Rackspace Technology Reports Second Quarter 2025 Results
Rackspace Technology (NASDAQ:RXT) reported Q2 2025 financial results with revenue of $666 million, down 3% year-over-year. The company's performance showed mixed results across segments, with Private Cloud revenue declining 4% to $250 million and Public Cloud revenue decreasing 2% to $417 million.
The company reported a net loss of $55 million, or $(0.23) per diluted share, compared to net income of $25 million in Q2 2024. However, Non-GAAP Operating Profit improved by 34% to $27 million. Bookings grew 16% year-over-year, and the company maintained a strong liquidity position of $414 million.
For Q3 2025, Rackspace provided guidance projecting revenue between $660-674 million and Non-GAAP Operating Profit of $30-32 million.
Rackspace Technology (NASDAQ:RXT) ha comunicato i risultati finanziari del secondo trimestre 2025 con un fatturato di 666 milioni di dollari, in calo del 3% rispetto all'anno precedente. Le performance della societ脿 hanno mostrato risultati contrastanti tra i diversi segmenti, con un fatturato del Private Cloud in diminuzione del 4% a 250 milioni di dollari e un fatturato del Public Cloud in calo del 2% a 417 milioni di dollari.
La societ脿 ha registrato una perdita netta di 55 milioni di dollari, pari a $(0,23) per azione diluita, rispetto a un utile netto di 25 milioni di dollari nel secondo trimestre 2024. Tuttavia, il risultato operativo Non-GAAP 猫 migliorato del 34%, raggiungendo 27 milioni di dollari. Le prenotazioni sono cresciute del 16% anno su anno e l'azienda ha mantenuto una solida posizione di liquidit脿 pari a 414 milioni di dollari.
Per il terzo trimestre del 2025, Rackspace ha fornito una guida prevedendo un fatturato compreso tra 660 e 674 milioni di dollari e un risultato operativo Non-GAAP tra 30 e 32 milioni di dollari.
Rackspace Technology (NASDAQ:RXT) inform贸 los resultados financieros del segundo trimestre de 2025 con ingresos de 666 millones de d贸lares, una disminuci贸n del 3% interanual. El desempe帽o de la compa帽铆a mostr贸 resultados mixtos en los segmentos, con ingresos de Private Cloud disminuyendo un 4% hasta 250 millones de d贸lares y ingresos de Public Cloud bajando un 2% hasta 417 millones de d贸lares.
La empresa report贸 una p茅rdida neta de 55 millones de d贸lares, o $(0.23) por acci贸n diluida, en comparaci贸n con una ganancia neta de 25 millones en el segundo trimestre de 2024. Sin embargo, el beneficio operativo Non-GAAP mejor贸 un 34% alcanzando 27 millones de d贸lares. Las reservas crecieron un 16% interanual y la compa帽铆a mantuvo una s贸lida posici贸n de liquidez de 414 millones de d贸lares.
Para el tercer trimestre de 2025, Rackspace proporcion贸 una gu铆a proyectando ingresos entre 660 y 674 millones de d贸lares y un beneficio operativo Non-GAAP de 30 a 32 millones de d贸lares.
Rackspace Technology (NASDAQ:RXT)電� 2025雲� 2攵勱赴 鞛 鞁れ爜鞚� 氚滍憸頃橂┌ 毵れ稖 6鞏� 6,600毵� 雼煬毳� 旮半頃� 鞝勲厔 霃欔赴 雽�牍� 3% 臧愳唽頄堨姷雼堧嫟. 須岇偓鞚� 鞁れ爜鞚� 攵�氍鸽硠搿� 鞐囮皥毽� 氇姷鞚� 氤挫榾鞙茧┌, 頂勲澕鞚措箺 韥措澕鞖半摐 毵れ稖鞚� 4% 臧愳唽頃� 2鞏� 5,000毵� 雼煬, 韻茧笖毽� 韥措澕鞖半摐 毵れ稖鞚� 2% 臧愳唽頃� 4鞏� 1,700毵� 雼煬毳� 旮半頄堨姷雼堧嫟.
须岇偓电� 5,500毵� 雼煬鞚� 靾滌啇鞁�, 頋劃 欤茧嫻 $(0.23)鞚� 氤搓碃頄堨溂氅�, 鞚措姅 2024雲� 2攵勱赴鞚� 2,500毵� 雼煬 靾滌澊鞚店臣 牍勱祼霅╇媹雼�. 攴鸽煬雮� Non-GAAP 鞓侅梾鞚挫澋鞚� 34% 歃濌皜頃� 2,700毵� 雼煬搿� 臧滌劆霅橃棃鞀惦媹雼�. 鞓堨暯鞎§潃 鞝勲厔 雽�牍� 16% 歃濌皜頄堨溂氅�, 须岇偓电� 4鞏� 1,400毵� 雼煬鞚� 臧曤牓頃� 鞙犽彊靹� 鞙勳箻毳� 鞙犾頄堨姷雼堧嫟.
