RXT
Rackspace Technology, Inc.1.0700
+0.0100+0.94%
Dec 16, 4:00:01 PM EST
Earnings Call Transcripts
This Quarter (Q4 '25)
No earnings call transcript available yet
Last Quarter (Q3 '25)
No earnings call transcript available
Key Stats
Market Cap
260.64MP/E (TTM)
-Basic EPS (TTM)
-1.05Dividend Yield
0%Recent Filings
8-K
8-K
Leadership resignations hit Rackspace
Rackspace Technology lost two key leaders in late September 2025: Srinivas Koushik resigned as President of Technology, Sustainability, and AI on September 24, securing a pro-rata 2025 bonus for transition services and covenants. Director Vikram Mahidhar followed suit on September 30, tied to his Apollo exit, with no disputes flagged. These shifts test continuity in tech strategy. No interim plans disclosed.
8-K
Rackspace appoints new CEO Kandiah
Rackspace Technology appointed Gajen Kandiah as CEO effective September 3, 2025, succeeding Amar Maletira, whose employment ends that day but will serve as non-employee Vice Chairman until September 30. Kandiah, with deep experience at Hitachi and Cognizant, steps in with a $1M salary, 150% target bonus, and inducement awards of 4M RSUs plus 6M options vesting over four years. This leadership shift aims to accelerate AI-first multicloud strategy, yet Maletira's brief transition role highlights a swift handover. Smooth execution now rests on Kandiah's integration.
10-Q
Q2 FY2025 results
Rackspace Technology's Q2 FY2025 revenue dipped 2.7% y/y to $666.3M, with Public Cloud down 2.0% to $416.6M on softer infrastructure volumes while services held steady, and Private Cloud off 4.0% to $249.7M from legacy rolloffs; yet gross margin edged up 0.2 points to 19.4% on cost controls. Operating loss narrowed to $25.1M from $53.8M y/y, thanks to 16.7% lower SG&A from headcount cuts and less share-based comp. Cash from operations swung positive to $21.0M for H1, with free cash flow at -$8.9M (derived); quarter-end cash stood at $103.9M, revolver availability $310.0M under $375.0M facility, against $2,800.2M total debt mostly due 2028. No M&A or impairments hit the books this quarter. Competition from hyperscalers keeps pricing pressure on.
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