Rackspace Technology, Inc. (RXT) Form 10-Q — Aug 10, 2026

$RXTForm 10-QFiled Aug 10, 2026, 4:26 PM ET0001810019-26-000093Original filing

Rackspace Technology reported Q2 2026 revenue of $670.1 million, up 0.6% year over year, but the net loss widened 24% to $67.5 million with EPS of $(0.27), as gross margin fell 230 basis points to 17.1% and interest expense surged 61% to $34.2 million after its interest rate swap matured in February 2026. The balance sheet remains strained: the self-described highly leveraged company carries $2,311.3 million of principal debt against $110.6 million of cash and a $1.22 billion stockholders' deficit, with H1 operating cash flow turning negative at $(26.4) million and only $91.5 million left on its $375 million revolver.

Key figures

Eps: $(0.27) Q2 2026; $(0.24) H1 2026
Revenue: $670.1 million Q2 2026; $1,348.2 million H1 2026
Net Income: Net loss of $(67.5) million Q2 2026 (vs $(54.5) million prior year); $(59.2) million H1 2026 (vs $(126.0) million, aided by $62.5 million debt extinguishment gains)
Total Debt: $2,746.0 million carrying value ($2,311.3 million aggregate principal)
Revenue Yoy: +0.6% Q2; +1.2% H1 (+0.4% / +0.7% constant currency)
Total Assets: $2,799.8 million as of June 30, 2026
Cash Position: $110.6 million as of June 30, 2026
Shares Outstanding: 254,872,850 as of August 4, 2026
Atm Program: $250.0 million equity distribution agreement with Goldman Sachs (July 9, 2026); 1.0 million shares sold for $4.1 million net through August 7, 2026
Gross Margin Q2: 17.1%, down 230bps YoY
Adjusted Ebitda Q2: $65.9 million; $137.1 million H1 2026
Amd Gpu Deployment: nearly 2 megawatts targeted by end of 2026, ~$75 million capex
Flfo Term Loan Rate: 10.00% contractual rate as of June 30, 2026
Non Gaa PNet Loss Q2: $(21.5) million; non-GAAP EPS $(0.08)
Revolver Capacity: $375.0 million; $260.0 million drawn; $91.5 million available
Interest Expense Q2: $34.2 million, up 61% YoY after interest rate swap matured February 2026
Workforce Reduction: approximately 15% of global workforce announced June 2026
Operating Cash Flow H1: $(26.4) million vs +$21.0 million prior year
Stockholders Deficit: $(1,219.5) million
Palantir Share Issuance: 2.2 million shares (~$15.0 million fair value) issued July 6, 2026
Non Gaa POperating Profit Q2: $27.4 million; $58.1 million H1 2026
Receivables Facility Limit: increased from $300 million to $350 million; extended to July 2, 2029
Restructuring Cost Estimate: $14.0-$19.0 million one-time in 2026; $12.1 million severance booked in Q2
Gain On Debt Extinguishment H1: $62.5 million on $108 million principal repurchased
Remaining Performance Obligations: $809.1 million as of June 30, 2026

Price after filing

1 day: +3.6%7 days: -16.5%30 days: -31.7%

Close on the filing date to close N calendar days later (from $4.73). Historical, not a forecast.

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