Slide 1: Rackspace Technology Q3 2025 Earnings Presentation
Rackspace Technology Q3 2025 Earnings Presentation November 6, 2025
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: Q3 2025 Financial Results
Q3 2025 Financial Results #039;s in millions Q3 2025 Q/Q Y/Y Total Revenue $671 1% (1%) Non-GAAP Gross Profit $134 1% (6%) Non-GAAP Gross Margin 19.9% 0.1 pts (1.2 pts) Non-GAAP Operating Profit $32 17% (1%) Non-GAAP Operating Margin 4.8% 0.7 pts - pts Non-GAAP Loss per Share ($0.05) $0.01 $- Note: Ref
Slide 4: Q3 2025 Segment Financials
Q3 2025 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 $671 $250 $422 1% 0% 1% (1%) (3%) 1% Non-GAAP Gross Profit $134 $95 $39 1% 3% (3%) (6%) (4%) (11%) Non
Slide 5: Cash Flow & Capital Expenditures
Cash Flow & Capital Expenditures #039;s in millions Q3’25 LTM Cash Provided by Operating Activities $71 $146 Free Cash Flow $43 $69 LTM Free Cash Flow Yield 20% Total Capital Expenditures $34 $119 Total CAPEX Intensity 5% 4% Cash Capital Expenditures $28 $77 Cash CAPEX Intensity 4% 3% As of September 3
Slide 6: Outlook
Outlook Q4 2025 Guidance Total Revenue $664 - $678 million Private Cloud Revenue $244 - $252 million Public Cloud Revenue $420 - $426 million Non-GAAP Operating Profit $32 - $34 million Non-GAAP Loss Per Share ($0.03) - ($0.05) Non-GAAP Other Income (Expense) ($46) - ($50) million Non-GAAP Tax Expen
Slide 7: Appendix
Appendix
Slide 8: Debt Maturity Overview
As of September 30th, Debt Maturity Overview 1 #039;s in millions $2,499 M Facility Balance Maturity Rate Hedge 1-mth SOFR + 625 bps + $271 M FLFO New Money Term Loan (2) FLFO New Money Term Loan $271 May-2028 0.114% Spread N/A May-2028 1-mth SOFR + 275 bps + $1,350M at 2.342% w/ 75 FLSO/Legacy Term Lo
Slide 9: Non-GAAP Gross Profit Reconciliation
Non-GAAP Gross Profit Reconciliation (In millions) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 GAAP Gross Profit $137.5 $131.7 $126.9 $129.2 $129.9 Share-based compensation expense 2.0 1.7 1.8 1.3 1.2 Purchase accounting impact on expense 0.3 0.3 0.2 0.2 0.2 Restructuring and transformation expenses 2.7
Slide 10: Non-GAAP Net Loss Reconciliation
Non-GAAP Net Loss Reconciliation (In millions) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Net loss $(186.6) $(56.0) $(71.5) $(54.5) $(67.1) Share-based compensation expense 15.5 15.6 12.0 10.0 18.2 Transaction-related adjustments, net 1.8 0.8 1.5 0.4 0.2 Restructuring and transformation expenses 9.4 13
Slide 11: Non-GAAP Operating Profit Reconciliation
Non-GAAP Operating Profit Reconciliation (In millions) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Loss from operations $(173.7) $(28.8) $(38.4) $(25.1) $(33.9) Share-based compensation expense 15.5 15.6 12.0 10.0 18.2 Transaction-related adjustments, net 1.8 0.8 1.5 0.4 0.2 Restructuring and transforma
Slide 12: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (In millions) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Net loss $(186.6) $(56.0) $(71.5) $(54.5) $(67.1) Share-based compensation expense 15.5 15.6 12.0 10.0 18.2 Transaction-related adjustments, net 1.8 0.8 1.5 0.4 0.2 Restructuring and transformation expenses 9.4 13.7
Slide 13: Non-GAAP Loss Per Share Reconciliation
Non-GAAP Loss Per Share Reconciliation (In millions) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Net loss attributable to common stockholders $(186.6) $(56.0) $(71.5) $(54.5) $(67.1) Non-GAAP Net Loss $(12.0) $(4.4) $(14.7) $(15.0) $(11.5) Weighted average number of shares – Diluted 226.4 228.1 231.9 23
Slide 14: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (In millions) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Net cash provided by operating activities $51.8 $54.3 $12.6 $8.4 $70.7 Cash purchases of property, equipment and software (24.5) (19.9) (8.3) (20.8) (28.0) Free Cash Flow $27.3 $34.4 $4.3 $(12.4) $42.7 14
Slide 15: 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 16: Rackspace Technology
rackspace technology-