RXTNasdaqServices-Computer Programming, Data Processing, Etc.Fiscal year ends December 31
Rackspace Technology, Inc.
Financials through Q2 FY2026, quarter ended Jun 30, 2026Last filing: 10-Q on Aug 10, 2026
$2.74−0.08 (-3.01%)
Close on Oct 19, 2026
- Market cap
- $685.27M
- P/E (TTM)
- –
- Dividend yield
- –
Margins
Share of revenue, fiscal years 2017 to 2025
Gross margin
18.9%−17.5 pts over 5 years
Operating margin
-3.7%−4.7 pts over 5 years
Net margin
-8.4%+0.7 pts over 5 years
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -1.9% | -4.9% | -0.2% | – | |
| Gross profit | -5.1% | -16.1% | -12.4% | – | |
| Free cash flow | – | -18.3% | +239.8% | – |
Returns and balance sheet
9 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | -21.5% | 20.3% | |
| Return on assets | – | -3.9% | -7.7% | |
| Current ratio | – | 1.02 | 0.68 | |
| Debt to equity | – | 2.43 | -2.25 | |
| Interest coverage | – | 0.1× | -1.2× | |
| Capex to revenue | – | 4.3% | 2.3% | |
| Diluted shares | – | 180M | 239M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Rackspace Technology generated $1.18B from operations and spent $488.60M on capital expenditure, dividends and share buybacks. 94% of that went back into the business.
Generated
$1.18B
Used
$488.60M
Capital expenditure$457.60M94%Dividends$00%Share buybacks$31.00M6%
DuPont analysis
Return on equity split into margin, efficiency and leverage
Net margin-8.4%
×Asset turnover0.92×
×Equity multiplier-2.63×
=Return on equity, FY202520.3%
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | -8.4% | 0.92× | -2.63× | 20.3% |
| FY2024 | -31.4% | 0.77× | -6.17× | 148.1% |
| FY2023 | -28.3% | 0.62× | 20.11× | -352.8% |
| FY2022 | -25.8% | 0.53× | 6.02× | -82.3% |
| FY2021 | -7.3% | 0.47× | 4.69× | -16.1% |
| FY2020 | -9.1% | 0.43× | 5.54× | -21.5% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
4of 9 tests passed in fiscal 2025. Scores of 7 to 9 are usually read as strong.
- ProfitableNet income above zero-$225.80M
- Cash generatingOperating cash flow above zero$151.40M
- Return on assets improvedROA up on the prior year-21.0% → -7.4%
- Earnings backed by cashOperating cash flow above net income$151.40M vs -$225.80M
- Less leverageLong-term debt to assets fell90.3% → 97.1%
- Better liquidityCurrent ratio rose0.81 → 0.68
- No dilutionShare count did not rise225M → 239M
- Gross margin improvedGross margin up on the prior year19.49% → 18.86%
- More efficientAsset turnover rose0.67 → 0.88