Rackspace Technology, Inc. Financials
This page shows Rackspace Technology, Inc. (RXT) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 7 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Financial Health Signals
Based on FY2024 annual data. Scores normalized against common benchmarks. How we calculate these scores
Rackspace Technology, Inc. has an operating margin of -33.2%, meaning the company retains $-33 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is down from -30.4% the prior year.
Rackspace Technology, Inc.'s revenue declined 7.4% year-over-year, from $3.0B to $2.7B. This contraction results in a growth score of 7/100.
Rackspace Technology, Inc.'s current ratio of 0.81 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 12/100, which could limit financial flexibility.
While Rackspace Technology, Inc. generated $39.9M in operating cash flow, capex of $111.1M consumed most of it, leaving -$71.2M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.
Rackspace Technology, Inc. passes 3 of 9 financial strength tests. 2 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Rackspace Technology, Inc. generates $-0.05 in operating cash flow ($39.9M OCF vs -$858.2M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Rackspace Technology, Inc. earns $-9.3 in operating income for every $1 of interest expense (-$909.1M vs $98.0M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Rackspace Technology, Inc. generated $2.7B in revenue in fiscal year 2024. This represents a decrease of 7.4% from the prior year.
Rackspace Technology, Inc.'s EBITDA was -$581.9M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 22.8% from the prior year.
Rackspace Technology, Inc. generated -$71.2M in free cash flow in fiscal year 2024, representing cash available after capex. This represents a decrease of 125.6% from the prior year.
Rackspace Technology, Inc. reported -$858.2M in net income in fiscal year 2024. This represents a decrease of 2.4% from the prior year.
Rackspace Technology, Inc. earned $-3.82 per diluted share (EPS) in fiscal year 2024. This represents an increase of 1.8% from the prior year.
Rackspace Technology, Inc. held $144.0M in cash against $2.8B in long-term debt as of fiscal year 2024.
Rackspace Technology, Inc. had 229M shares outstanding in fiscal year 2024. This represents an increase of 5.4% from the prior year.
Rackspace Technology, Inc.'s gross margin was 19.5% in fiscal year 2024, indicating the percentage of revenue retained after direct costs. This is down 1.8 percentage points from the prior year.
Rackspace Technology, Inc.'s operating margin was -33.2% in fiscal year 2024, reflecting core business profitability. This is down 2.8 percentage points from the prior year.
Rackspace Technology, Inc.'s net profit margin was -31.4% in fiscal year 2024, showing the share of revenue converted to profit. This is down 3.0 percentage points from the prior year.
Rackspace Technology, Inc. invested $45.4M in research and development in fiscal year 2024. This represents an increase of 3.9% from the prior year.
Rackspace Technology, Inc. spent $0 on share buybacks in fiscal year 2024, returning capital to shareholders by reducing shares outstanding.
Rackspace Technology, Inc. invested $111.1M in capex in fiscal year 2024, funding long-term assets and infrastructure. This represents an increase of 14.7% from the prior year.
RXT Income Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $671.2M+0.7% | $666.3M+0.1% | $665.4M-2.9% | $685.6M+0.1% | $684.9M-0.9% | $690.8M-4.0% | $719.7M-1.7% | $732.4M |
| Cost of Revenue | $541.3M+0.8% | $537.1M-0.3% | $538.5M-2.8% | $553.9M+0.1% | $553.5M-0.8% | $558.0M-1.3% | $565.6M-2.5% | $580.4M |
| Gross Profit | $129.9M+0.5% | $129.2M+1.8% | $126.9M-3.6% | $131.7M+0.2% | $131.4M-1.1% | $132.8M-13.8% | $154.1M+1.4% | $152.0M |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $163.8M+6.2% | $154.3M-6.7% | $165.3M+3.0% | $160.5M-13.3% | $185.2M-3.7% | $192.4M+16.3% | $165.5M-6.7% | $177.3M |
