Rapid7 Reports Inducement Grants under Nasdaq Listing Rule 5635(c)(4)

The awards draw on the inducement share pool under Rapid7’s amended 2015 Equity Incentive Plan.

Rhea-AI Summary

Rapid7 (NASDAQ: RPD) granted 455,621 restricted stock units as employment inducement awards, effective October 15, 2026, to two employees.

The awards represent rights to Rapid7 common stock and vest over three years. One-third vests on the first anniversary of the vesting commencement date; the remaining two-thirds vest in equal quarterly installments through the third anniversary. Each installment requires continued employment through its vesting date. Rapid7’s independent Compensation Committee unanimously approved the grants under Nasdaq Listing Rule 5635(c)(4).

Positive

• None.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.455,621 restricted stock units granted to two employees introduce potential dilution as employment-conditioned awards vest.

Key Figures

Restricted stock units: 455,621 RSUs Recipients: 2 employees Vesting period: 3 years +2 more

Restricted stock units

455,621 RSUs

Aggregate grant to employees

Recipients

2 employees

Employees receiving the inducement awards

Vesting period

3 years

Subject to continued employment through applicable vesting dates

Initial vesting

1/3 of RSUs

Vests on the one-year anniversary of the vesting commencement date

Remaining vesting

2/3 of RSUs

Vests in equal quarterly installments through the third anniversary

Historical Context

1 past event · Latest: Sep 17

1 event

1. Sep 17

   Inducement grants

   24h Move

   -3.5%

   Granted 290,626 RSUs to three new employees under the same three-year vesting structure.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

restricted stock units, nasdaq listing rule 5635(c)(4), managed detection and response

3 terms

restricted stock units financial

"455,621 restricted stock units (“RSUs”) in respect of Rapid7’s common stock"

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

nasdaq listing rule 5635(c)(4) regulatory

"in accordance with Nasdaq Listing Rule 5635(c)(4) as a material inducement"

NASDAQ Listing Rule 5635(c)(4) is a rule that requires a company to get approval from its shareholders before selling a large amount of its shares, usually over 20%. This helps protect investors by making sure the company doesn't flood the market with new shares without their say, which could lower the stock's value.

managed detection and response technical

"a recognized leader in preemptive managed detection and response (MDR)"

Managed detection and response (MDR) is a service where outside specialists continuously monitor a company’s digital systems, look for signs of cyberattacks, and take or recommend immediate action to contain and fix problems. Think of it as hiring a dedicated 24/7 security team and emergency response crew for a business’s IT systems; for investors, MDR matters because it reduces the risk of costly breaches, downtime, regulatory fines, and damage to reputation that can hurt revenue and share value.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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BOSTON, Oct. 20, 2026 (GLOBE NEWSWIRE) -- Rapid7, Inc. (“Rapid7”) (NASDAQ: RPD), a global leader in AI-powered managed cybersecurity operations, announced that the company granted inducement awards, effective as of October 15, 2026, to employees as a material inducement to commence employment with Rapid7 and its subsidiaries.

We granted inducement awards comprised of 455,621 restricted stock units (“RSUs”) in respect of Rapid7’s common stock, in the aggregate, to 2 employees.

The RSUs vest over a three-year period with one-third (1/3) of the RSUs vesting on the one-year anniversary of the vesting commencement date and the remaining two-thirds (2/3) of the RSUs vesting in equal quarterly installments thereafter through the third anniversary of the vesting commencement date, subject to continued employment through each applicable vesting date.

The RSUs were granted under Rapid7’s 2015 Equity Incentive Plan, as amended (the “Equity Plan”) pursuant to the Equity Plan’s inducement award share pool. The RSUs were unanimously approved by Rapid7’s Compensation Committee, which is independent within the meaning of Nasdaq Listing Rule 5605(a)(2), in accordance with Nasdaq Listing Rule 5635(c)(4) as a material inducement for the employees to commence employment with Rapid7.

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 Press Contact
Christine Nurnberger
SVP Global Marketing and Growth
press@rapid7.com

Rapid7 Investor Contact
Ryan Flanagan and Ryan Gardella
ICR for Rapid7
investors@rapid7.com
(617) 865-4277

Source: Rapid7

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How many inducement stock awards did Rapid7 grant in October 2026?

Rapid7 granted 455,621 restricted stock units in aggregate to two employees, effective October 15, 2026. The awards were a material inducement for the employees to commence employment with Rapid7 and its subsidiaries.

What is the vesting schedule for Rapid7’s October 2026 inducement grants?

The awards vest over three years, with one-third vesting on the first anniversary of the vesting commencement date. The remaining two-thirds vest in equal quarterly installments through the third anniversary, subject to continued employment through each applicable vesting date.