NASDAQ$RXT
Rackspace Technology Inc · Q1 2025 earnings
Q1 2025 earnings · · After market close · Investor relations
Briefing
Rackspace Technology reported its first quarter 2025 results, exceeding expectations across key metrics with revenue at the high end of guidance and improved profit and EPS.
Rackspace Technology reported a revenue of $665.4 million for the first quarter of 2025, a decrease of 3.7% year-over-year. The company achieved a net loss of $(71.5) million and an EPS of $(0.31). Non-GAAP operating profit increased by 83% year-over-year to $25.6 million, indicating strong operational momentum.
- Revenue for Q1 2025 was $665.4 million, a 3.7% decrease year-over-year, but at the high end of guidance.
- Non-GAAP Operating Profit increased by 83% year-over-year to $25.6 million, reflecting improved efficiency.
- Net loss per diluted share was $(0.31), an improvement from $(2.91) in Q1 2024.
- Cash flow from operating activities was $12.6 million in Q1 2025, a significant year-over-year improvement.
Headline financials
Revenue & EPS history
Rackspace · Revenue · Quarterly
$665M
Forward guidance
Rackspace Technology provided guidance for Q2 2025, expecting total revenue between $653 million and $665 million, and Non-GAAP Operating Profit between $25 million and $27 million.
Tailwinds
- Expected Non-GAAP Operating Profit of $25 - $27 million for Q2 2025.
- Anticipated Non-GAAP Loss Per Share between $(0.04) and $(0.06) for Q2 2025.
- Projected Public Cloud Revenue of $406 - $412 million for Q2 2025.
- Projected Private Cloud Revenue of $247 - $253 million for Q2 2025.
- Non-GAAP Weighted Average Shares expected to be 244 - 248 million for Q2 2025.
Headwinds
- Expected total revenue for Q2 2025 ($653 - $665 million) is lower than Q1 2025 revenue ($665.4 million).
- Anticipated Non-GAAP Other Income (Expense) is negative, ranging from $(42) million to $(46) million for Q2 2025.
- The company continues to project a Non-GAAP Loss Per Share for Q2 2025.
- The guidance does not provide a reconciliation to GAAP net income (loss) due to uncertainty of reconciling items.
- The impact of adjustments to non-GAAP measures could be significant in future periods.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q1 2025
+2.3%
Avg return
Earnings day
+1.8%
Avg return
5 days after
-8.4%
Avg return
30 days after
48%
12 / 25 earnings
Positive
+67.4%
Q4 2025
Best reaction
-20.6%
Q4 2021
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +56.0% | +63.6% | — | |
| Q4 2025 | +67.4% | +82.2% | -22.2% | |
| Q3 2025 | -15.3% | -18.5% | -30.1% | |
| Q1 2025 | -13.4% | -11.1% | -18.1% | |
| Q4 2024 | +0.7% | -9.0% | -35.1% | |
| Q3 2024 | +8.6% | -13.3% | -10.4% | |
| Q2 2024 | +6.1% | +13.2% | -0.5% | |
| Q1 2024 | +5.9% | +11.3% | +17.7% | |
| Q4 2023 | -14.8% | +14.9% | +13.0% | |
| Q3 2023 | -1.8% | -10.0% | +7.9% | |
| Q2 2023 | +13.6% | +6.6% | +0.9% | |
| Q1 2023 | -14.0% | -18.7% | +16.2% | |
| Q4 2022 | -2.6% | -14.2% | -35.8% | |
| Q3 2022 | +22.1% | +17.5% | -33.4% | |
| Q2 2022 | -17.6% | -18.2% | -29.7% | |
| Q1 2022 | -10.9% | +4.0% | -13.3% | |
| Q4 2021 | -20.6% | -6.5% | -7.3% | |
| Q3 2021 | +12.5% | +3.4% | -9.4% | |
| Q2 2021 | -14.5% | -17.0% | -12.7% | |
| Q1 2021 | -19.9% | -18.0% | -10.8% | |
| Q4 2020 | -14.8% | -14.0% | -1.8% | |
| Q3 2020 | -1.7% | -7.2% | +13.1% | |
| Q4 2019 | +8.6% | +1.4% | -0.2% | |
| Q2 2019 | +8.6% | +1.4% | -0.2% | |
| Q2 2020 | +8.6% | +1.4% | -0.2% | |
| Q1 2020 | — | — | — | |
| Q3 2019 | — | — | — | |
| Q1 2019 | — | — | — |
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