Core Insights - Rackspace Technology has launched the Rackspace AI launchpad, a secure managed service aimed at facilitating the evaluation, piloting, and deployment of AI workloads across various industries, including healthcare and finance [1][8] - The service offers a phased, guided approach to AI adoption, addressing the complexities of infrastructure, tooling selection, and performance benchmarking [2][8] - The Rackspace AI launchpad is designed to eliminate the paralysis many enterprises face regarding AI implementation, providing a fast track from AI ambition to production with necessary security and governance [3][8] Company Offerings - Rackspace AI launchpad leverages Rackspace's AI Anywhere, a private cloud solution that integrates advanced AI/ML capabilities with a focus on data security and privacy [3][4] - The service includes managed infrastructure for AI workloads, featuring secure, fully managed GPU infrastructure powered by NVIDIA GPUs [6] - It provides onboarding and operational support, including technical documentation and assistance from AI infrastructure experts [6] Case Study - Compass, a U.S.-based healthcare provider, utilized Rackspace's AI launchpad to enhance care delivery by implementing a private cloud-hosted AI solution [4][5] - The AI solution enabled natural language querying and automated documentation analysis, resulting in an 80% reduction in manual review time and improved documentation quality [5] Importance of AI Adoption - AI adoption is framed as a competitive imperative, with Rackspace AI launchpad transforming AI from a strategic ambition into a tangible business advantage [8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______. Commission File Number: 001-39420 RACKSPACE TECHNOLOGY, INC. (Exact name of registrant as specified in its charter) (State or other jur ...

PresentationGood day, and welcome to the Rackspace Q3 2025 Earnings Call and Webcast. [Operator Instructions] Please note that today's event is being recorded. I would now like to turn the conference over to Sagar Hebbar, Head of Investor Relations. Please go ahead.Sagar HebbarHead of Investor Relations Thank you, and welcome to Rackspace Technology's Third Quarter 2025 Earnings Conference Call. I'm Sagar Hebbar, Head of Investor Relations. Joining me today are Gajen Kandiah, our Chief Executive Officer; an ...

Financial Data and Key Metrics Changes - Total company GAAP revenue for Q3 2025 was $671 million, up 1% sequentially but down 1% year over year, exceeding the midpoint of guidance [12] - Non-GAAP gross profit margin was 19.9% of GAAP revenue, slightly up sequentially but down 120 basis points year over year [12] - Non-GAAP operating profit was $32 million, up 17% sequentially, meeting the high end of guidance [12] - Non-GAAP loss per share was $0.05, at the midpoint of the guided range of $0.04-$0.06 [12] - Cash flow from operations was $71 million, and free cash flow was $43 million [12] - The company ended the quarter with $100 million in cash and $386 million of total liquidity [13] Business Line Data and Key Metrics Changes - **Private Cloud**: Revenue was $250 million, meeting guidance but down 3% year over year; non-GAAP gross margin was 38.1%, down 50 basis points year over year [13][14] - **Public Cloud**: Revenue totaled $422 million, up 1% year over year and sequentially, driven by a 3% rise in services revenue [9][15] Market Data and Key Metrics Changes - Bookings measured by annual contract value grew 5% year over year, primarily driven by private cloud [6] - Public cloud bookings grew 2% sequentially, led by the Americas [8] Company Strategy and Development Direction - The company aims to be a leading hybrid multi-cloud partner for regulated, sovereign, and mission-critical workloads [17] - Focus on leveraging AI advancements to capture external opportunities and improve internal efficiencies [4] - Emphasis on building trust with customers and partners, and executing with precision to enhance reliability and security [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding expectations across all key metrics for Q3 2025 [5] - The enterprise market is shifting towards production in AI, with increasing complexity due to data sovereignty and security requirements [5] - Future growth is anticipated in healthcare, sovereign markets, and AI, with a focus on expanding relationships with enterprise customers [6][10] Other Important Information - The company introduced several new solutions, including Rackspace Electronic Health Record Cloud Enterprise and AI Launchpad, aimed at enhancing customer capabilities in healthcare and AI [8][10] - The company will participate in the UBS Global Technology and AI Conference on December 3 [18] Q&A Session Summary - No questions were asked during the Q&A session, and the call concluded without any inquiries from participants [19][20]

November 6, 2025 Disclaimer Forward-Looking Statements Rackspace Technology has made statements in this presentation and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of historical fact, included in this presentation are, or could be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are made in reliance on the ...

Exhibit 99.1 Rackspace Technology Reports Third Quarter 2025 Results SAN ANTONIO, November 6, 2025 – Rackspace Technology, Inc. (Nasdaq: RXT), a leading end-to-end hybrid cloud and AI solutions company, today announced results for its third quarter ended September 30, 2025. Gajen Kandiah, Chief Executive Officer, stated, "We delivered third quarter results at or above expectations, generated strong cash flow, and sustained momentum across the business. Rackspace remains a trusted partner as customers naviga ...

