A Business at a Glance
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Rackspace Technology, Inc.
RXT
$936M
Mkt Cap
$3.94
-1.99%
Rackspace Technology, Inc. (RXT) has a 5-year average return on invested capital (ROIC) of -24.2%. This is below average and may indicate limited pricing power.
Rackspace Technology, Inc. (RXT) has a market capitalization of $936M. It is classified as a small-cap stock.
Rackspace Technology, Inc. (RXT) does not currently pay a regular dividend.
Rackspace Technology, Inc. (RXT) operates in the Services-Computer Programming, Data Processing, Etc. industry, within the Technology sector.
Rackspace Technology, Inc. (RXT) reported annual revenue of $2.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
Rackspace Technology, Inc. (RXT) has a net profit margin of -8.4%. The company is currently unprofitable.
Rackspace Technology, Inc. (RXT) generated $91 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Rackspace Technology is a leading end-to-end hybrid cloud and AI solutions company. We serve as a trusted operator of the full technology stack, from governed private cloud infrastructure to AI deployed in production environments. From edge to core to cloud, we design, integrate and operate the infrastructure, data foundations and software platforms required to deliver business outcomes with predictable cost, resilience, security and compliance. Our solutions are purpose-built for regulated and mission-critical environments where uptime, data sovereignty and operational accountability are essential. Cloud infrastructure has become the foundation of enterprise technology and AI is now reshaping how that infrastructure must be designed, operated and governed.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 2.7B | 2.7B | 2.7B | 3.0B | 3.1B | 3.0B |
| Net Income | -226M | -226M | -858M | -838M | -805M | -218M |
| EPS | $-0.95 | $-0.95 | $-3.82 | $-3.89 | $-3.81 | $-1.05 |
| Free Cash Flow | 91M | 91M | -71M | 278M | 166M | 262M |
| ROIC | -5.1% | -13.9% | -38.7% | -25.3% | -18.8% | - |
| Gross Margin | 18.9% | 18.9% | 19.5% | 21.3% | 27.4% | 31.1% |
| Debt/Equity | 0.00 | -2.37 | -2.91 | -19.44 | 5.50 | 2.64 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | -101M | -101M | -909M | -899M | -679M | - |
| Operating Margin | -3.7% | -3.7% | -33.2% | -30.4% | -21.7% | - |
| ROE | 0.0% | 20.3% | 148.1% | -352.8% | -82.3% | -16.1% |
| Shares Outstanding | 238M | 238M | 225M | 215M | 211M | 208M |
| Metric | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||
| Revenue | 2.5B | 2.4B | 2.7B | 3.0B | 3.1B | 3.0B | 2.7B | 2.7B | 2.7B |
| Gross Margin | 41.1% | 41.5% | 36.4% | 31.1% | 27.4% | 21.3% | 19.5% | 18.9% | 18.9% |
| R&D | 75M | 56M | 37M | 28M | 25M | 44M | 45M | 39M | 39M |
| SG&A | 949M | 912M | 960M | 907M | 855M | 767M | 708M | 607M | 607M |
| EBIT | -237M | 102M | 25M | N/A | -679M | -899M | -909M | -101M | -101M |
| Op. Margin | -9.7% | 4.2% | 0.9% | N/A | -21.7% | -30.4% | -33.2% | -3.7% | -3.7% |
| Net Income | -471M | -102M | -246M | -218M | -805M | -838M | -858M | -226M | -226M |
| Net Margin | -19.2% | -4.2% | -9.1% | -7.3% | -25.8% | -28.3% | -31.4% | -8.4% | -8.4% |
| Non-Recurring | 297M | 12M | 15M | 52M | 534M | 709M | 715M | 300K | 300K |
| Returns on Capital | |||||||||
| ROIC | -63.3% | 3.6% | 0.5% | N/A | -18.8% | -25.3% | -38.7% | -13.9% | -5.1% |
| ROE | -63.3% | -11.3% | -21.5% | -16.1% | -82.3% | -352.8% | 148.1% | 20.3% | 0.0% |
| ROA | -286.6% | -3.2% | -3.9% | -3.4% | -13.7% | -17.5% | -24.0% | -7.7% | -8.1% |
| Cash Flow | |||||||||
| Op. Cash Flow | 430M | 293M | 117M | 371M | 247M | 375M | 40M | 151M | 151M |
| Free Cash Flow | 136M | 95M | 200K | 262M | 166M | 278M | -71M | 91M | 91M |
| Owner Earnings | 246M | -233M | -424M | -129M | -211M | -60M | -319M | -192M | -192M |
| CapEx | 294M | 198M | 117M | 108M | 80M | 97M | 111M | 61M | 61M |
