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Rackspace Technology, Inc. operates as a hybrid cloud and artificial intelligence solutions company in the United States, the United Kingdom, and internationally. It operates through two segments, Public Cloud and Private Cloud. The company offers programmatic infrastructure, including hardware and services for datacenter compute, network, storage, and data protection; cloud operating systems; platform-as-a-service; private cloud solutions; and private cloud services, such as managed, professional, elastic engineering, and security services, as well as an email platform for customers and carriers. It also provides a cloud platform that offers platform-related services, including cloud strategy and architecture, platform and infrastructure migrations, and modern cloud infrastructure; cloud apps that build and manage applications within a cloud technology stack; and cloud data, which helps accelerate the adoption of modern data solutions enabling business transformation. In addition, the company offers cloud security that provides security solutions in security threat assessment and prevention; proactive threat detection and response; rapid remediation; governance, risk, and compliance assistance across multiple cloud platforms; and privacy and data protection services, including detailed access restrictions and reporting. Further, it provides Rackspace AI, a portfolio of AI services and solutions to help organizations scale AI, as well as multi-cloud strategy, data and application modernization, cloud adoption, cloud-native enablement, SaaS lifecycle management, and data management services. The company serves the financial services, government, healthcare, manufacturing, non-profit, education, SaaS and ISV, consumer goods, oil and gas, and other industries. The company was formerly known as Rackspace Corp. and changed its name to Rackspace Technology, Inc. in June 2020. Rackspace Technology, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.
5-year financial trends. Figures in USD millions.
Latest fiscal year: 2025
Year-by-year revenue, profitability, and cash flow (USD millions, last 10 years)
| Year | Revenue | EBITDA | Net Profit | FCF | ROE | Rev Growth 1Y | NP Growth 1Y |
|---|---|---|---|---|---|---|---|
| 2025 | $2.7B | $244M | $-226M | $91M | 18.5% | -1.9% | -73.7% |
| 2024 | $2.7B | $-421M | $-858M | $-71M | 85.5% | -7.4% | 2.4% |
| 2023 | $3.0B | $-190M | $-838M | $278M | 542.3% | -5.3% | 4.1% |
| 2022 | $3.1B | $-242M | $-805M | $166M | -127.8% | - | - |
| 2021 | - |
Income statement, balance sheet, and cash flow as reported
Consolidated Figures in USD Millions.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Total Revenue | - | 3,122.30 | 2,957.10 | 2,737.10 | 2,685.70 |
| Operating Revenue | - | 3,122.30 | 2,957.10 | 2,737.10 | 2,685.70 |
| Cost Of Revenue | - | 2,265.40 | 2,328.30 | 2,203.70 | 2,179.30 |
| Gross Profit | - | 856.90 | 628.80 | 533.40 | 506.40 |
| Operating Expense | - | 855.30 | 767.20 | 707.60 | 607.10 |
| Selling General And Administration | - | 855.30 | 767.20 | 707.60 | 607.10 |
| Total Expenses | - | 3,120.70 | 3,095.50 | 2,911.30 | 2,786.40 |
| Operating Income | - | 1.60 | -138.40 | -174.20 | -100.70 |