2025雲� 3攵勱赴鞐愲姅 Rackspace臧� 毵れ稖鞚� 6鞏� 6,000毵寏6鞏� 7,400毵� 雼煬, Non-GAAP 鞓侅梾鞚挫澋鞚� 3,000毵寏3,200毵� 雼煬搿� 鞝勲頃橂姅 臧�鞚措崢鞀るゼ 鞝滌嫓頄堨姷雼堧嫟.
Rackspace Technology (NASDAQ:RXT) a publi茅 ses r茅sultats financiers du deuxi猫me trimestre 2025 avec un chiffre d'affaires de 666 millions de dollars, en baisse de 3 % par rapport 脿 l'ann茅e pr茅c茅dente. Les performances de l'entreprise ont 茅t茅 mitig茅es selon les segments, avec un chiffre d'affaires du Private Cloud en baisse de 4 % 脿 250 millions de dollars et un chiffre d'affaires du Public Cloud en baisse de 2 % 脿 417 millions de dollars.
L'entreprise a enregistr茅 une perte nette de 55 millions de dollars, soit $(0,23) par action dilu茅e, contre un b茅n茅fice net de 25 millions au deuxi猫me trimestre 2024. Cependant, le r茅sultat op茅rationnel Non-GAAP s'est am茅lior茅 de 34 % pour atteindre 27 millions de dollars. Les commandes ont augment茅 de 16 % en glissement annuel et la soci茅t茅 a maintenu une solide position de liquidit茅 de 414 millions de dollars.
Pour le troisi猫me trimestre 2025, Rackspace a fourni des pr茅visions anticipant un chiffre d'affaires compris entre 660 et 674 millions de dollars et un r茅sultat op茅rationnel Non-GAAP de 30 脿 32 millions de dollars.
Rackspace Technology (NASDAQ:RXT) meldete die Finanzergebnisse f眉r das zweite Quartal 2025 mit Umsatz von 666 Millionen US-Dollar, was einem R眉ckgang von 3 % im Jahresvergleich entspricht. Die Unternehmensleistung zeigte gemischte Ergebnisse in den Segmenten, mit einem R眉ckgang der Private Cloud Ums盲tze um 4 % auf 250 Millionen US-Dollar und einem R眉ckgang der Public Cloud Ums盲tze um 2 % auf 417 Millionen US-Dollar.
Das Unternehmen verzeichnete einen Nettoverlust von 55 Millionen US-Dollar bzw. $(0,23) je verw盲sserter Aktie, im Vergleich zu einem Nettogewinn von 25 Millionen US-Dollar im zweiten Quartal 2024. Der Non-GAAP-Betriebsgewinn verbesserte sich jedoch um 34 % auf 27 Millionen US-Dollar. Die Buchungen stiegen im Jahresvergleich um 16 % und das Unternehmen hielt eine starke Liquidit盲tsposition von 414 Millionen US-Dollar.
F眉r das dritte Quartal 2025 gab Rackspace eine Prognose mit einem Umsatz zwischen 660 und 674 Millionen US-Dollar und einem Non-GAAP-Betriebsgewinn von 30 bis 32 Millionen US-Dollar ab.
- Bookings growth of 16% year-over-year
- Non-GAAP Operating Profit increased 34% to $27 million
- Strong liquidity position of $414 million
- Positive operating cash flow of $8 million in Q2
- Reduced capital expenditures from $33M to $31M year-over-year
- Revenue declined 3% year-over-year to $666 million
- Private Cloud revenue dropped 4% to $250 million
- Public Cloud revenue decreased 2% to $417 million
- Net loss of $55 million compared to net income of $25 million in Q2 2024
- Operating loss of $25 million in Q2 2025
Insights
Rackspace shows mixed Q2 results with declining revenue but improving profitability metrics and strong bookings growth, suggesting operational progress despite top-line challenges.
Rackspace Technology delivered mixed Q2 2025 results that point to a company in transition. Revenue decreased
The operating loss narrowed significantly to
Particularly encouraging is the bookings growth of
The company maintains a solid liquidity position with
Looking ahead, management's Q3 guidance projects relatively stable sequential performance with revenue between
- Revenue of
$666 million in the Second Quarter, down3% Year-over-Year - Private Cloud Revenue was
$250 million , down4% Year-over-Year - Public Cloud Revenue was
$417 million , down2% Year-over-Year - Second Quarter 2025 Cash Flow From Operating Activities was
$8 million ; Cash Flow From Operating Activities was$127 million on a Trailing-Twelve-Month Basis
SAN ANTONIO, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Rackspace Technology, Inc. (Nasdaq: RXT), a leading end-to-end, hybrid cloud and AI solutions company, today announced results for its second quarter ended June听30, 2025.
