Rackspace Technology Inc
Rackspace Technology Inc provides managed cloud and IT services, including infrastructure, application, and security solutions, primarily generating revenue through subscription and service contracts.
Business. Rackspace Technology Inc (RXT.O) is a technology company operating in the IT Services & Consulting industry, providing IT services to clients. The firm is headquartered in the United States and is listed under the ticker RXT.O. Specific details regarding its operating segments and geographic revenue mix are not available in the provided data.
Analyst recommendations
3 analysts · consensus HoldAt a glance
What drives this business
The watch-list the newsroom runs for this company — derived from its sector path, sharpened layer by layer. Not investment advice.
News & coverage
0Sector rotation
Developing storylines
Analysis
AI analysisOpportunity
Upcoming catalysts
Scheduled public events. Informational only — not investment advice.
- Company
- EarningsQ2 2026 earnings (expected)2026-07-28 · estimated
- Macro
- Rate decisionReserve Bank of Australia rate decision (press conf.)2026-07-08 · AU
- Rate decisionBank of Canada rate decision (press conf.)2026-07-15 · CA
- Rate decisionEuropean Central Bank rate decision (press conf.)2026-07-16 · EU
- Rate decisionBank of Japan rate decision (press conf.)2026-07-16 · JP
- Rate decisionFederal Reserve rate decision (press conf.)2026-07-29 · US
- Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
- Macro & political
- ElectionSE Swedish Election2026-09-14 · SE
- ElectionUS U.S. Midterms2026-11-03 · US
- ElectionFR French Legislative2027-06-01 · FR
- Congressional trades
- CongressMarjorie Taylor Greene — Rackspace Technology, Inc.2021-12-16 · GA · Sale · $1,001 - $15,000
- CongressSusie Lee — Rackspace Technology, Inc.2021-10-14 · Democrat · NV · Sale · $1,001 - $15,000
- CongressSusie Lee — Rackspace Technology, Inc.2021-05-14 · Democrat · NV · Purchase · $1,001 - $15,000
- CongressSusie Lee — Rackspace Technology, Inc.2021-02-19 · Democrat · NV · Purchase · $1,001 - $15,000
- CongressSusie Lee — Rackspace Technology, Inc.2020-12-16 · Democrat · NV · Purchase · $1,001 - $15,000
Pre-earnings brief
Signals & dispatch
Composite-score breakdown
Synthesis
Rackspace Technology Inc (RXT.O) is a technology company operating in the IT Services & Consulting industry, providing IT services to clients. The firm is headquartered in the United States and is listed under the ticker RXT.O. Specific details regarding its operating segments and geographic revenue mix are not available in the provided data.
Rackspace Technology Inc operates with a capital structure that is highly leveraged, as evidenced by a debt-to-equity ratio of -2.58, indicating that liabilities significantly exceed equity. The company's liquidity position is constrained, with a current ratio of 0.68, suggesting that it may struggle to meet short-term obligations without external financing. Despite a negative net income of $225.8 million, the company generated $151.4 million in operating cash flow, which is a positive sign of operational efficiency.
Profitability metrics for Rackspace are mixed. The company reported a gross profit of $506.4 million, but this was offset by an operating loss of $100.7 million, resulting in a negative net income. The return on equity (ROE) of 18.52% is high in absolute terms but misleading due to the negative equity base. The return on assets (ROA) of -8.06% indicates that the company is not generating returns that cover its cost of capital.
Geographically, Rackspace's revenue is not disclosed by region in the provided data, but the company's exposure to the IT Services & Consulting industry is concentrated in the Technology sector. This concentration may expose the company to sector-specific risks, such as rapid technological obsolescence and competitive pressures.
The company's growth trajectory is uncertain, with no specific revenue growth rates provided in the input data. However, the negative net income and high debt levels suggest that the company may face challenges in sustaining growth without significant operational improvements or external financing.
Risk factors for Rackspace include liquidity constraints and the potential for dilution, although the latter is currently assessed as low. The company's negative net cash position after subtracting total debt is a key flag, indicating a need for careful monitoring of its capital structure and liquidity management.
Recent events, such as analyst estimates, suggest a bearish outlook, with a mean price target of $2.17 and a median of $2.00, significantly below the current market price of $7.29. The lack of strong buy or buy recommendations from analysts further underscores the market's skepticism about the company's near-term prospects.
- Rackspace Technology Inc is highly leveraged, with a debt-to-equity ratio of -2.58, indicating significant financial risk.
- The company's liquidity position is weak, with a current ratio of 0.68, suggesting potential difficulties in meeting short-term obligations.
- Despite generating $151.4 million in operating cash flow, Rackspace reported a net loss of $225.8 million, highlighting operational inefficiencies.
