Rackspace Technology (RXT) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Rackspace Technology

NasdaqGS•Technology•Software - Infrastructure

$3.49+0.27(0.08%)Pre-market

Market Cap

$870.35M

P/S

0.3x

Rackspace Technology, Inc. operates as a hybrid cloud and artificial intelligence solutions company in the United States, the United Kingdom, and internationally. It operates through two segments, Public Cloud and Private Cloud. The company offers programmatic infrastructure, including hardware and services for datacenter compute, network, storage, and data protection; cloud operating systems; platform-as-a-service; private cloud solutions; and private cloud services, such as managed, professional, elastic engineering, and security services, as well as an email platform for customers and carriers. It also provides a cloud platform that offers platform-related services, including cloud strategy and architecture, platform and infrastructure migrations, and modern cloud infrastructure; cloud apps that build and manage applications within a cloud technology stack; and cloud data, which helps accelerate the adoption of modern data solutions enabling business transformation. In addition, the company offers cloud security that provides security solutions in security threat assessment and prevention; proactive threat detection and response; rapid remediation; governance, risk, and compliance assistance across multiple cloud platforms; and privacy and data protection services, including detailed access restrictions and reporting. Further, it provides Rackspace AI, a portfolio of AI services and solutions to help organizations scale AI, as well as multi-cloud strategy, data and application modernization, cloud adoption, cloud-native enablement, SaaS lifecycle management, and data management services. The company serves the financial services, government, healthcare, manufacturing, non-profit, education, SaaS and ISV, consumer goods, oil and gas, and other industries. The company was formerly known as Rackspace Corp. and changed its name to Rackspace Technology, Inc. in June 2020. Rackspace Technology, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.

How this company scores

WeakMetricSide Score: 30/100

Grade capped at D — Negative equity — the balance sheet is insolvent. Strongest: Growth (11/25); weakest: Balance Sheet & Red Flags (4/25).

Profitability10/25

Growth11/25

Balance Sheet & Red Flags4/25

Cash & Earnings Quality5/25

Strengths

Profit converts from growth

Grade capped at D

Negative equity — the balance sheet is insolvent.
Interest coverage below 1× (-0.6x) — earnings cannot cover interest.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/S · 0.3x5y range 0.1x – 1.0x

Currently above its 20-quarter median.

P/B · 13.2x5y range 1.0x – 15.3x

Currently above its 8-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

FCF consistently trails net income (avg -0.4x) — earnings may be inflated by non-cash items or aggressive accounting.

Price & Volume

Market Cap $870.35M

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $2.70B
Q. Revenue: $670.10M
TTM EBITDA: $364.60M
TTM Op. Income: $-88.20M
Q. Op. Income: $-33.20M
TTM Net Income: $-159.00M
Q. Net Income: $-67.50M
EPS: $-0.27
Shares Out.: $250.10M

$2.70B in TTM revenue grew 0.3% YoY, reaching $670.10M last quarter. TTM EBITDA of $364.60M and TTM operating income of $-88.20M show growth is flowing through to the bottom line. However, net income is negative at $159.00M — growth is not yet reaching the bottom line. Across the last 8 quarters, TTM revenue has risen for 2 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 17.1%
EBITDA Margin: 0.8%
Op. Margin: -5.0%
Net Margin: -10.1%

Op. margin of -5.0% is down 1.2% YoY — costs are rising relative to revenue. Net margin at -10.1% and gross margin of 17.1% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has fallen for 2 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: N/A
P/S Ratio: 0.3x
P/B Ratio: N/A

P/S of 0.3x and P/B of 0.0x. P/S is low relative to typical market levels.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $2.75B
Cash: $110.60M
Long-Term Debt: $2.76B
Book Value: $-1.28B
D/E Ratio: N/A
Debt/EBITDA: 521.1

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $-31.50M
TTM Free Cash Flow: $41.00M
FCF Margin: 1.5%
FCF / Net Income: -0.3

TTM FCF of $41.00M on $-31.50M in operating cash flow. The FCF / Net Income ratio of -0.3x means the business consumes cash — it is not yet self-funding. Across the last 8 quarters, free cash flow has fallen for 2 consecutive quarters — a weakening trend.