Rapid7MEX:RPD 46 Gross Margin % is 69.12% as of Mar. 2026, which is 2% below its 10-year median of 70.41. GuruFocus rates MEX:RPD with a GF Score™ of 46/100 and a GF Value™ of MXN5,385.84. The stock has 4 warning signs investors should review. Among 2,685 Software companies, Rapid7 ranks better than 79.59% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Rapid7's Gross Profit for the
three
months ended in Mar. 2026 was MXN2,614 Mil. Rapid7's Revenue for the
three
months ended in Mar. 2026 was MXN3,781 Mil. Therefore, Rapid7's Gross Margin % for the quarter that ended in Mar. 2026 was 69.12%.
The historical rank and industry rank for Rapid7's Gross Margin % or its related term are showing as below:
MEX:RPD'
s Gross Margin % Range Over the Past 10 Years
Min: 68.44 Med: 70.41 Max: 74.77
Current: 69.7
During the past 13 years, the highestGross Margin % of Rapid7 was 74.77%. The lowest was 68.44%. And the median was 70.41%.
MEX:RPD's Gross Margin % is ranked better than 79.59% of 2685
companies
in the Software industry
Industry Median: 40.45
vs MEX:RPD: 69.70
Rapid7 had a gross margin of 69.12% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Rapid7 was 0.30% per year.
Rapid7 (MEX:RPD) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Rapid7 had a gross margin of 69.12% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Rapid7 Gross Margin % Related Terms
Rapid7 Gross Margin % Historical Data
* Premium members only.
The historical data trend for Rapid7's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:RPD vs GRRR, OSPN, PRTH: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Rapid7's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rapid7 Gross Margin % vs Software Industry
For the Software industry and Technology sector, Rapid7's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rapid7's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Rapid7 (MEX:RPD) has a Gross Margin % of 69.12% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Rapid7 and its competitors. This is near median its historical median of 70.41. Over the past decade, Rapid7's Gross Margin % has ranged from 68.44 to 74.77. According to the industry distribution chart, Rapid7 ranks #548 out of 2685 companies in the Software industry, placing it in the top 20.4%.
Is Rapid7's Gross Margin % too high?
Rapid7's current Gross Margin % of 69.12% is near median its 10-year median of 70.41. Over the past 10 years, this metric has ranged from a low of 68.44 to a high of 74.77. The Software industry median Gross Margin % is 40.45. Rapid7's value of 69.12% is 70.9% above this industry median. Based on the distribution chart, Rapid7 ranks #548 out of 2685 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Rapid7 has a GF Score™ of 46/100, reflecting its overall financial health beyond just this single metric.
How does Rapid7's Gross Margin % compare to GRRR and OSPN?
According to the Software industry distribution chart, Rapid7 ranks #548 out of 2685 companies for Gross Margin %. This places Rapid7 in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Rapid7's value of 69.12% is 70.9% above this benchmark. Historically, Rapid7's own Gross Margin % has ranged from 68.44 to 74.77 over the past decade. While the company's 10-year median is 70.41 vs. the industry median of 40.45, Rapid7 has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,685 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rapid7's current Gross Margin % of 69.12% is 70.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Rapid7 and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rapid7's current Gross Margin % is 69.12%, which is near median its own 10-year median of 70.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rapid7 stock overvalued right now?
Rapid7 (MEX:RPD) has a current Gross Margin % of 69.12%. The stock's GF Value™ is MXN5,385.84, compared to a current price of MXN960.35 — trading 82.2% below its estimated fair value. The current Gross Margin % is 69.12%, which is near median its 10-year median of 70.41 and 70.9% above the Software industry median of 40.45. Rapid7's overall GF Score™ is 46/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Rapid7 (MEX:RPD), the current Gross Margin % is 69.12% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rapid7 (MEX:RPD) Overvalued in 2026?
Based on GuruFocus' analysis, Rapid7 stock appears to be undervalued.
The current stock price of MXN960.35 is trading 82.2% below its estimated GF Value™ of MXN5,385.84.
Key valuation signals for MEX:RPD:
Gross Margin %: 69.12% (near median its 10-year median of 70.41)
GF Value™: MXN5,385.84 vs. price of MXN960.35 (82.2% below fair value)
Industry Position: 70.9% above the Software median (#548 of 2685)
No single metric tells the full story. See the MEX:RPD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 2000, Rapid7 is a cybersecurity company that began providing vulnerability management solutions. It has, however, expanded its portfolio to provide extended detection and response; security information and event management; cloud security, threat intelligence, and application security; and security orchestration, automation, and response. The Boston-based company went public in 2015.
46GF Score
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