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Rackspace posts Q4 net loss of USD 33 million down 41.6%

Reuters
Feb 26
Rackspace posts Q4 net loss of USD 33 million down 41.6%

Rackspace reported Q4 2025 revenue of USD 683 million, down 0.4% year-over-year, with Private Cloud revenue of USD 241 million (down 10.0%) and Public Cloud revenue of USD 442 million (up 6.0%). Q4 loss from operations was USD 3 million, net loss was USD 33 million, and non-GAAP operating profit was USD 41 million (up 5.0%). Cash flow from operating activities was USD 60 million in Q4, while Q4 capital expenditures were USD 48 million. For FY 2025, Rackspace posted revenue of USD 2.686 billion, down 2.0%, including Private Cloud revenue of USD 990 million (down 6.0%) and Public Cloud revenue of USD 1.696 billion (up 1.0%). FY loss from operations was USD 101 million and net loss was USD 226 million, while non-GAAP operating profit was USD 126 million (up 19.0%) and adjusted EBITDA was USD 276 million. FY cash flow from operating activities was USD 151 million, and FY capital expenditures were USD 139 million. As of December 31, 2025, Rackspace had cash and cash equivalents of USD 106 million and total liquidity of USD 397 million, including its new revolving credit facility. Management said Q4 marked an inflection point, citing a sharpened focus, leadership changes, “anchor partnerships,” and a platform engineering model aimed at enterprise AI in regulated environments. For FY 2026, Rackspace guided for revenue of USD 2.6 billion to USD 2.7 billion, including Private Cloud revenue of USD 1.025 billion to USD 1.075 billion and Public Cloud revenue of USD 1.575 billion to USD 1.625 billion, alongside non-GAAP operating profit of USD 160 million to USD 170 million and adjusted EBITDA of USD 305 million to USD 315 million.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Rackspace Technology Inc. published the original content used to generate this news brief via GlobeNewswire (Ref. ID: 202602260800PRIMZONEFULLFEED9661760) on February 26, 2026, and is solely responsible for the information contained therein.

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