial measure to evaluate our business.

Non-GAAP Financial Measures

We disclose the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income, non-GAAP net income per share, adjusted EBITDA and free cash flow. We also disclose non-GAAP gross margin and non-GAAP operating margin derived from these financial measures.

We define non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income and non-GAAP net income per share as the respective GAAP balances excluding the effect of stock-based compensation expense, amortization of acquired intangible assets, amortization of debt issuance costs and certain other items such as acquisition-related expenses, impairment of long-lived assets, change in the fair value of derivative assets, restructuring expense, induced conversion expense and discrete tax items. Non-GAAP net income per basic and diluted share is calculated as non-GAAP net income divided by the weighted average shares used to compute net income per share, with the number of weighted average shares decreased, when applicable, to reflect the anti-dilutive impact of the capped call transactions entered into in connection with our convertible senior notes.

We believe these non-GAAP financial measures are useful to investors in assessing our operating performance due to the following factors:

Stock-based compensation expense. We exclude stock-based compensation expense because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact our non-cash expense. We believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for more meaningful comparisons between our operating results from period to period.

Amortization of acquired intangible assets. We believe that excluding the impact of amortization of acquired intangible assets allows for more meaningful comparisons between operating results from period to period as the intangible assets are valued at the time of acquisition and are amortized over several years after the acquisition.

Amortization of debt issuance costs. The expense for the amortization of debt issuance costs related to our convertible senior notes and our former revolving credit facility is a non-cash item, and we believe the exclusion of this interest expense provides a more useful comparison of our operational performance in different periods.

Acquisition-related expenses. We exclude acquisition-related expenses, including accretion expense associated with contingent consideration, as costs that are unrelated to the current operations and are neither comparable to the prior period nor predictive of future results.

Discrete tax items. We exclude certain discrete tax items such as income tax expenses or benefits that are not related to ongoing business operations in the current year and adjustments to uncertain tax position reserves as these charges are not indicative of our ongoing operating results, and they are not considered when we are forecasting our future results.

Adjusted EBITDA. Adjusted EBITDA is a non-GAAP measure that we define as net income (loss) before (1) interest income, (2) interest expense, (3) other (income) expense, net, (4) provision for income taxes, (5) depreciation expense, (6) amortization of intangible assets, (7) stock-based compensation expense, (8) acquisition-related expenses, and (9) discrete tax benefit. We believe that the use of adjusted EBITDA is useful to investors and other users of our financial statements in evaluating our operating performance because it provides them with an additional tool to compare business performance across companies and across periods.

Free Cash Flow. Free cash flow is a non-GAAP measure that we define as cash provided by operating activities less purchases of property and equipment and capitalization of internal-use software costs. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after necessary capital expenditures.

We include all non-GAAP financial measures in the current year or any comparative year that will be included in the non-GAAP reconciliation during the current fiscal year annual Form 10-K. As such, not all non-GAAP financial measures listed above may be included in the current reporting period non-GAAP reconciliation in the GAAP to Non-GAAP Reconciliation section below.

Our non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact upon our reported financial results. Further, stock-based compensation expense has been and will continue to be for the foreseeable future a significant recurring expense in our business and an important part of the compensation provided to our employees.

Other Metrics

ARR. Annualized Recurring Revenue and Growth. ARR is defined as the annual value of all recurring revenue related to active contracts as of the last day of the period. ARR is measured at a specific point in time and does not incorporate consideration of any anticipated contract terminations or other prospective events, regardless of whether such events may exert a favorable or adverse influence on the metric. ARR should be viewed independently of revenue and deferred revenue, as ARR is an operating metric and is not intended to be combined with or replace these items. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates and renewal rates and does not include revenue reported as professional services revenue in our consolidated statement of operations. We use ARR and believe it is useful to investors as a measure of the overall success of our business.

Number of Customers. We define a customer as any entity that has an active Rapid7 recurring revenue contract as of the specified measurement date, excluding only InsightOps and Logentries customers with a contract value less than $2,400 per year.

ARR per Customer. We define ARR per customer as ARR divided by the number of customers at the end of the period.

Cautionary Language Concerning Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, the statements regarding our financial guidance for the second quarter and full-year 2026, and the assumptions underlying such guidance. Our use of the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements. The events described in our forward-looking statements are subject to a number of risks and uncertainties, assumptions and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by the forward-looking statements. Such forward-looking statements are based on our current assumptions, expectations and estimates and involve a number of judgments and risks, many of which are outside of our control. Risks that could cause or contribute to such differences include, but are not limited to, macroeconomic uncertainty, unstable market and economic conditions, fluctuations in our quarterly results, our ability to successfully grow our sales of our cloud-based solutions, including through the shift to a consolidated platform sales approach, failure to meet our publicly announced guidance or other expectations about our business, our ability to grow our revenue, the ability of our products and professional services to correctly detect vulnerabilities, renewal of our customer's subscriptions, competition in the markets in which we operate, market growth, our ability to innovate, our sales cycles, our ability to successfully develop, deploy and realize the expected benefits of our artificial intelligence and automation capabilities, including risks related to performance, reliability, security and customer adoption of such technologies, our ability to successfully integrate acquired companies, including Kenzo Security, and achieve the expected synergies and benefits of such acquisitions in a timely manner or at all, exposure to greater than anticipated tax liabilities, our ability to operate in compliance with applicable laws, fluctuations in foreign currency exchange rates and their impact on our results, risks related to the accuracy, efficacy and perceived reliability of our threat intelligence, detection and response capabilities, including the potential for undetected vulnerabilities, false positives or failures in our systems, as well as other risks and uncertainties that could affect our business and results described in our filings with the Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K filed with the SEC on February 19, 2026, particularly in the section entitled "Item 1.A Risk Factors," and in the subsequent reports that we file with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those expressed in any forward-looking statements we may make. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release

