SCHEDULE: Vanguard Group Boosts Rapid7 Stake to 14.16%

The Vanguard Group reported a 14.16% beneficial ownership stake in Rapid7 Inc., holding 9,273,763 shares as of December 31, 2025.

Summary

• The Vanguard Group reported beneficial ownership of 9,273,763 shares of Rapid7 Inc. Common Stock.
• This ownership represents 14.16% of Rapid7 Inc.'s outstanding common stock.
• The filing date for this Schedule 13G/A (Amendment No. 9) was January 30, 2026, reflecting the ownership position as of December 31, 2025.
• The Vanguard Group holds shared voting power over 587,517 shares and shared dispositive power over all 9,273,763 shares.
• The investment is classified as passive, with The Vanguard Group certifying that the shares were acquired and are held in the ordinary course of business, not for the purpose of changing or influencing control of Rapid7 Inc.
• An internal realignment at The Vanguard Group, Inc. on January 12, 2026, means that certain subsidiaries or business divisions will now report beneficial ownership separately from The Vanguard Group, Inc.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive signal, as it confirms significant institutional investment in Rapid7 Inc. by a major asset manager, indicating long-term confidence without activist intent.

Positives

• A significant institutional investor, The Vanguard Group, holds a substantial 14.16% stake in Rapid7 Inc., indicating continued institutional confidence in the company.
• The investment is classified as passive, suggesting a long-term holding strategy rather than an activist intent to influence control.

Future Outlook

The filing indicates that following an internal realignment on January 12, 2026, The Vanguard Group, Inc. will no longer perform portfolio management or proxy voting services, and its subsidiaries or business divisions will begin reporting beneficial ownership separately (on a disaggregated basis).

Management Comments

• The Vanguard Group, Inc. anticipates that certain subsidiaries or business divisions of subsidiaries of The Vanguard Group, Inc., that currently have, or are deemed to have, beneficial ownership with The Vanguard Group, Inc., will report beneficial ownership separately (on a disaggregated basis) from The Vanguard Group, Inc. in reliance on such release.
• These subsidiaries and/or business divisions pursue the same investment strategies as previously pursued by The Vanguard Group, Inc. prior to the realignment.
• The securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under 240.14a-11.

Industry Context

StockSavvy.ai notes that a significant passive stake by a major institutional investor like The Vanguard Group in a cybersecurity firm such as Rapid7 Inc. underscores continued institutional confidence in the sector's growth prospects and Rapid7's market position. This type of filing is common for large asset managers who hold diversified portfolios.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake by The Vanguard Group may reassure existing shareholders and attract new investors, potentially contributing to share price stability or appreciation.

Next Steps

• The Vanguard Group's subsidiaries or business divisions are expected to report beneficial ownership separately (on a disaggregated basis) in future filings.

Key Dates

Recommendation

While the filing confirms significant institutional interest from The Vanguard Group, a Schedule 13G primarily discloses ownership and does not provide sufficient operational or financial details to warrant a 'buy' or 'sell' recommendation. It suggests a 'hold' as it indicates a stable, passive institutional presence, but further analysis of Rapid7's fundamentals would be required for a stronger recommendation.

Keywords

Rapid7 Inc, Vanguard Group, Schedule 13G, Beneficial Ownership, Common Stock, Institutional Investor, Passive Investment, Cybersecurity, Software