| Operating Income | -$33.9M-35.1% | -$25.1M+34.6% | -$38.4M-33.3% | -$28.8M+46.5% | -$53.8M+91.8% | -$652.8M-4194.7% | -$15.2M+93.7% | -$239.4M |
| Interest Expense | $21.2M-0.5% | $21.3M+9.8% | $19.4M+8.4% | $17.9M-2.7% | $18.4M-57.9% | $43.7M-14.1% | $50.9M-9.9% | $56.5M |
| Income Tax | $8.1M+76.1% | $4.6M-43.9% | $8.2M+1271.4% | -$700K+97.7% | -$29.9M-536.2% | -$4.7M-149.5% | $9.5M+157.6% | -$16.5M |
| Net Income | -$67.1M-23.1% | -$54.5M+23.8% | -$71.5M-27.7% | -$56.0M-324.0% | $25.0M+103.9% | -$640.6M-2387.9% | $28.0M+112.4% | -$226.6M |
| EPS (Diluted) | $-0.28-21.7% | $-0.23+25.8% | $-0.31-55.0% | $-0.20-281.8% | $0.11+103.8% | $-2.91-1918.8% | $0.16+115.2% | $-1.05 |
RXT Balance Sheet
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $2.8B-1.7% | $2.9B-2.4% | $3.0B-2.9% | $3.1B-10.0% | $3.4B-3.5% | $3.5B-14.2% | $4.1B-4.3% | $4.3B |
| Current Assets | $540.9M-1.4% | $548.4M-5.7% | $581.8M-6.0% | $618.8M-11.1% | $696.3M-11.7% | $788.3M+6.8% | $738.1M-12.7% | $845.1M |
| Cash & Equivalents | $99.5M-4.2% | $103.9M-18.8% | $128.0M-11.1% | $144.0M-24.3% | $190.2M-32.7% | $282.6M+43.6% | $196.8M-29.2% | $277.8M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $273.9M+7.9% | $253.9M-5.6% | $269.0M-10.0% | $298.8M-7.4% | $322.8M+6.4% | $303.3M-10.7% | $339.7M-2.6% | $348.7M |
| Goodwill | $739.7M-0.2% | $741.1M+0.5% | $737.3M+0.2% | $735.7M-16.2% | $877.7M0.0% | $877.7M-39.6% | $1.5B+0.3% | $1.4B |
| Total Liabilities | $4.0B+0.5% | $4.0B-0.6% | $4.0B-0.5% | $4.1B-2.2% | $4.1B-3.6% | $4.3B+1.2% | $4.3B-4.8% | $4.5B |
| Current Liabilities | $766.2M+7.1% | $715.4M-2.6% | $734.8M-4.1% | $766.6M-0.6% | $771.4M+2.3% | $753.9M-5.7% | $799.5M-3.1% | $824.8M |
| Long-Term Debt | $2.7B-0.9% | $2.8B+0.2% | $2.8B+0.2% | $2.8B-2.1% | $2.8B-5.3% | $3.0B+4.7% | $2.8B-5.7% | $3.0B |
| Total Equity | -$1.2B-6.1% | -$1.1B-4.3% | -$1.1B-6.9% | -$1.0B-32.8% | -$756.2M+3.9% | -$787.2M-409.5% | -$154.5M+15.5% | -$182.8M |
| Retained Earnings | -$3.9B-1.8% | -$3.8B-1.5% | -$3.8B-1.9% | -$3.7B-7.1% | -$3.4B+0.7% | -$3.5B-22.7% | -$2.8B+1.0% | -$2.9B |
RXT Cash Flow Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $70.7M+741.7% | $8.4M-33.3% | $12.6M-76.8% | $54.3M+125.3% | $24.1M+126.7% | -$90.3M-225.1% | $72.2M-72.9% | $266.8M |
| Capital Expenditures | $28.0M+34.6% | $20.8M+150.6% | $8.3M-58.3% | $19.9M-48.4% | $38.6M+37.4% | $28.1M-17.1% | $33.9M+23.3% | $27.5M |
| Free Cash Flow | $42.7M+444.4% | -$12.4M-388.4% | $4.3M-87.5% | $34.4M+337.2% | -$14.5M+87.8% | -$118.4M-409.1% | $38.3M-84.0% | $239.3M |
| Investing Cash Flow | -$25.5M-20.9% | -$21.1M-139.8% | -$8.8M+50.3% | -$17.7M+53.9% | -$38.4M-245.9% | -$11.1M+67.1% | -$33.7M-23.0% | -$27.4M |
| Financing Cash Flow | -$48.9M-223.8% | -$15.1M+26.7% | -$20.6M+55.2% | -$46.0M+40.9% | -$77.8M-141.3% | $188.2M+255.0% | -$121.4M-0.7% | -$120.6M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | $0 | $0 |
RXT Financial Ratios
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 19.4%-0.0pp | 19.4%+0.3pp | 19.1%-0.1pp | 19.2%+0.0pp | 19.2%-0.0pp | 19.2%-2.2pp | 21.4%+0.7pp | 20.8% |
| Operating Margin | -5.1%-1.3pp | -3.8%+2.0pp | -5.8%-1.6pp | -4.2%+3.7pp | -7.9%+86.6pp | -94.5%-92.4pp | -2.1%+30.6pp | -32.7% |
| Net Margin | -10.0%-1.8pp | -8.2%+2.6pp | -10.8%-2.6pp | -8.2%-11.8pp | 3.6%+96.4pp | -92.7%-96.6pp | 3.9%+34.8pp | -30.9% |
| Return on Equity | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Return on Assets | -2.4%-0.5pp | -1.9%+0.5pp | -2.4%-0.6pp | -1.8%-2.6pp | 0.7%+19.0pp | -18.2%-18.9pp | 0.7%+6.0pp | -5.3% |
| Current Ratio | 0.71-0.1 | 0.77-0.0 | 0.79-0.0 | 0.81-0.1 | 0.90-0.1 | 1.05+0.1 | 0.92-0.1 | 1.02 |
| Debt-to-Equity | -2.31+0.2 | -2.47+0.1 | -2.57+0.2 | -2.74+1.0 | -3.72+0.1 | -3.78+14.6 | -18.38-1.9 | -16.47 |
| FCF Margin | 6.4%+8.2pp | -1.9%-2.5pp | 0.7%-4.4pp | 5.0%+7.1pp | -2.1%+15.0pp | -17.1%-22.5pp | 5.3%-27.3pp | 32.7% |
Note: Shareholder equity is negative (-$1.0B), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.