Investor contact: Press contact:Matthew Wells Alice RandallVP, Investor Relations Director, Global Corporate [email protected] [email protected](617) 865-4277 (214) 693-4727    RAPID7, INC.
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
   March 31, 2026 December 31, 2025Assets    Current assets    Cash and cash equivalents $343,291  $246,664 Short-term investments  326,967   228,006 Accounts receivable, net  135,128   167,017 Deferred contract acquisition and fulfillment costs, current portion  47,342   48,370 Prepaid expenses and other current assets  47,617   47,230 Total current assets  900,345   737,287 Long-term investments  —   184,119 Property and equipment, net  30,492   31,990 Operating lease right-of-use assets  44,250   45,485 Deferred contract acquisition and fulfillment costs, non-current portion  65,554   66,978 Goodwill  593,334   575,268 Intangible assets, net  67,567   65,105 Other assets  18,101   20,232 Total assets $1,719,643  $1,726,464 Liabilities and Stockholders’ Equity    Current liabilities    Accounts payable $12,304  $11,041 Accrued expenses  84,407   96,998 Convertible senior notes, current portion, net  597,574   — Operating lease liabilities, current portion  17,964   16,176 Deferred revenue, current portion  442,260   451,155 Total current liabilities  1,154,509   575,370 Convertible senior notes, non-current portion, net  295,666   892,284 Operating lease liabilities, non-current portion  53,987   59,908 Deferred revenue, non-current portion  28,417   29,971 Other long-term liabilities  12,292   14,201 Total liabilities  1,544,871   1,571,734 Stockholders' equity:    Common stock $667  $658 Treasury stock  (4,765)  (4,765)Additional paid-in capital  1,142,304   1,120,963 Accumulated other comprehensive income  89   2,527 Accumulated deficit  (963,523)  (964,653)Total stockholders equity  174,772   154,730 Total liabilities and stockholders’ equity $1,719,643  $1,726,464           RAPID7, INC.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share data)   Three Months Ended March 31,   2026   2025 Revenue:    Product subscriptions $204,049  $203,935 Professional services  5,642   6,318 Total revenue  209,691   210,253 Cost of revenue:    Product subscriptions  59,154   54,368 Professional services  5,595   5,112 Total cost of revenue  64,749   59,480 Total gross profit  144,942   150,773 Operating expenses:    Research and development  48,354   47,888 Sales and marketing  78,934   79,400 General and administrative  18,212   23,586 Total operating expenses  145,500   150,874 Loss from operations  (558)  (101)Other income (expense), net:    Interest income  5,612   5,758 Interest expense  (2,498)  (2,654)Other (expense) income, net  (726)  1,802 Income before income taxes  1,830   4,805 Provision for income taxes  700   2,700 Net income $1,130  $2,105 Net income per share, basic $0.02  $0.03 Net income per share, diluted(1) $0.02  $0.03 Weighted average common shares outstanding, basic  66,174,341   63,835,945 Weighted average common shares outstanding, diluted  66,904,992   64,224,415  (1) We use the if-converted method to compute diluted earnings per share with respect to our convertible senior notes. There was no add-back of interest expense or additional dilutive shares related to the convertible senior notes where the effect was anti-dilutive. On an if-converted basis, for the three months ended March 31, 2026, the 2027 and 2029 Notes were anti-dilutive; for the three months ended March 31, 2025, the 2029 Notes, 2027 Notes and 2025 Notes were anti-dilutive.

RAPID7, INC.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)   Three Months Ended March 31,   2026   2025 Cash flows from operating activities:    Net income $1,130  $2,105 Adjustments to reconcile net income to net cash provided by operating activities:    Depreciation and amortization  11,210   11,665 Amortization of debt issuance costs  1,045   1,019 Stock-based compensation expense  19,890   27,151 Deferred income taxes  (1,220)  — Other  1,489   (1,153)Changes in assets and liabilities:    Accounts receivable  31,405   27,668 Deferred contract acquisition and fulfillment costs  2,453   5,295 Prepaid expenses and other assets  1,632   (1,995)Accounts payable  2,342   (6,555)Accrued expenses  (14,753)  (20,325)Deferred revenue  (11,114)  (12,874)Other liabilities  (5,692)  (2,244)Net cash provided by operating activities  39,817   29,757 Cash flows from investing activities:    Business acquisitions, net of cash acquired  (23,345)  — Purchases of property and equipment  (2,081)  (1,361)Capitalization of internal-use software  (4,319)  (3,719)Purchases of investments  —   (144,461)Sales and maturities of investments  85,000   69,000 Other investing activities  —   1,328 Net cash provided by (used in) investing activities  55,255   (79,213)Cash flows from financing activities:    Taxes paid related to net share settlement of equity awards  (255)  (1,303)Proceeds from employee stock purchase plan  2,889   4,446 Proceeds from stock option exercises  —   1,589 Net cash provided by financing activities  2,634   4,732 Effect of exchange rate changes on cash, cash equivalents and restricted cash  (1,079)  1,334 Net increase (decrease) in cash, cash equivalents and restricted cash  96,627   (43,390)Cash, cash equivalents and restricted cash, beginning of period $246,664  $342,101 Cash, cash equivalents and restricted cash, end of period $343,291  $298,711 Supplemental cash flow information:    Cash paid for interest on convertible senior notes $2,625  $1,571 Cash paid for income taxes, net of refunds  782   992 Reconciliation of cash, cash equivalents and restricted cash:    Cash and cash equivalents  343,291   291,462 Restricted cash included in prepaid expenses and other current assets  —   7,249 Total cash, cash equivalents and restricted cash $343,291  $298,711           RAPID7, INC.
GAAP to Non-GAAP Reconciliation (Unaudited)
(in thousands, except share and per share data)   Three Months Ended March 31,   2026   2025 GAAP total gross profit $144,942  $150,773 Add: Stock-based compensation expense(1) $1,716  $2,264 Add: Amortization of acquired intangible assets(2) $4,423  $4,423 Non-GAAP total gross profit $151,081  $157,460 Non-GAAP gross margin  72%  75%     GAAP gross profit – product subscriptions $144,895  $149,567 Add: Stock-based compensation expense $1,369  $1,731 Add: Amortization of acquired intangible assets $4,423  $4,423 Non-GAAP gross profit – product subscriptions $150,687  $155,721 Non-GAAP gross margin - product subscriptions  74%  76%     GAAP gross profit – professional services $47  $1,206 Add: Stock-based compensation expense $347  $533 Non-GAAP gross profit – professional services $394  $1,739 Non-GAAP gross margin - professional services  7%  28%     GAAP loss from operations $(558) $(101)Add: Stock-based compensation expense(1) $19,890  $27,151 Add: Amortization of acquired intangible assets(2) $4,494  $5,120 Add: Acquisition-related expenses(3) $606  $183 Non-GAAP income from operations $24,432  $32,353      GAAP net income $1,130  $2,105 Add: Stock-based compensation expense(1) $19,890  $27,151 Add: Amortization of acquired intangible assets(2) $4,494  $5,120 Add: Amortization of debt issuance costs $1,045  $1,019 Add: Acquisition-related expenses(3) $606  $183 Add: Discrete tax items(4) $(600) $— Non-GAAP net income $26,565  $35,578 Add: Interest expense of convertible senior notes(5) $1,313  $1,571 Numerator for non-GAAP earnings per share calculation $27,878  $37,149      Weighted average shares used in GAAP earnings per share calculation, basic  66,174,341   63,835,945 Dilutive effect of convertible senior notes(5)  10,429,891   11,183,611 Dilutive effect of employee equity incentive plans(6)  730,651   388,471 Weighted average shares used in non-GAAP earnings per share calculation, diluted  77,334,883   75,408,027      Non-GAAP net income per share:    Basic $0.40  $0.56 Diluted $0.36  $0.49      (1)Includes stock-based compensation expense as follows:    Cost of revenue $1,716  $2,264 Research and development $8,406  $10,386 Sales and marketing $5,071  $7,241 General and administrative $4,697  $7,260      (2)Includes amortization of acquired intangible assets as follows:    Cost of revenue $4,423  $4,423 Sales and marketing $71  $652 General and administrative $—  $45      (3)Includes acquisition-related expenses as follows:    General and administrative $606  $183      (4)Includes discrete tax items as follows:    (Benefit) Provision for income taxes $(600) $—      (5)We use the if-converted method to compute diluted earnings per share with respect to our convertible senior notes. There was no add-back of interest expense or additional dilutive shares related to the convertible senior notes where the effect was anti-dilutive.     (6)We use the treasury method to compute the dilutive effect of employee equity incentive awards.  RAPID7, INC.
Reconciliation of Net Income to Adjusted EBITDA (Unaudited)
(in thousands)   Three Months Ended March 31,   2026   2025 GAAP net income $1,130  $2,105 Interest income  (5,612)  (5,758)Interest expense  2,498   2,654 Other expense (income), net  726   (1,802)Provision for income taxes  700   2,700 Depreciation expense  2,374   2,791 Amortization of intangible assets  8,836   8,874 Stock-based compensation expense  19,890   27,151 Acquisition-related expenses  606   183 Adjusted EBITDA $31,148  $38,898           RAPID7, INC.
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (Unaudited)
(in thousands)   Three Months Ended March 31,   2026   2025 Net cash provided by operating activities $39,817  $29,757 Less: Purchases of property and equipment  (2,081)  (1,361)Less: Capitalized internal-use software costs  (4,319)  (3,719)Free cash flow $33,417  $24,677           RAPID7, INC.
Reconciliation of Non-GAAP Guidance
(in millions, except per share data)  Anticipated Second Quarter 2026 Anticipated Full-Year 2026 Low High Low HighGAAP income from operations$1to$3 $18 to$24 Add: Stock-based compensation expense 19to 19  76 to 76 Add: Amortization of acquired intangible assets 4to 4  17 to 17 Add: Acquisition-related expenses —to —  1 to 1 Non-GAAP income from operations$24to$26 $112 to$118         GAAP net income$1to$3 $19 to$25 Add: Stock-based compensation expense 19to 19  76 to 76 Add: Amortization of acquired intangible assets 4to 4  17 to 17 Add: Amortization of debt issuance costs 1to 1  4 to 4 Add: Acquisition-related costs —to —  1 to 1 Less: Discrete tax item —to — $(1)to$(1)Non-GAAP net income$25to$27 $116 to$122 Add: Interest expense on convertible senior notes 1to 1  5 to 5 Numerator for non-GAAP earnings per share calculation$26to$28 $121 to$127         GAAP net income per share1$0.01to$0.04 $0.28 to$0.37 Non-GAAP net income per share, diluted$0.33to$0.36 $1.52 to$1.60         Weighted average shares used in non-GAAP earnings per share calculation, diluted 78.3  79.4         1The anticipated GAAP net loss per share is calculated using basic weighted average shares for periods in which the Company anticipated a GAAP net loss. The anticipated GAAP net income per share is calculated using GAAP diluted weighted average shares for periods in which the Company anticipated GAAP net income. The reconciliation does not reflect any items that are unknown at this time, including, but not limited to, non-ordinary course litigation-related expenses, which we are not able to predict without unreasonable effort due to their inherent uncertainty. As a result, the estimates shown for Anticipated GAAP loss from operations, Anticipated GAAP net loss and Anticipated GAAP net loss per share are expected to change.

