Rapid7 Appoints Wael Mohamed as CEO Amidst Ongoing Challenges
In a significant move within the cybersecurity industry, Rapid7 has appointed Wael Mohamed, the former CEO of Forescout, as its new chief executive officer. This transition marks the end of Corey Thomas’s 13-year tenure as CEO, during which he had guided the company through various challenges in the vulnerability management landscape. Thomas, now stepping into the role of executive chairman, had previously held this position until June 2025.
Wael Mohamed, aged 58, brings a wealth of experience to Rapid7, having joined its board in March 2025 as part of a strategy that involved accommodating activist investor Jana Partners. This strategic adjustment also included the addition of two knowledgeable figures from the finance industry to the board: Michael Burns, the former CFO of Imperva and Gigamon, and Kevin Galligan, Jana’s Director of Research.
In his inaugural statements regarding his appointment, Mohamed expressed enthusiasm for his new role, stating, "I join Rapid7 with gratitude, confidence, and excitement. We have the customers, technology, leadership, and talent to own the artificial intelligence-SOC market." He emphasized his commitment to sharpening the company’s focus on its core business, leveraging existing resources and talent to realize his ambitious vision for the company.
The transition to Mohamed’s leadership appears to have immediate positive effects on Rapid7’s stock performance, with shares rising 5.43% to $8.84—alluding to investor optimism. However, the company has faced significant challenges over the past years; its stock has plummeted by approximately 62% within the last year alone and nearly 90% over the past five years, rendering Rapid7’s current market capitalization at $584.4 million.
Under the new leadership, Mohamed is anticipated to receive a lucrative compensation package comprising a base salary of $625,000, a performance-based bonus that could reach the same amount, a generous $6 million restricted stock unit (RSU) award that will vest over three years, and additional performance-based RSUs covering 2.13 million shares. In contrast, Thomas’s compensation in 2025 included stock awards amounting to $9.2 million, a base salary of $545,000, and a performance bonus of $315,000.
Despite Mohamed’s experience and collaborations with Thomas to refine Rapid7’s strategy over the past year, the company has witnessed a drop of 68.6% in share value since Mohamed joined the board. Notably, Jana Partners is the largest shareholder in Rapid7, owning approximately 10.1% of the company.
Financially, Rapid7’s performance has been less than stellar; 2025 sales only slightly increased to $859.8 million, showing just a 1.9% increase compared to the previous year. Concurrently, net income dipped to $23.4 million, down 8.4% from the prior year. Projections for 2026 are similarly grim, with sales forecasted to decline further.
Wael Mohamed’s previous role as CEO at Forescout from March 2021 to October 2022 was marked by significant activities, including the acquisition of firms specializing in medical device security and threat detection. However, his tenure there also coincided with layoffs, hinting at underlying operational challenges. Before leading Forescout, he spent over three years as Trend Micro’s president and COO, amplifying his credentials within the cybersecurity sector.
Jana Partners, after acquiring a 13% economic interest in Rapid7 in October 2024, spotlighted various operational issues affecting the company’s stock performance. These concerns have included challenges in forecasting, investor communication, corporate governance, and retaining skilled employees. Despite these hurdles, Rapid7’s stock has seen a staggering decline of 77.5% since Jana disclosed its stake.
In terms of market position, Rapid7 currently finds itself significantly undervalued compared to its competitors, Qualys and Tenable, which hold market valuations of $4.04 billion and $3.25 billion, respectively. Rapid7’s shares are down 93.6% from an all-time high of $138.41 per share recorded in November 2021. Thomas initially took the company public in July 2015, with shares priced at $16 each, helping to raise $110.4 million and achieving a valuation of $605 million.
Despite these financial struggles, Rapid7 has continued to grow its workforce, increasing its employee count to 2,613 by the end of 2025—an increase of 17.3% from the previous year and 41.5% since the end of 2020. However, the geographic distribution of its workforce has shifted significantly, with the U.S. now representing only 45.2% of employees, down from 57.3% in late 2023 and 71.3% in late 2020.
In recent years, Rapid7 has implemented major layoffs, cutting 18% of its workforce in August 2023. This move was aimed at streamlining management structures and enhancing operational efficiencies, especially as the company pivots towards bolstering its managed detection and response capabilities.
As Rapid7 embarks on this new chapter under Mohamed’s leadership, the cybersecurity landscape will be watching closely to see if these strategic changes can reverse the company’s fortunes and regain the confidence of investors and customers alike.