Amar Maletira, Chief Executive Officer, stated, 鈥淚 am pleased with our second quarter results. Revenue and operating profit exceeded the midpoint of guidance and EPS was within our guided range.鈥�
Mr. Maletira added, 鈥淕o鈥憈o鈥憁arket execution across both business units remains strong, reflecting continued progress in our turnaround. Bookings grew
Second Quarter 2025 Results
Revenue was
Private Cloud revenue was
Public Cloud revenue was
Loss from operations was
Net loss was
Net loss per diluted share was
Non-GAAP Operating Profit was
Non-GAAP Loss Per Share was
Capital expenditures were
As of June听30, 2025, we had cash and cash equivalents of
| (1) | 听 | Constant currency revenue and certain other measures in this release are non-GAAP financial measures. See 鈥淣on-GAAP Financial Measures鈥� and the tables that accompany this release for definitions and reconciliations of these non-GAAP measures to the most comparable GAAP measures. |
| 听 | 听 | 听 |
Financial Outlook
Rackspace Technology is providing guidance as follows:
| 听 | Q3 2025 Guidance | |
| Total Revenue | 听 | |
| Private Cloud Revenue | 听 | |
| Public Cloud Revenue | 听 | |
| Non-GAAP Operating Profit | 听 | |
| Non-GAAP Loss Per Share | ) | |
| Non-GAAP Other Income (Expense) | 听 | |
| Non-GAAP Tax Expense Rate | 26 | % |
| Non-GAAP Weighted Average Shares | 239 - 241 million | 听 |
| 听 | 听 | 听 |
Information about Rackspace Technology鈥檚 use of non-GAAP financial measures is provided below under 鈥淣on-GAAP Financial Measures鈥�.
Definitions of non-GAAP financial measures and the reconciliations to the most directly comparable measures in accordance with generally accepted accounting principles in the United States (鈥淕AAP鈥�) are provided in subsequent sections of this press release narrative and supplemental schedules. Rackspace Technology has not reconciled Non-GAAP Operating Profit, Non-GAAP Loss Per Share, Non-GAAP Other Income (Expense) or Non-GAAP Tax Expense Rate guidance to the most directly comparable GAAP measure because it does not provide guidance on GAAP net income (loss) or the reconciling items between these Non-GAAP measures and GAAP net income (loss) as a result of the uncertainty regarding, and the potential variability of, certain of these items, such as share-based compensation expense. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort. With respect to Non-GAAP Operating Profit, Non-GAAP Loss Per Share, Non-GAAP Other Income (Expense) and Non-GAAP Tax Expense Rate guidance, adjustments in future periods are generally expected to be similar to the kinds of charges and costs excluded from these Non-GAAP measures in prior periods, but the impact of such adjustments could be significant.
Conference Call and Webcast
Rackspace Technology will hold a conference call today, August 7, 2025, at 4:00pm CT / 5:00pm ET to discuss its second quarter 2025 results. Interested parties may access the conference call as follows:
To listen to the live webcast or access the replay following the webcast, please visit our IR website at the following link: .
To obtain a dial-in number, please pre-register at the following link:
Registrants will receive dial-in information and a PIN allowing them to access the live call.
About Rackspace Technology
Rackspace Technology is a leading end-to-end, hybrid cloud and AI solutions company. We can design, build, and operate our customers鈥� cloud environments across all major technology platforms, irrespective of technology stack or deployment model. We partner with our customers at every stage of their cloud journey, enabling them to modernize applications, build new products, and adopt innovative technologies.
Forward-looking Statements
Rackspace Technology has made statements in this press release and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of historical fact, included in this press release are, or could be, 鈥渇orward-looking statements鈥� within the meaning of the Private Securities Litigation Reform Act of 1995 and are made in reliance on the safe harbor protections provided thereunder. These forward-looking statements relate to anticipated financial performance, management鈥檚 plans and objectives for future operations, business prospects, outcome of regulatory proceedings, market conditions, and other matters. Any forward-looking statement made in this press release speaks only as of the date on which it is made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. Forward-looking statements can be identified by various words such as 鈥渆xpects,鈥� 鈥渋ntends,鈥� 鈥渨ill,鈥� 鈥渁nticipates,鈥� 鈥渂elieves,鈥� 鈥渃onfident,鈥� 鈥渃ontinue,鈥� 鈥減ropose,鈥� 鈥渟eeks,鈥� 鈥渃ould,鈥� 鈥渕ay,鈥� 鈥渟hould,鈥� 鈥渆stimates,鈥� 鈥渇orecasts,鈥� 鈥渕ight,鈥� 鈥済oals,鈥� 鈥渙bjectives,鈥� 鈥渢argets,鈥� 鈥減lanned,鈥� 鈥減rojects,鈥� and similar expressions. These forward-looking statements are based on management鈥檚 current beliefs and assumptions and on information currently available to management. Rackspace Technology cautions that these statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this press release, including among others, risk factors that are described in Rackspace Technology, Inc.鈥檚 Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the Securities and Exchange Commission, including the sections entitled 鈥淩isk Factors鈥� and 鈥淢anagement鈥檚 Discussion and Analysis of Financial Condition and Results of Operations鈥� contained therein.
