📊 RXT Key Takeaways
Is Rackspace Technology, Inc. (RXT) a Good Investment?
Rackspace Technology exhibits critical financial distress with negative stockholders' equity of -$1.2B (technical insolvency), negative free cash flow of -$9.4M, and declining revenues. The company carries $2.7B in long-term debt while unable to cover interest from operations (negative interest coverage), coupled with severe liquidity constraints (0.68x current ratio), creating existential solvency risk.
Rackspace Technology, Inc. Key Strengths (RXT)
- Net income improved 73.7% year-over-year, showing some operational recovery trajectory
- Maintains positive operating cash flow at $5.1M despite negative earnings at operating level
- Established revenue base of $678.1M in computer services sector indicates retained customer relationships
RXT Stock Risks: Rackspace Technology, Inc. Investment Risks
- Negative stockholders' equity of -$1.2B indicates technical insolvency with liabilities exceeding assets by $1.2B
- Unsustainable cash dynamics with negative free cash flow (-$9.4M) and CapEx exceeding operating cash generation
- High refinancing risk from $2.7B debt burden with negative operating margin (-2.6%), declining revenue (-1.9% YoY), and inability to service debt from operations
Key Metrics to Watch
- Operating margin trajectory - must achieve positive operating income for viability
- Free cash flow inflection - critical to return to positive FCF to reduce debt burden
- Debt covenant compliance and refinancing schedule given negative equity position
- Revenue stabilization - continued contraction is incompatible with debt service
Rackspace Technology, Inc. (RXT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
RXT Profit Margin, ROE & Profitability Analysis
RXT vs Technology Sector: How Rackspace Technology, Inc. Compares
How Rackspace Technology, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Rackspace Technology, Inc. Stock Overvalued? RXT Valuation Analysis 2026
Based on fundamental analysis, Rackspace Technology, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Rackspace Technology, Inc. Balance Sheet: RXT Debt, Cash & Liquidity
RXT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Rackspace Technology, Inc.'s revenue has remained relatively flat over the 5-year period, with a 2% decline. The most recent EPS of $-3.89 indicates the company is currently unprofitable.
RXT Revenue Growth, EPS Growth & YoY Performance
RXT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $665.4M | $8.3M | $0.03 |
| Q3 2025 | $671.2M | -$67.1M | $-0.28 |
| Q2 2025 | $666.3M | $25.0M | $0.11 |
| Q1 2025 | $665.4M | -$71.5M | $-0.31 |
| Q3 2024 | $675.8M | -$186.6M | $-0.82 |
| Q2 2024 | $684.9M | $25.0M | $0.11 |
| Q1 2024 | $690.8M | -$612.0M | $-2.87 |
| Q3 2023 | $732.4M | -$226.6M | $-1.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Rackspace Technology, Inc. Dividends, Buybacks & Capital Allocation
RXT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Rackspace Technology, Inc. (CIK: 0001810019)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RXT
What is the AI rating for RXT?
Rackspace Technology, Inc. (RXT) has an AI grade of D with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are RXT's key strengths?
Claude: Net income improved 73.7% year-over-year, showing some operational recovery trajectory. Maintains positive operating cash flow at $5.1M despite negative earnings at operating level.
What are the risks of investing in RXT?
Claude: Negative stockholders' equity of -$1.2B indicates technical insolvency with liabilities exceeding assets by $1.2B. Unsustainable cash dynamics with negative free cash flow (-$9.4M) and CapEx exceeding operating cash generation.
What is RXT's revenue and growth?
Rackspace Technology, Inc. reported revenue of $678.1M.
Does RXT pay dividends?
Rackspace Technology, Inc. does not currently pay dividends.
Where can I find RXT SEC filings?
Official SEC filings for Rackspace Technology, Inc. (CIK: 0001810019) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RXT's EPS?
Rackspace Technology, Inc. has a diluted EPS of $0.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is RXT's fundamental grade?
Based on our AI fundamental analysis in May 2026, Rackspace Technology, Inc. has a D grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is RXT stock overvalued or undervalued?
Valuation metrics for RXT: ROE of N/A (sector avg: 22%), net margin of 1.2% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is RXT's AI grade for 2026?
Our dual AI analysis gives Rackspace Technology, Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RXT's free cash flow?
Rackspace Technology, Inc.'s operating cash flow is $5.1M, with capital expenditures of $14.5M. FCF margin is -1.4%.
How does RXT compare to other Technology stocks?
Vs Technology sector averages: Net margin 1.2% (avg: 18%), ROE N/A (avg: 22%), current ratio 0.68 (avg: 2.5).