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Rackspace Technology, Inc. RXT R2K

Technology · Software - Infrastructure · United States
https://www.rackspace.com

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.

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$5.17
+353.51% 1Y

Market & Price

Market Cap
$1.29B
Current Price
$5.17
High / Low (52W)
$7.29 / $0.41
Beta
2.24

Valuation

Stock P/E
-
Industry PE
32.74
Forward P/E
99.40
PEG Ratio
4.93
Book Value
$-4.88
Price to Book
-1.06
P/S
0.48
EV/EBITDA
17.91
Dividend Yield
-

Profitability & Returns

ROCE
-5.86%
ROE
-
ROA
-1.07%
Profit Margin
-5.41%
Op Margin
-1.06%
EPS (Latest Qtr)
$0.03
EPS (TTM)
$-0.61

Balance Sheet & Liquidity

Debt/Equity
-
Quick Ratio
0.46
Current Ratio
0.68
Debt
$3.23B
Total Assets
$2.80B
Current Assets
$517.80M
Working Capital
$-248.90M

Ownership

Promoter Holding
3.04%
Chg in Prom Hold
-
FII / Inst Holding
121.06%
Chg in FII Hold
-

Financial Snapshot

Enterprise Value
$4.42B
Total Revenue (TTM)
$2.70B
EBITDA
$246.90M
Free Cash Flow
$235.65M
Operating Cash Flow
$143.90M
Shares Outstanding
249.22M
Gross Margin
18.85%
Payout Ratio
0.00%

Growth (CAGR)

Revenue 5Y
-4.90%
Profit 5Y
23.98%
Revenue (YoY)
1.90%
Earnings (YoY)
-

PROS

  • Profit CAGR of 24.0% over 5 years.
  • Generates positive free cash flow.
  • In a confirmed uptrend (50-DMA above 200-DMA).

CONS

  • Revenue declined at -4.9% CAGR over 5 years.
  • Trading 29.1% below its 52-week high.

* The pros and cons are auto-generated from financial metrics.

Price Chart

Robinhood TradingView StockAnalysis

Fundamental Growth

Figures from the latest reported periods. CAGR is computed across the displayed window (quarterly CAGR is annualised assuming 4 quarters per year).

Peer comparison

Peer companies in the same sector (Technology).

#NameCMP $P/E Mkt CapDiv Yld % ROCE %ROE % Rev CAGR 5Y %Profit CAGR 5Y %
1 RXT Rackspace Technology, Inc. R2K 5.17 - $1.29B - -5.86% - -4.90% 23.98%
2 NVDA NVIDIA Corporation NDXSPXAI 211.14 32.38 $5.11T 0.47% 81.14% 114.29% 100.05% 201.80%
3 AAPL Apple Inc. NDXSPX 312.06 37.73 $4.58T 0.35% 68.72% 141.47% 1.81% 3.92%
4 MSFT Microsoft Corporation NDXSPXAI 450.24 26.82 $3.34T 0.81% 26.37% 34.01% 12.42% 11.87%
5 TSM Taiwan Semiconductor Manufacturing Company Limited AI 418.45 35.86 $2.17T 0.91% 32.04% 36.21% 18.94% 19.57%
6 MU Micron Technology, Inc. NDXSPXAI 971.00 45.87 $1.10T 0.06% 14.20% 39.82% 6.71% -0.57%
7 AMD Advanced Micro Devices, Inc. NDXSPXAI 516.10 172.61 $841.55B - 6.33% 8.06% 13.64% 48.64%
8 ORCL Oracle Corporation SPXAI 225.78 40.46 $649.35B 0.89% 13.07% 57.57% 10.59% 22.81%
9 ASML ASML Holding N.V. NDXAI 1,612.76 53.76 $621.59B 0.54% 43.81% 52.24% 15.55% 19.55%
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Quarterly Results

Figures in USD.

Metric Jun 2019Sep 2019Mar 2020Jun 2020Sep 2020Mar 2021Jun 2021Sep 2021Mar 2022Jun 2022Sep 2022Mar 2023Jun 2023Sep 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Revenue 602.40M601.70M652.70M656.50M681.70M725.90M743.80M762.50M775.50M772.20M787.60M758.70M746.30M732.40M690.80M684.90M--665.40M666.30M671.20M682.80M678.10M
Cost of Revenue ------------------538.50M537.10M541.30M562.40M559.00M
Gross Profit 252.10M253.80M249.30M241.90M245.80M235.30M235.50M231.70M226.00M224.00M207.10M169.60M153.10M152.00M132.80M131.40M--126.90M129.20M129.90M120.40M119.10M
Operating Expenses ------------------165.30M154.30M163.80M123.70M136.90M
Operating Income 25.60M32.10M21.50M22.70M-14.70M24.20M2.90M-2.90M20.90M4.00M-476.70M-581.00M-63.80M-239.40M-652.80M-53.80M---38.40M-25.10M-33.90M-3.30M-17.80M
EBITDA ------------------30.00M46.40M85.80M81.30M106.20M
Interest Expense ------------------19.40M21.30M21.20M20.80M26.20M
Pretax Income -------------------63.30M-49.90M-59.00M-29.60M8.20M
Tax Provision ------------------8.20M4.60M8.10M3.10M-100.00K
Net Income 62.50M-60.50M-48.20M-32.60M-101.20M-64.00M-36.60M-34.80M-38.50M-40.60M-511.70M-612.00M-27.20M-226.60M-640.60M25.00M---71.50M-54.50M-67.10M-32.70M8.30M
Diluted EPS 0.38---0.20-0.54-0.31-0.18-0.17-0.18-0.19-2.43-2.87-0.13-1.05-2.910.11---0.31-0.23-0.28-0.130.03

Profit & Loss (Annual)

Figures in USD.

