Business Description
Rackspace Technology, Inc. is a global provider specializing in multi-cloud technology services. The company organizes its business into two primary divisions: Multicloud Services and Apps & Cross Platform. Through its Multicloud Services division, Rackspace offers comprehensive managed services for both public and private cloud environments. These services empower clients to identify, oversee, and fine-tune their ideal infrastructure, platforms, and associated services. This segment also delivers expert professional assistance for architecting and deploying multi-cloud strategies and modern cloud-native applications. The Apps & Cross Platform segment encompasses managed application services, along with extensive managed security offerings. These security services span threat identification and mitigation, proactive prevention, prompt incident response, adherence to governance standards, risk management, compliance support across diverse cloud ecosystems, and robust privacy and data protection, including granular access controls and reporting. Furthermore, this segment provides specialized data services and professional expertise for the development and deployment of application, security, and data solutions. Established in 1998, Rackspace Technology, Inc. maintains its corporate headquarters in San Antonio, Texas.
Business History
Generated: May 2, 2026 11:22amPrice Overview
Last updated: Jun 27, 2026 7:08am (just now)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): -0.95
Total Equity: -$1.22B
Shares: 238,700,000
Total Debt: $2.86B
Cash: $105.80M
EBITDA: $288.30M
Total Debt: $2.86B
Cash: $105.80M
Revenue: $2.69B
Shares: 238,700,000
Revenue: $2.69B
Revenue: $2.69B
Revenue: $2.69B
Total Equity: -$1.22B
Tax Rate: -11.9%
Equity: -$1.22B
Total Debt: $2.86B
Cash: $105.80M
Current Liabilities: $766.70M
Long-Term Debt: $2.72B
Total Debt: $2.86B
Total Equity: -$1.22B
Shares: 238,700,000
Shares: 238,700,000
CapEx: -$60.80M
Shares: 238,700,000
Stock Price: $5.98
Net Income: -$225.80M
Industry Benchmarks
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 21, 2026 10:14pm (5d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $3.0B | $3.1B | $3.0B | $2.7B | $2.7B |
| Cost of Revenue | $2.1B | $2.3B | $2.3B | $2.2B | $2.3B |
| Gross Profit | $936.8M | $856.9M | $648.6M | $533.4M | $359.5M |
| Operating Expenses | $939.3M | $1.5B | $1.5B | $1.4B | $427.9M |
| Operating Income | -$2.5M | -$679.0M | -$899.4M | -$909.1M | -$68.4M |
| Net Income | -$218.3M | -$804.8M | -$837.8M | -$858.2M | -$225.8M |
| EBITDA | $446.7M | -$241.7M | -$149.9M | -$420.5M | $288.3M |
| EPS | $-1.05 | $-3.81 | $-3.89 | $-3.82 | $-0.95 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 21, 2026 10:14pm (5d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $272.8M | $228.4M | $196.8M | $144.0M | $105.8M |
| Total Current Assets | $989.5M | $1.1B | $738.1M | $618.8M | $517.8M |
| Total Assets | $6.3B | $5.5B | $4.1B | $3.1B | $2.8B |
| Current Liabilities | $837.4M | $856.5M | $799.5M | $766.6M | $766.7M |
| Long-Term Debt | $3.3B | $3.3B | $2.8B | $2.8B | $2.7B |
| Total Liabilities | $5.0B | $4.8B | $4.3B | $4.1B | $4.0B |
| Total Equity | $1.3B | $629.5M | -$154.5M | -$1.0B | -$1.2B |
| Retained Earnings | -$1.2B | -$2.0B | -$2.8B | -$3.7B | -$3.9B |
Cash Flow (Annual)
Last updated: Jun 21, 2026 10:14pm (5d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $370.8M | $259.3M | $374.9M | $39.9M | $151.4M |
| Capital Expenditure | -$108.4M | -$80.4M | -$96.9M | -$111.1M | -$60.8M |
