Companies /Technology

Rackspace Technology Inc

NASDAQ: RXT Software - Infrastructure
$3.29
▲ $0.28 (+9.30%) today
Markets closed · 8:21pm ET

Q3 2025 Earnings

Reported Nov 6, 2025, 4:22pm ET · SEC source
$-0.05
Beat +1.19%
EPS · est. $-0.05
$671.2M
Beat +0.65%
Revenue · est. $666.8M
−5.7%
Trailing market
RXT vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−12%−6%0+6%Nov 6Nov 7report 4:22pm ETearnings−0.0%−12.1%
−12%−6%0+6%Nov 6Nov 7earnings−0.0%−12.1%
RXT −12.1%S&P 500 −0.0%
−12%−6%0+6%Nov 6Nov 7report 4:22pm ETearnings−0.5%−12.1%
−12%−6%0+6%Nov 6Nov 7earnings−0.5%−12.1%
RXT −12.1%NASDAQ −0.5%
−18%−9%0+9%Nov 5Nov 14report 4:22pm ETearnings+0.1%−16.4%
−18%−9%0+9%Nov 5Nov 14earnings+0.1%−16.4%
RXT −16.4%S&P 500 +0.1%
−18%−9%0+9%Nov 5Nov 14report 4:22pm ETearnings−0.4%−16.4%
−18%−9%0+9%Nov 5Nov 14earnings−0.4%−16.4%
RXT −16.4%NASDAQ −0.4%
−15.07%
Day of report
−2.82%
Next session
−8.06%
One week
−3.23%
30 days

S&P 500 over the same 30 days: +2.47%.

Did RXT Beat Earnings? Q3 2025 Results

Rackspace Technology posted a modest but clean beat in Q3 2025, with revenue of $671.20 million edging past the $666.83 million consensus by 0.65% and a non-GAAP loss per share of $0.05 beating the $0.05 estimate by 1.19%, even as total revenue slipped 0.7% year-over-year. The headline narrative was one of stabilization rather than acceleration, with the company's two segments pulling in opposite directions: Public Cloud revenue grew 0.8% to $421.60 million while Private Cloud fell 3.1% to $249.60 million. The most dramatic improvement came at the GAAP level, where operating losses narrowed sharply to $33.90 million from $173.70 million a year ago, largely because Q3 2024 carried a $141.70 million goodwill impairment charge that did not recur. Adjusted EBITDA rose to $69.30 million from $65.80 million, and operating cash flow reached $71.00 million for the quarter. Still, the stock slipped in after-hours trading as investors weighed the persistent losses against a Q4 revenue outlook of $664.00 million to $678.00 million and non-GAAP loss per share guidance of $0.03 to $0.05.

Key Takeaways
  • Public Cloud revenue grew 0.8% year-over-year
  • Strong operating cash flow of $71 million in Q3
  • Corporate function costs reduced by 13.8% year-over-year
  • Absence of goodwill impairment charges that impacted Q3 2024

“We delivered third quarter results at or above expectations, generated strong cash flow, and sustained momentum across the business. Rackspace remains a trusted partner as customers navigate the complexity of Hybrid Multicloud.”

Rackspace Technology CEO, on the earnings call

Forward Guidance & Outlook

For Q4 2025, Rackspace guided total revenue of $664–$678 million, with Private Cloud revenue of $244–$252 million and Public Cloud revenue of $420–$426 million. Non-GAAP Operating Profit is expected to be $32–$34 million, with Non-GAAP Loss Per Share of $(0.03)–$(0.05). Non-GAAP Other Income (Expense) is expected to be $(46)–$(50) million, with a Non-GAAP Tax Expense Rate of 26% and Non-GAAP Weighted Average Shares of 242–244 million.

RXT YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$300.0M$600.0M$675.8M$671.2MRevenue$137.5M$129.9MGross Profit$-18,783,245$-33,900,000Operating Income$-40,904,657$-67,100,000Net Income
$0$300.0M$600.0MRevenueGross ProfitOperating IncomeNet Income

RXT Revenue by Segment

Public Cloud$421.6M+0.8%
Private Cloud$249.6M−3.1%

Figures from SEC filings and company reports. Not investment advice.