- Analysts have a bearish outlook, with a mean price target of $2.17, significantly below the current market price.
- The company's negative net cash position after subtracting total debt is a critical risk factor that requires close monitoring.
Bull / Bear case
Generated · model-assistedIn focus — financials by report
Valuation
Revenue by segment
Business relationships
Supply chain
Peer comparison
Market position
Stress test
Predictor forecast
| Metric | Our forecast | Guidance | Consensus |
|---|---|---|---|
| EPS | —no estimate | —no estimate | -0,09 |
| Revenue | —no estimate | —no estimate | 2,6B USD |
| Operating income | —no estimate | —no estimate | 46,8M USD |
- Q4-2026 — next full year (forecast) · projected off Q4-2025 close, as of 2025-10-01 · conf —1,6BFORECAST
- FY2026 — next full year (forecast) · projected off FY2025 close, as of 2025-12-31 · conf —1,6BFORECAST
- Q4-2026 — next full year (forecast) · projected off Q4-2025 close, as of 2025-10-01 · conf —942,2MFORECAST
- FY2026 — next full year (forecast) · projected off FY2025 close, as of 2025-12-31 · conf —928,9MFORECAST
- FY2023 — reported · conf —1,6BREPORTED
- Q1-2024 — reported · conf —1,6BREPORTED
- FY2025 — reported · conf —1,6BREPORTED
- FY2024 — reported · conf —1,6BREPORTED
- Q4-2025 — reported · conf —1,6BREPORTED
- FY2023 — reported · conf —1,1BREPORTED
- Q1-2024 — reported · conf —1,1BREPORTED
- FY2024 — reported · conf —989,7MREPORTED
- Q4-2025 — reported · conf —989,7MREPORTED
- FY2025 — reported · conf —928,9MREPORTED
Options
Short squeeze
Earnings-call key lines
Consensus distribution
sell-side coverageEstimate revisions
consensus EPS · 26-week trendSell-side observations
Themes
ESG
Risk factors
- Net cash is negative after subtracting total debt.
Benchmarks vs cohort
Corporate actions / M&A
FX exposure
Comparable transactions
Derivatives & instruments
Derivative transactions
- Director, Chief Executive Officer · Stock Option (right to buy) → Common StockAcquired 6 000 000 @ $1,30grant · 2025-09-04
Actions
Ask Handelsavisen
- Market data
- Market data cache
- Issuer disclosures
- Public news
- Earnings transcripts
- Consensus estimates
- ESG data
- Ev To Operating Cash Flowenterprise_value / operating_cash_flow
- Return On Equitynet_income / total_equity
- Dilution Ratio(shares_outstanding_diluted - shares_outstanding_basic) / shares_outstanding_basic
- Market Priceinput from market-data provider (delayed close or quote-shim mid)
- Market Capmarket_price * shares_outstanding_diluted
- Ev To Revenueenterprise_value / revenue
- Rackspace Technology Inc Market data — financials · 2026-05-29
- Rackspace Technology Inc Market data — analyst estimates · 2026-05-29
- Rackspace Technology Inc Market data — ESG · 2026-05-29
Ownership & reference
Top holders
- Investment Managers · as of 2026-03-310,00 %$4M
- Institutional Investor · as of 2026-03-310,00 %$3M
- Investment Managers · as of 2024-06-300,00 %$14M
- Investment Managers · as of 2026-03-310,00 %$2M
- Investment Managers · as of 2026-03-310,00 %$1M
- Investment Managers · as of 2026-03-310,00 %$1M
- Investment Managers · as of 2025-12-310,00 %$6M
- Investment Managers · as of 2026-03-310,00 %$1M
- Investment Managers · as of 2024-12-310,00 %$0M
- Investment Managers · as of 2026-03-310,00 %$2M
- Investment Managers · as of 2026-03-310,00 %$0M
- Institutional Investor · as of 2026-03-310,00 %$0M
- Brokerage Firms · as of 2026-03-310,00 %$0M
- Funds · as of 2026-03-310,00 %$0M
- Brokerage Firms · as of 2026-03-310,00 %$0M
- Investment Managers · as of 2026-03-310,00 %$0M
- Investment Managers · as of 2026-03-310,00 %$0M
- Investment Managers · as of 2026-03-310,00 %$0M
- Investment Managers · as of 2026-03-310,00 %$0M
- Institutional Investor · as of 2026-03-310,00 %$0M