 Full-Year 2026 Low HighNet cash provided by operating activities$149 to$159 Less: Purchases of property and equipment (7)to (7)Less: Capitalized internal-use software costs (17)to (17)Free cash flow$125  $135 

Rapid7 (RPD - Free Report) reported $209.69 million in revenue for the quarter ended March 2026, representing a year-over-year decline of 0.3%. EPS of $0.36 for the same period compares to $0.49 a year ago.

The reported revenue represents a surprise of +0.89% over the Zacks Consensus Estimate of $207.84 million. With the consensus EPS estimate being $0.30, the EPS surprise was +19.01%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Rapid7 performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Annualized recurring revenue: $832.13 billion versus the six-analyst average estimate of $829.94 billion.Number of customers: 11,629 compared to the 11,499 average estimate based on two analysts.ARR per customer: $71,600.00 compared to the $71,818.75 average estimate based on two analysts.Revenue- Professional services: $5.64 million versus the seven-analyst average estimate of $5.72 million. The reported number represents a year-over-year change of -10.7%.Revenue- Product subscriptions: $204.05 million versus the seven-analyst average estimate of $202.12 million. The reported number represents a year-over-year change of +0.1%.Non-Gaap Gross Profit- Professional services: $0.39 million versus the seven-analyst average estimate of $0.79 million.Non-Gaap Gross Profit- Product subscriptions: $150.69 million compared to the $150.42 million average estimate based on seven analysts.View all Key Company Metrics for Rapid7 here>>>

Shares of Rapid7 have returned +12.3% over the past month versus the Zacks S&P 500 composite's +9.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Rapid7, Inc. ("Rapid7" or the "Company") (NASDAQ: RPD).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Rapid7and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On February 10, 2026, Rapid7 reported its fourth quarter and full year 2025 financial results.  Among other items, the Company disclosed annualized recurring revenue ("ARR") of $840 million, which was flat year-over-year, and total revenue of $217 million for the quarter, an increase of only 1% year-over-year.  In addition, Rapid7 issued 2026 guidance that reflected declining revenue expectations, including first quarter 2026 revenue guidance of $207 million to $209 million and full-year 2026 revenue guidance of $835 million to $843 million.  The Company also expected first quarter 2026 ARR of approximately $830 million, down 1% year-over-year, and did not provide full-year ARR guidance. 

On this news, Rapid7's stock price fell $3.01 per share, or 28.97%, to close at $7.38 per share on February 11, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.  

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

BOSTON, May 12, 2026 (GLOBE NEWSWIRE) -- Rapid7, Inc. (NASDAQ: RPD), a global leader in AI-powered managed cybersecurity operations, announced early access to its Cyber Governance, Risk, and Compliance (GRC) program, designed to unify security operations with governance, risk, and compliance workflows. Built on the Rapid7 Command Platform, Cyber GRC uses real time exposure data as the operating foundation for both security and compliance; aligning controls, evidence, and risk decisions to live threats rather than static frameworks to help customers manage their GRC requirements.

Regulatory requirements are expanding across jurisdictions and frameworks, while cyber risk continues to scale in complexity. Most compliance processes remain point-in-time and disconnected from live security operations, reinforcing reactive models that lag behind how risk develops. Rapid7’s Cyber GRC program replaces reactive compliance with a unified model for risk and controls. By combining AI-driven third-party risk management with a live, threat-aware risk register, it integrates GRC into security operations to provide executives with transparent, data-backed visibility.

“Organizations invest heavily in security tools, but many are still left to determine how to validate control effectiveness and demonstrate compliance,” said Jon Schipp, Senior Director of Product Management at Rapid7. “Cyber GRC connects fragmented data across assets, exposures, and controls to the attack surface, giving teams a clear view of risk and enabling consistent, evidence-backed outcomes.”

