Rapid7 (RPD) has "significant work" ahead to drive growth to higher levels after its Q4 results came in "better than feared," RBC Capital Markets said in a Wednesday note.

The company reported Q4 non-GAAP net income late Tuesday of $0.44 per diluted share, down from $0.48 a year earlier, while revenue rose to $217.4 million from $216.3 million. Rapid7 also issued Q1 and 2026 guidance below analysts' expectations.

RBC said Rapid7's Q4 revenue topped Street consensus, with sustained deal activity for its managed detection and response or MDR offerings, but "growth still isn't where it needs to be." The brokerage noted that management remains confident in its growth initiatives, aiming to drive MDR further and change its go-to-market strategies.

"We will watch for small signs of improvement as management expects to see MDR growth acceleration and broader operational efficiencies this year," RBC said.

RBC cut its price target on Rapid7 to $12 from $16, with a sector perform rating.

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