Rackspace Technology, Inc. Financials
Rackspace Technology, Inc. (RXT) reported $2.7B in revenue over the twelve months to Jun 30, 2026, up 0.3% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 8 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).
Recovery in cash generation and EBITDA masks a structurally weak balance sheet, shrinking gross-margin base, and debt-heavy financing.
The FY2025 rebound in EBITDA to$230M while operating income remained negative at-$101M shows the improvement sits above substantial depreciation and amortization, not in fully profitable operations. Free cash flow returned to$91M from a negative FY2024 result while net income remained a loss of-$226M , so cash conversion improved without accounting profitability.
Gross margin compressed from
FY2025 liabilities exceeded assets by
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Rackspace Technology, Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Rackspace Technology, Inc. has an operating margin of -3.8%, meaning the company loses $4 on every $100 of revenue. This results in a profitability score of 25/100. This is up from -33.2% the prior year.
Rackspace Technology, Inc.'s revenue declined 1.9% year-over-year, from $2.7B to $2.7B. This contraction results in a growth score of 18/100.
Rackspace Technology, Inc.'s current ratio of 0.68 is below the typical benchmark, resulting in a score of 8/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Rackspace Technology, Inc. has a free cash flow margin of 3.4%, earning a moderate score of 39/100. The company generates positive cash flow after capital investments, but with room for improvement.
Rackspace Technology, Inc. scores -1.11, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($764.6M) relative to total liabilities ($4.0B). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Rackspace Technology, Inc. passes 4 of 9 financial strength tests. 3 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.
Rackspace Technology, Inc. reported a net loss of $225.8M while generating $151.4M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal.
Rackspace Technology, Inc. reported an operating loss of $100.7M against $82.7M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
Key Financial Metrics
Earnings & Revenue
Rackspace Technology, Inc. generated $2.7B in revenue in fiscal year 2025. This represents a decrease of 1.9% from the prior year.
Rackspace Technology, Inc.'s EBITDA was $229.8M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 139.5% from the prior year.
Rackspace Technology, Inc. reported -$225.8M in net income in fiscal year 2025. This represents an increase of 73.7% from the prior year.
Rackspace Technology, Inc. earned -$0.95 per diluted share (EPS) in fiscal year 2025. This represents an increase of 75.1% from the prior year.
Cash & Balance Sheet
Rackspace Technology, Inc. generated $90.6M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 227.2% from the prior year.
Rackspace Technology, Inc. held $105.8M in cash against $2.7B in long-term debt as of fiscal year 2025.
Not reported for fiscal year 2025.
Margins & Returns
Rackspace Technology, Inc.'s gross margin was 18.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 0.6 percentage points from the prior year.
Rackspace Technology, Inc.'s operating margin was -3.8% in fiscal year 2025, reflecting core business profitability. This is up 29.5 percentage points from the prior year.
Rackspace Technology, Inc.'s net profit margin was -8.4% in fiscal year 2025, showing the share of revenue converted to profit. This is up 22.9 percentage points from the prior year.
Not reported for fiscal year 2025.
Capital Allocation
Rackspace Technology, Inc. invested $39.1M in research and development in fiscal year 2025. This represents a decrease of 13.9% from the prior year.
Rackspace Technology, Inc. invested $60.8M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 45.3% from the prior year.
Not reported for fiscal year 2025.
RXT Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $670.1M-1.2% | $678.1M-0.7% | $682.8M+1.7% | $671.2M+0.7% | $666.3M+0.1% | $665.4M-2.9% | $685.6M+1.5% | $675.8M |
| Cost of Revenue | $555.3M-0.7% | $559.0M-0.6% | $562.4M+3.9% | $541.3M+0.8% | $537.1M-0.3% | $538.5M-2.8% | $553.9M+2.9% | $538.3M |
| Gross Profit | $114.8M-3.6% | $119.1M-1.1% | $120.4M-7.3% | $129.9M+0.5% | $129.2M+1.8% | $126.9M-3.6% | $131.7M-4.2% | $137.5M |
| SG&A Expenses | $148.0M+8.1% | $136.9M+10.7% | $123.7M-24.5% | $163.8M+6.2% | $154.3M-6.7% | $165.3M+3.0% | $160.5M-5.3% | $169.5M |
| Operating Income | -$33.2M-86.5% | -$17.8M-439.4% | -$3.3M+90.3% | -$33.9M-35.1% | -$25.1M+34.6% | -$38.4M-33.3% | -$28.8M+83.4% | -$173.7M |
| Interest Expense | $34.2M+30.5% | $26.2M+26.0% | $20.8M-1.9% | $21.2M-0.5% | $21.3M+9.8% | $19.4M+8.4% | $17.9M-0.6% | $18.0M |
| Income Tax | $1.8M+1900.0% | -$100K-103.2% | $3.1M-61.7% | $8.1M+76.1% | $4.6M-43.9% | $8.2M+1271.4% | -$700K-105.8% | $12.0M |
| Net Income | -$67.5M-913.3% | $8.3M+125.4% | -$32.7M+51.3% | -$67.1M-23.1% | -$54.5M+23.8% | -$71.5M-27.7% | -$56.0M+70.0% | -$186.6M |
| EPS (Diluted) | -$0.27-1000.0% | $0.03+123.1% | -$0.13+53.6% | -$0.28-21.7% | -$0.23+25.8% | -$0.31-34.8% | -$0.23+72.0% | -$0.82 |
Not reported in any period shown, so not listed: R&D Expenses.
