Rackspace Technology, Inc.

Listed Company

RXTCIK 0001810019NasdaqAcceleratedSmaller ReportingServices-Computer Programming, Data Processing, Etc.DelawareFY ends Dec 31

Period

FY 2025

Revenue

$2.69B

Net Income

$-225.80M

Total Assets

$2.80B

Equity

$-1.22B

Shares Out

246.91M

Op. Cash Flow

$151.40M

Business

Rackspace Technology, Inc. is an end-to-end hybrid cloud and AI solutions company that designs, builds and operates customers’ cloud environments across major technology platforms. It provides professional services, managed services, security, data and platform offerings, automation software Rackspace Fabric, and AI services to help migrate, modernize, operate and optimize cloud workloads. The company operates two business units—Public Cloud and Private Cloud—organized around platform, apps, security and data service lines. It serves a global customer base through direct sales, channel partners and online distribution in numerous cities worldwide.

Summary from filing dated 2025-03-21

Financials

Consolidated Statement of Income

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Revenue	2,686	2,737	2,957	3,122	3,010
Cost of revenue	−2,179	−2,204	−2,328	−2,265	−2,073
Gross profit	506	533	629	857	937
Selling, general and administrative expenses	−607	−708	−767	−855	−907
Impairment of goodwill	0	−715	−709	−535	−52
Impairment of assets, net	0	−20	−52	−146	0
Loss from operations	−101	−909	−899	−679	−3
Interest expense	−83	−98	−222	−209	—
Gain on investments, net	300,000	100,000	300,000	−200,000	−3
Gain on debt extinguishment, net of debt modification costs	0	147	271	0	−38
Other expense, net	−19	−22	−5	−10	−1
Total other income (expense)	−101	28	45	−219	−247
Loss before income taxes	−202	−882	−854	−898	−249
Benefit (provision) for income taxes	−24	23	17	93	31
Net loss	−226	−858	−838	−805	−218
Foreign currency translation adjustments	15	−8	8	−27	−4
Unrealized gain on derivative contracts	2	15	11	87	12
Amount reclassified from accumulated other comprehensive income (loss) to earnings	−34	−43	−30	5	18
Other comprehensive loss	−17	−36	−11	65	26
Comprehensive loss	−242	−894	−849	−740	−193
Basic (in dollars per share)	−0.95	−3.82	−3.89	−3.81	−1.05
Diluted (in dollars per share)	−0.95	−3.82	−3.89	−3.81	−1.05
Basic (in shares)	239	225	215	211	208
Diluted (in shares)	239	225	215	211	208

Consolidated Balance Sheet

As of · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Cash and cash equivalents	106	144	197	228	273
Accounts receivable, net of allowance for credit losses and accrued customer credits of $27.0 and $12.2, respectively	267	299	340	622	554
Prepaid expenses	84	85	87	97	110
Other current assets	61	91	114	125	52
Total current assets	518	619	738	1,073	990
Property, equipment and software, net	596	601	609	628	827
Goodwill, net	740	736	1,452	2,155	2,707
Intangible assets, net	698	845	1,019	1,236	1,467
Operating right-of-use assets	145	135	126	138	162
Other non-current assets	103	119	152	226	177
Total assets	2,800	3,054	4,096	5,457	6,329
Accounts payable and accrued expenses	414	390	433	447	370
Accrued compensation and benefits	85	97	72	95	105
Deferred revenue	95	84	79	81	99
Debt	27	29	23	23	23
Accrued interest	5	7	21	36	28
Operating lease liabilities	55	56	66	60	60
Finance lease liabilities	48	53	56	62	65
Financing obligations	14	16	14	17	48
Other current liabilities	23	34	37	35	41
Total current liabilities	767	767	800	857	837
Debt	2,719	2,756	2,840	3,295	3,311
Operating lease liabilities	84	78	75	85	115
Finance lease liabilities	298	293	308	311	345
Financing obligations	39	39	52	48	63
Deferred income taxes	35	30	79	127	206
Other non-current liabilities	78	95	97	106	124
Total liabilities	4,019	4,058	4,251	4,827	5,001
Commitments and Contingencies (Note 10)	—	—	—	—	—
Preferred stock, $0.01 par value per share: 5.0 shares authorized; no shares issued or outstanding	0	0	0	0	0
Common stock, $0.01 par value per share: 1,495.0 shares authorized; 232.2 and 248.4 shares issued; 229.1 and 245.3 shares outstanding, respectively	3	2	2	2	2
Additional paid-in capital	2,710	2,683	2,638	2,573	2,500
Accumulated other comprehensive income	8	24	60	71	7
Accumulated deficit	−3,908	−3,682	−2,824	−1,986	−1,182
Treasury stock, at cost; 3.1 shares held	−31	−31	−31	−31	0
Total stockholders' deficit	−1,220	−1,004	−155	630	1,327
Total liabilities and stockholders' deficit	2,800	3,054	4,096	5,457	6,329