| Total Operating Income As Reported | - | -679 | -899.40 | -909.10 | -100.70 |
| EBITDA | - | -241.70 | -189.90 | -420.50 | 243.50 |
| Normalized EBITDA | - | 439.10 | 299.50 | 167.10 | 243.20 |
| EBIT | - | -689.20 | -632.80 | -783.50 | -119.10 |
| Interest Expense | - | 208.50 | 221.60 | 98 | 82.70 |
| Net Interest Income | - | -208.50 | -221.60 | -98 | -82.70 |
| Other Non Operating Income Expenses | - | -10 | -5 | -21.70 | -18.70 |
| Other Income Expense | - | -690.80 | -494.40 | -609.30 | -18.40 |
| Interest Expense Non Operating | - | 208.50 | 221.60 | 98 | 82.70 |
| Net Non Operating Interest Income Expense | - | -208.50 | -221.60 | -98 | -82.70 |
| Pretax Income | - | -897.70 | -854.40 | -881.50 | -201.80 |
| Tax Provision | - | -92.90 | -16.60 | -23.30 | 24 |
| Tax Rate For Calcs | - | 0 | 0 | 0 | 0 |
| Tax Effect Of Unusual Items | - | -70.12 | -9.30 | -15.28 | 0.06 |
| Net Income Continuous Operations | - | -804.80 | -837.80 | -858.20 | -225.80 |
| Net Income From Continuing And Discontinued Operation | - | -804.80 | -837.80 | -858.20 | -225.80 |
| Net Income From Continuing Operation Net Minority Interest | - | -804.80 | -837.80 | -858.20 | -225.80 |
| Net Income | - | -804.80 | -837.80 | -858.20 | -225.80 |
| Net Income Common Stockholders | - | -804.80 | -837.80 | -858.20 | -225.80 |
| Net Income Including Noncontrolling Interests | - | -804.80 | -837.80 | -858.20 | -225.80 |
| Normalized Income | - | -194.12 | -357.70 | -285.88 | -226.04 |
| Diluted NI Availto Com Stockholders | - | -804.80 | -837.80 | -858.20 | -225.80 |
| Basic Average Shares | - | 211.20 | 215.30 | 224.80 | 238.70 |
| Diluted Average Shares | - | 211.20 | 215.30 | 224.80 | 238.70 |
| Reconciled Depreciation | - | 447.50 | 442.90 | 363 | 362.60 |
| Reconciled Cost Of Revenue | - | 2,265.40 | 2,328.30 | 2,203.70 | 2,179.30 |
| Total Unusual Items | - | -680.80 | -489.40 | -587.60 | 0.30 |
| Total Unusual Items Excluding Goodwill | - | -680.80 | -489.40 | -587.60 | 0.30 |
| Special Income Charges | - | -680.60 | -489.70 | -587.70 | 0 |
| Gain On Sale Of Business | 0 | - | - | - | - |
| Other Special Charges | 37.50 | - | -271.30 | -147.20 | - |
| Write Off | 0 | 146.10 | 52.20 | - | - |
| Impairment Of Capital Assets | - | 680.60 | 761 | 734.90 | 0 |
| Gain On Sale Of Security | - | -0.20 | 0.30 | 0.10 | 0.30 |
| Gain On Sale Of Ppe | 19.90 | 0 | 0 | - | - |
Technology sector peers, ranked by market cap
| Company | Ticker | Market Cap | P/E | P/B | ROE | EV/EBITDA |
|---|---|---|---|---|---|---|
| Rackspace Technology, Inc.this co. | RXT | $1.4B | -6.17 | -1.14 | 18.5% | 18.61 |
| Alpha and Omega Semiconductor Limited | AOSL | $1.5B | -15.51 | 1.83 | -11.8% | 37.64 |
| EVERTEC, Inc. | EVTC | $1.4B | 9.90 | 2.25 | 22.8% | 6.46 |
| ADTRAN Holdings, Inc. | ADTN | $1.4B | -30.64 | 9.59 | -31.3% | 19.20 |
| Array Technologies, Inc. | ARRY | $1.4B |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| 5.37 |
| -43.0% |
| 42.29 |
| CEVA, Inc. | CEVA | $1.4B | -129.84 | 4.11 | -3.2% | -191.72 |
| Progress Software Corporation | PRGS | $1.3B | 18.15 | 2.78 | 15.3% | 8.75 |
| Blackbaud, Inc. | BLKB | $1.3B | 11.33 | 15.32 | 135.2% | 8.32 |
| VIA | VIA | $1.3B | -13.50 | 2.07 | -15.4% | -12.17 |
| Peer Median | - | -13.50 | 3.44 | -7.5% | 8.53 | |