Loading...
Rackspace Q1 2025 Earnings Report
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.
Key Takeaways
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.
Rackspace
Rackspace
Rackspace Revenue by Segment
Revenue by Segment
Public Cloud Revenue
CapyFin.comPrivate Cloud Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income