Rackspace Technology Inc

rackspace.com

What Do They Do?

Provides managed cloud services and professional expertise to businesses using public cloud platforms; also operates private cloud and artificial intelligence infrastructure for regulated and mission-critical organizations.

How Do They Make Money?

Public Cloud customers generally receive monthly bills based on usage for cloud services; professional services are billed at a fixed fee or by time as the work is performed. Private Cloud customers generally pay a monthly fee for computing resources and support under fixed-term arrangements.

revenue

Segment	Share	Revenue	How money arrives
Public Cloud	63% FY2022: 56%
Private Cloud Recurring	37% FY2022: 44%		Recurring

Who Are Their Customers?

Serves companies of all sizes across sectors, including regulated industries. Customers buy through direct sales, channel partners and online; partners are a route to smaller businesses.

Do Revenues Turn Into Profits?

Not on paper. It lost $225.8M in FY2025, but brought in more cash than it spent: $90.6M of free cash flow.

Operating income, FY2025

−4% of revenue

▼ −89% (Loss) vs FY2024 (−$909.1M, −33%)

Net income, FY2025

−8% of revenue

▼ −74% (Loss) vs FY2024 (−$858.2M, −31%)

Free cash flow, FY2025

3% of revenue

▲ Now profitable vs FY2024 (−$71.2M, −3%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +1%; vs $666.3M in Q2 FY2025
Net income: ▲ +24% (Loss); vs −$54.5M in Q2 FY2025

Public Cloud share of revenue vs 62.5% in Q2 FY2025

Jul 9, 2026 Cuts revenue and EBITDA outlook The company cut its revenue expectations by $150 million and EBITDA expectations by $20 million.
Jun 16, 2026 Agrees to phase in AMD-powered AI compute capacity Agrees to dedicate and make available 30 MW of data-center capacity for AMD compute deployments.

Shrinking. Revenue fell 11% in 4 years, from $3B in FY2021 to $2.7B in FY2025, about 3% a year.

Artificial intelligence services The older report describes cloud migration and application modernization; the latest also describes a dedicated Rackspace AI portfolio combining infrastructure, cloud-native services and expertise to take AI from ideation through production.

Revenue over time

Public Cloud Private Cloud

$5B$2.5B$0

FY2021 FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with Accenture, Atos, Capgemini, Cognizant, Deloitte, DXC Technology, Kyndryl, Equinix, CyrusOne, and QTS

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