Rackspace Technology, Inc. financial statements

Income statement, balance sheet and cash flow statement for the last 8 fiscal years, taken from the XBRL data Rackspace Technology, Inc. files with the SEC in its annual reports.

In USD millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

	FY2018	FY2020	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue	2,453	2,438	2,707	3,010	3,122	2,957	2,737	2,686
Cost of revenue	1,446	1,427	1,723	2,073	2,265	2,328	2,204	2,179
Gross profit	1,007	1,011	984	937	857	629	533	506
Research and development	74.7	56	36.7	28.3	24.5	43.7	45.4	39.1
Selling, general and administrative	949	912	960	907	855	767	708	607
Operating income	-237	102	24.7	-2.5	-679	-899	-909	-101
Interest expense	281	330	268	205	209	222	98	82.7
Other non-operating income	-263	-224	-337	-247	-219	45	27.6	-101
Pre-tax income	-501	-122	-312	-249	-898	-854	-882	-202
Income tax	-29.9	-20	-66.2	-30.8	-92.9	-16.6	-23.3	24
Net income	-471	-102	-246	-218	-805	-838	-858	-226
EBITDA				243	-458	-691	-768	50.7
EPS, basic	-2.85	-0.62	-1.37	-1.05	-3.81	-3.89	-3.82	-0.95
EPS, diluted	-2.85	-0.62	-1.37	-1.05	-3.81	-3.89	-3.82	-0.95
Shares, basic (weighted)	165	165	180	208	211	215	225	239
Shares, diluted (weighted)	165	165	180	208	211	215	225	239

Balance sheet

	FY2018	FY2020	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Cash and equivalents	254	83.8	105	273	228	197	144	106
Receivables		350	483	554	622	340	299	267
Other current assets		33.4	47	52.4	125	114	91.1	61.1
Total current assets		544	759	990	1,073	738	619	518
Property, plant and equipment		728	885	827	628	609	601	596
Lease right-of-use assets		308	171	162	138	126	135	145
Goodwill	2,475	2,746	2,761	2,707	2,155	1,452	736	740
Intangible assets		1,817	1,646	1,467	1,236	1,019	845	698
Other non-current assets		129	156	177	226	152	119	103
Total assets		6,272	6,378	6,329	5,457	4,096	3,054	2,800
Accounts payable		260	285	370	447	433	390	414
Accrued liabilities		129	111	105	95.3	72.2	96.7	85.4
Deferred revenue		66.6	76.7	98.6	80.9	78.8	84.2	94.6
Short-term debt		29	43.4	23	23	23	29.2	27.3
Total current liabilities		672	742	837	857	800	767	767
Long-term debt		3,844	3,319	3,311	3,295	2,840	2,756	2,719
Lease liabilities		257	118	115	84.8	74.6	77.8	84.2
Other non-current liabilities		99.2	146	124	106	97.4	95	78
Total liabilities		5,374	4,994	5,001	4,827	4,251	4,058	4,019
Total debt		3,873	3,363	3,334	3,318	2,863	2,786	2,746
Paid-in capital		1,603	2,364	2,500	2,573	2,638	2,683	2,710
Retained earnings		-718	-963	-1,182	-1,986	-2,824	-3,682	-3,908
Treasury stock				0	-31	-31	-31	-31
Other comprehensive income		12	-18.6	6.9	71.4	60.3	24.1	7.5
Shareholders' equity	908	899	1,384	1,327	630	-155	-1,004	-1,220
Total equity	908	899	1,384	1,327	630	-155	-1,004	-1,220
Total liabilities and equity		6,272	6,378	6,329	5,457	4,096	3,054	2,800
Shares outstanding		165	202	211	213	217	229	245

