Filing Flows › Rackspace Technology (RXT) › Q4 2025
Rackspace Technology (RXT) Q4 2025 earnings results (fourth quarter 2025)
10-K filed Mar 6, 2026
Rackspace Technology (RXT) reported revenue of $683M for the fourth quarter 2025 (Q4 2025), -0.4% from a year earlier and +2% from the quarter before. Operating margin was -0.5%, net loss $32.7M (4.8% of revenue).
Rackspace Technology, Q4 2025: revenue $683M (-0.4% year over year), operating margin -0.5%, net loss $32.7M, operating cash flow $59.7M. The chart follows the revenue to costs, profit and cash.
| Q4 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $683M | +2% | -0.4% |
| Operating profit | −$3.3M | — | — |
| Net earnings | −$32.7M | — | — |
| Operating cash flow | $59.7M | -16% | +10% |
| Free cash flow | $56.0M | +31% | +63% |
What changed
Revenue was $682.8M in Q4 2025, roughly flat year over year and up 2% from the previous quarter.
Gross margin was 17.6%, down 1.6 points from Q4 2024. Operating costs exceeded revenue by $3.3M, an operating margin of -0.5%. Operating expenses fell 23% while revenue was flat. The quarter ended with a net loss of $32.7M, narrower than the previous quarter's $67.1M loss. Net interest and other expense of $26.3M was the main reason.
Operating cash flow was $59.7M (up 10% year over year). Non-cash charges added back $74.3M of depreciation and amortization and $4.9M of share-based compensation. Working capital and other items added $13.2M. Capital expenditures of $3.7M left free cash flow of $56.0M.
Questions
What was Rackspace Technology's revenue in the fourth quarter 2025?
Rackspace Technology (RXT) reported revenue of $683M for the fourth quarter 2025 (Q4 2025), -0.4% from a year earlier and +2% from the quarter before.
Was Rackspace Technology profitable in the fourth quarter 2025?
Operating loss was $3.3M (-0.5% of revenue) and net loss $32.7M.