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Dec 31, 2025
Rackspace Q4 2025 Earnings Report
Rackspace reported a slight year-over-year revenue decline in Q4 2025, with Public Cloud growth offsetting Private Cloud weakness and improved operating profitability.
Key Takeaways
Fourth quarter 2025 revenue was 682800000, down 0.4% year-over-year, as Public Cloud grew 6% to 442200000 while Private Cloud declined 10% to 240600000. Net loss narrowed to 32700000 and Non-GAAP Operating Profit increased to 41200000.
Total revenue declined 0.4% year-over-year to 682800000.
Public Cloud revenue increased 6% to 442200000, while Private Cloud fell 10% to 240600000.
Net loss improved to 32700000 from 56000000 in Q4 2024.
Non-GAAP Operating Profit rose 5% year-over-year to 41200000.
Revenue by Segment
Forward Guidance
For full year 2026, Rackspace expects revenue between 2600000000 and 2700000000, Non-GAAP Operating Profit between 160000000 and 170000000, and Adjusted EBITDA between 305000000 and 315000000.
Positive Outlook
- Private Cloud revenue expected to grow year-over-year in 2026.
- Public Cloud revenue guided between 1575000000 and 1625000000.
- Non-GAAP Operating Profit guidance of 160000000 to 170000000.
- Adjusted EBITDA guidance of 305000000 to 315000000.
- Revenue guidance range of 2600000000 to 2700000000.
Challenges Ahead
- Non-GAAP Loss Per Share guidance of -0.15 to -0.20.
- Non-GAAP Other Income (Expense) expected between -220000000 and -230000000.
- Revenue declined year-over-year in Q4 2025.
- Private Cloud revenue declined 10% year-over-year in Q4.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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