Loading…
Managed multi-cloud and hosting services provider helping enterprises run and optimize public/private cloud workloads.
Managed multi-cloud and hosting services provider helping enterprises run and optimize public/private cloud workloads.
Resells public-cloud capacity from the big providers and adds a layer of management fees, so part of its revenue is pass-through usage with thin margins and part is higher-margin support. It carries heavy debt, and Apollo, the private-equity firm, remains its controlling shareholder.
Moat: none (switching costs). Some contract stickiness, but faces intense price competition from hyperscalers and other managed-service providers.
Headquarters: San Antonio, Texas, US · Founded: 1998 · Employees: 5,000
Size Rackspace Technology (RXT) is a United States Information Technology company (Data Processing Services) with a market value of $645M, the 2544th largest of 3,117 United States companies the cockpit tracks. Shares closed at $2.53 on 6 Nov 2026.
Performance Over six months the shares fell 53.9%, against -27.2% for the median peer and -1.1% for the United States market (cap-weighted) — 6th lowest of 20 in its peer set.
Growth Revenue grew 0.3% over the last twelve months (peer median +12.4%); the operating margin is -1.7% (peer median 7.1%).
Valuation It trades at 1.4× enterprise value to sales against a peer median of 3.0× (2nd cheapest of 20).
Price implies For today's price to make sense, revenue must grow about 35% a year for seven years (Req g). Recent delivered growth is 0%, so the hurdle is +35 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 9.7 points below its cost of capital (7.8% WACC).
Backlog Backlog (remaining performance obligations) was $809M at 30 Jun 2026, up 57% on a year earlier — 0.3 years of trailing revenue. Backlog detail →
Short interest Short interest is 10.2% of the free float (15 Oct 2026).
Next results Next results expected around 9 Nov 2026 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | $2.70B | $2.69B | $2.74B | $2.96B | $3.12B |
| Revenue growth | — | -2% | -7% | -5% | — |
| Gross profit | $328M | $360M | $379M | $468M | $690M |
| EBITDA | $309M | $294M | $247M | $304M | $449M |
| Net income | -$159M | -$226M | -$858M | -$838M | -$805M |
| Free cash flow | $41.0M | $90.6M | -$71.2M | $278M | $166M |
| Capital expenditure | $63.0M | $60.8M | $111M | $96.9M | $80.4M |
| Total debt | $3.31B | $3.28B | $3.32B | $3.43B | $3.90B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | EV / Sales | Req g |
|---|---|---|---|---|---|---|
| Rackspace Technology RXT | $645M | -54% | 0% | -2% | 1.4× | 35.0% |
| Accenture ACN | $154B | +44% | +6% | 15% | 2.1× | 3.7% |
| Kyndryl Holdings Incorporation KD | $3.55B | +33% | -1% | 4% | 0.4× | 1.6% |
| DXC Technology DXC | $2.31B | +58% | -3% | 1% | 0.4× | 3.2% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | RXT | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -30.1% | -14.6% | 8th lowest of 21 |
| 6-month return | -53.9% | -27.2% | 6th lowest of 20 |
| Distance from 52-week high | -70.6% | -45.5% | 7th lowest of 21 |
| Revenue growth (TTM) | +0.3% | +12.4% | 8th lowest of 21 |
| Operating margin | -1.7% | 7.1% | 8th lowest of 21 |
| EV / Sales | 1.4× | 3.0× | 2nd cheapest of 20 |
| Growth the price implies (Req g, 7 yrs) | 35.0% | 11.4% | 3rd most demanding of 10 |
| Growth delivered (Del g) | -0.2% | +21.8% | 2nd lowest of 10 |
| Hurdle (Req g minus delivered) | +35.1 pp | -5.0 pp | 2nd most demanding of 10 |
| ROIC minus cost of capital | -9.7 pp | -5.1 pp | 10th lowest of 21 |
| EV / EBITDA | 12.4× | 11.0× | 4th most expensive of 12 |
| Net debt / EBITDA | 10.4× | 2.1× | most indebted of 12 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | EV / Sales | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Rackspace Technology RXT | United States | $645M | -54% | 0% | -2% | 1.4× | 35.0% | -0.2% |
| WIIT WIIT.MI | Italy | $638M | -34% | -2% | 16% | 6.0× | 23.9% | +25.8% |
| Qingmu Tec 301110.SZ | China | $637M | -32% | +5% | 9% | 2.4× | 11.9% | +16.9% |
| SAKURA Internet 3778.T | Japan | $688M | -13% | +26% | 8% | 3.0× | n/a | n/a |
| Beijing Xunzhong Communication Technology 2597.HK | Hong Kong | $586M | +7% | -1% | 10% | 5.1× | n/a | n/a |
| BitGo BTGO | United States | $571M | -61% | +424% | -1% | 0.0× | n/a | n/a |
| Pason Systems PSI.TO | Canada | $742M | -10% | -2% | 18% | 2.4× | 1.5% | +21.8% |
| Yext YEXT | United States | $749M | +88% | -1% | 10% | 2.0× | 9.6% | +4.7% |
| SharonAI SHAZ | United States | $781M | -59% | +257% | -894% | n/a | n/a | n/a |
| Ucap Cloud Information Technology 688228.SS | China | $786M | -26% | -39% | -14% | 13.1× | 39.9% | +6.8% |
| Happiest Minds Technologies HAPPSTMNDS.NS | India | $506M | -19% | +12% | 15% | 1.9× | 11.4% | +24.5% |
| Beijing Huaru Technology 301302.SZ | China | $506M | -10% | +52% | -38% | 7.6× | n/a | n/a |
| Leon Technology 300603.SZ | China | $501M | -29% | -19% | -22% | 5.0× | n/a | n/a |
| HIVE Digital Technologies HIVE.TO | Canada | $491M | -36% | +155% | -44% | 1.9× | n/a | n/a |
| Beijing Topnew Info & Tech 300895.SZ | China | $938M | -27% | +1% | -25% | 23.4× | 54.6% | -3.4% |
| BLS International Services BLS.NS | India | $973M | -23% | +29% | 23% | 2.5× | 9.7% | +44.4% |
| VNET Group, Inc. Sponsored ADR VNET | United States | $1.00B | -64% | +23% | 7% | 3.5× | n/a | n/a |
| Infomaniak INFO.SW | Switzerland | $414M | n/a | +141% | -2% | 9.0× | n/a | n/a |
| WhiteFiber WYFI | United States | $402M | -58% | -94% | -37% | 529.2× | n/a | n/a |
| Liberty Capital GLIBA | United States | $1.06B | -2% | +13% | 13% | 1.8× | 0.8% | +113.1% |
| American Bitcoin ABTC | United States | $390M | -70% | +2,495% | 7% | 2.1× | n/a | n/a |
Rackspace Technology reported $809M of remaining performance obligations at 30 Jun 2026, up 57% from a year earlier and up 41% from the previous quarter. That is 0.3 years of trailing revenue already under contract. Book-to-bill last quarter: 1.35.