Rapid7 is building an ecosystem of audit, assurance, and GRC partners on the Command Platform to support continuous assurance:

HITRUST: Provides the industry’s most rigorous, certifiable assurance, enabling organizations to demonstrate proven, defensible security and risk management aligned to recognized standards and requirements.Insight Assurance: A trusted independent assessor, delivering rigorous, technology-enabled assessments across SOC 2, ISO 27001/42001, HITRUST, CMMC and other frameworks It is focused on validating control effectiveness for organizations looking to simplify compliance.360 Advanced: Delivers integrated compliance solutions to a global client base across industries ranging from technology startups to Fortune 500 organizations, with cybersecurity and compliance offerings that include ISO 27001, FedRAMP, HITRUST, SOC, penetration testing, risk assessments, and more. 360 Advanced operates under an alternative practice structure in accordance with all applicable laws, regulations, standards, and codes of conduct of the AICPA.
In addition, Rapid7 is extending capabilities that support continuous control monitoring, evidence collection, and audit workflows, including:

HITRUST e1, i1, and r2 Control Coverage: Continuously updated dashboards and queries monitor HITRUST controls, automate evidence collection, and detect control drift to support certification readiness.Audit-Ready User Access Exports: Self-service export provides a consolidated view of users, groups, roles, and access data to support access reviews and compliance audits.Unified Policy Bulk Export: Standardized bulk export consolidates agent and scan policy data into a single output to simplify policy reporting and support compliance workflows.VM Export MCP Server & Skill: Enables customers and agents to retrieve Rapid7 data for compliance, vulnerability management operations, and reporting in a highly efficient way. “Organizations today are in a constant tug of war between regulatory requirements and daily security operations. With Rapid7 Cyber GRC, the Command Platform now provides a unified place where controls, vulnerability insights and audit details live together. The benefit to practitioners is a single place that not only implements controls but also helps prove them with examination readiness and defensible reporting, “ said Christopher Conklin, VP, Chief Information Security Officer, Chemung Canal Trust Company.

“Today’s organizations need a partner that brings together security operations, risk management, and governance into a cohesive strategy. This technology allows us to deliver on that vision,” said Mat Cornish, Managing Director, Longwall Security, Rapid7 EMEA Services Partner of the Year, 2026

The Cyber GRC Program is currently available for early access, with broader availability planned for later in 2026.

To learn more or to sign up for the program, visit http://www.rapid7.com/blog/post/cds-rapid7-cyber-grc-secops-compliance.

About Rapid7

Rapid7, Inc. (NASDAQ: RPD) is a global leader in AI-powered managed cybersecurity operations, trusted to advance organizations’ cyber resilience. Open and extensible, the Rapid7 Command Platform integrates security data, enriching it with AI, threat intelligence, and 25 years of expertise and innovation to reduce risk and disrupt attackers. As a recognized leader in preemptive managed detection and response (MDR), Rapid7 unifies exposure and detection to transform the cybersecurity operations of more than 11,500 customers worldwide. For more information, visit our website, check out our blog, or follow us on LinkedIn or X.

Rapid7 Media Relations
Alice Randall
Director, Global Communications
[email protected]
(857) 216-7804

Rapid7 Investor Contact
Matt Wells
Vice President, Investor Relations
[email protected]
(617) 865-4277

, /PRNewswire/ -- 360 Advanced, a leading cybersecurity and compliance firm, today announced its participation in the Rapid7 Cyber Governance, Risk, and Compliance (GRC) Early Access Program, designed to help organizations align security operations with compliance and risk management workflows.

Built on the Rapid7 Command Platform, the Cyber GRC program is designed to align security operations, controls, evidence collection, and risk visibility with real-time cybersecurity insights. The initiative enables organizations to move toward more continuous, operationalized compliance models in increasingly complex regulatory environments.

As organizations manage overlapping obligations across frameworks such as SOC 2®, HITRUST®, ISO 27001, PCI DSS, FedRAMP®, GovRAMP™, and CMMC, many face challenges driven by disconnected systems, fragmented evidence collection, and point-in-time compliance activities. Rapid7's Cyber GRC initiative bridges these gaps by providing more continuous, threat-aware visibility into risk and control effectiveness.

"Organizations today are under increasing pressure to align security operations with governance, risk, and compliance in a way that reflects real-time conditions," said Cameron Youngblood, Chief Revenue Officer at 360 Advanced. "By collaborating with Rapid7 on this initiative, we're helping organizations connect security insights with compliance workflows to improve visibility, strengthen operational efficiency, and support ongoing compliance maturity."

As part of the Rapid7 Cyber GRC ecosystem, 360 Advanced will support organizations through integrated advisory, assessment, and assurance services across multiple frameworks and regulatory requirements.

"Businesses are moving away from treating compliance as a once-a-year audit exercise," added Youngblood. "The ability to align real-time security insights with governance and compliance workflows is an important step toward building more resilient programs and more defensible reporting."

360 Advanced delivers cybersecurity and compliance solutions to organizations ranging from emerging technology companies to Fortune 500 enterprises, with services that include:

SOC 1 & SOC 2 Reporting HITRUST Assessments ISO 27001 & ISO 27701 Certifications PCI DSS Assessments FedRAMP & GovRAMP Services CMMC Readiness & Certification Support Penetration Testing & Risk Assessments AI Governance & ISO 42001 Advisory Services The Rapid7 Cyber GRC Early Access Program is currently available to select organizations, with broader availability planned later in 2026.

To learn more about the Rapid7 Cyber GRC initiative, visit Rapid7 Cyber GRC Early Access Program.

For more information about 360 Advanced, visit the 360 Advanced website.

About 360 Advanced, Inc
360 Advanced is Making Better Businesses through their client-centric cybersecurity and compliance offerings. For nearly 20 years, 360 Advanced has delivered integrated compliance solutions to a global base of clients in a wide range of industries, from tech startups to Fortune 500 companies. Their cybersecurity and compliance offerings include ISO 27001, FedRAMP, HITRUST, SOC, Penetration Testing, Risk Assessments, and more.

360 Advanced operates under an alternative practice structure in accordance with all applicable laws, regulations, standards, and codes of conduct of the AICPA. Read full disclaimer here.

Media Contact
Keith Frechette
Director of Marketing
[email protected]

About Rapid7
Rapid7, Inc. (NASDAQ: RPD) is a global leader in AI-powered managed cybersecurity operations, trusted to advance organizations' cyber resilience. Open and extensible, the Rapid7 Command Platform integrates security data, enriching it with AI, threat intelligence, and 25 years of expertise and innovation to reduce risk and disrupt attackers. As a recognized leader in preemptive managed detection and response (MDR), Rapid7 unifies exposure and detection to transform the cybersecurity operations of more than 11,500 customers worldwide. For more information, visit www.rapid7.com.

SOURCE 360 Advanced

INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Rapid7, Inc. - RPD PR Newswire

NEW YORK, May 14, 2026

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Rapid7, Inc. ("Rapid7" or the "Company") (NASDAQ: RPD). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Rapid7and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

[Click here for information about joining the class action]

On February 10, 2026, Rapid7 reported its fourth quarter and full year 2025 financial results. Among other items, the Company disclosed annualized recurring revenue ("ARR") of $840 million, which was flat year-over-year, and total revenue of $217 million for the quarter, an increase of only 1% year-over-year. In addition, Rapid7 issued 2026 guidance that reflected declining revenue expectations, including first quarter 2026 revenue guidance of $207 million to $209 million and full-year 2026 revenue guidance of $835 million to $843 million. The Company also expected first quarter 2026 ARR of approximately $830 million, down 1% year-over-year, and did not provide full-year ARR guidance.

