$RXT

Rackspace Technology, Inc.

CIK:0001810019|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Statement of Comprehensive Income [Abstract]
Revenue	$ 670.1	$ 666.3	$ 1,348.2	$ 1,331.7
Cost of revenue	(555.3)	(537.1)	(1,114.3)	(1,075.6)
Gross profit	114.8	129.2	233.9	256.1
Selling, general and administrative expenses	(148.0)	(154.3)	(284.9)	(319.6)
Loss from operations	(33.2)	(25.1)	(51.0)	(63.5)
Other income (expense):
Interest expense	(34.2)	(21.3)	(60.4)	(40.7)
Gain on investments, net	0.1	0.3	0.0	0.2
Gain on debt extinguishment	6.7	0.0	62.5	0.0
Other expense, net	(5.1)	(3.8)	(8.6)	(9.2)
Total other expense	(32.5)	(24.8)	(6.5)	(49.7)
Loss before income taxes	(65.7)	(49.9)	(57.5)	(113.2)
Provision for income taxes	(1.8)	(4.6)	(1.7)	(12.8)
Net loss	(67.5)	(54.5)	(59.2)	(126.0)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	(0.3)	9.4	(7.1)	13.0
Unrealized gain on derivative contracts	0.0	1.5	0.0	1.4
Amount reclassified from accumulated other comprehensive income (loss) to earnings	0.0	(8.7)	(2.5)	(17.2)
Other comprehensive income (loss)	(0.3)	2.2	(9.6)	(2.8)
Comprehensive loss	$ (67.8)	$ (52.3)	$ (68.8)	$ (128.8)
Net loss per share:
Basic (in dollars per share)	$ (0.27)	$ (0.23)	$ (0.24)	$ (0.54)
Net earnings (loss) per share, diluted (in dollars per share)	$ (0.27)	$ (0.23)	$ (0.24)	$ (0.54)
Weighted average number of shares outstanding:
Basic (in shares)	250.1	238.0	248.2	235.0
Diluted (in shares)	250.1	238.0	248.2	235.0

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows From Operating Activities
Net loss	$ (59.2)	$ (126.0)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	141.7	148.9
Reduction in carrying amount of operating right-of-use assets	31.9	32.5
Deferred income taxes	(5.2)	(9.1)
Share-based compensation expense	17.0	22.0
Gain on debt extinguishment	(62.5)	0.0
Gain on investments, net	0.0	(0.2)
Provision for bad debts and accrued customer credits	3.3	2.6
Amortization of debt issuance costs and debt discount and premium	3.1	3.0
Other operating activities	(4.9)	1.8
Changes in operating assets and liabilities:
Accounts receivable	1.9	43.5
Prepaid expenses and other current assets	(25.5)	(27.1)
Accounts payable, accrued expenses, and other current liabilities	(47.4)	(39.4)
Deferred revenue	2.6	(15.8)
Operating lease liabilities	(30.2)	(34.8)
Other non-current assets and liabilities	7.0	19.1
Net cash provided by (used in) operating activities	(26.4)	21.0
Cash Flows From Investing Activities
Purchases of property, equipment and software	(31.3)	(29.1)
Other investing activities	0.1	(0.8)
Net cash used in investing activities	(31.2)	(29.9)
Cash Flows From Financing Activities
Proceeds from employee stock plans	0.2	0.3
Shares of common stock withheld for employee taxes	(0.4)	(0.8)
Proceeds from borrowings under long-term debt arrangements	260.0	80.0
Payments on long-term debt	(157.2)	(67.3)
Payments on financing component of interest rate swap	(3.0)	(8.7)
Principal payments of finance lease liabilities	(25.7)	(27.9)
Principal payments of financing obligations	(9.7)	(11.3)
Net cash provided by (used in) financing activities	64.2	(35.7)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(1.3)	3.3
Increase (decrease) in cash, cash equivalents, and restricted cash	5.3	(41.3)
Cash, cash equivalents, and restricted cash at beginning of period	108.0	147.0
Cash, cash equivalents, and restricted cash at end of period	113.3	105.7
Supplemental Cash Flow Information
Cash payments for interest, net of amount capitalized	60.5	41.0
Cash payments for income taxes, net of refunds	6.0	1.3
Non-cash Investing and Financing Activities
Acquisition of property, equipment and software by finance leases	18.0	25.3
Acquisition of property, equipment and software by financing obligations	3.7	0.0
Increase in property, equipment and software accrued in liabilities	25.1	3.2
Other non-cash activity	(15.2)	0.0
Non-cash purchases of property, equipment and software	31.6	28.5
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
Cash and cash equivalents	110.6	103.9
Restricted cash included in other non-current assets	2.7	1.8
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$ 113.3	$ 105.7

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 110.6	$ 105.8
Accounts receivable, net of allowance for credit losses and accrued customer credits of $12.2 and $12.4, respectively	278.7	266.5
Prepaid expenses	96.0	84.4
Other current assets	70.6	61.1
Total current assets	555.9	517.8
Property, equipment and software, net	574.6	596.3
Goodwill, net	738.7	740.1
Intangible assets, net	635.8	698.3
Operating right-of-use assets	119.9	144.6
Other non-current assets	120.4	102.7
Total assets	2,745.3	2,799.8
Current liabilities:
Accounts payable and accrued expenses	394.8	413.9
Accrued compensation and benefits	67.0	85.4
Deferred revenue	96.3	94.6
Debt	24.8	27.3
Accrued interest	5.5	5.4
Operating lease liabilities	49.3	54.7
Finance lease liabilities	61.5	48.0
Financing obligations	10.1	14.0
Other current liabilities	26.2	23.4
Total current liabilities	735.5	766.7
Non-current liabilities:
Debt	2,761.9	2,718.7
Operating lease liabilities	66.6	84.2
Finance lease liabilities	297.0	297.7
Financing obligations	37.2	39.3
Deferred income taxes	47.0	34.7
Other non-current liabilities	81.2	78.0
Total liabilities	4,026.4	4,019.3
Commitments and Contingencies (Note 8)
Stockholders' deficit:
Preferred stock, $0.01 par value per share: 5.0 shares authorized; no shares issued or outstanding	0.0	0.0
Common stock, $0.01 par value per share: 1,495.0 shares authorized; 248.4 and 254.8 shares issued; 245.3 and 251.7 shares outstanding, respectively	2.5	2.5
Additional paid-in capital	2,716.9	2,709.7
Accumulated other comprehensive income (loss)	(2.1)	7.5
Accumulated deficit	(3,967.4)	(3,908.2)
Treasury stock, at cost; 3.1 shares held	(31.0)	(31.0)
Total stockholders' deficit	(1,281.1)	(1,219.5)
Total liabilities and stockholders' deficit	$ 2,745.3	$ 2,799.8