Cash flow statement

	FY2018	FY2020	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Net income	-471	-102	-246	-218	-805	-838	-858	-226
Depreciation and amortization				245	221	209	141	151
Stock-based compensation	20	30.2	74.5	75.4	69.5	65.4	63.4	45.1
Deferred income tax	-22.7	-40.7	-73.6	-41.5	-109	-41.9	-35	23.7
Change in receivables	-32.3	-42.2	-156	-69.5	-82.4	275	20.5	27.6
Change in payables	51.2	-32.7	-7.4	88.1	69.8	-44.2	-22.2	-26.4
Cash from operations	430	293	117	371	247	375	39.9	151
Capital expenditures	-294	-198	-117	-108	-80.4	-96.9	-111	-60.8
Acquisitions	-65.3	-316	-9.5	0	-7.7	0	0
Cash from investing	-348	-387	-128	-69	-97.9	-96	-86.6	-58.4
Debt issued	0	225	860	2,839	0	50	275	155
Debt repaid	-30.9	-320	-1,451	-2,878	-23	-242	-163	-198
Stock issued	3.2	0	658	0	0
Share buybacks	0	-2.2	0	0	-31	0	0
Cash from financing	-53.7	-79.2	29.9	-132	-187	-313	-3	-135
Exchange rate effect	-4.5	1.7	2.8	-2.3	-5.8	2.2	-3	2.6
Net change in cash	23.3	-171	21	167	-44	-31.7	-52.7	-39
Free cash flow	136	94.9	0.2	262	166	278	-71.2	90.6
Interest paid	263	265	263	179	178	214	104	82.8
Income taxes paid	13.9	7.2	15.6	5.5	10.5	11.9	10.8	8.3

Key metrics

Worked out from the statements above. Latest values use the trailing twelve months to June 30, 2026; growth uses fiscal years. Valuation uses the share price of $3.97 on September 25, 2026.

Profitability

Metric	Value	How it is calculated
Gross margin	17.9%	Gross profit / revenue.
Operating margin	-3.3%	Operating income / revenue.
EBITDA margin	2.5%	EBITDA (operating income + depreciation and amortization) / revenue.
Pre-tax margin	-5.4%	Pre-tax income / revenue.
Net margin	-5.9%	Net income / revenue.
FCF margin	1.5%	Free cash flow (cash from operations - capital expenditures) / revenue.
Operating cash flow margin	3.8%	Cash from operations / revenue.
Return on assets (ROA)	-5.8%	Net income / average total assets.
Return on invested capital (ROIC)	-5.0%	Approximation: operating income x (1 - tax rate) / average (total debt + equity - cash). Tax rate is the effective rate when between 0% and 50%, else 21%.
SG&A / revenue	21.2%	Selling, general and administrative expense / revenue.
Stock-based pay / revenue	1.5%	Stock-based compensation (from the cash flow statement) / revenue.
Capex / revenue	2.3%	Capital expenditures / revenue.
D&A / revenue	5.8%	Depreciation and amortization / revenue.

Growth

Metric	Value	How it is calculated
Revenue growth, 1y	-1.9%	Revenue vs the same period a year earlier. Only from a positive base.
Revenue CAGR, 3y	-4.9%	Compound annual growth of revenue over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Revenue CAGR, 5y	-0.2%	Compound annual growth of revenue over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Gross profit growth, 1y	-5.1%	Gross profit vs the same period a year earlier. Only from a positive base.
Gross profit CAGR, 3y	-16.1%	Compound annual growth of gross profit over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Gross profit CAGR, 5y	-12.4%	Compound annual growth of gross profit over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating cash flow growth, 1y	279.4%	Operating cash flow vs the same period a year earlier. Only from a positive base.
Operating cash flow CAGR, 3y	-15.0%	Compound annual growth of operating cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating cash flow CAGR, 5y	5.3%	Compound annual growth of operating cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Free cash flow CAGR, 3y	-18.3%	Compound annual growth of free cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Free cash flow CAGR, 5y	239.8%	Compound annual growth of free cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Total assets growth, 1y	-8.3%	Total assets vs the same period a year earlier. Only from a positive base.
Total assets CAGR, 3y	-19.9%	Compound annual growth of total assets over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Total assets CAGR, 5y	-15.2%	Compound annual growth of total assets over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Share count change, 1y	6.2%	Change in diluted weighted shares vs a year earlier. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 3y	4.2%	Change in diluted weighted shares, per year over 3 years. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 5y	5.9%	Change in diluted weighted shares, per year over 5 years. Negative means buybacks shrank the share count; positive means dilution.