On this news, Rapid7's stock price fell $3.01 per share, or 28.97%, to close at $7.38 per share on February 11, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

View original content to download multimedia:https://www.prnewswire.com/news-releases/investor-alert-pomerantz-law-firm-investigates-claims-on-behalf-of-investors-of-rapid7-inc---rpd-302773096.html

SOURCE Pomerantz LLP

Rapid7, Inc. (RPD) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Rapid7, Inc. ("Rapid7" or the "Company") (NASDAQ: RPD).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Rapid7and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On February 10, 2026, Rapid7 reported its fourth quarter and full year 2025 financial results.  Among other items, the Company disclosed annualized recurring revenue ("ARR") of $840 million, which was flat year-over-year, and total revenue of $217 million for the quarter, an increase of only 1% year-over-year.  In addition, Rapid7 issued 2026 guidance that reflected declining revenue expectations, including first quarter 2026 revenue guidance of $207 million to $209 million and full-year 2026 revenue guidance of $835 million to $843 million.  The Company also expected first quarter 2026 ARR of approximately $830 million, down 1% year-over-year, and did not provide full-year ARR guidance. 

On this news, Rapid7's stock price fell $3.01 per share, or 28.97%, to close at $7.38 per share on February 11, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes. 

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected] 
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

Rapid7 is rated 'Buy' due to a promising management transition and AI-driven catalysts. The new CEO boasts over three decades of industry experience and has served on the Board for the past 14 months. RPD's outlook should be strengthened under his direction. Corporates seem willing to spend more on cybersecurity in the new threat landscape; Rapid7's acquisition of AI platform Kenzo will allow it to leverage this trend.

Halo Minerals PLC (AIM:HALO), a company looking to extract copper from legacy mining waste in northern Chile, has raised £4 million and listed on London's AIM.

The shares started trading on Monday, dropping 2.8% to 17.5p from the 18p issue price of the initial public offering.

At the IPO price, Halo had a market capitalisation of around £20 million.

Operations are focused on processing tailings, the material left behind after ore has been mined and processed, at the Playa Verde project in the Atacama region, the prolific copper-producing area where BHP's Escondida mine is based, along with state-owned giant Codelco that has partnerships with Antofagasta, Freeport-McMoRan and Rio Tinto.

The Playa Verde project holds a JORC-compliant mineral resource of 53 million tonnes at 0.24% copper, with ore reserves of 32.2 million tonnes at 0.25% copper containing an estimated 79,359 tonnes of fine copper.

Based on a copper price of $5.30 per pound, the reserves carry an estimated net present value of $154 million.

The funds raised will be used to advance the project towards a final investment decision, or to a point at which outside project financing becomes available.

Chief executive Andrew Dennan, previously CEO of Ascent Resources PLC from 2020 to 2025, said admission to AIM "represents a significant milestone for Halo".

He added that the company is "well-positioned to support the global transition to sustainable energy through the extraction of critical minerals, delivering both environmental and economic value".

"Listing on AIM strengthens our ability to grow as a company by enhancing our visibility, broadening our shareholder base and providing a platform from which to pursue our long-term strategy," Dennan told investors.

Wall Street analysts have pointed to continued earnings momentum and improving long-term outlook following Carnival Corp (NYSE:CCL)’s first quarter 2026 results, while noting that fuel costs remain a key source of near-term uncertainty.

Bank of America maintained its ‘Buy’ rating and $45 price objective on the cruise operator, describing the quarter as featuring “several positives,” including a continuation of earnings momentum, a new $2.5 billion share repurchase program, and updated long-term targets under the company’s Propel initiative. The firm noted that first quarter performance included an earnings-per-share and net yield beat, reinforcing recent trends.

At the same time, the bank’s analysts cautioned that “near-term fuel will create earnings volatility,” adding that higher energy prices and geopolitical factors could leave some consumers in a “wait and see mode.” They characterized these pressures as short term and pointed to valuation, stating the shares trade near historical trough levels.

On operations, Bank of America said booking trends have not materially deteriorated, although demand may have been somewhat softer than it otherwise would have been due to macro factors. The company remains about 85% booked for 2026, which the analysts view as providing time for normalization.

The firm also highlighted Carnival’s updated “Propel” targets, which call for more than 50% earnings-per-share growth through 2029 and return on invested capital above 16%. Bank of America estimates this implies a roughly 10% annual EPS growth rate, with capital returns of about $14 billion over the period, equivalent to more than 40% of the company’s current market capitalization.

UBS similarly emphasized the strength of the first quarter results and the implications for full-year guidance.

The analysts noted that Carnival raised its fiscal 2026 yield outlook by 25 basis points to 2.75%, “mostly passing along the Q1 beat,” though it added that the magnitude of the quarterly outperformance was likely ahead of expectations.

The firm also pointed to improved cost performance excluding fuel, with net cruise costs guidance benefiting from first-quarter trends. However, higher fuel prices remain a meaningful offset, with UBS estimating roughly $500 million in additional fuel costs for the year, partially mitigated by about $150 million in stronger operational performance.

Despite these pressures, UBS said Carnival remains on track for approximately $7 billion in EBITDA for fiscal 2026, only modestly below prior expectations, with earnings per share reduced by less than the increase in fuel costs.

Like Bank of America, UBS highlighted the company’s long-term targets under the Propel program. The bank said the goal of 50%+ cumulative EPS growth through 2029 implies double-digit annual growth and aligns with expectations for continued improvement in yield and cost metrics. It also underscored plans to return more than 40% of operating cash flow to shareholders, including dividends of over $800 million annually and significant share repurchases.

On demand trends, UBS described bookings as strong, with 2026 occupancy already at about 85% and pricing at “historically high levels.” Regional trends have been mixed, with stronger recent demand in the Caribbean and Alaska, alongside some shifts in European itineraries, the analysts added.

For the second quarter, UBS noted that guidance reflects the impact of higher fuel prices, with earnings and EBITDA projections coming in below prior expectations that had not yet incorporated the latest increase in energy costs.

Shares of Carnival traded hands at $24 late morning on Monday.

PASADENA, Calif.--(BUSINESS WIRE)-- #consultingandengineering--Tetra Tech, Inc. (NASDAQ: TTEK), a leading provider of high-end consulting and engineering services in water, environment, and sustainable infrastructure, announced today the planned dates for its second quarter 2026 results and conference call. On Wednesday, April 29, 2026, after market close, Tetra Tech intends to announce its second quarter 2026 results. On Thursday, April 30, 2026, at 8:00 a.m. Pacific Time, Tetra Tech plans to host a conference call to pr.

Posted by Defense World Staff on Apr 19th, 2026

Tetra Tech, Inc. (NASDAQ:TTEK – Get Free Report) has earned an average recommendation of “Moderate Buy” from the six ratings firms that are presently covering the company, MarketBeat.com reports. Two analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. The average 1-year price target among analysts that have updated their coverage on the stock in the last year is $42.60.