Non-GAAP Financial Measures
This press release includes several non-GAAP financial measures such as constant currency revenue, Non-GAAP Gross Profit, Non-GAAP Net Income (Loss), Non-GAAP Operating Profit, Adjusted EBITDA and Non-GAAP Earnings (Loss) Per Share. These non-GAAP financial measures exclude the impact of certain costs, losses and gains that are required to be included in our profit and loss measures under GAAP. Although we believe these measures are useful to investors and analysts for the same reasons they are useful to management, as described in the accompanying pages, these measures are not a substitute for, or superior to, GAAP financial measures or disclosures. Other companies may calculate similarly-titled non-GAAP measures differently, limiting their usefulness as comparative measures. We have reconciled each of these non-GAAP measures to the applicable most comparable GAAP measure in the accompanying pages.
Beginning in the fourth quarter of 2024, we updated the presentation of our non-GAAP financial measures to no longer exclude certain cash compensation paid to employees who remain employed with Rackspace which were previously included in the 鈥渟pecial bonuses and other compensation expenses鈥� and 鈥渞estructuring and transformation expenses鈥� line items of our reconciliations. Additionally, we removed the 鈥渟pecial bonuses and other compensation expenses鈥� line item and the remaining adjustments are now presented within the 鈥渞estructuring and transformation expenses鈥� line item. All prior period Non-GAAP Gross Profit, Non-GAAP Net Income (Loss), Non-GAAP Operating Profit, Adjusted EBITDA and Non-GAAP Earnings (Loss) Per Share financial measures have been recast to reflect current period presentation in the accompanying pages.
IR Contact
Sagar Hebbar
Rackspace Technology Investor Relations
[email protected]
Media Contact:
Cheryl Amerine
Rackspace Technology听Media Relations
[email protected]
| 听 | ||||||||||||||||||||
| RACKSPACE TECHNOLOGY, INC. CONSOLIDATED RESULTS OF OPERATIONS (Unaudited) | ||||||||||||||||||||
| 听 | ||||||||||||||||||||
| 听 | Three Months Ended June 30, | 听 | Year-Over-Year Comparison | |||||||||||||||||
| 听 | 2024 | 听 | 2025 | 听 | ||||||||||||||||
| (In millions, except % and per share data) | Amount | 听 | % Revenue | 听 | Amount | 听 | % Revenue | 听 | Amount | 听 | % Change | |||||||||
| Revenue | $ | 听听听听听听听听听听 684.9 | 听 | 听 | 100.0 | % | 听 | $ | 听听听听听听听听听听 666.3 | 听 | 听 | 100.0 | % | 听 | $ | 听听听听听听听 (18.6 | ) | 听 | (2.7 | )% |
| Cost of revenue | 听 | 听听听听听听听听听听 (553.5 | ) | 听 | (80.8 | )%听 | 听 | 听 | 听听听听听听听听听听 (537.1 | ) | 听 | (80.6 | )% | 听 | 听 | 听听听听听听听听听听听 16.4 | 听 | 听 | (3.0 | )% |
| Gross profit | 听 | 听听听听听听听听听听听听 131.4 | 听 | 听 | 19.2 | % | 听 | 听 | 听听听听听听听听听听听听 129.2 | 听 | 听 | 19.4 | % | 听 | 听 | 听听听听听听听听听听听 (2.2 | ) | 听 | (1.7 | )% |
| Selling, general and administrative expenses | 听 | 听听听听听听听听听听 (185.2 | ) | 听 | (27.0 | )% | 听 | 听 | 听听听听听听听听听听 (154.3 | ) | 听 | (23.2 | )% | 听 | 听 | 听听听听听听听听听听听 30.9 | 听 | 听 | (16.7 | )% |
| Loss from operations | 听 | 听听听听听听听听听听听听 (53.8 | ) | 听 | (7.9 | )% | 听 | 听 | 听听听听听听听听听听听听 (25.1 | ) | 听 | (3.8 | )% | 听 | 听 | 听听听听听听听听听听听 28.7 | 听 | 听 | (53.3 | )% |
| Other income (expense): | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||
| Interest expense | 听 | 听听听听听听听听听听听听 (18.4 | ) | 听 | (2.7 | )% | 听 | 听 | 听听听听听听听听听听听听 (21.3 | ) | 听 | (3.2 | )% | 听 | 听 | 听听听听听听听听听听听 (2.9 | ) | 听 | 15.8 | % |