Metric Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Revenue 2.45B2.44B2.71B-3.12B2.96B2.74B2.69B
Cost of Revenue ----2.27B2.33B2.20B2.18B
Gross Profit 1.01B1.01B984.40M-856.90M628.80M533.40M506.40M
Operating Expenses ----855.30M767.20M707.60M607.10M
Operating Income -237.20M101.60M24.70M-1.60M-138.40M-174.20M-100.70M
EBITDA -----241.70M-189.90M-420.50M243.50M
Interest Expense ----208.50M221.60M98.00M82.70M
Pretax Income -----897.70M-854.40M-881.50M-201.80M
Tax Provision -----92.90M-16.60M-23.30M24.00M
Net Income -470.60M-102.30M-245.80M--804.80M-837.80M-858.20M-225.80M
Diluted EPS --0.62-1.37--3.81-3.89-3.84-0.95
R&D Expense 74.70M56.00M36.70M28.30M24.50M43.70M45.40M39.10M

Compounded Sales Growth

5 Years:-4.90%
1 Year:1.90%

Compounded Profit Growth

5 Years:23.98%
1 Year:-

Stock Price Performance

1 Year:+353.51%
6 Months:+397.12%
3 Months:+165.13%
1 Month:+251.70%

Balance Sheet (Annual)

Figures in USD.

Metric Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Total Assets --6.27B6.38B-5.46B4.10B3.05B2.80B
Current Assets -----1.07B738.10M618.80M517.80M
Cash & Equivalents -254.30M83.80M104.70M-228.40M196.80M144.00M105.80M
Inventory ---------
Receivables -----622.20M339.70M298.80M266.50M
Total Liabilities --5.37B4.99B-4.83B4.25B4.06B4.02B
Current Liabilities --671.90M742.20M-856.50M799.50M766.60M766.70M
Long Term Debt --3.84B3.32B-3.30B2.84B2.76B2.72B
Total Debt -----3.85B3.38B3.28B3.24B
Total Equity 1.37B907.80M898.80M1.38B-629.50M-154.50M-1.00B-1.22B
Shares Outstanding -----211.20M220.50M232.20M248.40M

Cash Flows (Annual)

Figures in USD.

Metric Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Operating Cash Flow 429.80M292.90M116.70M-246.70M374.90M39.90M151.40M
Investing Cash Flow -348.30M-386.50M-128.40M--97.90M-96.00M-86.60M-58.40M
Financing Cash Flow -53.70M-79.20M29.90M--187.00M-312.80M-3.00M-134.60M
Capital Expenditure -294.30M-198.00M-116.50M--80.40M-96.90M-111.10M-60.80M
Free Cash Flow 135.50M94.90M200.00K-166.30M278.00M-71.20M90.60M
Net Change in Cash -----38.20M-33.90M-49.70M-41.60M
Share Buybacks 02.20M0031.00M00-

Ratios (Annual)

Figures in %.

Metric Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Gross Margin % 41.1%41.5%36.4%-27.4%21.3%19.5%18.9%
Operating Margin % -9.7%4.2%0.9%-0.1%-4.7%-6.4%-3.7%
Net Margin % -19.2%-4.2%-9.1%--25.8%-28.3%-31.4%-8.4%
ROE % -51.8%-11.4%-17.8%--127.8%542.3%85.5%18.5%
ROCE % -1.8%0.4%-0.0%-4.2%-7.6%-5.0%

Shareholding Pattern

Insiders
3.04%
Institutions
121.06%
Public Float
124.86%

Top Institutional Holders

#Holder% HeldSharesValue
1 Apollo Management Holdings, L.P. 52.01% 129.61M $670.08M
2 Blackrock Inc. 3.02% 7.53M $38.92M
3 Vanguard Capital Management LLC 1.85% 4.62M $23.87M
4 AQR Capital Management, LLC 1.82% 4.54M $23.46M
5 Janus Henderson Group PLC 1.18% 2.94M $15.19M
6 Vanguard Portfolio Management LLC 1.02% 2.54M $13.12M
7 Geode Capital Management, LLC 0.99% 2.45M $12.69M
8 Renaissance Technologies, LLC 0.82% 2.04M $10.56M
9 Jane Street Group, LLC 0.81% 2.02M $10.43M
10 State Street Corporation 0.75% 1.86M $9.63M

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