RPD
Rapid7, Inc. (RPD) ESG Analysis Analysis (2026)
Environmental
RPD’s software delivery model keeps direct emissions and resource intensity lower than hardware-heavy peers, reducing environmental compliance exposure and operating footprint.
R&D intensity at 22.3% of revenue supports product efficiency and cloud-based delivery, which generally compares favorably with more energy-intensive enterprise software peers.
The company’s environmental profile is constrained by limited disclosed climate metrics, leaving peer-relative assessment weaker than companies with explicit emissions targets and reporting.
Because environmental impact is mostly indirect and operational rather than manufacturing-based, RPD faces less physical and regulatory exposure than industrial peers, but not a clear leader.
Social
High R&D spending at 22.3% of revenue indicates sustained investment in product reliability and cybersecurity, which is material for customer trust in software peers.
Stock-based compensation at 10.4% of revenue suggests meaningful employee alignment, though it is less distinctive than peers with stronger retention and disclosure practices.
As a cybersecurity vendor, RPD’s social risk is tied to service continuity and data protection, and its software model generally carries lower workforce-safety exposure than industrial peers.
Relative to peers, RPD’s social positioning is supported by knowledge-intensive operations, but limited public detail on workforce metrics keeps it below top-tier leaders.
Governance
Debt-to-equity of 4.9x and net debt-to-EBITDA of 6.9x indicate a more leveraged capital structure than many software peers, increasing governance scrutiny over capital discipline.
Stock-based compensation at 10.4% of revenue is material, and peer-relative governance quality depends on whether dilution is offset by transparent incentive design and oversight.
Gross margin of 69.3% is consistent with software economics, but the absence of stronger disclosure on board independence, shareholder rights, and risk controls limits governance confidence.
Compared with stronger-governed peers, RPD appears adequate rather than leading because leverage and compensation intensity create oversight concerns without evidence of exceptional governance practices.
Overall Score
RPD’s ESG profile is mixed versus peers, with stronger social characteristics offset by moderate governance pressure from leverage and limited disclosure depth.
Score Driver: Governance Is The Main Constraint Due To Elevated Leverage And Material Stock-Based Compensation.
Sources
- Company filings (10-K, 10-Q, investor presentations)
- Financial and market data providers
- Public news and industry information
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