| Gain on investments, net | 听 | 听听听听听听听听听听听听听听听听听 鈥� | 听 | 听 | 鈥� | % | 听 | 听 | 听听听听听听听听听听听听听听听听 0.3 | 听 | 听 | 0.0 | % | 听 | 听 | 听听听听听听听听听听听听听 0.3 | 听 | 听 | 100.0 | % |
| Gain on debt extinguishment, net of debt modification costs | 听 | 听听听听听听听听听听听听听听 72.5 | 听 | 听 | 10.6 | % | 听 | 听 | 听听听听听听听听听听听听听听听听听 鈥� | 听 | 听 | 鈥� | % | 听 | 听 | 听听听听听听听听听 (72.5 | ) | 听 | (100.0 | )% |
| Other expense, net | 听 | 听听听听听听听听听听听听听听 (5.2 | ) | 听 | (0.8 | )% | 听 | 听 | 听听听听听听听听听听听听听听 (3.8 | ) | 听 | (0.6 | )% | 听 | 听 | 听听听听听听听听听听听听听 1.4 | 听 | 听 | (26.9 | )% |
| Total other income (expense) | 听 | 听听听听听听听听听听听听听听 48.9 | 听 | 听 | 7.2 | % | 听 | 听 | 听听听听听听听听听听听听 (24.8 | ) | 听 | (3.7 | )% | 听 | 听 | 听听听听听听听听听 (73.7 | ) | 听 | NM听听 | 听 |
| Loss before income taxes | 听 | 听听听听听听听听听听听听听听 (4.9 | ) | 听 | (0.7 | )% | 听 | 听 | 听听听听听听听听听听听听 (49.9 | ) | 听 | (7.5 | )% | 听 | 听 | 听听听听听听听听听 (45.0 | ) | 听 | NM听听 | 听 |
| Benefit (provision) for income taxes | 听 | 听听听听听听听听听听听听听听 29.9 | 听 | 听 | 4.4 | % | 听 | 听 | 听听听听听听听听听听听听听听 (4.6 | ) | 听 | (0.7 | )% | 听 | 听 | 听听听听听听听听听 (34.5 | ) | 听 | NM听听 | 听 |
| Net income (loss) | $ | 听听听听听听听听听听听听 25.0 | 听 | 听 | 3.7 | % | 听 | $ | 听听听听听听听听听听 (54.5 | ) | 听 | (8.2 | )% | 听 | $ | 听听听听听听听 (79.5 | ) | 听 | NM听听 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||||||||
| Net earnings (loss) per share: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||||||||
| Basic | $ | 听听听听听听听听听听听听 0.11 | 听 | 听 | 听 | 听 | $ | 听听听听听听听听听听 (0.23 | ) | 听 | 听 | 听 | 听 | 听 | 听 | |||||
| Diluted | $ | 听听听听听听听听听听听听 0.11 | 听 | 听 | 听 | 听 | $ | 听听听听听听听听听听 (0.23 | ) | 听 | 听 | 听 | 听 | 听 | 听 | |||||
| Weighted average number of shares outstanding: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||||||||
| Basic | 听 | 224.5 | 听 | 听 | 听 | 听 | 听 | 238.0 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||||
| Diluted | 听 | 229.6 | 听 | 听 | 听 | 听 | 听 | 238.0 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||||
NM = not meaningful.
| RACKSPACE TECHNOLOGY, INC. CONSOLIDATED RESULTS OF OPERATIONS (Unaudited) | ||||||||||||||||||||
| 听 | ||||||||||||||||||||
| 听 | Six Months Ended June 30, | 听 | Year-Over-Year Comparison | |||||||||||||||||
| 听 | 2024 | 听 | 2025 | 听 | ||||||||||||||||
| (In millions, except % and per share data) | Amount | 听 | % Revenue | 听 | Amount | 听 | % Revenue | 听 | Amount | 听 | % Change | |||||||||
| Revenue | $ | 1,375.7 | 听 | 听 | 100.0 | % | 听 | $ | 1,331.7 | 听 | 听 | 100.0 | % | 听 | $ | (44.0 | ) | 听 | (3.2 | )% |
| Cost of revenue | 听 | (1,111.5 | ) | 听 | (80.8 | )% | 听 | 听 | (1,075.6 | ) | 听 | (80.8 | )% | 听 | 听 | 35.9 | 听 | 听 | (3.2 | )% |
| Gross profit | 听 | 264.2 | 听 | 听 | 19.2 | % | 听 | 听 | 256.1 | 听 | 听 | 19.2 | % | 听 | 听 | (8.1 | ) | 听 | (3.1 | )% |
| Selling, general and administrative expenses | 听 | (377.6 | ) | 听 | (27.5 | )% | 听 | 听 | (319.6 | ) | 听 | (24.0 | )% | 听 | 听 | 58.0 | 听 | 听 | (15.4 | )% |
| Impairment of goodwill | 听 | (573.2 | ) | 听 | (41.7 | )% | 听 | 听 | 鈥� | 听 | 听 | 鈥� | % | 听 | 听 | 573.2 | 听 | 听 | (100.0 | )% |
| Impairment of assets, net | 听 | (20.0 | ) | 听 | (1.5 | )% | 听 | 听 | 鈥� | 听 | 听 | 鈥� | % | 听 | 听 | 20.0 | 听 | 听 | (100.0 | )% |
| Loss from operations | 听 | (706.6 | ) | 听 | (51.4 | )% | 听 | 听 | (63.5 | ) | 听 | (4.8 | )% | 听 | 听 | 643.1 | 听 | 听 | (91.0 | )% |
| Other income (expense): | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||
