Slide 1: Rackspace Technology Q4 2025 Earnings Presentation
Rackspace Technology Q4 2025 Earnings Presentation February 26, 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 ▪ Q4 Outperformance — Exceeded guidance across most metrics, reflecting disciplined cost management and improved operating execution. ▪ Private Cloud Inflection — FY25 performance improved materially versus prior double-digit declines; business stabilizing with line-of-sight to ret
Slide 4: Q4 2025 Financial Results
Q4 2025 Financial Results #039;s in millions (except EPS) Q4 2025 Q/Q Y/Y Total Revenue $683 2% (0%) Non-GAAP Gross Profit $124 (7%) (12%) Non-GAAP Gross Margin 18.1% (1.8 pts) (2.5 pts) Non-GAAP Operating Profit $41 29% 5% Non-GAAP Operating Margin 6.0% 1.2 pts 0.3 pts Non-GAAP Loss per Share ($0.01)
Slide 5: Q4 2025 Segment Financials
Q4 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 $683 $241 $442 2% (4%) 5% (0%) (10%) 6% Non-GAAP Gross Profit $124 $86 $38 (7%) (10%) (2%) (12%) (20%)
Slide 6: Cash Flow & Capital Expenditures
Cash Flow & Capital Expenditures #039;s in millions Q4’25 2025 Cash Provided by Operating Activities $60 $151 Free Cash Flow $56 $91 LTM Free Cash Flow Yield 38% Total Capital Expenditures $48 $139 Total CAPEX Intensity 7% 5% Cash Capital Expenditures $4 $61 Cash CAPEX Intensity 1% 2% As of December 31
Slide 7: FY26 Outlook
FY26 Outlook Full Year Guidance Y/Y % Total Revenue $2,600 - $2,700 million -1% Private Cloud Revenue $1,025 - $1,075 million 6% Public Cloud Revenue $1,575 - $1,625 million -6% Non-GAAP Operating Profit $160 - $170 million 31% Adjusted EBITDA $305 - $315 million 12% Non-GAAP Loss Per Share ($0.15)
Slide 8: Appendix
Appendix
Slide 9: FY 2025 Financial Results
FY 2025 Financial Results FY 2025 Y/Y #039;s in millions (except EPS) Total Revenue $2,686 (2%) Non-GAAP Gross Profit $521 (7%) Non-GAAP Gross Margin 19.4% (1.2 pts) Non-GAAP Operating Profit $126 19% Non-GAAP Operating Margin 4.7% 0.8 pts Non-GAAP Loss per Share ($0.18) $0.09 Adj. EBITDA $276 13% Adj.
Slide 10: FY 2025 Segment Financials
FY 2025 Segment Financials #039;s in millions Y/Y % FY’25 Total Private Public Total Private Public Rackspace Cloud Cloud Rackspace Cloud Cloud Total Revenue $2,686 $990 $1,696 (2%) (6%) 1% Non-GAAP Gross Profit $521 $365 $156 (7%) (10%) 1% Non-GAAP Gross Margin 19.4% 36.9% 9.2% (1.2 pts) (1.8 pts) 0.0
Slide 11: As of December 31st, Debt Maturity Overview
As of December 31st, Debt Maturity Overview 1 #039;s in millions $2,489 Facility Balance Maturity Rate Hedge 1-mth SOFR + 625 bps + $270 M FLFO New Money Term Loan (2) FLFO New Money Term Loan $270 May-2028 0.114% Spread N/A May-2028 1-mth SOFR + 275 bps + $1,350M at 2.342% w/ 75 FLSO/Legacy Term Loan
Slide 12: Non-GAAP Gross Profit Reconciliation
Non-GAAP Gross Profit Reconciliation (In millions) Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 2024 2025 GAAP Gross Profit $131.7 $126.9 $129.2 $129.9 $120.4 $533.4 $506.4 Share-based compensation expense 1.7 1.8 1.3 1.2 0.8 7.6 5.1 Purchase accounting impact on expense 0.3 0.2 0.2 0.2 0.2 1.8 0.8 Restr
Slide 13: Non-GAAP Net Loss Reconciliation
Non-GAAP Net Loss Reconciliation (In millions) Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 2024 2025 Net loss $(56.0) $(71.5) $(54.5) $(67.1) $(32.7) $(858.2) $(225.8) Share-based compensation expense 15.6 12.0 10.0 18.2 4.9 63.4 45.1 Transaction-related adjustments, net 0.8 1.5 0.4 0.2 0.4 5.2 2.5 Rest
Slide 14: Non-GAAP Operating Profit Reconciliation
Non-GAAP Operating Profit Reconciliation (In millions) Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 2024 2025 Loss from operations $(28.8) $(38.4) $(25.1) $(33.9) $(3.3) $(909.1) $(100.7) Share-based compensation expense 15.6 12.0 10.0 18.2 4.9 63.4 45.1 Transaction-related adjustments, net 0.8 1.5 0.4 0
Slide 15: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (In millions) Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 2024 2025 Net loss $(56.0) $(71.5) $(54.5) $(67.1) $(32.7) $(858.2) $(225.8) Share-based compensation expense 15.6 12.0 10.0 18.2 4.9 63.4 45.1 Transaction-related adjustments, net 0.8 1.5 0.4 0.2 0.4 5.2 2.5 Restru
Slide 16: Non-GAAP Loss Per Share Reconciliation
Non-GAAP Loss Per Share Reconciliation (In millions) Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 2024 2025 Net loss attributable to common stockholders $(56.0) $(71.5) $(54.5) $(67.1) $(32.7) $(858.2) $(225.8) Non-GAAP Net Loss $(4.4) $(14.7) $(15.0) $(11.5) $(3.5) $(63.5) $(44.7) Weighted average numbe
Slide 17: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (In millions) Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 2024 2025 Net cash provided by operating activities $54.3 $12.6 $8.4 $70.7 $59.7 $39.9 $151.4 Cash purchases of property, equipment and software (19.9) (8.3) (20.8) (28.0) (3.7) (111.1) (60.8) Free Cash Flow $34.4 $4
Slide 18: 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 19: Rackspace Technology
rackspace technology-