Rackspace Technology Reports Second Quarter 2025 Results

Core Insights - Rackspace Technology reported second quarter 2025 results with revenue of $666 million, a decrease of 3% year-over-year from $685 million in Q2 2024 [2][6] - Private Cloud revenue was $250 million, down 4% from $260 million in Q2 2024, while Public Cloud revenue was $417 million, down 2% from $425 million in Q2 2024 [2][3] - The company achieved a 34% increase in Non-GAAP Operating Profit, reaching $27 million compared to $20 million in Q2 2024 [4][41] - Net loss for Q2 2025 was $(55) million, a significant decline from net income of $25 million in Q2 2024, resulting in a net loss per diluted share of $(0.23) compared to earnings of $0.11 in the prior year [3][4] Financial Performance - Total revenue for the first half of 2025 was $1.3317 billion, down 3.2% from $1.3757 billion in the same period of 2024 [20][30] - Operating cash flow for Q2 2025 was $8 million, with a trailing twelve-month cash flow from operating activities of $127 million [6][5] - Capital expenditures were $31 million in Q2 2025, slightly down from $33 million in Q2 2024 [5] Segment Analysis - Public Cloud segment revenue decreased by 2% year-over-year, while Private Cloud segment revenue saw a 4% decline [2][30] - Non-GAAP Operating Profit for the Public Cloud segment increased by 51.4%, while the Private Cloud segment experienced a 10.6% decrease [32][41] Guidance and Outlook - The company provided guidance for total revenue in Q3 2025 to be between $660 million and $674 million, with Private Cloud revenue expected between $246 million and $254 million, and Public Cloud revenue between $414 million and $420 million [7][6] - Non-GAAP Loss Per Share is projected to be between $(0.04) and $(0.06) for the upcoming quarter [7]