Several analysts have recently issued reports on TTEK shares. Weiss Ratings reiterated a “hold (c)” rating on shares of Tetra Tech in a research note on Wednesday, January 21st. Robert W. Baird set a $43.00 price objective on Tetra Tech in a research report on Thursday, January 29th.

Check Out Our Latest Analysis on TTEK

Tetra Tech Stock Performance TTEK opened at $31.61 on Friday. The company has a market cap of $8.24 billion, a PE ratio of 23.77 and a beta of 0.98. The stock has a 50-day moving average of $33.44 and a 200-day moving average of $34.27. Tetra Tech has a 52-week low of $29.57 and a 52-week high of $43.14. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.31 and a current ratio of 1.31.

Tetra Tech (NASDAQ:TTEK – Get Free Report) last released its quarterly earnings results on Wednesday, January 28th. The industrial products company reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.31 by $0.04. The company had revenue of $1.21 billion during the quarter, compared to the consensus estimate of $974.28 million. Tetra Tech had a return on equity of 23.84% and a net margin of 6.73%.The firm’s revenue was down 13.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.35 EPS. Tetra Tech has set its Q2 2026 guidance at 0.300-0.330 EPS and its FY 2026 guidance at 1.460-1.560 EPS. As a group, equities research analysts forecast that Tetra Tech will post 1.37 earnings per share for the current fiscal year.

Tetra Tech Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Thursday, February 12th were given a dividend of $0.065 per share. This represents a $0.26 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Thursday, February 12th. Tetra Tech’s payout ratio is currently 19.55%.

Insider Buying and Selling at Tetra Tech In related news, SVP Brian N. Carter sold 9,979 shares of the business’s stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $40.23, for a total transaction of $401,455.17. Following the completion of the transaction, the senior vice president owned 46,496 shares of the company’s stock, valued at approximately $1,870,534.08. The trade was a 17.67% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.49% of the company’s stock.

Hedge Funds Weigh In On Tetra Tech Large investors have recently made changes to their positions in the business. Bfsg LLC acquired a new position in shares of Tetra Tech during the 3rd quarter worth about $25,000. Financial Consulate Inc. acquired a new position in shares of Tetra Tech during the 3rd quarter worth about $26,000. Root Financial Partners LLC acquired a new position in shares of Tetra Tech during the 3rd quarter worth about $30,000. First Horizon Corp lifted its position in shares of Tetra Tech by 50.4% during the 4th quarter. First Horizon Corp now owns 880 shares of the industrial products company’s stock worth $30,000 after purchasing an additional 295 shares during the last quarter. Finally, CIBC Private Wealth Group LLC raised its holdings in Tetra Tech by 63.3% in the 4th quarter. CIBC Private Wealth Group LLC now owns 880 shares of the industrial products company’s stock valued at $30,000 after acquiring an additional 341 shares in the last quarter. Institutional investors and hedge funds own 93.89% of the company’s stock.

Tetra Tech Company Profile (Get Free Report)

Tetra Tech, Inc is a leading provider of consulting and engineering services with a focus on water, environment, infrastructure, resource management and energy sectors. Headquartered in Pasadena, California, the company delivers end-to-end solutions that encompass planning, design, engineering, program management and construction management. Tetra Tech’s multidisciplinary teams integrate science, technology and advisory services to address complex challenges in areas such as water resources, environmental remediation, sustainable infrastructure and renewable energy.

The company’s core offerings include environmental assessments and cleanup, water treatment and reuse, coastal and marine engineering, climate resilience planning, and engineering design for transportation and built environments.

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PASADENA, Calif.--(BUSINESS WIRE)--Tetra Tech, Inc. (NASDAQ: TTEK), a leading provider of high-end consulting and engineering services in water, environment, and sustainable infrastructure, announced today that Waterschap Aa en Maas, a significant water authority in the southern region of the Netherlands, has selected Tetra Tech to provide engineering and consulting services to expand wastewater treatment facilities and future-proof the region’s water system infrastructure.

Tetra Tech secured positions in two sectors of the framework for a maximum duration of 6 years. Tetra Tech’s water and environment experts will deliver high-end wastewater treatment engineering and design solutions to protect the region’s water supply from emerging contaminants and increase the availability of clean water for homes, agriculture, and businesses. Our teams will leverage Tetra Tech's in-house, advanced data analytics and water resource management software, such as WaterNet™, to enhance the modernization of water systems and optimization of flood defense infrastructure design. Tetra Tech’s work on this framework will support sufficient clean water and protection against flooding for 780,000 people and 17,000 businesses across 20 municipalities.

"Tetra Tech has used our Leading with Science® approach to provide our clients with state-of-the-art flood protection, water system engineering and wastewater treatment solutions for 60 years,” said Roger Argus, Tetra Tech Chief Executive Officer. "We look forward to designing innovative water management solutions that support Waterschap Aa en Maas to expand clean water supplies and provide resilient water infrastructure across the southern region of the Netherlands."

About Tetra Tech

Tetra Tech is the leader in water, environment and sustainable infrastructure, providing high-end consulting and engineering services for projects worldwide. With more than 25,000 employees working together, Tetra Tech provides clear solutions to complex problems by Leading with Science® to address the entire water cycle, protect and restore the environment, and design sustainable and resilient infrastructure. For more information about Tetra Tech, please visit tetratech.com or follow us on LinkedIn and Facebook.

Any statements made in this release that are not based on historical fact are forward-looking statements. Any forward-looking statements made in this release represent management’s best judgment as to what may occur in the future. However, Tetra Tech’s actual outcome and results are not guaranteed and are subject to certain risks, uncertainties and assumptions ("Future Factors"), and may differ materially from what is expressed. For a description of Future Factors that could cause actual results to differ materially from such forward-looking statements, see the discussion under the section "Risk Factors" included in the Company’s Form 10-K and Form 10-Q filings with the Securities and Exchange Commission.

More News From Tetra Tech, Inc.

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Key Takeaways Tetra Tech Q2 EPS beat estimates, rising 3%, while net revenues topped forecasts despite a Y/Y drop.TTEK saw strong demand in water, environmental and international markets, boosting backlog 8%.Raised FY2026 revenue and earnings outlook reflects confidence despite GSG segment weakness. Tetra Tech, Inc. (TTEK - Free Report) posted second-quarter fiscal 2026 adjusted earnings of 34 cents per share, up 3% year over year and ahead of the Zacks Consensus Estimate of 31 cents by 9.7%.

Net revenues were $1.05 billion, down 4.9% year over year, but topped the consensus mark of $999 million by 5.1%. Backlog ended the quarter at $4.28 billion, up 8% sequentially, supported by solid demand across water and environmental end markets.

On a GAAP basis, TTEK reported revenues of $1.22 billion compared with $1.32 billion in the year-ago quarter.

Tetra Tech Benefited From CIG Growth Offset by GSGRevenues from U.S. Federal customers (accounting for 20% of the quarter’s revenues) were up 11% year over year, supported by a solid pipeline of projects from the Defense and U.S. Army Corps of Engineers. U.S. Commercial sales (19% of the quarter’s revenues) decreased 2% year over year due to lower renewable energy sales.

