Rackspace Technology Inc
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
We found at least one documented issue that threatens the company itself — regardless of how the stock is currently valued.
Why this colour
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.
What the thesis turns on
Assessment: Opportunities & Risks
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.
Business model & market position
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).
Earnings & substance
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.
Balance sheet & the 2028 debt wall
$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).
Operational turnaround
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).
Ownership & governance
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).
Worth Noting
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.
Stock Watch
This analysis is as of August 26, 2026. Stock Watch will tell you what's changed at RXT since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 0.4089 $ to 7.50 $ · Last price: 3.90 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
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.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Software - Infrastructure
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Rackspace Technology Inc RXT | 1.0 | – | 12.9 | 18.6 | – | -1.9 | 172.2 |
| Microsoft Corporation MSFT | 3,632.6 | 30.8 | 17.6 | 67.9 | 46.3 | 14.9 | -1.6 |
| Oracle Corporation ORCL | 435.3 | 24.7 | 14.8 | 64.0 | 36.2 | 17.4 | -49.5 |
| Palantir Technologies Inc. PLTR | 432.5 | 199.0 | 147.5 | 84.8 | 46.2 | 56.2 | 4.7 |
| Palo Alto Networks Inc PANW | 305.7 | 302.6 | 194.0 | 70.4 | -2.5 | 14.9 | 84.7 |
| Crowdstrike Holdings Inc CRWD | 248.2 | – | 490.1 | 75.2 | -2.2 | 21.7 | 120.6 |
| Fortinet Inc FTNT | 124.2 | 61.8 | 39.6 | 80.2 | 31.3 | 14.2 | 115.0 |
| Cloudflare Inc NET | 115.1 | – | 2,805.8 | 72.6 | -9.7 | 29.9 | 56.1 |
| Synopsys Inc SNPS | 73.0 | 77.0 | 22.3 | 82.9 | 10.4 | 15.1 | -10.4 |
| Median of companies shown | 248.2 | 69.4 | 39.6 | 72.6 | 20.8 | 15.1 | 56.1 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
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.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($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 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.
The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | -0.22 | -300.00 | 686 | -4.70 | -8.20 | 54 | 34 |
| 2025: Q1 | -0.29 | – | 665 | -3.70 | -10.70 | 13 | 4 |
| 2025: Q2 | -0.22 | -318.00 | 666 | -2.70 | -8.20 | 8 | -12 |
| 2025: Q3 | -0.27 | – | 671 | -0.70 | -10.00 | 71 | 43 |
| 2025: Q4 | -0.13 | – | 683 | -0.40 | -4.80 | 60 | 56 |
| 2026: Q1 | 0.03 | – | 678 | 1.90 | 1.20 | 5 | -9 |
| 2026: Q2 | -0.27 | -22.70 | 670 | 0.60 | -10.10 | -32 | -48 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 2 of our scanner strategies — each hit links to the scanner.
Research
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | -0.27 | -0.28 – -0.25 | 2,503 | -49.7% | 3 |
| 12/31/2027 | 0.14 | -0.05 – 0.31 | 2,623 | 150.4% | 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.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly 10.0% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $41.0M |
|---|---|
| Market cap | $971.0M |
| Free cash flow in year ten | $106.4M |
| Terminal value as a share of market value | 57.8% |
For comparison: over the past five years free cash flow grew by 239.9% per year.
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Rackspace 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.
10-K · 2026-03-06 · View SEC filing
„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.
10-K · 2026-03-06 · View SEC filing
„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.
10-Q · 2026-05-08 · View SEC filing
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
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years -4.9%
- More than 10% revenue growth is expected for the coming year 2.3%
- Share count grows by less than 3% a year 4.2%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 1.5%
- Gross margin at 40% or higher and without meaningful erosion 13.4%
- Goodwill from acquisitions does not grow faster than revenue 26.4%
- Net debt below twice EBITDA 11.0 x EBITDA
- Operating cash flow covers the profits of the last three years 2,488 m
- Return on capital at 15% or higher, or up versus two years ago -3.4%
- Insiders hold at least 10% or are net buyers 3.0%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
0/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 2.9%
- Exp. sales growth 3Y > 5% -1.2%
- EBIT growth 10Y > 5% –
- Exp. EBIT growth 3Y > 5% -1.2%
- Net debt < 4x EBIT –
- EBIT positive, 10Y straight 3
- Max. EBIT decline < 50% 100.0%
- Return on equity > 15% –
- ROCE > 15% -3.4%
- Expected return > 10% 8.1%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Sep 8, 2026 | Teal-Guess Kellie | Chief Human Resources Officer | Sell | 33,558 | 3.13 | 105,037 |
| Sep 4, 2026 | Kandiah Gajakarnan Vibushanan | Chief Executive Officer | Sell | 498,728 | 3.21 | 1,600,917 |
| Sep 2, 2026 | Marino Mark A. | Chief Financial Officer | Sell | 51,373 | 2.95 | 151,550 |
| Sep 2, 2026 | Sinha Dharmendra Kumar | EVP, President, Public Cloud | Sell | 107,002 | 2.95 | 315,656 |
| Sep 2, 2026 | Kandiah Gajakarnan Vibushanan | Chief Executive Officer | Sell | 8,258 | 2.95 | 24,361 |
| Aug 14, 2026 | Scott Anthony | Director | Sell | 48,780 | 4.25 | 207,554 |
The company
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
- 08/05/2020
- 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 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 08/24/2026 Rackspace Technology, Inc. (RXT): Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers SEC ↗
- 08/10/2026 Rackspace Technology, Inc. (RXT): Results of Operations and Financial Condition; Financial Statements and Exhibits SEC ↗
- 07/09/2026 Rackspace Technology, Inc. (RXT): Entry into a Material Definitive Agreement; Results of Operations and Financial Condition; Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant; Other Events; Financial Statements and Exhibits SEC ↗
Data as of: September 17, 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.