| Interest expense | 听 | (62.1 | ) | 听 | (4.5 | )% | 听 | 听 | (40.7 | ) | 听 | (3.1 | )% | 听 | 听 | 21.4 | 听 | 听 | (34.5 | )% |
| Gain on investments, net | 听 | 0.1 | 听 | 听 | 0.0 | % | 听 | 听 | 0.2 | 听 | 听 | 0.0 | % | 听 | 听 | 0.1 | 听 | 听 | 100.0 | % |
| Gain on debt extinguishment, net of debt modification costs | 听 | 129.2 | 听 | 听 | 9.4 | % | 听 | 听 | 鈥� | 听 | 听 | 鈥� | % | 听 | 听 | (129.2 | ) | 听 | (100.0 | )% |
| Other expense, net | 听 | (10.8 | ) | 听 | (0.8 | )% | 听 | 听 | (9.2 | ) | 听 | (0.7 | )% | 听 | 听 | 1.6 | 听 | 听 | (14.8 | )% |
| Total other income (expense) | 听 | 56.4 | 听 | 听 | 4.1 | % | 听 | 听 | (49.7 | ) | 听 | (3.7 | )% | 听 | 听 | (106.1 | ) | 听 | NM | 听 |
| Loss before income taxes | 听 | (650.2 | ) | 听 | (47.3 | )% | 听 | 听 | (113.2 | ) | 听 | (8.5 | )% | 听 | 听 | 537.0 | 听 | 听 | (82.6 | )% |
| Benefit (provision) for income taxes | 听 | 34.6 | 听 | 听 | 2.5 | % | 听 | 听 | (12.8 | ) | 听 | (1.0 | )% | 听 | 听 | (47.4 | ) | 听 | NM | 听 |
| Net loss | $ | (615.6 | ) | 听 | (44.7 | )% | 听 | $ | (126.0 | ) | 听 | (9.5 | )% | 听 | $ | 489.6 | 听 | 听 | (79.5 | )% |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||||||||
| Net loss per share: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||||||||
| Basic and diluted | $ | (2.77 | ) | 听 | 听 | 听 | $ | (0.54 | ) | 听 | 听 | 听 | 听 | 听 | 听 | |||||
| Weighted average number of shares outstanding: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||||||||
| Basic and diluted | 听 | 222.2 | 听 | 听 | 听 | 听 | 听 | 235.0 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||||
NM = not meaningful.
RACKSPACE TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| (In millions, except per share data) | December 31, 2024 | 听 | June 30, 2025 | ||||
| ASSETS | 听 | 听 | 听 | ||||
| Current assets: | 听 | 听 | 听 | ||||
| Cash and cash equivalents | $ | 144.0 | 听 | 听 | $ | 103.9 | 听 |
| Accounts receivable, net of allowance for credit losses and accrued customer credits of | 听 | 298.8 | 听 | 听 | 听 | 253.9 | 听 |
| Prepaid expenses | 听 | 84.9 | 听 | 听 | 听 | 111.4 | 听 |
| Other current assets | 听 | 91.1 | 听 | 听 | 听 | 79.2 | 听 |
| Total current assets | 听 | 618.8 | 听 | 听 | 听 | 548.4 | 听 |
| 听 | 听 | 听 | 听 | ||||
| Property, equipment and software, net | 听 | 601.0 | 听 | 听 | 听 | 594.8 | 听 |
| Goodwill, net | 听 | 735.7 | 听 | 听 | 听 | 741.1 | 听 |
| Intangible assets, net | 听 | 844.7 | 听 | 听 | 听 | 770.2 | 听 |
| Operating right-of-use assets | 听 | 134.6 | 听 | 听 | 听 | 130.0 | 听 |
| Other non-current assets | 听 | 119.3 | 听 | 听 | 听 | 110.4 | 听 |
| Total assets | $ | 3,054.1 | 听 | 听 | $ | 2,894.9 | 听 |
| 听 | 听 | 听 | 听 | ||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | 听 | 听 | 听 | ||||
| Current liabilities: | 听 | 听 | 听 | ||||
| Accounts payable and accrued expenses | $ | 389.6 | 听 | 听 | $ | 389.8 | 听 |
| Accrued compensation and benefits | 听 | 96.7 | 听 | 听 | 听 | 70.0 | 听 |
| Deferred revenue | 听 | 84.2 | 听 | 听 | 听 | 68.4 | 听 |
| Debt | 听 | 29.2 | 听 | 听 | 听 | 33.4 | 听 |
| Accrued interest | 听 | 7.4 | 听 | 听 | 听 | 6.2 | 听 |
| Operating lease liabilities | 听 | 55.9 | 听 | 听 | 听 | 47.2 | 听 |
| Finance lease liabilities | 听 | 53.1 | 听 | 听 | 听 | 48.7 | 听 |
| Financing obligations | 听 | 16.4 | 听 | 听 | 听 | 14.1 | 听 |
| Other current liabilities | 听 | 34.1 | 听 | 听 | 听 | 37.6 | 听 |
| Total current liabilities | 听 | 766.6 | 听 | 听 | 听 | 715.4 | 听 |
| 听 | 听 | 听 | 听 | ||||
