Rackspace Technology, Inc. (RXT) SEC Filings, Jul-Sep 2026

Rackspace Technology, Inc. (RXT) received a notice under Rule 144 that a person associated with the company, Kandiah Gajakarnan Vibushanan, plans to sell common stock primarily to cover tax obligations from equity compensation. The notice indicates a proposed sale of 8,258 shares of common stock through Morgan Stanley Smith Barney LLC Executive Financial Services, with an estimated aggregate market value of $24,856.58 and reference to 254,872,850 shares of common stock outstanding. The shares were acquired on September 1, 2026 upon the vesting of 16,667 restricted stock units, and the sale is noted for September 2, 2026 to satisfy tax withholding obligations.

Rackspace Technology, Inc. (RXT) reports that Mr. Dharmendra Kumar Sinha is expected to depart from his role as President, Public Cloud, effective on or about September 14, 2026. The company states that his departure does not result from any disagreement regarding operations, policies or practices.

Rackspace expects to enter into a separation agreement with Mr. Sinha, with terms anticipated to be consistent with his existing employment agreement, and to include customary releases and restrictive covenants. A copy of the final separation agreement is expected to be filed as an exhibit to the Form 10-Q for the period ending September 30, 2026.

Scott Anthony, a director of Rackspace Technology, Inc., reported selling 48,780 shares of common stock on August 14, 2026 in a sale classified as an open market or private transaction. The weighted average sale price was $4.2549 per share, with individual trade prices ranging from $4.22 to $4.30. Following these transactions, Anthony directly holds 180,215 shares of Rackspace common stock. The Rule 10b5-1 trading-plan checkbox was not marked as applicable.

A group of Apollo-affiliated investment entities filed an amended Schedule 13G reporting beneficial ownership of common stock of Rackspace Technology, Inc.. The group, including Apollo Management, L.P. and Apollo Management Holdings GP, LLC, reports beneficial ownership of up to 129,609,000 shares of Rackspace common stock.

Based on 253,908,600 shares outstanding as of July 6, 2026, this represents a reported beneficial ownership of up to 51.0% of the outstanding common stock for certain Apollo entities. All reporting persons have 0 sole voting or dispositive power and instead report shared voting and dispositive power over their respective share amounts. The Apollo entities include AP Inception Co-Invest ML Borrower, L.P. and AP Inception ML Borrower, L.P., which directly hold the issuer’s securities, and a chain of general partners and management companies that collectively report these positions while expressly disclaiming beneficial ownership for certain persons and entities.

Rackspace Technology, Inc. reported modest revenue growth but continued losses for the quarter and six months ended June 30, 2026, while advancing an Enterprise AI-focused strategy and managing a highly leveraged balance sheet. Revenue was $670.1 million for the quarter and $1,348.2 million year-to-date, up slightly from 2025, driven by Private Cloud growth, including contracts with embedded sales-type lease arrangements. Public Cloud revenue declined as the company de-emphasized lower-margin infrastructure resale.

Quarterly net loss widened to $67.5 million, but the year-to-date net loss improved to $59.2 million from $126.0 million a year earlier, helped by a $62.5 million gain on debt repurchases. Gross margin compressed as hardware and depreciation costs increased, and interest expense rose sharply to $60.4 million for the first half due to higher borrowing costs and the maturity of an interest rate swap. Operating cash flow turned negative at $(26.4) million.

The company remains highly leveraged, with total principal debt of $2,571.3 million and stockholders’ deficit of $(1,281.1) million, but management believes cash of $110.6 million, a $375.0 million revolver (of which $260.0 million is drawn), and an expanded receivables facility provide liquidity for at least 12 months. Rackspace is investing heavily in its Enterprise AI stack, including GPU-related capital, and initiated a workforce realignment expected to reduce about 15% of its global staff, incurring estimated one-time charges of $14.0 million to $19.0 million, to support this shift. Subsequent to quarter-end it entered a $250.0 million at-the-market equity program and issued shares, including 2.2 million shares to Palantir valued at approximately $15.0 million as non-cash consideration.

Rackspace Technology, Inc. reported second-quarter 2026 revenue of $670.1 million, up 0.6% year over year. Public Cloud revenue was $406.8 million, down 2.3%, while Private Cloud revenue rose 5.5% to $263.3 million, shifting mix toward higher-growth private offerings. Gross profit declined to $114.8 million (17.1% margin) as cost of revenue increased faster than sales.

Loss from operations widened to $(33.2) million and net loss to $(67.5) million, with net loss per diluted share at $(0.27). However, for the first six months of 2026, net loss improved to $(59.2) million from $(126.0) million, helped by a $62.5 million gain on debt extinguishment and lower restructuring intensity. Second-quarter Adjusted EBITDA was $65.9 million, slightly above the prior year, and Non-GAAP Operating Profit was $27.4 million.

Operating cash flow for the first half was a use of $26.4 million, while capital expenditures were $31.3 million. As of June 30, 2026, cash and cash equivalents were $110.6 million and total liquidity $202 million, against substantial debt balances. Management reaffirmed an enterprise AI-focused strategy and issued 2026 guidance, including total revenue of $2,450–$2,550 million and Adjusted EBITDA of $285–$295 million, alongside an expected full-year Non-GAAP loss per share of $(0.25)–$(0.30).

Rackspace Technology, Inc. is offering, through an Equity Distribution Agreement with Goldman Sachs & Co. LLC, up to $250,000,000 of its common stock in an at-the-market program priced at market rates. Sales may occur on Nasdaq or by negotiated transactions, block trades, direct purchases by the Sales Agent or other methods permitted by law.

The Sales Agent will receive a 1.5% commission on gross proceeds and will be deemed an underwriter for Securities Act purposes; Rackspace agreed to customary indemnification and expense reimbursement. The company states proceeds are intended for general corporate purposes, including working capital, capital expenditures and GPU-related growth capital.

Rackspace Technology launched a new at-the-market equity program, allowing sales of up to $250 million of common stock through Goldman Sachs at a 1.5% commission. The company also amended its accounts receivable securitization facility, extending the scheduled termination date from September 29, 2026 to July 2, 2029 and permitting the facility limit to rise from $300 million to a maximum of $350 million.

For Q2 2026, Rackspace expects revenue of $641–$649 million, GAAP net loss of $(91)–$(62) million, loss from operations of $(53)–$(33) million, non-GAAP operating profit of $19–$23 million and Adjusted EBITDA of $58–$62 million. The full-year 2026 outlook has been reduced, with revenue now guided to $2.45–$2.55 billion versus a prior $2.60–$2.70 billion range, and Adjusted EBITDA to $285–$295 million versus $305–$315 million, maintaining a 12% margin.

The company outlines an Enterprise AI growth strategy, planning cumulative AI capacity of 2 MW by the end of 2026, 15 MW by the end of 2027 and 30 MW by the end of 2028. It expects annual revenue of $15–$20 million per MW, implying $450–$600 million of annual revenue at 30 MW, with anticipated Adjusted EBITDA margins of 50%+ for the Enterprise AI business.