Rackspace Technology Inc (RXT)
🔔 Watch stock
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We found at least one documented issue that threatens the company itself — regardless of how the stock is currently valued.
Whoever buys today buys a leveraged option on the 2028 refinancing succeeding — after a 649 percent run, at a price that already largely assumes success, while the bond market prices the same company at steep discounts. Whoever waits gets to see in the coming quarterly reports whether operating cash flow sustainably exceeds debt service, whether the Private Cloud erosion runs out, and on what terms the 2028 wall is refinanced. The decision is yours.
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Rackspace Technology shows up in our Reddit hype scanner (4 mentions in 24 hours as of July 15, 2026) — no surprise: up 649 percent year to date (data as of July 8, 2026). We read the annual reports (10-K) for 2024 and 2025 and the quarterly report (10-Q) as of March 31, 2026: a third straight year of losses, negative $1.2 billion in stockholders' equity, a $2.45 billion debt wall in 2028 — and a quarterly "profit" that only exists because the company bought back its own notes for roughly half of face value. Not investment advice — just the question of who knows more here: the share price or the lenders.
Read the analysis
Stock Watch
This analysis is as of July 15, 2026. Stock Watch will tell you what's changed at RXT since then.
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Appears in These Scanners
This stock currently matches 3 of our scanner strategies — each hit links to the scanner.
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Trading Day
Key levels of the most recently completed trading day — not a live quote.
52-Week Range
Current price 4.10 $ — 52% of the range above the low.
Lowest and highest closing price over the last 52 weeks. The marker shows where the current price sits within that range: close to the high speaks for strength, close to the low for weakness.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 08/03/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
AI Rating
Sells AIRackspace beschreibt sich im 10-K 2025 (Item 1 Business) als „end-to-end hybrid cloud and AI solutions company“ und führt mit „Rackspace AI“ ein eigenes Portfolio aus KI-Diensten und -Lösungen (hervorgegangen aus der 2023 gestarteten „Foundry for Artificial Intelligence“/FAIR), das über Professional- und Managed-Services verkauft wird — KI-Dienstleistungen sind damit eine dokumentierte Umsatzquelle im Segmentgeschäft (v. a. Public Cloud Services).
View the full file — quotes, sources, reviewed filings
„Rackspace Technology is a leading end-to-end hybrid cloud and AI solutions company. We serve as a trusted operator of the full technology stack, from governed private cloud infrastructure to AI deployed in production environments."
Rackspace Technology ist ein führendes Unternehmen für End-to-End-Hybrid-Cloud- und KI-Lösungen. Wir agieren als verlässlicher Betreiber des gesamten Technologie-Stacks — von kontrollierter Private-Cloud-Infrastruktur bis zu KI im Produktiveinsatz.
„Today, those capabilities come together as Rackspace AI—a comprehensive portfolio of AI services and solutions that combines infrastructure, cloud-native services, and deep expertise to help organizations scale AI from experimentation to enterprise production."
Heute bündeln sich diese Fähigkeiten als Rackspace AI — ein umfassendes Portfolio aus KI-Diensten und -Lösungen, das Infrastruktur, Cloud-native Services und tiefe Expertise kombiniert, um Organisationen zu helfen, KI vom Experiment in den unternehmensweiten Produktivbetrieb zu skalieren.
„We are a leading end-to-end hybrid cloud and AI solutions company."
Wir sind ein führendes Unternehmen für End-to-End-Hybrid-Cloud- und KI-Lösungen.
Filings Reviewed: 10-Q 2026-05-08 · 10-Q 2025-11-10 · 10-Q 2025-08-11 · 10-Q 2025-05-12 · 10-K 2026-03-06 · 10-K 2025-03-21
Rated on July 15, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Analysts & Price Target
The price target sits 19.5% above the current price.
- Consensus
- Hold
- Analyst Ratings
- 6
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | -0.18 | -0.24 – -0.11 | 2,499 | -1.2% | 3 |
| 12/31/2027 | 0.17 | 0.04 – 0.33 | 2,610 | 194.9% | 3 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Next Reporting Date
- Expected Earnings per Share
- -0.09 $
Expected date of the next quarterly or annual figures. Dates do shift occasionally — only the invitation issued by the company is binding.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
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· Total · per year
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The figures could not be loaded right now.