| Free Cash Flow | $262.4M | $178.9M | $278.0M | -$71.2M | $90.6M |
| Acquisitions (net) | $31.3M | -$7.7M | $0 | $16.9M | $0 |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | $0 | -$31.0M | -$1.0M | -$4.3M | $0 |
| Net Change in Cash | $167.3M | -$31.4M | -$31.7M | -$52.7M | -$39.1M |
Analyst Estimates (Annual)
Last updated: Jun 27, 2026 7:08am (just now)| Metric | 2025 | 2026 | 2027 | 2028 |
|---|---|---|---|---|
| Revenue |
$2.7B $2.6B – $2.7B
|
$2.7B $2.6B – $2.7B
|
$2.7B $2.6B – $2.8B
|
$2.9B $2.9B – $2.9B
|
| EBITDA |
-$13.9M -$14.0M – -$13.7M
|
-$13.8M -$13.9M – -$13.6M
|
-$14.1M -$14.3M – -$13.7M
|
-$14.8M -$14.8M – -$14.8M
|
| Net Income |
-$49.3M -$49.9M – -$48.7M
|
-$36.9M -$42.2M – -$31.7M
|
$10.3M -$14.3M – $34.9M
|
$60.1M $59.4M – $60.7M
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 21, 2026 10:14pm (5d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +3.7% | -5.3% | -7.4% | -1.9% |
| Gross Profit Growth | -8.5% | -24.3% | -17.8% | -32.6% |
| Operating Income Growth | -27,060.0% | -32.5% | -1.1% | +92.5% |
| Net Income Growth | -268.7% | -4.1% | -2.4% | +73.7% |
| EBITDA Growth | -154.1% | +38.0% | -180.5% | +168.6% |
Insider Trading (Recent)
All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-06-18 | Weston Michael Arlo | 0.00 | $0.00 | $0 | |
| 2026-06-18 | Roberts Anthony C. | A-Award | 37,950.00 | $0.00 | $0 |
| 2026-06-18 | Roberts Anthony C. | F-InKind | 35,472.00 | $7.22 | $256,108 |
| 2026-06-18 | Scott Anthony | A-Award | 37,950.00 | $0.00 | $0 |
| 2026-06-18 | Garber Mitchell Alan | A-Award | 37,950.00 | $0.00 | $0 |
| 2026-06-18 | BENJAMIN JEFFREY D | A-Award | 71,156.00 | $0.00 | $0 |
| 2026-04-03 | TEAL-GUESS KELLIE | A-Award | 443,548.00 | $0.00 | $0 |
| 2026-06-04 | TEAL-GUESS KELLIE | S-Sale | 33,966.00 | $5.56 | $188,851 |
| 2026-04-03 | Kandiah Gajakarnan Vibushanan | A-Award | 200,000.00 | $0.00 | $0 |
| 2026-06-04 | Kandiah Gajakarnan Vibushanan | F-InKind | 8,059.00 | $5.92 | $47,709 |
| 2026-04-03 | Marino Mark A. | A-Award | 806,451.00 | $0.00 | $0 |
| 2026-06-04 | Marino Mark A. | S-Sale | 48,099.00 | $5.56 | $267,430 |
| 2026-04-03 | SINHA DHARMENDRA KUMAR | A-Award | 1,142,473.00 | $0.00 | $0 |
| 2026-06-04 | SINHA DHARMENDRA KUMAR | S-Sale | 48,099.00 | $5.56 | $267,430 |
| 2026-05-18 | TEAL-GUESS KELLIE | S-Sale | 113,232.00 | $5.12 | $579,748 |
| 2026-03-18 | SINHA DHARMENDRA KUMAR | S-Sale | 188,123.00 | $1.81 | $340,503 |
| 2026-03-18 | Marino Mark A. | S-Sale | 14,058.00 | $1.81 | $25,445 |
| 2026-03-02 | TEAL-GUESS KELLIE | S-Sale | 21,266.00 | $1.81 | $38,491 |
| 2026-03-02 | Marino Mark A. | S-Sale | 20,183.00 | $1.81 | $36,531 |
| 2026-03-02 | SINHA DHARMENDRA KUMAR | S-Sale | 45,393.00 | $1.81 | $82,161 |
Narrative Economics
market-narrative step).
Delvantic AI Findings
Looking at the raw numbers first: revenue is genuinely flat-to-declining ($2.69B vs $2.74B vs $2.96B vs $3.12B over four years — a -4.7% CAGR), but the quarterly trajectory tells a more nuanced story than the "near-bankruptcy" framing suggests. Quarterly revenue has actually crept up sequentially every quarter of 2025: $665.4M → $666.3M → $671.2M → $682.8M, with Q4'25 down only 0.4% YoY against a Q4'24 comp of $685.6M. Net loss has narrowed materially: -$71.5M → -$54.5M → -$67.1M → -$32.7M. Full-year 2025 operating loss of -$100.7M is a 9x improvement vs 2024's -$909M (which was goodwill-impairment-laden). And critically, FY2025 operating cash flow was $151.4M with $90.6M FCF on a $440M market cap — that's a ~20% trailing FCF yield. This is not how a company headed for Chapter 11 in 12-18 months prints cash.
