Rackspace Technology Q4 2025 Earnings Presentation February 26, 2026 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 ...

Fourth Quarter Revenue of $683 million, down 0.4% Year-over-Year; 2025 Revenue of $2,686 million, down 2% Year-over-YearFourth Quarter Private Cloud Revenue of $241 million, down 10% Year-over-Year; 2025 Private Cloud Revenue of $990 million, down 6% Year-over-YearFourth Quarter Public Cloud Revenue of $442 million, up 6% Year-over-Year; 2025 Public Cloud Revenue of $1,696 million up 1% Year-over-YearFourth Quarter Cash Flow From Operating Activities of $60 million; 2025 Cash Flow From Operating Activities ...

Rackspace Technology, Inc. (NASDAQ:RXT) is pushing higher on Friday. Nasdaq index is up 0.93% while S&P 500 is up 0.53%.On Wednesday’s the company announced of a strategic partnership with data-giant Palantir Technologies, Inc. (NASDAQ:PLTR) , designed to accelerate deployment of Palantir’s Foundry and Artificial Intelligence Platform (AIP). Under the deal, Rackspace will host Palantir’s software within its Private Cloud and UK Sovereign data centers, targeting highly regulated industries wary of the public ...

Core Insights - OVHcloud reported organic revenue growth of 6.0% in Q1 FY2026, confirming its annual guidance and indicating positive free cash flow generation [3][12]. Revenue by Product Segment - Total revenue for Q1 FY2026 reached €275.3 million, up from €263.5 million in Q1 FY2025, reflecting a 6.0% year-over-year growth on a like-for-like basis [2][29]. - Private Cloud revenue was €167.2 million, a 4.0% increase year-over-year [7][8]. - Public Cloud revenue grew significantly by 15.8% to €58.2 million, driven by new customer acquisitions and upselling strategies [8][9]. - Web Cloud segment revenue increased by 2.3% to €49.8 million [8][9]. Revenue by Region - Revenue from France was €133.9 million, up 5.1% year-over-year, accounting for 48% of total revenue [9][30]. - Revenue from other European countries (excluding France) was €79.3 million, reflecting a 4.1% increase [10][30]. - The Rest of the World generated €62.1 million, marking a 10.5% growth, primarily due to the expansion of Public Cloud services in the United States [11][30]. Strategic Developments - OVHcloud signed contracts with high-security clients, including LCH, and is expanding its cloud regions in Europe, with a new site in Berlin set to open in early 2027 [4][13]. - The company is enhancing its AI capabilities through a partnership with SambaNova, focusing on improving AI inference performance [4][17]. - OVHcloud's supply chain redesign initiated in 2025 is allowing for consistent service delivery while maintaining financial discipline [5][6]. Financial Outlook - The company confirmed its FY2026 targets, including organic revenue growth of 5% to 7%, an adjusted EBITDA margin above FY2025, and capital expenditures representing 30% to 32% of revenue [15][12].

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 ...