Note: The current ratio is below 1.0 (0.81), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Frequently Asked Questions
What is Rackspace Technology, Inc.'s annual revenue?
Rackspace Technology, Inc. (RXT) reported $2.7B in total revenue for fiscal year 2024. This represents a -7.4% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Rackspace Technology, Inc.'s revenue growing?
Rackspace Technology, Inc. (RXT) revenue declined by 7.4% year-over-year, from $3.0B to $2.7B in fiscal year 2024.
Is Rackspace Technology, Inc. profitable?
No, Rackspace Technology, Inc. (RXT) reported a net income of -$858.2M in fiscal year 2024, with a net profit margin of -31.4%.
What is Rackspace Technology, Inc.'s earnings per share (EPS)?
Rackspace Technology, Inc. (RXT) reported diluted earnings per share of $-3.82 for fiscal year 2024. This represents a 1.8% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Rackspace Technology, Inc.'s EBITDA?
Rackspace Technology, Inc. (RXT) had EBITDA of -$581.9M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Rackspace Technology, Inc. have?
As of fiscal year 2024, Rackspace Technology, Inc. (RXT) had $144.0M in cash and equivalents against $2.8B in long-term debt.
What is Rackspace Technology, Inc.'s gross margin?
Rackspace Technology, Inc. (RXT) had a gross margin of 19.5% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.
What is Rackspace Technology, Inc.'s operating margin?
Rackspace Technology, Inc. (RXT) had an operating margin of -33.2% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.
What is Rackspace Technology, Inc.'s net profit margin?
Rackspace Technology, Inc. (RXT) had a net profit margin of -31.4% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.
What is Rackspace Technology, Inc.'s free cash flow?
Rackspace Technology, Inc. (RXT) generated -$71.2M in free cash flow during fiscal year 2024. This represents a -125.6% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Rackspace Technology, Inc.'s operating cash flow?
Rackspace Technology, Inc. (RXT) generated $39.9M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.
What are Rackspace Technology, Inc.'s total assets?
Rackspace Technology, Inc. (RXT) had $3.1B in total assets as of fiscal year 2024, including both current and long-term assets.
What are Rackspace Technology, Inc.'s capital expenditures?
Rackspace Technology, Inc. (RXT) invested $111.1M in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.
How much does Rackspace Technology, Inc. spend on research and development?
Rackspace Technology, Inc. (RXT) invested $45.4M in research and development during fiscal year 2024.
How many shares does Rackspace Technology, Inc. have outstanding?
Rackspace Technology, Inc. (RXT) had 229M shares outstanding as of fiscal year 2024.
What is Rackspace Technology, Inc.'s current ratio?
Rackspace Technology, Inc. (RXT) had a current ratio of 0.81 as of fiscal year 2024, which is below 1.0, which may suggest potential liquidity concerns.
What is Rackspace Technology, Inc.'s debt-to-equity ratio?
Rackspace Technology, Inc. (RXT) had a debt-to-equity ratio of -2.74 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Rackspace Technology, Inc.'s return on assets (ROA)?
Rackspace Technology, Inc. (RXT) had a return on assets of -28.1% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.
Why is Rackspace Technology, Inc.'s debt-to-equity ratio negative or unusual?
Rackspace Technology, Inc. (RXT) has negative shareholder equity of -$1.0B as of fiscal year 2024, which causes the debt-to-equity ratio to appear negative or not meaningful. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.
What is Rackspace Technology, Inc.'s Piotroski F-Score?
Rackspace Technology, Inc. (RXT) has a Piotroski F-Score of 3 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Rackspace Technology, Inc.'s earnings high quality?
Rackspace Technology, Inc. (RXT) has an earnings quality ratio of -0.05x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Rackspace Technology, Inc. cover its interest payments?
Rackspace Technology, Inc. (RXT) has an interest coverage ratio of -9.3x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Rackspace Technology, Inc.?
Rackspace Technology, Inc. (RXT) scores 5 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.