Filing Flows › Rackspace Technology (RXT) › Q3 2025
Rackspace Technology (RXT) Q3 2025 earnings results (third quarter 2025)
10-Q filed Nov 10, 2025
Rackspace Technology (RXT) reported revenue of $671M for the third quarter 2025 (Q3 2025), -0.7% from a year earlier and +0.7% from the quarter before. Operating margin was -5.1%, net loss $67.1M (10.0% of revenue).
Rackspace Technology, Q3 2025: revenue $671M (-0.7% year over year), operating margin -5.1%, net loss $67.1M, operating cash flow $70.7M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $671M | +0.7% | -0.7% |
| Operating profit | −$33.9M | — | — |
| Net earnings | −$67.1M | — | — |
| Operating cash flow | $70.7M | +742% | +36% |
| Free cash flow | $42.7M | — | +56% |
What changed
Revenue was $671.2M in Q3 2025, down 1% year over year and up 1% from the previous quarter.
Gross margin was 19.4%, down 1.0 points from a year earlier. Operating costs exceeded revenue by $33.9M, an operating margin of -5.1%. Operating expenses fell 47% while revenue fell 1%. The quarter ended with a net loss of $67.1M, wider than the previous quarter's $54.5M loss.
Operating cash flow was $70.7M (up 36% year over year). Non-cash charges added back $75.1M of depreciation and amortization and $18.2M of share-based compensation. Working capital and other items added $44.5M. Capital expenditures of $28.0M left free cash flow of $42.7M.
Questions
What was Rackspace Technology's revenue in the third quarter 2025?
Rackspace Technology (RXT) reported revenue of $671M for the third quarter 2025 (Q3 2025), -0.7% from a year earlier and +0.7% from the quarter before.
Was Rackspace Technology profitable in the third quarter 2025?
Operating loss was $33.9M (-5.1% of revenue) and net loss $67.1M.