| Non-current liabilities: | 听 | 听 | 听 | ||||
| Debt | 听 | 2,756.4 | 听 | 听 | 听 | 2,766.8 | 听 |
| Operating lease liabilities | 听 | 77.8 | 听 | 听 | 听 | 79.4 | 听 |
| Finance lease liabilities | 听 | 293.1 | 听 | 听 | 听 | 301.1 | 听 |
| Financing obligations | 听 | 39.2 | 听 | 听 | 听 | 30.2 | 听 |
| Deferred income taxes | 听 | 30.2 | 听 | 听 | 听 | 23.8 | 听 |
| Other non-current liabilities | 听 | 95.0 | 听 | 听 | 听 | 97.2 | 听 |
| Total liabilities | 听 | 4,058.3 | 听 | 听 | 听 | 4,013.9 | 听 |
| 听 | 听 | 听 | 听 | ||||
| Commitments and Contingencies | 听 | 听 | 听 | ||||
| 听 | 听 | 听 | 听 | ||||
| Stockholders' deficit: | 听 | 听 | 听 | ||||
| Preferred stock, | 听 | 鈥� | 听 | 听 | 听 | 鈥� | 听 |
| Common stock, | 听 | 2.3 | 听 | 听 | 听 | 2.4 | 听 |
| Additional paid-in capital | 听 | 2,682.8 | 听 | 听 | 听 | 2,696.7 | 听 |
| Accumulated other comprehensive income | 听 | 24.1 | 听 | 听 | 听 | 21.3 | 听 |
| Accumulated deficit | 听 | (3,682.4 | ) | 听 | 听 | (3,808.4 | ) |
| Treasury stock, at cost; 3.1 shares held | 听 | (31.0 | ) | 听 | 听 | (31.0 | ) |
| Total stockholders' deficit | 听 | (1,004.2 | ) | 听 | 听 | (1,119.0 | ) |
| Total liabilities and stockholders' deficit | $ | 3,054.1 | 听 | 听 | $ | 2,894.9 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| RACKSPACE TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
| 听 | |||||||
| 听 | Six Months Ended June 30, | ||||||
| (In millions) | 听 | 2024 | 听 | 听 | 听 | 2025 | 听 |
| Cash Flows From Operating Activities | 听 | 听 | 听 | ||||
| Net loss | $ | 听听听听听听听听听听听听听听听 (615.6 | ) | 听 | $ | 听听听听听听听听听听听听听听听 (126.0 | ) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | 听 | 听 | 听 | ||||
| Depreciation and amortization | 听 | 听听听听听听听听听听听听听听听听听听听 149.0 | 听 | 听 | 听 | 听听听听听听听听听听听听听听听听听听听 148.9 | 听 |
| Reduction in carrying amount of operating right-of-use assets | 听 | 听听听听听听听听听听听听听听听听听听听听听 34.2 | 听 | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听 32.5 | 听 |
| Deferred income taxes | 听 | 听听听听听听听听听听听听听听听听听听听 (51.2 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听 (9.1 | ) |
| Share-based compensation expense | 听 | 听听听听听听听听听听听听听听听听听听听听听 32.3 | 听 | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听 22.0 | 听 |
| Impairment of goodwill | 听 | 听听听听听听听听听听听听听听听听听听听 573.2 | 听 | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听听听听 鈥� | 听 |
| Impairment of assets, net | 听 | 听听听听听听听听听听听听听听听听听听听听听 20.0 | 听 | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听听听听 鈥� | 听 |
| Gain on debt extinguishment, net of debt modification costs | 听 | 听听听听听听听听听听听听听听听听听 (129.2 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听听听听 鈥� | 听 |
| Gain on investments, net | 听 | 听听听听听听听听听听听听听听听听听听听听听 (0.1 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听 (0.2 | ) |
| Provision for bad debts and accrued customer credits | 听 | 听听听听听听听听听听听听听听听听听听听听听 10.8 | 听 | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听听听 2.6 | 听 |
| Amortization of debt issuance costs and debt discount and premium | 听 | 听听听听听听听听听听听听听听听听听听听听听 (3.5 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听听听 3.0 | 听 |
| Third party fees paid in connection with the March 2024 Refinancing Transactions | 听 | 听听听听听听听听听听听听听听听听听听听 (31.7 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听听听听 鈥� | 听 |
| Other operating activities | 听 | 听听听听听听听听听听听听听听听听听听听听听 (2.9 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听听听 1.8 | 听 |
| Changes in operating assets and liabilities: | 听 | 听 | 听 | ||||
