Rackspace Technology Reports Improved Q1 2025 Results

Rackspace Technology, Inc. ( (RXT) ) has released its Q1 earnings. Here is a breakdown of the information Rackspace Technology, Inc. presented to its investors.

Rackspace Technology, Inc. is a prominent company in the hybrid cloud and AI solutions sector, offering comprehensive cloud environment services across major technology platforms. In its first quarter of 2025, Rackspace Technology reported a revenue of $665 million, marking a 4% decline year-over-year. Despite the revenue drop, the company exceeded expectations in profit and earnings per share, continuing a trend of meeting or surpassing guidance for eleven consecutive quarters.

Key financial metrics from the first quarter of 2025 include a 7% decrease in Private Cloud revenue to $250 million and a 2% decrease in Public Cloud revenue to $416 million. The company reported a net loss of $72 million, significantly improved from a $641 million loss in the same period last year. Non-GAAP operating profit saw a substantial increase of 83% year-over-year, reaching $26 million.

Rackspace Technology’s operational turnaround is highlighted by a 9% growth in sales bookings and improved cash flow generation. The company’s strategic focus on enhancing efficiency and strengthening its sales pipeline has contributed to these positive trends. Capital expenditures were reduced to $27 million from $46 million in the previous year, indicating a more efficient allocation of resources.

Looking ahead, Rackspace Technology’s management remains optimistic about its financial outlook, providing guidance for the second quarter of 2025 with expected revenue between $653 million and $665 million. The company aims to maintain its momentum in sales growth and operational efficiency, positioning itself for continued improvement in financial performance.