Core Insights - Rackspace Technology, Inc. reported a decrease in revenue for Q4 2025, totaling $683 million, down 0.4% year-over-year, while full-year revenue for 2025 was $2,686 million, a decrease of 2% compared to 2024 [3][7][8]. Financial Performance - Q4 2025 Private Cloud revenue was $241 million, down 10% year-over-year, while Public Cloud revenue increased to $442 million, up 6% year-over-year [3][4][8]. - The company experienced a loss from operations of $(3) million in Q4 2025, significantly improved from a loss of $(29) million in Q4 2024 [4][8]. - Net loss for Q4 2025 was $(33) million, an improvement from $(56) million in Q4 2024, resulting in a net loss per diluted share of $(0.13) compared to $(0.25) in the prior year [4][5][8]. - For the full year 2025, net loss was $(226) million, a significant reduction from $(858) million in 2024, with net loss per diluted share improving to $(0.95) from $(3.82) [10][11]. Operational Metrics - Non-GAAP Operating Profit for Q4 2025 was $41 million, up 5% from $39 million in Q4 2024, while full-year Non-GAAP Operating Profit was $126 million, a 19% increase from $106 million in 2024 [5][10]. - Capital expenditures in Q4 2025 were $48 million, compared to $27 million in Q4 2024, indicating increased investment in infrastructure [6][10]. Future Outlook - The company anticipates growth in Private Cloud revenue for 2026, projecting between $1,025 million and $1,075 million, while Public Cloud revenue is expected to be between $1,575 million and $1,625 million [12]. - Non-GAAP Operating Profit guidance for 2026 is set between $160 million and $170 million, with an Adjusted EBITDA forecast of $305 million to $315 million [12].
Rackspace Technology Reports Fourth Quarter and Full Year 2025 Results