U.S. State and Local sales (14% of the quarter’s revenues) increased 9% year over year, driven by strength in municipal water infrastructure. International sales (47% of the quarter’s revenues) were up 12% year over year, driven by strength in the UK’s water and digital water automation programs

Tetra Tech reports revenues under the segments discussed below:

The Commercial/International Services Group (CIG) delivered net revenues of $591.2 million, up 9.6% year over year. Government Services Group (GSG) net revenues were $458.5 million, down 18.8% from the prior-year quarter. The mix across the two operating groups continued to be a key swing factor in consolidated results, with CIG strength partially offsetting lower year-over-year volume in GSG.

TTEK's Margin ProfileTTEK continued to manage its financing costs while maintaining capacity for growth investments. In the fiscal second quarter, Tetra Tech’s subcontractor costs totaled $170.5 million, reflecting a decrease of 21.9% from the year-ago quarter. Other costs of revenues (adjusted) were $835.5 million, down 6.1% from the second quarter of fiscal 2025. Selling, general and administrative expenses (adjusted) were $82.6 million, down 1.8% from the year-ago fiscal quarter.

Adjusted operating income increased 1.1% year over year to $131.5 million while the adjusted margin increased 70 basis points to 12.5%.

Tetra Tech’s Balance Sheet and Cash FlowWhile exiting the fiscal second quarter, Tetra Tech had cash and cash equivalents of $223.6 million compared with $167.5 million recorded at the end of fiscal 2025. Long-term debt was $880.2 million compared with $763.4 million recorded at the end of fiscal 2025.

In the first six months of fiscal 2026, Tetra Tech generated net cash of $237.6 million from operating activities compared with $7.2 million in the prior fiscal year period. Capital expenditure was $10.1 million, up 12.2% year over year. In the first six months of fiscal 2026, TTEK’s proceeds from borrowings amounted to $240 million while repayments on long-term debt were $125 million.

Shareholder-Friendly PoliciesTetra Tech distributed dividends totaling $33.9 million in the first six months of fiscal 2026. This compares favorably with dividends of $30.9 million distributed in the previous fiscal year period. It repurchased shares worth $102 million in the same period compared with $175 million in the previous fiscal year period.

TTEK’s Fiscal 2026 OutlookFor fiscal 2026 (ending September 2026), Tetra Tech anticipates net revenues to be in the range of $4.25-$4.40 billion, higher than $4.15-$4.30 billion projected earlier. However, the projection is lower than the net revenues of $4.62 billion reported in fiscal 2025. Adjusted earnings are currently predicted to be $1.50-$1.58 per share compared with $1.46-$1.56 guided previously. It reported earnings of $1.56 per share in fiscal 2025.

For the fiscal third quarter, management estimates net revenues to be in the range of $1.05-$1.10 billion. Adjusted earnings are projected to be in the band of 38-41 cents per share.

TTEK’s Zacks Rank and Other Stocks to ConsiderThe company currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks are discussed below:

DXP Enterprises (DXPE - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

DXP Enterprises’ earnings surpassed the consensus estimate by 52.8% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for DXPE’s 2026 earnings has increased 17.2%.

Kennametal (KMT - Free Report) presently sports a Zacks Rank of 1. Kennametal’s earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 35.4%. In the past 60 days, the Zacks Consensus Estimate for Kennametal’s fiscal 2026 earnings has increased 9%.

Powell Industries (POWL - Free Report) currently carries a Zacks Rank of 2. Powell’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 12.9%. In the past 60 days, the Zacks Consensus Estimate for Powell’s fiscal 2026 earnings has increased 3%.

Tetra Tech (TTEK - Free Report) closed the last trading session at $31.67, gaining 1.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $41.33 indicates a 30.5% upside potential.

The average comprises six short-term price targets ranging from a low of $35.00 to a high of $48.00, with a standard deviation of $4.46. While the lowest estimate indicates an increase of 10.5% from the current price level, the most optimistic estimate points to a 51.6% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

However, an impressive consensus price target is not the only factor that indicates a potential upside in TTEK. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Here's Why There Could be Plenty of Upside Left in TTEKThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 2.3%.

Moreover, TTEK currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much TTEK could gain, the direction of price movement it implies does appear to be a good guide.

On May 18, 2026, Tetra Tech Inc TTEK shares rose 4.2% today, closing at $27.29. While this uptick is a welcome sign, the stock has experienced significant declines over the past year, with a 52-week range of $25.81 to $43.14.

GF Value™ verdict: The current price is $27.29, which is 25.6% below the GF Value™ estimate of $36.67.GF Score™: TTEK has a score of 86/100, indicating a strong overall position.Most notable signal: Insiders bought $0.1 million worth of shares in the last three months, with no selling activity. Is TTEK Overvalued or Undervalued? Based on the GF Value™, Tetra Tech Inc TTEK is currently assessed to be undervalued, with a current market price of $27.29 compared to a GF Value™ of $36.67. This represents a significant margin of safety of 25.6%. The GF Valuation label describes TTEK as "Modestly Undervalued," suggesting that there is an opportunity for investors to consider the stock at its current price level. However, it is also essential to recognize that undervaluation can involve risks, especially if market sentiments shift or if the company faces operational challenges.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. This methodology underscores the potential for TTEK's shares to appreciate towards their intrinsic value, provided that the company's fundamentals remain robust and the market stabilizes.

How Does TTEK's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 16.3x 33.8x Forward P/E 17.6x N/A The current P/E (TTM) ratio of 16.3x is substantially below its 5-year median P/E of 33.8x, indicating that TTEK is trading at a significant discount compared to its historical valuation. Furthermore, the forward P/E of 17.6x also suggests that the stock remains attractive relative to its past performance. This P/E analysis aligns with the GF Value™ verdict, reinforcing the idea that TTEK is currently undervalued.

What Does TTEK's GF Score™ Tell Us? Metric Rating GF Score™ 86/100 Financial Strength 7/10 Profitability 9/10 Growth 7/10 Valuation 8/10 Momentum 4/10 TTEK's GF Score™ of 86/100 indicates a strong overall performance across various key metrics. The company excels in profitability with a score of 9/10, showcasing its ability to generate earnings effectively. Financial strength also scores a respectable 7/10, reflecting a solid balance sheet. However, the momentum rank of 4/10 suggests that the stock has faced challenges in price performance, which could be a concern for potential investors. Overall, TTEK demonstrates strong fundamentals, yet the momentum signals potential volatility.

What Are Insiders Doing with TTEK Stock? In the last three months, insiders at Tetra Tech Inc have shown confidence in the company's future by purchasing $0.1 million worth of shares, with no reported selling activity. This insider buying may suggest that those with the most insight into the company's operations believe that the stock is undervalued and has the potential for growth. Such activity can be a positive signal for the market, indicating that insiders expect the company's performance to improve in the near future.

