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Rackspace Technology cash flow, quarter by quarter

Latest: Q2 2026 · from the cash-flow statements filed with the SEC

Free cash flow−$48.3M in Q2 2026 · $41.0M over twelve months

Operating cash flow−$31.5M
Capital spending−$16.8M
Free cash flow−$48.3M
Cash conversion cycle-29 days

Analysis

In Q2 2026, Rackspace Technology generated −$31.5M of operating cash flow and spent $16.8M on capital projects, leaving free cash flow of −$48.3M. That is $35.9M less than in Q2 2025 (−$12.4M).

Over the twelve months to Jun 30, 2026, operating cash flow was $104M; the largest uses were capital spending ($63.0M), other financing ($26.0M), net borrowing (+) / repaid (−) ($7.5M); besides operations, cash came from other investing ($3.3M), shares issued ($400K); the cash balance rose by $7.6M.

Operating cash flow was −$31.5M against net income of −$67.5M. The largest differences: depreciation & amortization +$38.5M, deferred revenue −$33.0M, payables −$24.1M.

Its cash conversion cycle was -29 days (receivables 37 + inventory 0 − payables 66): suppliers fund its working capital.

Free cash flow

Rackspace Technology: free cash flow by quarterRackspace Technology: free cash flow by quarter$27.3MQ3 2024$34.4MQ4 2024$4.3MQ1 2025−$12.4MQ2 2025$42.7MQ3 2025$56.0MQ4 2025−$9.4MQ1 2026−$48.3MQ2 2026
Operating cash flow less capital spending.
Rackspace Technology: operating cash flow against capital spendingRackspace Technology: operating cash flow against capital spendingOperating cash flowCapital spending$51.8M$24.5MQ3 2024$54.3M$19.9MQ4 2024$12.6M$8.3MQ1 2025$8.4M$20.8MQ2 2025$70.7M$28.0MQ3 2025$59.7M$3.7MQ4 2025$5.1M$14.5MQ1 2026−$31.5M$16.8MQ2 2026
Latest (Q2 2026): Operating cash flow −$31.5M, Capital spending $16.8M.

Capital allocation, year by year

Rackspace Technology: where the cash came from (up) and went (down), by fiscal yearRackspace Technology: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingShares issuedAsset salesCapital spendingAcquisitionsBuybacksFY2021: Operating cash flow $371MFY2021: Net borrowing −$90.0MFY2021: Shares issued $61.1MFY2021: Asset sales $31.3MFY2021: Capital spending −$108M$463MFY2021FY2022: Operating cash flow $247MFY2022: Net borrowing −$90.2MFY2022: Shares issued $3.7MFY2022: Capital spending −$80.4MFY2022: Acquisitions −$7.7MFY2022: Buybacks −$31.0M$250MFY2022FY2023: Operating cash flow $375MFY2023: Net borrowing −$272MFY2023: Shares issued $1.3MFY2023: Capital spending −$96.9M$376MFY2023FY2024: Operating cash flow $39.9MFY2024: Shares issued $900KFY2024: Asset sales $16.9MFY2024: Capital spending −$111M$57.7MFY2024FY2025: Operating cash flow $151MFY2025: Net borrowing −$99.8MFY2025: Shares issued $500KFY2025: Capital spending −$60.8M$152MFY2025
Over these 5 years operating cash flow totalled $1.2B; the largest uses were net borrowing ($552M) and capital spending ($458M). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$111M
Debt$2.8B
Net debt$2.7B
Due within a year$20.3M

Rackspace Technology funds itself: free cash flow was $41.0M over the last twelve months, and $111M of cash and investments stands against $2.8B of debt ($20.3M due within a year, 5.4× covered by cash).

Rackspace Technology: debt maturities by year (FY2025)Rackspace Technology: debt maturities by year (FY2025)$20.3MYear 1$20.3MYear 2$2.4BYear 3
Principal due in each year as disclosed in the annual report, against $111M of cash and investments now.

Where the cash came from and went

Rackspace Technology: sources (+) and uses (−) of cash, Q2 2026Rackspace Technology: sources (+) and uses (−) of cash, Q2 2026Net borrowing (+) / repaid (−)$70.1MOperating cash flow−$31.5MCash drawn (+) / kept (−)−$17.3MCapital spending−$16.8MOther investing−$2.9MOther financing−$1.8MExchange rates$200K
Rackspace Technology: sources (+) and uses (−) of cash, TTM to Q2 2026Rackspace Technology: sources (+) and uses (−) of cash, TTM to Q2 2026Operating cash flow$104MCapital spending−$63.0MOther financing−$26.0MCash drawn (+) / kept (−)−$7.6MNet borrowing (+) / repaid (−)−$7.5MOther investing$3.3MExchange rates−$2.0MTaxes on employees’ shares−$1.6MShares issued$400K

From profit to cash

Rackspace Technology: net income to operating cash flow, Q2 2026Rackspace Technology: net income to operating cash flow, Q2 2026Net income−$67.5MDepreciation & amortization$38.5MStock-based pay$10.4MDeferred taxes−$2.2MGains on investments−$100KOther non-cash−$3.2MReceivables$2.2MPayables−$24.1MDeferred revenue−$33.0MPrepaid and other assets$9.0MOperating cash flow−$31.5M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
QuarterReceivable daysInventory daysPayable daysCash conversion cycle
Q2 202637—66-29
Q1 202635—67-31
Q4 202536—68-31
Q3 202536—68-32
Q2 202536—66-30
Q1 202538—65-27
Q4 202441—66-25
Q3 202443—69-26

Every quarter

QuarterOperating cash flowCapital spendingNet borrowing (+) / repaid (−)Shares issuedCash drawn (+) / kept (−)Free cash flow
Q2 2026−$31.5M−$16.8M$70.1M—−$17.3M−$48.3M
Q1 2026$5.1M−$14.5M$7.0M—$12.0M−$9.4M
Q4 2025$59.7M−$3.7M−$43.1M$200K−$6.7M$56.0M
Q3 2025$70.7M−$28.0M−$41.5M—$4.4M$42.7M
Q2 2025$8.4M−$20.8M−$14.7M—$25.4M−$12.4M
Q1 2025$12.6M−$8.3M−$9.3M—$15.9M$4.3M
Q4 2024$54.3M−$19.9M−$37.4M$500K$13.1M$34.4M
Q3 2024$51.8M−$24.5M−$59.8M—$33.0M$27.3M

Rackspace Technology: income statement and cash flow

Rackspace Technology, Q2 2026: revenue $670M (+0.6% year over year), operating margin -5.0%. The chart follows the revenue to costs, profit and cash.

Rackspace Technology: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.