Core Insights - OVHcloud achieved a significant milestone by surpassing the €1 billion revenue mark in FY2025, with total revenue reaching €1,084.6 million, reflecting a year-on-year growth of 9.3% [2][5][3] - The company appointed Octave Klaba as Chairman and CEO to align its vision and strategy, with plans to present a new strategic plan for 2026-2030 [4][28] - The adjusted EBITDA margin improved to 40.4%, up 2.0 percentage points from the previous year, indicating strong operational efficiency [17][2] Financial Performance - Revenue for FY2025 was €1,084.6 million, up from €993.1 million in FY2024, marking a 9.2% increase [2][16] - Adjusted EBITDA rose to €437.8 million, with a margin of 40.4%, compared to €381.5 million and a margin of 38.4% in FY2024 [17][16] - Net income improved to €0.4 million in FY2025 from a net loss of €10.3 million in FY2024 [19][16] Revenue Breakdown - The Corporate segment generated over €200 million in revenue, while Public Cloud revenue exceeded €100 million [3][5] - Private Cloud accounted for 62% of total revenue, reaching €671.6 million, up 8.5% year-on-year [8][10] - Public Cloud revenue was €219.2 million, reflecting a 19.9% increase, and Web Cloud revenue was €193.8 million, up 3.8% [9][10] Customer Metrics - OVHcloud has nearly 1,200 customers, each generating more than €100,000 in Annual Recurring Revenue (ARR) [6] - The company leads the SecNumCloud market with an ARR of €24 million, a 63% increase year-on-year [6] - The net revenue retention rate was 105%, indicating growth among existing customers [6] Regional Performance - France accounted for 48% of total revenue, growing by 7.3% year-on-year, while the Rest of the World saw an increase of 14.3% [13][14] - Revenue from Europe (excluding France) grew by 9.7%, driven by strong performance in Central and Northern Europe [14][13] Capital Expenditure and Cash Flow - Total capex for FY2025 was €361.4 million, representing 33.3% of revenue, with unlevered free cash flow increasing to €57.6 million [23][24] - Gross cash flows from operating activities improved to €421.9 million, up from €377.6 million in FY2024 [20][22] Strategic Initiatives - The company plans to enhance its product offerings, including the launch of Managed Kubernetes Service and Public VCF as-a-Service [32][33] - OVHcloud aims to improve its support and performance/price positioning for Digital Starters and strengthen its Corporate segment in Italy and Germany [11][12]

Core Insights - Hewlett Packard Enterprise (HPE) reported better-than-expected results for Q3 fiscal 2025, with shares rising 2% in extended trading [1] - Non-GAAP earnings were 44 cents per share, beating the Zacks Consensus Estimate by 2.3%, but down 12% year over year [1] - Revenues increased 19% year over year to $9.1 billion, surpassing the Zacks Consensus Estimate by 4.1% [2] Revenue Performance - HPE's revenue growth was driven by the Server, Hybrid Cloud, and Financial Services segments, particularly due to increased sales in artificial intelligence and GreenLake [2] - The Server segment saw a 16% year-over-year increase in sales, reaching $4.94 billion, with strong demand for AI servers [3] - Networking division revenues surged 54% year over year to $1.73 billion, while the Hybrid Cloud division's sales rose 12% to $1.48 billion [4][5] Segment Analysis - The Financial Services segment reported revenues of $886 million, a 1% increase year over year, with a net portfolio asset increase to $13.2 billion [6] - The Server segment's operating profit margin was 6.4%, down 440 basis points year over year but up 50 basis points sequentially [3] - The Hybrid Cloud division's operating profit margin improved to 5.9%, reflecting controlled operating expenses [5] Operating Results - Non-GAAP gross profit was $2.73 billion, up 11.5% year over year, with a gross margin of 29.9% [7] - Non-GAAP operating profit increased 0.8% year over year to $777 million, with an operating margin of 8.5% [7] Cash Flow and Balance Sheet - HPE ended the fiscal third quarter with $457 million in cash, down from $11.67 billion in the previous quarter [8] - The company generated $1.3 billion in cash from operational activities during the quarter and returned $171 million to shareholders [9] Guidance - For Q4 fiscal 2025, HPE forecasts revenues between $9.7 billion and $10.1 billion, with non-GAAP earnings per share estimated at 56-60 cents [10] - For fiscal 2025, HPE raised its revenue growth outlook to 14-16%, up from the previous guidance of 7-9% [11]