The Market Forces module's "competitively obsolete, financially insolvent, equity likely worthless" call is the most aggressive of the prior verdicts and, in my read, the most overstated. Insolvency requires inability to service debt; we don't have total debt disclosed in the tile (a real data gap), but $151M OCF and $106M cash against a managed-services book generating $2.69B in recurring-ish revenue is not an obvious zero. The Pre-Flight read of "deep value, not growth" is correct directionally; the Synthesis "High Conviction Required" hedge is honest. But there's an internal contradiction across the models: Revenue Confidence flags the quarterly trend as "accelerating" (true — sequential growth resumed), while Momentum cites -4.7% revenue CAGR and Market Forces calls it terminal. Both can't be weighted equally — the inflection in 2025 quarterlies is the most recent and most relevant data point, and the models that lean on trailing CAGRs are anchored to a worse regime.
The contrarian case the bears are missing: at $1.77 with 248M shares out, EV/Revenue of ~1.27x implies meaningful debt (likely $2.5-3B range based on EV math), so this is a leveraged equity stub, not a clean FCF play. The right framing is option-like: if FCF holds at ~$90M and revenue stabilizes, equity could re-rate to $4-6 (2-3x); if debt covenants trip or refinancing fails in a higher-rate window, it's a zero. The 4/10 confidence on negative book value is the tell — equity holders are behind a wall of debt, and the "pb_ratio -0.19" means liabilities exceed assets on the books. The insider selling cluster (six sales in Feb-Mar 2026 totaling ~520K shares) at depressed prices is genuinely bearish — insiders don't dump $1-2 stock unless they think it's going lower or they need liquidity, neither of which is reassuring. That said, these are likely RSU-vest-related sales given the F-InKind tag patterns, so I'd discount but not dismiss.
I dissent partially from the Market Forces "equity worthless" call and agree with Synthesis's "High Conviction Required." This is not a bankruptcy lock — the FCF inflection and narrowing losses are real — but it is a leveraged stub where the debt stack (which we can't see clearly here, a critical data gap) determines everything. At $1.77, you're paying ~5x trailing FCF for a stub with optionality on AI-infrastructure-driven managed services demand and substantial downside if the next refi window is hostile. Fair value in a base case where revenue stabilizes and FCF holds is probably $3-4; bear case is $0; bull case (margin recovery + AI tailwind narrative re-rate) is $6-8. Expected value is probably modestly above current price, but the distribution is barbelled enough that this is a position-sizing problem, not a conviction problem. I would not own this without seeing the debt maturity wall explicitly, and the missing total debt figure in this tile is the single most important gap.
GPT Critique
Upon examining the raw data, what stands out is Rackspace Technology's persistently declining revenue from $3.12 billion in 2022 to $2.69 billion in 2025. The revenue has been on a downward trajectory, registering a -4.7% CAGR over the past four years. Despite some sequential quarterly revenue growth in 2025, the overall trend is negative. The net income figures are particularly concerning, as they show consistent losses, albeit narrowing, from -$804.8 million in 2022 to -$225.8 million in 2025. The operating cash flow of $151.4 million and free cash flow of $90.6 million in 2025 are positives, suggesting some operational cash generation capability. However, the lack of a total debt figure is a glaring omission, making it difficult to assess the company's financial stability accurately.
I agree with Opus that the quarterly revenue growth in 2025 offers a more optimistic narrative than the annual figures suggest. The improvement in net loss from -$71.5 million in Q1 2025 to -$32.7 million in Q4 2025 is a positive sign. However, I disagree with Opus's assertion that the company's current financial state does not indicate impending insolvency. Without clarity on the debt structure, particularly given the negative book value and insider selling, the risk of financial distress remains significant. Opus mentions the potential for a turnaround if FCF holds and debt is refinanced cleanly, but the lack of transparency on debt makes this speculative. The insider selling activity is another red flag, indicating potential concerns within the company.
Moreover, I disagree with Opus's view that the market forces module's prediction of probable bankruptcy is overstated. Given the company's historical financial performance and the absence of a clear path to profitability, the skepticism from market forces seems justified. The company's gross margin of 18.86% and operating margin of -3.75% are weak for a technology company, further supporting the market's pessimistic outlook.
A careful skeptic might argue that both Opus and I are overemphasizing the current financial metrics and missing the potential strategic shifts or new market opportunities Rackspace could pursue. They might point out that the technology sector is rapidly evolving, and Rackspace could pivot to capitalize on emerging trends, such as AI-driven services, which Opus briefly mentions. However, without concrete evidence of such initiatives, this remains speculative.