Key Highlights

  • Revenue was USD 609.1 million, compared with USD 671.2 million.
  • Net loss was USD 53.5 million, or USD 0.21 per share.
  • Cash and cash equivalents were USD 108.0 million.
  • The company issued 24.0 million shares for USD 66.0 million on November 9.

Rackspace Technology, Inc. (NASDAQ:RXT) reported third quarter 2026 Revenue of USD 609.1 million, compared with USD 671.2 million in the third quarter of 2025. Reported EPS was negative USD 0.06 and revenue was USD 609.10 million, compared with estimates of EPS of negative USD 0.08 and revenue of USD 573.95 million.

Gross profit was USD 113.1 million, compared with USD 129.9 million. The loss from operations was USD 12.5 million, compared with USD 33.9 million. The net loss was USD 53.5 million, or USD 0.21 per share, compared with a net loss of USD 67.1 million, or USD 0.28 per share.

For the nine months ended September 30, 2026, revenue was USD 1,957.3 million, compared with USD 2,002.9 million. Gross Profit was USD 347.0 million, compared with USD 386.0 million. The loss from operations was USD 63.5 million, compared with USD 97.4 million. The net loss was USD 112.7 million, or USD 0.45 per share, compared with USD 193.1 million, or USD 0.82 per share.

The filing also shows segment revenue of USD 349.1 million for the quarter, compared with USD 421.6 million, and USD 1,199.3 million for the nine months, compared with USD 1,253.8 million.

Liquidity and Equity Issuance

As of September 30, 2026, the company held USD 108.0 million of cash and cash equivalents. Based on its current level of operations and available cash, management stated it believes its sources provide sufficient Liquidity over at least the next twelve months.

Under share purchase agreements with an investor group led by Voss Capital, LP, the company issued an aggregate of 24.0 million shares of common stock on November 9, 2026 for a cash purchase price of USD 66.0 million. It also issued 2.2 million shares of common stock to Palantir on July 6, 2026 as non-cash consideration.

Contract Balances and Obligations

Amounts recognized in revenue that were included in deferred revenue at the beginning of each period were USD 74.5 million for the three months ended September 30, 2026, compared with USD 42.8 million a year earlier, and USD 91.9 million for the nine months, compared with USD 80.3 million.

As of September 30, 2026, the aggregate transaction price allocated to remaining performance obligations was USD 850.3 million, of which approximately 11% is scheduled to be recognized as revenue during the remainder of 2026 and the remainder thereafter.

Debt Terms

The filing describes change of control provisions in the indentures for the company's 3.50% FLSO Senior Secured Notes, 3.50% Senior Secured Notes and 5.375% Senior Notes. Upon a change of control, the company is required to make an offer to repurchase the outstanding notes at 101.000% of the aggregate principal amount, plus accrued and unpaid interest.

Equity Issuance and Obligations

Rackspace issued 24.0 million shares for USD 66.0 million on November 9, with cash of USD 108.0 million at quarter end. The filing covers remaining performance obligations, deferred revenue recognized, share issuance dates and note repurchase terms, alongside revenue of USD 609.1 million, compared with USD 671.2 million, and a net loss of USD 53.5 million, or USD 0.21 per share.