Core Insights - Rackspace Technology reported third quarter 2025 results, achieving revenue of $671 million, a slight decrease of 1% year-over-year compared to $676 million in Q3 2024 [2][7] - The company emphasized its role as a trusted partner in navigating hybrid multicloud complexities, focusing on AI, data, and security services [1][12] Financial Performance - Private Cloud revenue was $250 million, down 3% year-over-year from $258 million in Q3 2024 [2][30] - Public Cloud revenue increased to $422 million, up 1% from $418 million in Q3 2024 [3][30] - Loss from operations improved to $(34) million in Q3 2025, significantly better than the $(174) million loss in Q3 2024 [3][19] - Net loss narrowed to $(67) million in Q3 2025, compared to $(187) million in Q3 2024 [3][19] - Net loss per diluted share was $(0.28), an improvement from $(0.82) in the same quarter last year [4][19] Cash Flow and Liquidity - Cash flow from operating activities was $71 million for Q3 2025, with a trailing twelve-month cash flow of $146 million [7][27] - As of September 30, 2025, the company had cash and cash equivalents of $100 million and total liquidity of $386 million [5][27] Guidance and Outlook - For Q4 2025, Rackspace provided revenue guidance of $664 to $678 million, with Private Cloud revenue expected between $244 to $252 million and Public Cloud revenue between $420 to $426 million [8][30] - Non-GAAP Operating Profit is projected to be between $32 to $34 million, with Non-GAAP Loss Per Share expected to range from $(0.03) to $(0.05) [8][30]

Core Insights - Rackspace Technology, Inc. (NASDAQ:RXT) is a prominent player in the cloud computing sector, focusing on managed services across various cloud platforms, helping businesses optimize their cloud environments [1] - RXT is currently trading at $1.7167 with a target price of $1.92, indicating a growth potential of approximately 11.96% [2][6] - In comparison to its competitors, RXT's growth potential is moderate, with Materialise N.V. (MTLS) showing the highest growth potential of 25.52% [5][6] Company Performance - RXT's current stock price is $1.71, with a target price of $1.92, reflecting a growth potential of about 11.96% [2][6] - Stem, Inc. (STEM) is trading at $21.01 but has a negative growth potential of -102.72%, indicating significant risk for investors [3][6] - Repay Holdings Corporation (RPAY) has a stock price of $4.45 and a slight negative growth potential of -6.22%, suggesting lower risk compared to STEM [4][6] Competitive Landscape - Among RXT's peers, Materialise N.V. (MTLS) stands out with a trading price of $5.93 and the highest growth potential of 25.52%, making it an attractive investment option [5][6] - The competitive landscape includes major players like Amazon Web Services, Microsoft Azure, and Google Cloud, which present stiff competition for Rackspace [1]

Core Insights - Rackspace Technology has made significant progress towards its net-zero carbon emissions targets, showcasing its commitment to sustainability and alignment with the United Nations Sustainable Development Goals (SDGs) [1][2][14] Sustainability Achievements - In 2025, Rackspace achieved a 10% reduction in total emissions from its 2023 baseline, with a notable 20% decrease in Scope 1 and Scope 2 emissions, and a 9% reduction in Scope 3 emissions [2][11] - The relocation of its headquarters in San Antonio, Texas, resulted in an 80% reduction in facility emissions, saving 6,007 tons of CO₂e from 2023 to 2024 [11] - Approximately 80% of Rackspace's global data centers are powered by renewable energy, with plans to reach 100% through initiatives like RE100 and strategic energy partnerships [11] Operational Efficiency - Upgrades at the Dallas/Fort Worth data center improved energy performance, reducing power consumption by approximately 1,700 MWh between 2023 and 2024 [11] - The company has implemented a circular IT lifecycle policy to promote recycling, upcycling, and waste reduction [11] Employee Engagement and Community Impact - Rackspace has empowered its workforce with over 13,000 technical certifications in cloud and sustainability skills since 2023, with 95% of employees AI-ready certified [11] - The company has raised over $8 million for education through the Rackspace Foundation, supporting more than 10,000 students with STEM and holistic programs [11]

Core Viewpoint - Rackspace Technology will release its third quarter 2025 financial results on November 6, 2025, after market close, with a conference call scheduled for the same day to discuss the results [1]. Group 1: Financial Results Announcement - The financial results for Q3 2025 will be announced after market close on November 6, 2025 [1]. - The conference call to discuss the financial results will be hosted by CEO Gajen Kandiah and CFO Mark Marino at 5:00 PM ET on November 6, 2025 [1]. Group 2: Accessing the Conference Call - Interested parties can access the live webcast or replay through the company's Investor Relations website [2]. - Pre-registration is required to obtain the dial-in number for the conference call, and registrants will receive a PIN for access [2]. Group 3: Company Overview - Rackspace Technology is recognized as a leading end-to-end hybrid cloud and AI solutions provider [3]. - The company specializes in designing, building, and operating cloud environments across various technology platforms, regardless of the technology stack or deployment model [3]. - Rackspace Technology partners with customers throughout their cloud journey, assisting in application modernization, new product development, and the adoption of innovative technologies [3].