Filing Flows › Rackspace Technology (RXT) › Q3 2026
Rackspace Technology (RXT) Q3 2026 earnings results (third quarter 2026)
10-Q filed Nov 9, 2026
Rackspace Technology (RXT) reported revenue of $609M for the third quarter 2026 (Q3 2026), -9% from a year earlier and -9% from the quarter before. Operating margin was -2.1%, net loss $53.5M (8.8% of revenue).
Rackspace Technology, Q3 2026: revenue $609M (-9% year over year), operating margin -2.1%, net loss $53.5M, operating cash flow $35.7M. The chart follows the revenue to costs, profit and cash.
| Q3 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $609M | -9% | -9% |
| Operating profit | −$12.5M | — | — |
| Net earnings | −$53.5M | — | — |
| Operating cash flow | $35.7M | — | -50% |
| Free cash flow | $1.2M | — | -97% |
What changed
Revenue was $609.1M in Q3 2026, down 9% year over year and down 9% from the previous quarter.
Gross margin was 18.6%, down 0.8 points from Q3 2025. Operating costs exceeded revenue by $12.5M, an operating margin of -2.1%. Operating expenses fell 23% while revenue fell 9%. The quarter ended with a net loss of $53.5M, narrower than the previous quarter's $67.5M loss. Net interest and other expense of $37.2M was the main reason.
Operating cash flow was $35.7M (down 50% year over year). Non-cash charges added back $39.2M of depreciation and $4.0M of share-based compensation. Working capital and other items added $46.0M. Capital expenditures of $34.5M left free cash flow of $1.2M.
Questions
What was Rackspace Technology's revenue in the third quarter 2026?
Rackspace Technology (RXT) reported revenue of $609M for the third quarter 2026 (Q3 2026), -9% from a year earlier and -9% from the quarter before.
Was Rackspace Technology profitable in the third quarter 2026?
Operating loss was $12.5M (-2.1% of revenue) and net loss $53.5M.