Balance sheet health

Metric	Value	How it is calculated
Current ratio	0.76x	Current assets / current liabilities.
Quick ratio	0.53x	(Cash + short-term investments + receivables) / current liabilities.
Cash ratio	0.15x	(Cash + short-term investments) / current liabilities.
Debt / assets	101.5%	Total debt / total assets.
Liabilities / assets	146.7%	Total liabilities / total assets.
Net debt	$2.68B	Total debt - cash - short-term investments. Negative means more cash than debt.
Net debt / EBITDA	39.1x	Net debt / EBITDA (twelve months), when EBITDA is positive.
Interest coverage	-0.86x	Operating income / interest expense.
Working capital	-$179.6M	Current assets - current liabilities.
Goodwill and intangibles / assets	50.1%	(Goodwill + intangible assets) / total assets.
Tangible book value	-$2.66B	Shareholders' equity - goodwill - intangible assets.

Efficiency

Metric	Value	How it is calculated
Asset turnover	0.98x	Revenue / average total assets.
Fixed asset turnover	4.70x	Revenue / average property, plant and equipment.
Receivables turnover	9.70x	Revenue / average receivables.
Days sales outstanding	38 days	365 x average receivables / revenue.
Days payables	65 days	365 x average accounts payable / cost of revenue.
Capex / operating cash flow	60.6%	Capital expenditures / cash from operations, when that is positive.

Per share

Metric	Value	How it is calculated
EPS, diluted	-$0.64	Net income per diluted share, as reported (split-adjusted). Over the last twelve months: the four quarters summed, or net income / latest diluted shares when a quarter has no reported EPS.
Revenue per share	$10.80	Revenue / diluted weighted shares.
FCF per share	$0.16	Free cash flow / diluted weighted shares.
Operating cash flow per share	$0.42	Cash from operations / diluted weighted shares.
Book value per share	-$5.09	Shareholders' equity / shares outstanding (diluted weighted shares when not reported).
Tangible book per share	-$10.55	Tangible book value / shares outstanding.
Cash per share	$0.44	(Cash + short-term investments) / shares outstanding.

Valuation

Metric	Value	How it is calculated
Market cap	$1.01B	Share price x shares outstanding.
Enterprise value	$3.69B	Market cap + total debt - cash - short-term investments.
P/S	0.37x	Market cap / revenue.
P/FCF	24.7x	Market cap / free cash flow. Only when free cash flow is positive.
P/OCF	9.73x	Market cap / cash from operations, when positive.
EV/Sales	1.36x	Enterprise value / revenue.
EV/EBITDA	53.9x	Enterprise value / EBITDA, when both are positive.
EV/FCF	89.9x	Enterprise value / free cash flow, when both are positive.
FCF yield	4.1%	Free cash flow / market cap.
Earnings yield	-15.7%	Net income / market cap (the inverse of P/E).

What was Rackspace Technology, Inc.'s revenue in fiscal 2025?

Rackspace Technology, Inc. reported revenue of $2.69B for fiscal 2025, 1.9% lower than the year before.

Was Rackspace Technology, Inc. profitable in fiscal 2025?

No. It reported a net loss of $225.8M.

How much free cash flow did Rackspace Technology, Inc. generate in fiscal 2025?

Cash from operations of $151.4M minus capital expenditures of $60.8M left free cash flow of $90.6M.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

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