Rackspace Technology(US:RXT)2025-11-06 21:22Revenue Performance - Revenue for Q3 2025 was $671 million, a decrease of 1% year-over-year from $676 million in Q3 2024[3] - Private Cloud revenue was $250 million, down 3% year-over-year from $258 million in Q3 2024[3] - Public Cloud revenue increased to $422 million, up 1% year-over-year from $418 million in Q3 2024[4] - Total revenue for the nine months ended September 30, 2024, was $2,051.5 million, a decrease of 2.4% compared to $2,002.9 million in 2025[21] - Public Cloud revenue for the nine months ended September 30, 2024, was $1,265.6 million, a decrease of 0.9% from $1,253.8 million in 2025[28] - Private Cloud revenue decreased by 4.7% to $785.9 million compared to $749.1 million[28] Profit and Loss - Loss from operations improved to $(34) million in Q3 2025, compared to a loss of $(174) million in Q3 2024[4] - Net loss was $(67) million in Q3 2025, significantly reduced from a net loss of $(187) million in Q3 2024[4] - Net loss for the nine months ended September 30, 2024, was $802.2 million, compared to a net loss of $193.1 million in 2025, representing a 75.9% increase in losses[21] - Basic and diluted net loss per share was $3.59 for 2024, compared to $0.82 for 2025[21] - The company reported a net loss of $186.6 million for the three months ended September 30, 2024, compared to a net loss of $67.1 million in 2025[43] Cash Flow and Capital Expenditures - Cash flow from operating activities was $71 million in Q3 2025, with a trailing twelve-month cash flow of $146 million[6] - Capital expenditures were $34 million in Q3 2025, compared to $31 million in Q3 2024[7] - Net cash provided by operating activities was $(14.4) million for 2024, contrasting with $91.7 million for 2025[25] - Cash and cash equivalents at the end of the period were $160.1 million, down from $199.7 million at the beginning of the period[25] Guidance and Projections - Guidance for Q4 2025 projects total revenue between $664 million and $678 million[9] - Non-GAAP Operating Profit is expected to be between $32 million and $34 million for Q4 2025[9] - Non-GAAP Loss Per Share is projected to be between $(0.03) and $(0.05) for Q4 2025[9] Assets and Liabilities - Total assets increased to $3,054.1 million as of December 31, 2024, compared to $2,845.0 million as of September 30, 2025[23] - Total liabilities stood at $4,058.3 million, slightly up from $4,032.2 million[23] Operating Profit - Public Cloud segment operating profit decreased by 9.1% year-over-year to $15.4 million for the three months ended September 30, 2024[29] - Private Cloud segment operating profit also fell by 9.1% year-over-year to $73.9 million for the same period[29] - Non-GAAP Operating Profit for the three months ended September 30, 2024, was $32.2 million, a slight decrease of 0.6% compared to $32.0 million in 2025[29] - Non-GAAP Operating Profit for the nine months ended September 30, 2024, was $66.5 million, an increase of 27.7% compared to $84.9 million in 2025[29] Impairment and Expenses - The company experienced a significant impairment of goodwill amounting to $141.7 million for the three months ended September 30, 2024[43] - Impairment of goodwill for the nine months ended September 30, 2024, was $714.9 million, with no impairment recorded for the same period in 2025[45] - Interest expense for the nine months ended September 30, 2024, was $80.1 million, compared to $61.9 million in 2025[45] - Share-based compensation expense for the three months ended September 30, 2024, was $15.5 million, compared to $18.2 million in 2025[45] Tax and Fees - The structural non-GAAP tax rate is estimated at 26% for all periods, subject to change based on various factors[48] - The company incurred $9.0 million in early termination fees related to the Master Economic Incentives Agreement in March 2024[46]