Slide 1: Rackspace Technology Q1 2026 Earnings Presentation
Rackspace Technology Q1 2026 Earnings Presentation May 7, 2026
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements Rackspace Technology has made statements in this presentation and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of histor
Slide 3: Executive Summary
Executive Summary ▪ Q1 revenue of $678M, up 2% year-over-year, and marking a return to year-over-year revenue growth, driven by Public Cloud growth of 7%. Non-GAAP operating profit up 20% year-over-year, driven by operating expense discipline. ▪ Private Cloud revenue of $235M, consistent with the la
Slide 4: Strategic Partnership Establishing a New Category: Governed Enterprise AI Infrastructure
Strategic Establishing a New Category: Partnership Governed Enterprise AI Infrastructure WHAT THIS IS WHY IT M ATTERS AM D PARTNERSHIP MEMORANDUM OF • Fully managed AI infrastructure • Entry into high-growth enterprise • Multiyear strategic partnership for regulated and sovereign AI infra market wit
Slide 5: Q1 2026 Financial Results
Q1 2026 Financial Results Q1 2026 Q/Q Y/Y #039;s in millions (except EPS) Total Revenue $678 (1%) 2% Non-GAAP Gross Profit $124 -% (6%) Non-GAAP Gross Margin 18.3% 0.2 pts (1.6 pts) Non-GAAP Operating Profit $31 (25%) 20% Non-GAAP Operating Margin 4.5% (1.5 pts) 0.7 pts Non-GAAP Loss per Share ($0.06)
Slide 6: Q1 2026 Segment Financials
Q1 2026 Segment Financials #039;s in millions Q/Q % Y/Y % Total Private Public Total Private Public Total Private Public Rackspace Cloud Cloud Rackspace Cloud Cloud Rackspace Cloud Cloud Total Revenue $678 $235 $443 (1%) (2%) -% 2% (6%) 7% Non-GAAP Gross Profit $124 $85 $39 -% (2%) 4% (6%) (9%) (1%) No
Slide 7: Cash Flow & Capital Expenditures
Cash Flow & Capital Expenditures #039;s in millions Q1’26 LTM Cash Provided by Operating Activities $5 $144 Free Cash Flow ($9) $77 LTM Free Cash Flow Yield 31% Total Capital Expenditures $35 $147 Total CAPEX Intensity 5% 5% Cash Capital Expenditures $15 $67 Cash CAPEX Intensity 2% 2% As of March 31, 2
Slide 8: FY26 Outlook
FY26 Outlook Full Year Guidance Y/Y % Total Revenue $2,600 - $2,700 million -1% Full-year 2026 Private Cloud Revenue $1,025 - $1,075 million 6% Guidance Reaffirmed Public Cloud Revenue $1,575 - $1,625 million -6% Non-GAAP Operating Profit $160 - $170 million 31% Adjusted EBITDA $305 - $315 million 1
Slide 9: Appendix
Appendix
Slide 10: As of March 31st, Debt Maturity Overview
As of March 31st, Debt Maturity Overview 1 #039;s in millions $2,478 Facility Balance Maturity Rate $269 M FLFO New Money Term Loan (2) 1-mth SOFR + 625 bps + FLFO New Money Term Loan $269 May-2028 0.114% Spread May-2028 (FLSO)/ 1-mth SOFR + 275 bps + FLSO/Legacy Term Loan $1,667 Feb-2028 (L) 0.114% Sp
Slide 11: Non-GAAP Gross Profit Reconciliation
Non-GAAP Gross Profit Reconciliation (In millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 GAAP Gross Profit $126.9 $129.2 $129.9 $120.4 $119.1 Share-based compensation expense 1.8 1.3 1.2 0.8 0.9 Purchase accounting impact on expense 0.2 0.2 0.2 0.2 0.2 Restructuring and transformation expenses 3.2
Slide 12: Non-GAAP Net Loss Reconciliation
Non-GAAP Net Loss Reconciliation (In millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Net income (loss) $(71.5) $(54.5) $(67.1) $(32.7) $8.3 Share-based compensation expense 12.0 10.0 18.2 4.9 6.6 Transaction-related adjustments, net 1.5 0.4 0.2 0.4 1.6 Restructuring and transformation expenses 13.
Slide 13: Non-GAAP Operating Profit Reconciliation
Non-GAAP Operating Profit Reconciliation (In millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Loss from operations $(38.4) $(25.1) $(33.9) $(3.3) $(17.8) Share-based compensation expense 12.0 10.0 18.2 4.9 6.6 Transaction-related adjustments, net 1.5 0.4 0.2 0.4 1.6 Restructuring and transformation
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (In millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Net income (loss) $(71.5) $(54.5) $(67.1) $(32.7) $8.3 Share-based compensation expense 12.0 10.0 18.2 4.9 6.6 Transaction-related adjustments, net 1.5 0.4 0.2 0.4 1.6 Restructuring and transformation expenses 13.1
Slide 15: Non-GAAP Loss Per Share Reconciliation
Non-GAAP Loss Per Share Reconciliation (In millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Net income (loss) attributable to common stockholders $(71.5) $(54.5) $(67.1) $(32.7) $8.3 Non-GAAP Net Loss $(14.7) $(15.0) $(11.5) $(3.5) $(13.9) Weighted average number of shares – Diluted 231.9 238.0 240
Slide 16: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (In millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Net cash provided by operating activities $12.6 $8.4 $70.7 $59.7 $5.1 Cash purchases of property, equipment and software (8.3) (20.8) (28.0) (3.7) (14.5) Free Cash Flow $4.3 $(12.4) $42.7 $56.0 $(9.4) 16
Slide 17: Definitions
Definitions Segment Segment revenue less expenses directly attributable to running the respective segments’ business. These expenses exclude centralized corporate function costs. Operating Profit Corporate Costs that are not allocated to segments. These costs are related to centralized corporate fun
Slide 18: Rackspace Technology
rackspace technology-