Filing Flows › Rackspace Technology (RXT) › Q1 2025
Rackspace Technology (RXT) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 12, 2025
Rackspace Technology (RXT) reported revenue of $665M for the first quarter 2025 (Q1 2025), -4% from a year earlier and -3% from the quarter before. Operating margin was -5.8%, net loss $71.5M (10.7% of revenue).
Rackspace Technology, Q1 2025: revenue $665M (-4% year over year), operating margin -5.8%, net loss $71.5M, operating cash flow $12.6M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $665M | -3% | -4% |
| Operating profit | −$38.4M | — | — |
| Net earnings | −$71.5M | — | — |
| Operating cash flow | $12.6M | -77% | — |
| Free cash flow | $4.3M | -88% | — |
What changed
Revenue was $665.4M in Q1 2025, down 4% year over year and down 3% from the previous quarter.
Gross margin was 19.1%, down 0.2 points from a year earlier. Operating costs exceeded revenue by $38.4M, an operating margin of -5.8%. Operating expenses fell 79% while revenue fell 4%. The quarter ended with a net loss of $71.5M, wider than the previous quarter's $56.0M loss.
Operating cash flow was $12.6M. Non-cash charges added back $73.9M of depreciation and amortization and $12.0M of share-based compensation. Working capital and other items used $1.8M. Capital expenditures of $8.3M left free cash flow of $4.3M.
Questions
What was Rackspace Technology's revenue in the first quarter 2025?
Rackspace Technology (RXT) reported revenue of $665M for the first quarter 2025 (Q1 2025), -4% from a year earlier and -3% from the quarter before.
Was Rackspace Technology profitable in the first quarter 2025?
Operating loss was $38.4M (-5.8% of revenue) and net loss $71.5M.