- Institutional Investor · as of 2026-03-310,00 %$0M
Leadership
- Amar MaletiraPresident, Chief Executive Officer, Director
Insider activity
- Director · Common StockOther 35 472 @ $7,22$256K · 2026-06-18
- Director · Common StockOther 37 950 · 2026-06-18
- Director · Common StockOther 37 950 · 2026-06-18
- Director · Common StockOther 37 950 · 2026-06-18
- Director · Common StockOther 71 156 · 2026-06-18
- Chief Human Resources Officer · Common StockSold 33 966 @ $5,56$189K · 2026-06-04
- Director, Chief Executive Officer · Common StockOther 8 059 @ $5,92$48K · 2026-06-04
- Chief Financial Officer · Common StockSold 48 099 @ $5,56$267K · 2026-06-04
- EVP, President, Public Cloud · Common StockSold 48 099 @ $5,56$267K · 2026-06-04
- Chief Human Resources Officer · Common StockSold 113 232 @ $5,12$580K · 2026-05-18
- Chief Financial Officer · Common StockOther 806 451 · 2026-04-03
- Director, Chief Executive Officer · Common StockOther 200 000 · 2026-04-03
- EVP, President, Public Cloud · Common StockOther 1 142 473 · 2026-04-03
- Chief Human Resources Officer · Common StockOther 443 548 · 2026-04-03
- EVP, President, Public Cloud · Common StockSold 188 123 @ $1,81$341K · 2026-03-18
- Chief Financial Officer · Common StockSold 14 058 @ $1,81$25K · 2026-03-18
- Chief Human Resources Officer · Common StockSold 21 266 @ $1,81$38K · 2026-03-02
- Chief Financial Officer · Common StockSold 20 183 @ $1,81$37K · 2026-03-02
- EVP, President, Public Cloud · Common StockSold 45 393 @ $1,81$82K · 2026-03-02
- Chief Financial Officer · Common StockSold 234 683 @ $1,63$383K · 2026-02-23
- Chief Financial Officer · Common StockOther 18 561 @ $1,02$19K · 2025-12-01
- Chief Human Resources Officer · Common StockSold 18 301 @ $1,01$18K · 2025-12-01
- EVP, President, Public Cloud · Common StockSold 59 322 @ $1,01$60K · 2025-12-01
- EVP, President, Public Cloud · Common StockSold 91 151 @ $1,04$95K · 2025-11-28
- Director, Former Chief Executive Officer · Common StockSold 1 780 619 @ $1,35$2,4M · 2025-09-15
Short positioning
Geographic breakdown
Intel & risk
Evidence & claims
From filings & derived data- R&D expense (YoY) (2025-12-31 vs 2024-12-31): -13.9%Derived (calculated)
- Debt-to-equity (FY 2025-12-31): -3.30xDerived (calculated)
- Current ratio (FY 2025-12-31): 0.68xDerived (calculated)
- Long-term debt (YoY) (2025-12-31 vs 2024-12-31): -1.4%Derived (calculated)
- Operating cash flow (YoY) (2025-12-31 vs 2024-12-31): 279.4%Derived (calculated)
- Total liabilities (YoY) (2025-12-31 vs 2024-12-31): -1.0%Derived (calculated)
- Revenue (YoY) (2025-12-31 vs 2024-12-31): -1.9%Derived (calculated)
- EPS (diluted) (YoY) (2025-12-31 vs 2024-12-31): 75.1%Derived (calculated)
- Net income (YoY) (2025-12-31 vs 2024-12-31): 73.7%Derived (calculated)
- Net margin (FY 2025-12-31): -8.4%Derived (calculated)
- Gross margin (FY 2025-12-31): 18.9%Derived (calculated)
- Return on equity (FY 2025-12-31): 18.5%Derived (calculated)
- Return on assets (FY 2025-12-31): -8.1%Derived (calculated)
- EPS (basic) (YoY) (2025-12-31 vs 2024-12-31): 75.1%Derived (calculated)
- Operating income (YoY) (2025-12-31 vs 2024-12-31): 88.9%Derived (calculated)
- Total assets (YoY) (2025-12-31 vs 2024-12-31): -8.3%Derived (calculated)
- Cost of revenue (YoY) (2025-12-31 vs 2024-12-31): -1.1%Derived (calculated)
- Gross profit (YoY) (2025-12-31 vs 2024-12-31): -5.1%Derived (calculated)
- Cash & equivalents (YoY) (2025-12-31 vs 2024-12-31): -26.5%Derived (calculated)
- Shareholders' equity (YoY) (2025-12-31 vs 2024-12-31): -21.4%Derived (calculated)
- Capex (YoY) (2025-12-31 vs 2024-12-31): -45.3%Derived (calculated)
- Current assets (annual): USD 517.8MSEC XBRL filing
- Cash & equivalents (annual): USD 105.8MSEC XBRL filing
- Shares outstanding (annual): 245.3MSEC XBRL filing