Rackspace Technology Inc (NAS:RXT)

Q4 2025 Rackspace Technology Inc Earnings Call Transcript

Feb 26, 2026 / 01:30 PM GMT

Release Date Price: $2.28 (+68.89%)

Transcript 10-K8-K

Key Points

Positve

Rackspace Technology Inc (RXT) exceeded revenue guidance for the quarter, driven by strong performance in the public cloud segment.
The company reported a non-GAAP operating profit of $41 million, above the high end of their range, with margins up 120 basis points sequentially.
Rackspace Technology Inc (RXT) ended the year with $397 million in total liquidity and $60 million in cash flow from operations for the quarter, providing a strong foundation for 2026.
The company is focusing on a platform engineering model, embedding engineers directly into customer environments to operationalize AI, which is expected to drive growth.
Rackspace Technology Inc (RXT) has secured several high-quality private cloud deals, reinforcing its strength in regulated, data-intensive environments such as financial services and healthcare.

Negative

Private cloud revenue was below the guided range due to a recently signed healthcare contract ramping more slowly than expected.
Non-GAAP gross profit margin decreased by 180 basis points sequentially, driven by lower revenue in private cloud and a higher mix of public cloud infrastructure.
The company expects public cloud revenue to decline by approximately 6% year over year at the midpoint, primarily due to the planned transition of a large government contract.
Rackspace Technology Inc (RXT) reported a non-GAAP loss per share of $0.01, although this was better than the guided range.
The private cloud segment experienced a non-GAAP gross margin decline of 240 basis points sequentially due to lower revenue and less fixed cost absorption.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

RXT.OQ - Rackspace Technology Inc
Q4 2025 Rackspace Technology Inc Earnings Call
Feb 26, 2026 / 01:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good day and thank you for standing by.

Welcome to the Rackspace 4th quarter, 2025 earnings conference call.

At this time, all participants are the listen-only mode.

Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Sagar Hubar, head of investor relations.

Please go ahead.

Thank you and welcome to Rackspace Technologies, 4th quarter 2025, earnings conference call.

I'm Sagar Habar, head of Investor relations.

Joining me today are Gajan Kadia, our Chief Executive Officer, and Marc Marino, our Chief Financial Officer

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