| Maint. CapEx | 164M | 496M | 466M | 425M | 388M | 370M | 295M | 298M | 298M |
| Growth CapEx | 130M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 164M | 496M | 466M | 425M | 388M | 370M | 295M | 298M | 298M |
| CapEx/OCF | N/A | N/A | 99.8% | 29.2% | 32.6% | 25.8% | 278.4% | 40.2% | 40.2% |
| Capital Allocation | |||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 2.2M | 0 | 0 | 31M | 0 | 0 | 0 | 0 |
| Buyback Yield | 0.0% | N/A | N/A | N/A | 5.6% | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 20M | 30M | 75M | 75M | 70M | 65M | 63M | 45M | 45M |
| Debt Repayment | 31M | 320M | 1.5B | 2.9B | 23M | 242M | 163M | 198M | 198M |
| Balance Sheet | |||||||||
| Net Debt | -254M | 4.1B | 3.4B | 3.2B | 3.2B | 2.8B | 2.8B | 2.8B | 2.8B |
| Cash & Equiv. | 254M | 84M | 105M | 273M | 228M | 197M | 144M | 106M | 106M |
| Long-Term Debt | 0 | 3.8B | 3.3B | 3.3B | 3.3B | 2.8B | 2.8B | 2.7B | 2.7B |
| Debt/Equity | 0.00 | 4.66 | 2.56 | 2.64 | 5.50 | -19.44 | -2.91 | -2.37 | 0.00 |
| Interest Coverage | -0.8 | 0.3 | 0.1 | N/A | -3.3 | -4.1 | -9.3 | -3.6 | -3.6 |
| Equity | 113M | 899M | 1.4B | 1.3B | 630M | -155M | -1.0B | -1.2B | -1.2B |
| Total Assets | 164M | 6.3B | 6.4B | 6.3B | 5.5B | 4.1B | 3.1B | 2.8B | 2.8B |
| Total Liabilities | 51M | 5.4B | 5.0B | 5.0B | 4.8B | 4.3B | 4.1B | 4.0B | 4.0B |
| Intangibles | N/A | 1.8B | 1.6B | 1.5B | 1.2B | 1.0B | 845M | 698M | 698M |
| Retained Earnings | N/A | -718M | -963M | -1.2B | -2.0B | -2.8B | -3.7B | -3.9B | -3.9B |
| Working Capital | N/A | -128M | 16M | 152M | 217M | -61M | -148M | -249M | -249M |
| Current Assets | 50M | 544M | 759M | 990M | 1.1B | 738M | 619M | 518M | 518M |
| Current Liabilities | N/A | 672M | 742M | 837M | 857M | 800M | 767M | 767M | 767M |
| Per Share Data | |||||||||
| EPS | -2.85 | -0.62 | -1.37 | -1.05 | -3.81 | -3.89 | -3.82 | -0.95 | -0.95 |
| Owner EPS | 1.49 | -1.41 | -2.36 | -0.62 | -1.00 | -0.28 | -1.42 | -0.81 | -0.81 |
| Book Value | 0.68 | 5.45 | 7.71 | 6.38 | 2.98 | -0.72 | -4.47 | -5.13 | -5.13 |
| Cash Flow/Share | 2.60 | 1.78 | 0.65 | 1.78 | 1.17 | 1.74 | 0.18 | 0.64 | 0.31 |
| Dividends/Share | 0.00 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 165.1M | 165.0M | 179.4M | 207.9M | 211.2M | 215.4M | 224.7M | 237.7M | 237.7M |
| Valuation | |||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -4.1 |
| P/FCF | N/A | N/A | N/A | 11.0 | 3.3 | 1.5 | N/A | 2.6 | 10.3 |
| EV/EBIT | N/A | N/A | 280.7 | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Book | N/A | N/A | 2.6 | 2.2 | 0.9 | N/A | N/A | N/A | N/A |
| Price/Sales | N/A | N/A | 1.2 | 1.3 | 0.5 | 0.1 | 0.2 | 0.1 | 0.3 |
| FCF Yield | N/A | N/A | 0.0% | 9.1% | 30.3% | 64.9% | -14.3% | 38.7% | 9.7% |
| Market Cap | 0 | N/A | 3.6B | 2.9B | 549M | 429M | 496M | 234M | 936M |
| Avg. Price | 0.00 | N/A | 18.10 | 18.54 | 7.82 | 2.01 | 2.19 | 1.57 | 3.94 |
| Year-End Price | 0.00 | N/A | 19.82 | 13.87 | 2.60 | 1.99 | 2.21 | 0.99 | 3.94 |
Rackspace Technology, Inc. passes 2 of 9 quality checks, indicating weak fundamentals.
On a free-cash-flow basis, the stock trades at 10.7x vs a median of 2.9x. The company's 5-year average gross margin is 23.6%. At current prices, the estimated annualized return to fair value is +21.7%.
Rackspace Technology, Inc. (RXT) reported earnings per share (EPS) of $-0.95 in its most recent fiscal year.
Rackspace Technology, Inc. (RXT) has a return on equity (ROE) of 20.3%. This indicates the company generates strong returns for shareholders.
Rackspace Technology, Inc. (RXT) has a 5-year average gross margin of 23.6%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 8 years of financial data for Rackspace Technology, Inc. (RXT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Rackspace Technology, Inc. (RXT) has a book value per share of $-5.13, based on its most recent annual SEC filing.