Consolidated Statement of Cash Flows

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Depreciation and amortization	298	295	370	388	425
Reduction in carrying amount of operating right-of-use assets	64	68	73	60	66
Deferred income taxes	24	−35	−42	−109	−42
Share-based compensation expense	45	63	65	70	75
Impairment of assets, net	0	20	52	146	0
Unrealized loss on derivative contracts	0	0	16	19	17
Gain on investments, net	−300,000	−100,000	−300,000	200,000	3
Provision for bad debts and accrued customer credits	6	20	9	12	−2
Amortization of debt issuance costs and debt discount and premium	6	2	8	8	—
Third party fees paid in connection with the March 2024 Refinancing Transactions	0	−32	0	0	—
Non-cash fair value adjustments	−2	−2	−1	3	0
Other operating activities	−2	−7	400,000	−200,000	−2
Accounts receivable	28	21	275	−82	−70
Prepaid expenses and other current assets	−3	11	25	−7	10
Accounts payable, accrued expenses, and other current liabilities	−26	−22	−44	70	88
Deferred revenue	10	2	−6	−22	22
Operating lease liabilities	−69	−83	−66	−66	−61
Other non-current assets and liabilities	−2	9	41	27	−18
Net cash provided by operating activities	151	40	375	247	371
Purchases of property, equipment and software	−61	−111	−97	−80	−108
Proceeds from sale of headquarters	0	17	0	0	31
Other investing activities	2	8	900,000	5	8
Net cash used in investing activities	−58	−87	−96	−98	−69
Proceeds from employee stock plans	500,000	900,000	1	4	61
Shares of common stock withheld for employee taxes	−2	−4	−1	0	0
Proceeds from borrowings under long-term debt arrangements	155	275	50	0	2,839
Payments on long-term debt	−198	−163	−242	−23	−2,878
Debt extinguishment costs	0	−22	0	0	—
Payments on financing component of interest rate swap	−17	−17	−19	−17	−13
Principal payments of finance lease liabilities	−57	−57	−80	−67	−51
Principal payments of financing obligations	−16	−15	−23	−49	−56
Net cash used in financing activities	−135	−3	−313	−187	−132
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	3	−3	2	−6	−2
Decrease in cash, cash equivalents, and restricted cash	−39	−53	−32	−44	167
Cash payments for interest, net of amount capitalized	83	104	214	178	179
Cash payments for income taxes, net of refunds	8	11	12	11	6
Acquisition of property, equipment and software by finance leases	51	41	68	37	60
Acquisition of property, equipment and software by financing obligations	14	4	25	7	45
Increase (decrease) in property, equipment and software accrued in liabilities	15	−10	−14	18	−11
Other non-cash activity	−1	−10	5	0	0
Non-cash purchases of property, equipment and software	79	25	84	61	95

Filings

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