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RXT

Rackspace Technology, Inc.

RXT

Rackspace Technology, Inc. • NASDAQ
$1.06 ▲ 2.91% (+0.03)
Market Cap $258.21 M
52w High $3.03
52w Low $1.00
Dividend Yield 0%
P/E -1.01
Volume 586.00K
Outstanding Shares 243.59M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $671.2M ▲ $163.8M ▲ $-67.1M ▼ -9.997% ▼ $-0.28 ▼ $37.3M ▼
Q2-2025 $666.3M ▲ $154.3M ▼ $-54.5M ▲ -8.179% ▲ $-0.23 ▲ $46.4M ▲
Q1-2025 $665.4M ▼ $165.3M ▲ $-71.5M ▼ -10.745% ▼ $-0.31 ▼ $30M ▼
Q4-2024 $685.6M ▲ $160.5M ▼ $-56M ▲ -8.168% ▲ $-0.25 ▲ $50.8M ▲
Q3-2024 $675.8M $311.2M $-186.6M -27.612% $-0.82 $-66.4M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $99.5M ▼ $2.845B ▼ $4.032B ▲ $-1.187B ▼
Q2-2025 $103.9M ▼ $2.895B ▼ $4.014B ▼ $-1.119B ▼
Q1-2025 $128M ▼ $2.966B ▼ $4.039B ▼ $-1.073B ▼
Q4-2024 $144M ▼ $3.054B ▼ $4.058B ▼ $-1.004B ▼
Q3-2024 $157.1M $3.146B $4.096B $-949.7M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-67.1M ▼ $70.7M ▲ $-25.5M ▼ $-48.9M ▼ $-4.4M ▲ $42.7M ▲
Q2-2025 $-54.5M ▲ $8.4M ▼ $-21.1M ▼ $-15.1M ▲ $-25.4M ▼ $-12.4M ▼
Q1-2025 $-71.5M ▼ $12.6M ▼ $-8.8M ▲ $-20.6M ▲ $-16M ▼ $4.3M ▼
Q4-2024 $-60.4M ▲ $54.3M ▲ $-17.7M ▲ $-46M ▲ $-13.1M ▲ $34.4M ▲
Q3-2024 $-186.6M $51.8M $-19.4M $-67.4M $-33M $27.3M

Revenue by Products

Product Q1-2022Q2-2022Q3-2022Q4-2022
Apps Cross Platform Segment
Apps Cross Platform Segment
 $90.00M ▲$100.00M ▲$100.00M ▲$100.00M ▲
MultiCloud Services Segment
MultiCloud Services Segment
 $640.00M ▲$630.00M ▼$650.00M ▲$650.00M ▲
OpenStack Public Cloud Segment
OpenStack Public Cloud Segment
 $40.00M ▲$40.00M ▲$40.00M ▲$30.00M ▼

Five-Year Company Overview

Income Statement

Income Statement Revenue has slipped from its recent peak and has been drifting down over the last couple of years, suggesting pressure on demand, pricing, or both. Profitability is a clear weak spot: gross profit has narrowed, operating income has been deeply negative for several years, and the company has not produced net profits in any of the past five years. Losses have generally grown rather than shrunk, and earnings per share remain meaningfully in the red. Overall, the income statement shows a business in transition that has yet to translate its strategy into stable growth or sustainable profits.

Balance Sheet

Balance Sheet The balance sheet shows a company with shrinking total assets, a relatively small cash cushion, and a substantial debt load that has not come down much over time. Equity has moved from positive to negative, which reflects accumulated losses and high leverage. A negative equity position and meaningful debt limit financial flexibility and increase sensitivity to interest costs and refinancing conditions. There is not a large balance-sheet buffer if performance stays weak or the macro environment tightens.

Cash Flow

Cash Flow Despite accounting losses, the business has generally generated positive operating cash flow, but the margin of safety is thin and has weakened from earlier years. After capital spending, free cash flow was modestly positive for a period but slipped into negative territory in the most recent year, indicating that the core business is currently not comfortably funding both its investments and its capital structure. Capital expenditures themselves are relatively moderate, so the challenge is more about operating performance than heavy investment. Sustained improvement in cash generation will be critical given the level of debt.

Competitive Edge

Competitive Edge Rackspace operates in a crowded, fast-moving cloud and IT services market. Its main competitive angle is deep expertise in managing complex, multi‑cloud environments across AWS, Azure, Google Cloud, and private clouds, combined with a strong service and support culture (“Fanatical Experience”). This positions it as a partner for customers that lack in‑house cloud skills. However, it competes against very large and well‑resourced players, including global consultants and other managed service providers, as well as the cloud giants themselves. Recent revenue declines suggest either market share pressure, pricing challenges, or slower demand in its legacy areas while newer offerings ramp up. The moat is service- and expertise-based rather than structural, and it must be continually defended through execution quality and specialization.

Innovation and R&D

Innovation and R&D Innovation is focused on moving up the value chain from basic hosting and infrastructure management into higher‑value multi‑cloud and AI services. The FAIR (Foundry for AI by Rackspace) initiative, AI Anywhere, the enterprise “intelligent co‑worker,” and joint AI solutions with partners like Dell and NVIDIA are all aimed at making Rackspace a go‑to partner for applied AI and cloud modernization. These offerings fit well with its advisory and managed-services heritage, but they are still in a relatively early phase from a commercialization standpoint. The key uncertainty is whether these AI and multi‑cloud services can scale fast enough and at attractive margins to offset declines in more traditional hosting services and to reverse the profitability trend.

Summary

Rackspace is in the middle of a difficult but potentially transformative shift: from legacy managed hosting toward higher‑value multi‑cloud and AI‑driven services. Strategically, its strengths lie in cross‑cloud expertise, strong service culture, and a growing portfolio of AI‑related solutions built with major technology partners. Financially, though, the picture is challenging: revenue has been easing, losses are persistent, equity has turned negative, leverage is high, and free cash flow has recently slipped into the red. The company’s story now hinges on execution. Key watchpoints include stabilization and eventual growth in revenue, visible progress toward operating profitability, the ability to generate consistently positive free cash flow, and tangible proof that its AI and multi‑cloud offerings are gaining traction in a very competitive market. The opportunity is meaningful if the transition succeeds, but the current financial profile underscores that execution risk is elevated and that the path to a healthier balance sheet and income statement is not yet proven.

NEWS

November 17, 2025 · 8:05 AM UTC

Rackspace Technology Appoints Lata Varghese and Phani Kishore Burre to Senior Leadership Roles Driving Cloud and AI Transformation

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November 12, 2025 · 7:46 AM UTC

Rackspace Technology Unveils AI Launchpad Service - Accelerating AI Adoption and Time to Value

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November 6, 2025 · 4:15 PM UTC

Rackspace Technology Reports Third Quarter 2025 Results

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October 21, 2025 · 9:16 AM UTC

Rackspace Technology Releases 2025 Sustainability Report

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October 17, 2025 · 4:35 PM UTC

Rackspace Technology to Announce Third Quarter 2025 Earnings on November 6th, 2025

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