RXT Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $2.7B-0.7% | $2.8B-1.2% | $2.8B-1.6% | $2.8B-1.7% | $2.9B-2.4% | $3.0B-2.9% | $3.1B-2.9% | $3.1B |
| Current Assets | $555.9M+3.9% | $535.1M+3.3% | $517.8M-4.3% | $540.9M-1.4% | $548.4M-5.7% | $581.8M-6.0% | $618.8M-4.6% | $648.7M |
| Cash & Equivalents | $110.6M+18.2% | $93.6M-11.5% | $105.8M+6.3% | $99.5M-4.2% | $103.9M-18.8% | $128.0M-11.1% | $144.0M-8.3% | $157.1M |
| Accounts Receivable | $278.7M+4.9% | $265.8M-0.3% | $266.5M-2.7% | $273.9M+7.9% | $253.9M-5.6% | $269.0M-10.0% | $298.8M-4.2% | $311.8M |
| Goodwill | $738.7M0.0% | $738.8M-0.2% | $740.1M+0.1% | $739.7M-0.2% | $741.1M+0.5% | $737.3M+0.2% | $735.7M-0.5% | $739.7M |
| Total Liabilities | $4.0B+1.1% | $4.0B-0.9% | $4.0B-0.3% | $4.0B+0.5% | $4.0B-0.6% | $4.0B-0.5% | $4.1B-0.9% | $4.1B |
| Current Liabilities | $735.5M-6.4% | $785.6M+2.5% | $766.7M+0.1% | $766.2M+7.1% | $715.4M-2.6% | $734.8M-4.1% | $766.6M-0.3% | $768.9M |
| Long-Term Debt | $2.8B+3.0% | $2.7B-1.4% | $2.7B-0.9% | $2.7B-0.9% | $2.8B+0.2% | $2.8B+0.2% | $2.8B-0.9% | $2.8B |
| Total Equity | -$1.3B-5.3% | -$1.2B+0.2% | -$1.2B-2.7% | -$1.2B-6.1% | -$1.1B-4.3% | -$1.1B-6.9% | -$1.0B-5.7% | -$949.7M |
| Retained Earnings | -$4.0B-1.7% | -$3.9B+0.2% | -$3.9B-0.8% | -$3.9B-1.8% | -$3.8B-1.5% | -$3.8B-1.9% | -$3.7B-1.5% | -$3.6B |
Not reported in any period shown, so not listed: Inventory.
RXT Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$31.5M-717.6% | $5.1M-91.5% | $59.7M-15.6% | $70.7M+741.7% | $8.4M-33.3% | $12.6M-76.8% | $54.3M+4.8% | $51.8M |
| Capital Expenditures | $16.8M+15.9% | $14.5M+291.9% | $3.7M-86.8% | $28.0M+34.6% | $20.8M+150.6% | $8.3M-58.3% | $19.9M-18.8% | $24.5M |
| Free Cash Flow | -$48.3M-413.8% | -$9.4M-116.8% | $56.0M+31.1% | $42.7M+444.4% | -$12.4M-388.4% | $4.3M-87.5% | $34.4M+26.0% | $27.3M |
| Investing Cash Flow | -$19.7M-71.3% | -$11.5M-283.3% | -$3.0M+88.2% | -$25.5M-20.9% | -$21.1M-139.8% | -$8.8M+50.3% | -$17.7M+8.8% | -$19.4M |
| Financing Cash Flow | $68.3M+1765.9% | -$4.1M+91.8% | -$50.0M-2.2% | -$48.9M-223.8% | -$15.1M+26.7% | -$20.6M+55.2% | -$46.0M+31.8% | -$67.4M |
Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.