What This Means for Investors Based on the GF Value™, Tetra Tech Inc TTEK is currently undervalued. With a significant margin of safety and solid GF Score™, TTEK presents an intriguing opportunity for those looking at potential investments in the construction sector. However, prospective investors should remain cautious of the stock's momentum rank and recent performance trends.

For the complete analysis, visit the Tetra Tech Inc TTEK stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is TTEK's GF Score™?

TTEK's GF Score™ is 86/100, which indicates a strong overall performance based on financial strength, profitability, growth, valuation, and momentum.

Is TTEK overvalued or undervalued?

TTEK is currently considered undervalued, with a GF Value™ of $36.67 compared to its current price of $27.29.

What is TTEK's P/E ratio?

TTEK's P/E (TTM) is 16.3x, which is significantly below its 5-year median P/E of 33.8x, indicating that the stock is trading at a discount compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

On June 02, 2026, Tetra Tech Inc TTEK shares fell 4.1% today, bringing the current price to $27.12. This recent decline has pushed the stock further down within its 52-week range of $25.81 to $43.14.

GF Value™ verdict: Current price is $27.12 vs GF Value™ of $36.19, indicating a 25.1% undervaluation.GF Score™ of 87/100 (Strong), suggesting solid fundamentals.Notable insider activity: Insiders bought $0.1M in the last 3 months with no selling reported. Is TTEK Overvalued or Undervalued? Tetra Tech Inc's current price of $27.12 is significantly below the GF Value™ of $36.19, reflecting a 25.1% margin of safety for potential buyers. This undervaluation indicates an opportunity for investors looking to capitalize on the discrepancy between market price and intrinsic value. The GF Valuation label categorizes TTEK as modestly undervalued, suggesting that the market may not be fully recognizing the company's strengths and growth potential. As such, investors should carefully consider this opportunity while remaining aware of the risks associated with market volatility and sector-specific challenges.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

How Does TTEK's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 16.2x 33.6x Forward P/E 15.8x N/A The current P/E (TTM) of 16.2x is 52% below Tetra Tech's 5-year median P/E of 33.6x. This significant difference indicates that the stock is trading well below its historical valuation levels. The P/E analysis aligns with the GF Value™ verdict, reinforcing the notion that TTEK is undervalued at its current price.

What Does TTEK's GF Score™ Tell Us? Metric Rating GF Score™ 87 Financial Strength 7/10 Profitability 9/10 Growth 7/10 Valuation 8/10 Momentum 5/10 Tetra Tech's GF Score™ of 87/100 indicates strong fundamentals, with Profitability being the standout at 9/10, suggesting the company is highly efficient in generating profits. Meanwhile, Momentum has the lowest rating at 5/10, indicating some concerns regarding the stock's recent performance trends. Overall, the scores suggest that while TTEK has robust financial and profitability metrics, its recent price action may require further investigation.

What Are Insiders Doing with TTEK Stock? In the past three months, insiders have purchased $0.1 million worth of Tetra Tech shares, with no reported selling activity. This buying trend could suggest that insiders have confidence in the company's future prospects and believe that the current stock price presents a buying opportunity. Insider activity can serve as a valuable signal for investors, as it may reflect the sentiment of those with the most knowledge about the company's operations.

What This Means for Investors Based on the GF Value™ analysis, Tetra Tech Inc TTEK is currently undervalued. The significant gap between the current price and the estimated intrinsic value indicates an opportunity for potential investment. However, investors should remain vigilant regarding market conditions and the company's performance trajectory.

For the complete analysis, visit the Tetra Tech Inc TTEK stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is TTEK's GF Score™?

TTEK's GF Score™ is 87/100, indicating strong fundamentals and the potential for long-term returns.

Is TTEK overvalued or undervalued?

TTEK is currently undervalued, with a GF Value™ of $36.19 compared to the current price of $27.12.

What is TTEK's P/E ratio?

TTEK's P/E ratio is 16.2x, which is significantly below its 5-year median of 33.6x, indicating it is trading at a lower valuation compared to its historical levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways Tetra Tech was selected as the lead design engineer for Chelan County PUD's dam upgrade project.TTEK will support spillway upgrades at Rock Island Dam and Rocky Reach Dam in Washington.Tetra Tech will conduct seismic studies, risk assessments and develop new spillway designs. Tetra Tech, Inc. (TTEK - Free Report) has secured a contract from Chelan County Public Utility District (PUD) for the Hydropower Dam Spillway Modernization Project at the Rock Island and Rocky Reach hydroelectric dams in Washington. The company will serve as the lead design engineer as part of a team that includes Kuney Construction and J.F. Brennan. Financial terms of the deal were kept under wraps.

Per the multi-year, single-award deal, TTEK will provide planning, evaluation, engineering and construction support services for the spillway modernization project. The project, which will be executed using a Progressive Design-Build approach, is focused on upgrading spillway facilities at Rock Island Dam and Rocky Reach Dam in Washington. Both facilities are located on the Columbia River.

To support the project, the company's engineers, scientists and technical specialists will evaluate existing infrastructure and undertake a series of engineering and technical assessments. Their responsibilities will include developing designs for new spillway gates, associated lifting systems and control equipment. The scope of work includes planning concrete rehabilitation activities at the dams.

TTEK will carry out seismic studies, assess project risks and evaluate potential failure modes. The company will also conduct value engineering studies and develop design solutions for both dam facilities.

The contract strengthens Tetra Tech’s presence in the hydropower market and adds to its portfolio of water and energy infrastructure projects. The planned upgrades are expected to improve the safety and reliability of the two dams and support long-term power generation for Chelan County PUD.

TTEK’s Zacks Rank and Price PerformanceTetra Tech is benefiting from its diversified business model, strong demand across client sectors and a robust backlog, supporting revenue growth and prompting the company to raise its fiscal 2026 revenue outlook.

TTEK currently carries a Zacks Rank #3 (Hold). Shares of the company have lost 17.1% in the past three months compared to the industry’s 17.5% growth.

Image Source: Zacks Investment Research

Rising costs could weigh on TTEK’s profitability in the coming quarters. The company’s international presence exposes it to currency swings and economic challenges in global markets.

Stocks to ConsiderSome better-ranked companies are discussed below:

Comfort Systems USA, Inc. (FIX - Free Report) currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

FIX delivered a trailing four-quarter average earnings surprise of 39.29%. In the past 30 days, the Zacks Consensus Estimate for Comfort Systems 2026 earnings has increased 0.73%.

Sterling Infrastructure, Inc. (STRL - Free Report) presently carries a Zacks Rank of 1. The company delivered a trailing four-quarter average earnings surprise of 29.08%.

In the past 30 days, the consensus estimate for STRL’s 2026 earnings has increased 1.01%.

Knife River Corporation (KNF - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 2.74%.

In the past 60 days, the consensus estimate for KNF’s 2026 earnings has increased 3.11%.

Delek Logistics Partners offers an 8.53% forward yield, but distribution coverage appears weak based on operating cash flow and even adjusted distributable cash flow. DKL boasts thirteen years of consecutive distribution growth, the best track record in its peer group. Delek's 3-year distribution growth rate is 4%, lagging behind WES and PAA with rates of 22% and 19%, respectively.