Rackspace Technology, Inc. reported a revenue of $2.686 billion for the fiscal year ended December 31, 2025, a decrease of 1.9% compared to the $2.737 billion reported in the previous fiscal year. The decline was primarily attributed to a decrease in Private Cloud revenue, which fell by 6.1% to $989.7 million. Public Cloud revenue, however, saw a slight increase of 0.8%, reaching $1.696 billion. The company's net loss significantly improved, decreasing from $858.2 million in 2024 to $225.8 million in 2025.
The company's cost of revenue decreased by 1.1% to $2.179 billion, while selling, general, and administrative expenses decreased by 14.2% to $607.1 million. Rackspace did not record any impairment of goodwill or assets in 2025, compared to $714.9 million and $20.0 million, respectively, in the previous year. Interest expense also decreased by 15.6% to $82.7 million. The company's Non-GAAP Operating Profit increased to $126.1 million, compared to $105.6 million in the prior year.
Operationally, Rackspace served over 75,000 customers across 120 countries as of December 31, 2025. The company reorganized around a two-business unit operating model, Public Cloud and Private Cloud, effective January 1, 2023, to ensure increased focus, delivery, and service quality for its customers. Rackspace launched Foundry for Artificial Intelligence (FAIRTM), now Rackspace AI, in June 2023 to help organizations responsibly accelerate AI adoption. The company's team consists of approximately 5,000 employees, referred to as "Rackers," located in 22 countries.
Looking ahead, Rackspace aims to grow its private cloud business with new solutions and build innovative solutions to broaden its portfolio, including scaled cloud-native solutions on public cloud platforms. The company also plans to accelerate sales motions to defend its commercial business, expand into mid-market, and selectively target enterprise customers with differentiated solutions. Rackspace intends to expand automation to drive operational effectiveness and continuous process improvement, focusing on a holistic strategy enabling optionality for customers on their AI journey. The company also plans to engage in strategic partnerships to advance its AI offerings.
About Rackspace Technology, Inc.
Rackspace Technology is a leading hybrid cloud and AI solutions provider, designing, building, and managing cloud environments across major platforms. It offers professional services, managed hosting, security, and data solutions to global enterprises, mid-market, and small businesses. Its proprietary automation platform, Rackspace Fabric, enhances efficiency and service delivery. The company differentiates through deep cloud expertise, strategic partnerships, and a customer-centric Fanatical Experience.
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.