RXT Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 17.1%-0.4pp | 17.6%-0.1pp | 17.6%-1.7pp | 19.4%0.0pp | 19.4%+0.3pp | 19.1%-0.1pp | 19.2%-1.1pp | 20.3% |
| Operating Margin | -5.0%-2.3pp | -2.6%-2.1pp | -0.5%+4.6pp | -5.1%-1.3pp | -3.8%+2.0pp | -5.8%-1.6pp | -4.2%+21.5pp | -25.7% |
| Net Margin | -10.1%-11.3pp | 1.2%+6.0pp | -4.8%+5.2pp | -10.0%-1.8pp | -8.2%+2.6pp | -10.8%-2.6pp | -8.2%+19.4pp | -27.6% |
| Return on Assets | -2.5%-2.8pp | 0.3%+1.5pp | -1.2%+1.2pp | -2.4%-0.5pp | -1.9%+0.5pp | -2.4%-0.6pp | -1.8%+4.1pp | -5.9% |
| Current Ratio | 0.76+0.1x | 0.680.0x | 0.680.0x | 0.71-0.1x | 0.770.0x | 0.790.0x | 0.810.0x | 0.84 |
| FCF Margin | -7.2%-5.8pp | -1.4%-9.6pp | 8.2%+1.8pp | 6.4%+8.2pp | -1.9%-2.5pp | 0.7%-4.4pp | 5.0%+1.0pp | 4.0% |
Not reported in any period shown, so not listed: Return on Equity, Debt-to-Equity.
Note: Shareholder equity is negative (-$1.2B), 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 (0.68), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Where Rackspace Technology, Inc. Ranks
Frequently Asked Questions
What is Rackspace Technology, Inc.'s annual revenue?
Rackspace Technology, Inc. (RXT) reported $2.7B in total revenue for fiscal year 2025. This represents a -1.9% 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 1.9% year-over-year, from $2.7B to $2.7B in fiscal year 2025.
Is Rackspace Technology, Inc. profitable?
No, Rackspace Technology, Inc. (RXT) reported a net income of -$225.8M in fiscal year 2025, with a net profit margin of -8.4%.
What is Rackspace Technology, Inc.'s EBITDA?
Rackspace Technology, Inc. (RXT) had EBITDA of $229.8M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Rackspace Technology, Inc. have?
As of fiscal year 2025, Rackspace Technology, Inc. (RXT) had $105.8M in cash and equivalents against $2.7B in long-term debt.
What is Rackspace Technology, Inc.'s gross margin?
Rackspace Technology, Inc. (RXT) had a gross margin of 18.9% in fiscal year 2025, 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 -3.8% in fiscal year 2025, 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 -8.4% in fiscal year 2025, 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 $90.6M in free cash flow during fiscal year 2025. This represents a 227.2% 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 $151.4M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Rackspace Technology, Inc.'s total assets?
Rackspace Technology, Inc. (RXT) had $2.8B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Rackspace Technology, Inc.'s capital expenditures?
Rackspace Technology, Inc. (RXT) invested $60.8M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Rackspace Technology, Inc. spend on research and development?
Rackspace Technology, Inc. (RXT) invested $39.1M in research and development during fiscal year 2025.
What is Rackspace Technology, Inc.'s current ratio?
Rackspace Technology, Inc. (RXT) had a current ratio of 0.68 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
What is Rackspace Technology, Inc.'s return on assets (ROA)?
Rackspace Technology, Inc. (RXT) had a return on assets of -8.1% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
Why is Rackspace Technology, Inc.'s debt-to-equity ratio negative or not reported?
Rackspace Technology, Inc. (RXT) has negative shareholder equity of -$1.2B as of fiscal year 2025, so no debt-to-equity ratio is reported: dividing debt by equity that is not positive produces a number that cannot be read as leverage. 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 Altman Z-Score?
Rackspace Technology, Inc. (RXT) has an Altman Z-Score of -1.11, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Rackspace Technology, Inc.'s Piotroski F-Score?
Rackspace Technology, Inc. (RXT) has a Piotroski F-Score of 4 out of 9, indicating neutral 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 to 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) reported a net loss of $225.8M while generating $151.4M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal. 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) reported an operating loss of $100.7M against $82.7M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. 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 19 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.