Filing Flows › Rackspace Technology (RXT) › Q2 2025
Rackspace Technology (RXT) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 11, 2025
Rackspace Technology (RXT) reported revenue of $666M for the second quarter 2025 (Q2 2025), -3% from a year earlier and +0.1% from the quarter before. Operating margin was -3.8%, net loss $54.5M (8.2% of revenue).
Rackspace Technology, Q2 2025: revenue $666M (-3% year over year), operating margin -3.8%, net loss $54.5M, operating cash flow $8.4M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $666M | +0.1% | -3% |
| Operating profit | −$25.1M | — | — |
| Net earnings | −$54.5M | — | — |
| Operating cash flow | $8.4M | -33% | -65% |
What changed
Revenue was $666.3M in Q2 2025, down 3% year over year and roughly flat from the previous quarter.
Gross margin was 19.4%, up 0.2 points from a year earlier. Operating costs exceeded revenue by $25.1M, an operating margin of -3.8%. Operating expenses fell 17% while revenue fell 3%. The quarter ended with a net loss of $54.5M, narrower than the previous quarter's $71.5M loss.
Operating cash flow was $8.4M (down 65% year over year). Non-cash charges added back $75.0M of depreciation and amortization and $10.0M of share-based compensation. Working capital and other items used $22.1M. Capital expenditures of $20.8M exceeded it, leaving free cash flow of −$12.4M.
Questions
What was Rackspace Technology's revenue in the second quarter 2025?
Rackspace Technology (RXT) reported revenue of $666M for the second quarter 2025 (Q2 2025), -3% from a year earlier and +0.1% from the quarter before.
Was Rackspace Technology profitable in the second quarter 2025?
Operating loss was $25.1M (-3.8% of revenue) and net loss $54.5M.