Rackspace Technology (RXT) Company Report

Rackspace Technology (RXT) launched its Rackspace AI Launchpad service on November 12, 2025, a secure managed service designed to help companies evaluate, test, and productively deploy AI workloads.
The service aims to significantly reduce the time-to-value for AI adoption by simplifying the process through a phased approach, from feasibility studies to full production.
Built on Rackspace's AI Anywhere private cloud solution, the AI Launchpad offers managed GPU infrastructure and pre-installed AI/ML frameworks, with a strong focus on data security and privacy.
It is tailored for various industries, including healthcare, banking, financial services, securities, insurance (BFSI), and energy.
A case study with healthcare provider Compass demonstrated the service's effectiveness, leading to an 80% reduction in manual review effort and improved documentation quality.

Nov 12, 2025, 4:53 PM

Rackspace Technology announces Q3 2025 financial results and Q4 2025 guidance

RXT

Earnings

Guidance Update

Accounting Changes

Rackspace Technology reported Q3 2025 Total Revenue of $671 million, Non-GAAP Operating Profit of $32 million, and a Non-GAAP Loss per Share of ($0.05).
During Q3 2025, the company generated $71 million in cash from operating activities and $43 million in Free Cash Flow, with Cash & Cash Equivalents at $100 million as of September 30, 2025.
For Q4 2025 guidance, Rackspace Technology anticipates Total Revenue between $664 million and $678 million, Non-GAAP Operating Profit between $32 million and $34 million, and a Non-GAAP Loss Per Share between ($0.03) and ($0.05).
Starting in Q4 2024, the company updated its non-GAAP financial measures presentation, with all prior period non-GAAP figures recasted to reflect this change.

Nov 6, 2025, 10:00 PM

Rackspace Technology Reports Q3 2025 Results and Provides Q4 2025 Guidance

RXT

Earnings

Guidance Update

Product Launch

Rackspace Technology reported Q3 2025 GAAP revenue of $671 million, which was up 1% sequentially but down 1% year-over-year, coming in above the midpoint of its guidance.
The company achieved a non-GAAP operating profit of $32 million, meeting the high end of its guided range, and a non-GAAP loss per share of $0.05.
Bookings, as measured by annual contract value, grew 5% year-over-year, primarily driven by the private cloud segment.
For Q4 2025, Rackspace Technology expects GAAP revenue to be between $664 million and $678 million and a non-GAAP loss per share in the range of $0.03 to $0.05.
The company launched new solutions in Q3, including Rackspace Electronic Health Record Cloud Enterprise and AI Launchpad, focusing on regulated environments and AI capabilities.

Nov 6, 2025, 10:00 PM

Rackspace Technology Reports Third Quarter 2025 Results

RXT

Earnings

Guidance Update

Demand Weakening

Rackspace Technology reported revenue of $671 million in the third quarter of 2025, marking a 1% decrease year-over-year from $676 million in Q3 2024. Private Cloud revenue decreased by 3% to $250 million, while Public Cloud revenue increased by 1% to $422 million.
The company's net loss improved to $(67) million in Q3 2025 from $(187) million in Q3 2024, with net loss per diluted share at $(0.28) compared to $(0.82) in the prior year period. Non-GAAP Operating Profit remained flat at $32 million and Non-GAAP Loss Per Share was $(0.05) for both Q3 2025 and Q3 2024.
Rackspace Technology generated $71 million in cash flow from operating activities in Q3 2025.
For Q4 2025, the company provided guidance for total revenue between $664 million and $678 million and Non-GAAP Loss Per Share between $(0.03) and $(0.05).

Nov 6, 2025, 9:22 PM

Rackspace Technology Reports Third Quarter 2025 Results

RXT

Earnings

Guidance Update

Demand Weakening

Rackspace Technology reported total revenue of $671 million for the third quarter of 2025, representing a 1% decrease year-over-year.
The company's net loss was $(67) million, or $(0.28) per diluted share, in Q3 2025, compared to a net loss of $(187) million or $(0.82) per diluted share in Q3 2024.
Private Cloud revenue decreased by 3% to $250 million, while Public Cloud revenue increased by 1% to $422 million in the third quarter of 2025.
Cash Flow From Operating Activities was $71 million in the third quarter of 2025.
For the fourth quarter of 2025, Rackspace Technology provides guidance for total revenue between $664 million and $678 million and Non-GAAP Loss Per Share between $(0.03) and $(0.05).

Nov 6, 2025, 9:15 PM

Rackspace Technology Appoints Gajen Kandiah as CEO

RXT

CEO Change

Executive Compensation

Management Change

Rackspace Technology, Inc. (RXT) has appointed Gajen Kandiah as its new Chief Executive Officer, effective September 3, 2025.
Mr. Kandiah succeeds Amar Maletira, who will transition to Vice Chairman of the Board and remain a member until September 30, 2025, to ensure a smooth transition.
Mr. Kandiah's compensation package includes an annual base salary of $1,000,000 and a target annual bonus of 150% of his base salary.
He will also receive one-time inducement equity awards consisting of 4,000,000 restricted stock units and 6,000,000 stock options, both vesting over four years.
Under his leadership, Rackspace will focus on advancing its AI-first multicloud strategy, accelerating platform and product innovation, and deepening partnerships.