Financial Data and Key Metrics Changes - Total company GAAP revenue for Q2 2025 was $666 million, down 3% year over year but slightly up sequentially, exceeding guidance due to solid performance across both business units [18] - Non-GAAP operating profit was $27 million, up 34% year over year, driven by operational efficiencies [18] - Non-GAAP loss per share was $0.06, at the lower end of the guided range, primarily due to higher expenses related to data center leases [19] Business Line Data and Key Metrics Changes - Private Cloud bookings grew 24% sequentially and 42% year over year, with revenue at $250 million, down 4% year over year [6][20] - Public Cloud bookings grew 1% year over year, with revenue totaling $417 million, down 2% year over year [11][21] - Non-GAAP gross margin for Private Cloud was 36.8%, down 50 basis points year over year, while Public Cloud's was 9.6%, down 20 basis points year over year [20][21] Market Data and Key Metrics Changes - Private Cloud saw double-digit year-over-year bookings growth in The Americas and EMEA, indicating broad-based strength [6] - Public Cloud services revenue grew 3% sequentially, remaining flat year over year, with a focus on higher-margin services [12][21] Company Strategy and Development Direction - The company is focused on building a sustainable business model that consistently delivers revenue, profit, and cash flow growth [17] - Strategic expansion into mid-market and enterprise segments is underway, with a strong emphasis on private cloud solutions [7][10] - The company is also investing in AI capabilities, with initiatives aimed at becoming a private AI infrastructure provider [50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the private cloud business and the positive trajectory of bookings performance [31] - The company anticipates a flat revenue outlook for private cloud in Q3, while expecting growth in public cloud services [28][34] - Management highlighted the importance of operational discipline and working capital performance in driving free cash flow improvements [29] Other Important Information - The company launched several new products and enhancements, including Rackspace OpenStack and Rackspace CloudOps, aimed at improving service offerings [10][12] - A strategic alliance with Semaphore.ai was announced to enhance AI capabilities across business functions [15][54] Q&A Session Summary Question: Discussion on guidance and free cash flow - Management indicated that Q3 guidance is expected to be flat sequentially for private cloud, with an uptick anticipated in public cloud services [28][29] Question: Insights on private cloud services and public cloud performance - Management noted a favorable mix in private cloud bookings, with a shift towards larger deals and longer contract lengths [32][33] - Public cloud services are expected to grow in the second half of 2025, with a projected year-over-year growth of 10% to 20% in Q4 [34][35] Question: Investments in market traction and AI partnerships - Management stated that investments in mid-market and enterprise segments have already been made, with a focus on success-based CapEx [49] - The company is seeing traction in AI across both private and public cloud, with successful implementations in healthcare and retail sectors [51][54]

Financial Performance - Q2 2025 - Total revenue was $666 million, flat quarter-over-quarter (Q/Q) and down 3% year-over-year (Y/Y) [7] - Non-GAAP gross profit was $132 million, essentially flat Q/Q and down 5% Y/Y [7] - Non-GAAP gross margin was 198%, down 01 percentage points Q/Q and 04 percentage points Y/Y [7] - Non-GAAP operating profit was $27 million, up 7% Q/Q and 34% Y/Y [7] - Non-GAAP operating margin was 41%, up 03 percentage points Q/Q and 11 percentage points Y/Y [7] - Non-GAAP loss per share was ($006), an increase of $003 Y/Y [7] Segment Performance - Q2 2025 - Total Rackspace revenue was $666 million, with Private Cloud at $250 million and Public Cloud at $417 million [8] - Private Cloud revenue decreased by 4% Y/Y, while Public Cloud revenue decreased by 2% Y/Y [8] - Segment operating profit was $78 million, with Private Cloud contributing $62 million and Public Cloud $16 million [8] - Corporate functions resulted in a loss of $50 million [8] Cash Flow and Capital Expenditures - Cash provided by operating activities was $8 million for Q2 2025 [9] - Free cash flow was ($12) million for Q2 2025 [9] - Total capital expenditures were $31 million, with cash capital expenditures at $21 million [9] - As of June 30, 2025, cash and cash equivalents were $104 million, with $310 million available under the revolving credit facility, resulting in total liquidity of $414 million [9] Q3 2025 Guidance - Total revenue is expected to be between $660 million and $674 million [12] - Private Cloud revenue is projected to be between $246 million and $254 million [12] - Public Cloud revenue is expected to be between $414 million and $420 million [12] - Non-GAAP operating profit is guided to be between $30 million and $32 million [12] - Non-GAAP loss per share is expected to be between ($004) and ($006) [12]

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]