Companies /Technology
Rackspace Technology Inc
NASDAQ: RXT Software - Infrastructure
$3.27
▼ $0.37 (−10.06%) today
Markets open · 1:36pm ET

Rackspace Technology (RXT) 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

How Did RXT Stock React to Q3 2025 Earnings?

% change · around the report
−12%−6%0+6%Nov 6Nov 7report 4:22pm ETearnings+0.0%−11.3%
−12%−6%0+6%Nov 6Nov 7earnings+0.0%−11.3%
RXT −11.3%S&P 500 +0.0%
−12%−6%0+6%Nov 6Nov 7report 4:22pm ETearnings−0.3%−11.3%
−12%−6%0+6%Nov 6Nov 7earnings−0.3%−11.3%
RXT −11.3%NASDAQ −0.3%
−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

Yes. Rackspace Technology reported Q3 2025 earnings of $-0.05 a share on Nov 6, 2025, beating the $-0.05 consensus estimate by 1.2%. Revenue was $671.2M against a $666.8M estimate.

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

What Was Rackspace Technology's Outlook in Q3 2025?

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 income statement, Q3 2025 versus Q3 2024
Metric Q3 2025 Q3 2024 Year over year
Revenue $671.2M $675.8M −0.7%
Gross Profit $129.9M $137.5M −5.5%
Operating Income −$33.9M −$18.8M +80.5%
Net Income −$67.1M −$40.9M +64.0%

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.