Source: fundamental data
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | -0.22 | -300.00 | 686 | -4.70 | -8.20 | 54 | 34 |
| 2025: Q1 | -0.29 | – | 665 | -3.70 | -10.70 | 13 | 4 |
| 2025: Q2 | -0.22 | -318.00 | 666 | -2.70 | -8.20 | 8 | -12 |
| 2025: Q3 | -0.27 | – | 671 | -0.70 | -10.00 | 71 | 43 |
| 2025: Q4 | -0.13 | – | 683 | -0.40 | -4.80 | 60 | 56 |
| 2026: Q1 | 0.03 | – | 678 | 1.90 | 1.20 | 5 | -9 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Annual Figures
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2017 | 2,145 | -118 | -60 | -3.65 | 292 | – | – |
| 2018 | 2,453 | 71 | -471 | -28.70 | 430 | 908 | 6,111 |
| 2019 | 2,438 | 102 | -102 | -6.24 | 293 | 899 | 6,272 |
| 2020 | 2,707 | 25 | -246 | -1.37 | 117 | 1,384 | 6,378 |
| 2021 | 3,010 | -3 | -218 | -1.05 | 371 | 1,327 | 6,329 |
| 2022 | 3,122 | -679 | -805 | -3.81 | 259 | 630 | 5,457 |
| 2023 | 2,957 | -899 | -838 | -3.89 | 375 | -155 | 4,096 |
| 2024 | 2,737 | -909 | -858 | -3.82 | 40 | -1,004 | 3,054 |
| 2025 | 2,686 | -68 | -226 | -0.95 | 151 | -1,220 | 2,800 |
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Assessment: Opportunities & Risks
An established multicloud services firm with $2,685.7 million of revenue (2025), partnerships with AWS, Microsoft Azure and Google Cloud and a broad customer base (no customer at 6 percent or more of revenue). But the margin mechanics are unfavorable: the growing Public Cloud segment earns a 4.7 percent segment margin, while the high-margin Private Cloud segment (24.7 percent) has been shrinking for years (annual and quarterly reports).
A third straight year of losses (−$225.8 million in 2025 after −$858.2 and −$837.8 million), more than $1.4 billion of goodwill impairments in 2023/2024, an accumulated deficit of $3,908.2 million, stockholders' equity of negative $1,219.5 million (12/31/2025); plus 7 percent dilution in 2025 alone. The report itself warns that profitability may not be achieved in the future either.
$2,429.2 million face value of debt, of which $2,448.6 million (incl. revolver) comes due in 2028; 2025 debt service = 99.2 percent of operating cash flow; cash of $93.6 million, revolver drawn to $150 of $375 million (03/31/2026). The bond market prices in skepticism: secured notes around 50, unsecured around 21 percent of face value; an Altman Z-score of -2.27 and 5 distress flags (data as of July 8, 2026).
The direction is right: Non-GAAP operating profit up 19 percent to $126.1 million (2025), operating cash flow improved from $39.9 million to $151.4 million, SG&A ratio cut by 330 basis points, Public Cloud up 6.7 percent in Q1 2026 — and deleveraging below face value (a good $160 million of principal retired for a fraction of par since 2024).
Apollo controls about 53 percent of the voting power, uses Nasdaq's controlled-company exemptions and is simultaneously a lender through affiliates ($79.7 million of the FLSO term loan) — in a potential 2028 restructuring the majority owner sits on both sides of the table, and nobody is obligated to inject fresh capital (10-K 2025, Item 1A).
Rackspace is a real turnaround candidate with real progress — a shrinking loss, returning operating cash flow, a growing Public Cloud business — and at the same time a balance sheet that economically belongs to the creditors: negative equity, debt service equal to the entire operating cash flow, and a $2.45 billion wall in 2028. While the stock went up sevenfold, the company's own lenders sold their claims at 50 cents (secured) to 21 cents (unsecured) on the dollar. The equity market and the credit market are telling two irreconcilable stories about the same company. Not investment advice.
- RXT reached our research list via the Reddit hype scanner (ApeWisdom, 4 mentions in 24 hours, as of July 15, 2026); attention waves of this kind are snapshots, not a quality verdict. The hit in the P/S ranking carries the July 8, 2026 data cut-off and rotates daily.
- Scanner metrics (P/S, relative strength, Altman Z, Piotroski, distress flags, interest coverage) are computed from trailing twelve-month figures; the Q1 2026 gain on debt repurchases skews earnings-based metrics upward.
- Price and valuation figures are dated to July 8, 2026 (about $6.40, market value roughly $1.6 billion); analyses are evergreen, daily prices are not a buy argument.
About the Company
Rackspace Technology, Inc. ist ein Unternehmen für Hybrid-Cloud- und KI-Lösungen in den USA, dem Vereinigten Königreich und international.
| Employees | 5,000 |
|---|---|
| Headquarters | San Antonio, TX |
| Address | 19122 US Highway 281 N., 78258-7667 San Antonio, United States |
| Phone | 800 961 4454 |
| Website | rackspace.com |
| IPO Date | 5. Aug 2020 |
| ISIN | US7501021056 |
| Stock Split | 1:12 on 07/20/2020 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Gajakarnan Vibushanan Kandiah | CEO & Director | 1968 |
| Mark A. Marino | Executive VP & CFO | 1977 |
| Dharmendra Kumar Sinha | Executive VP & President of Public Cloud Business Unit | 1963 |
| Paul Soligon | Senior Vice President of Operations | – |
| Sagar Hebbar | Head of Investor Relations | – |
| Michael Bross | Chief Legal Officer, Senior VP & Corporate Secretary | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 31, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.