Slide 1: Rackspace Technology Q2 2026 Earnings Presentation
Rackspace Technology Q2 2026 Earnings Presentation August 11, 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 including our Enterprise AI deployment plans, ca
Slide 3: Executive Summary
Executive Summary ▪ Total Q2 revenue of $670M, up 1% year-over-year: ➢ Non-GAAP operating margin was 4%, flat year-over-year ▪ Public Cloud revenue of $407M, ahead of recent guidance driven by higher reported consumption from hyperscaler partners than anticipated: ➢ Continued focus on higher value s
Slide 4: Rackspace Governed Enterprise AI: Managed Compute and Inference Platform
Rackspace The Managed Compute and Inference Platform Governed Enterprise AI WHAT THIS IS WHY IT M ATTERS WHY RACKSPACE • Fully managed AI infrastructure • Entry into high-growth enterprise • 25 years operating complex for regulated and sovereign AI infra market infrastructure across public, environm
Slide 5: Definitive Agreement with AMD
Definitive Rackspace / AMD Inference and HPC Rollout Agreement with AMD OFFERINGS ESTIMATED DEPLOYMENT SCHEDULE ANTICIPATED ECONOM ICS • Instinct CPUs and EPYC GPUs • Across multiple Rackspace • Expected revenue of $15-20M • Accelerated compute and facilities per MW inference with intelligent routin
Slide 6: Rackspace / Palantir AI Sovereignty Platform
Rackspace Rackspace / Palantir AI Sovereignty Platform Palantir Operating WHAT THIS IS WHY IT M ATTERS CASE STUDY Framework • Operating framework combines Palantir • Customers require control over data, • Solar farm designer and manufacturer Foundry and AIP with security, governance, needed to compr
Slide 7: Q2 2026 Financial Results
Q2 2026 Financial Results Q2 2026 Q/Q Y/Y #039;s in millions (except EPS) Total Revenue $670 (1%) 1% Non-GAAP Gross Profit $124 1% (6%) Non-GAAP Gross Margin 18.6% 0.3 pts (1.2 pts) Non-GAAP Operating Profit $27 (11%) -% Non-GAAP Operating Margin 4% (0.4 pts) 0 pts Non-GAAP Loss per Share ($0.08) ($0.0
Slide 8: Q2 2026 Segment Financials
Q2 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 $670 $263 $407 (1%) 12% (8%) 1% 5% (2%) Non-GAAP Gross Profit $124 $85 $39 1% 1% -% (6%) (8%) (1%) Non
Slide 9: Cash Flow & Capital Expenditures
Cash Flow & Capital Expenditures #039;s in millions Q2’26 LTM Cash Provided by (used in) Operating Activities ($32) $104 Free Cash Flow ($48) $41 Total Capital Expenditures $28 $145 Total CAPEX Intensity 4% 5% Cash Capital Expenditures $17 $63 Cash CAPEX Intensity 3% 2% As of June 30, 2026 Cash & Cash
Slide 10: FY26 Outlook
FY26 Outlook Full Year Guidance Y/Y % Full-year 2026 Total Revenue $2,450 - $2,550 million -7% Guidance Reaffirmed Private Cloud Revenue $1,000 - $1,050 million 4% Public Cloud Revenue $1,450 - $1,500 million -13% Non-GAAP Operating Profit $125 - $135 million 3% Adjusted EBITDA $285 - $295 million 5
Slide 11: Appendix
Appendix
Slide 12: As of June 30th, Debt Maturity Overview
As of June 30th, Debt Maturity Overview 1 #039;s in millions $2,571 Facility Balance Maturity Rate $269 M FLFO New Money Term Loan (2) 1-mth SOFR + 625 bps + 0.114% FLFO New Money Term Loan $269 May-2028 Spread May-2028 (FLSO)/ 1-mth SOFR + 275 bps + 0.114% FLSO/Legacy Term Loan $1,662 Feb-2028 (L) Spr
Slide 13: Non-GAAP Gross Profit Reconciliation
Non-GAAP Gross Profit Reconciliation (In millions) Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 GAAP Gross Profit $129.2 $129.9 $120.4 $119.1 $114.8 Share-based compensation expense 1.3 1.2 0.8 0.9 1.2 Purchase accounting impact on expense 0.2 0.2 0.2 0.2 0.2 Restructuring and transformation expenses 1.2
Slide 14: Non-GAAP Net Loss Reconciliation
Non-GAAP Net Loss Reconciliation (In millions) Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Net income (loss) $(54.5) $(67.1) $(32.7) $8.3 $(67.5) Share-based compensation expense 10.0 18.2 4.9 6.6 10.4 Transaction-related adjustments, net 0.4 0.2 0.4 1.6 0.5 Restructuring and transformation expenses 4.4
Slide 15: Non-GAAP Operating Profit Reconciliation
Non-GAAP Operating Profit Reconciliation (In millions) Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Loss from operations $(25.1) $(33.9) $(3.3) $(17.8) $(33.2) Share-based compensation expense 10.0 18.2 4.9 6.6 10.4 Transaction-related adjustments, net 0.4 0.2 0.4 1.6 0.5 Restructuring and transformation
Slide 16: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (In millions) Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Net income (loss) $(54.5) $(67.1) $(32.7) $8.3 $(67.5) Share-based compensation expense 10.0 18.2 4.9 6.6 10.4 Transaction-related adjustments, net 0.4 0.2 0.4 1.6 0.5 Restructuring and transformation expenses 4.4 1
Slide 17: Non-GAAP Loss Per Share Reconciliation
Non-GAAP Loss Per Share Reconciliation (In millions) Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Net income (loss) attributable to common stockholders $(54.5) $(67.1) $(32.7) $8.3 $(67.5) Non-GAAP Net Loss $(15.0) $(11.5) $(3.5) $(13.9) $(21.5) Weighted average number of shares – Diluted 238.0 240.4 244
Slide 18: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (In millions) Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Net cash provided by (used in) operating activities $8.4 $70.7 $59.7 $5.1 $(31.5) Cash purchases of property, equipment and software (20.8) (28.0) (3.7) (14.5) (16.8) Free Cash Flow $(12.4) $42.7 $56.0 $(9.4) $(48.3)
Slide 19: 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 20: rackspace
rackspace technology-