| Accounts receivable | 听 | 听听听听听听听听听听听听听听听听听听听听听 10.4 | 听 | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听 43.5 | 听 |
| Prepaid expenses and other current assets | 听 | 听听听听听听听听听听听听听听听听听听听听听听听 4.2 | 听 | 听 | 听 | 听听听听听听听听听听听听听听听听听听听 (27.1 | ) |
| Accounts payable, accrued expenses, and other current liabilities | 听 | 听听听听听听听听听听听听听听听听听听听 (35.5 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听 (39.4 | ) |
| Deferred revenue | 听 | 听听听听听听听听听听听听听听听听听听听听听 (7.7 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听 (15.8 | ) |
| Operating lease liabilities | 听 | 听听听听听听听听听听听听听听听听听听听 (43.8 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听 (34.8 | ) |
| Other non-current assets and liabilities | 听 | 听听听听听听听听听听听听听听听听听听听听听 20.9 | 听 | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听 19.1 | 听 |
| Net cash provided by (used in) operating activities | 听 | 听听听听听听听听听听听听听听听听听听听 (66.2 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听 21.0 | 听 |
| Cash Flows From Investing Activities | 听 | 听 | 听 | ||||
| Purchases of property, equipment and software | 听 | 听听听听听听听听听听听听听听听听听听听 (66.7 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听 (29.1 | ) |
| Proceeds from sale of headquarters | 听 | 听听听听听听听听听听听听听听听听听听听听听 16.9 | 听 | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听听听听 鈥� | 听 |
| Other investing activities | 听 | 听听听听听听听听听听听听听听听听听听听听听听听 0.3 | 听 | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听 (0.8 | ) |
| Net cash used in investing activities | 听 | 听听听听听听听听听听听听听听听听听听听 (49.5 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听 (29.9 | ) |
| Cash Flows From Financing Activities | 听 | 听 | 听 | ||||
| Proceeds from employee stock plans | 听 | 听听听听听听听听听听听听听听听听听听听听听听听 0.4 | 听 | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听听听 0.3 | 听 |
| Shares of common stock withheld for employee taxes | 听 | 听听听听听听听听听听听听听听听听听听听听听 (3.4 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听 (0.8 | ) |
| Proceeds from borrowings under long-term debt arrangements | 听 | 听听听听听听听听听听听听听听听听听听听 275.0 | 听 | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听 80.0 | 听 |
| Payments on long-term debt | 听 | 听听听听听听听听听听听听听听听听听听听 (91.9 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听 (67.3 | ) |
| Debt extinguishment costs | 听 | 听听听听听听听听听听听听听听听听听听听 (22.1 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听听听听 鈥� | 听 |
| Payments on financing component of interest rate swap | 听 | 听听听听听听听听听听听听听听听听听听听听听 (8.6 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听 (8.7 | ) |
| Principal payments of finance lease liabilities | 听 | 听听听听听听听听听听听听听听听听听听听 (30.8 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听 (27.9 | ) |
| Principal payments of financing obligations | 听 | 听听听听听听听听听听听听听听听听听听听听听 (8.2 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听 (11.3 | ) |
| Net cash provided by (used in) financing activities | 听 | 听听听听听听听听听听听听听听听听听听听 110.4 | 听 | 听 | 听 | 听听听听听听听听听听听听听听听听听听听 (35.7 | ) |
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 听 | 听听听听听听听听听听听听听听听听听听听听听 (1.3 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听听听听听 3.3 | 听 |
| Decrease in cash, cash equivalents, and restricted cash | 听 | 听听听听听听听听听听听听听听听听听听听听听 (6.6 | ) | 听 | 听 | 听听听听听听听听听听听听听听听听听听听 (41.3 | ) |
| Cash, cash equivalents, and restricted cash at beginning of period | 听 | 听听听听听听听听听听听听听听听听听听听 199.7 | 听 | 听 | 听 | 听听听听听听听听听听听听听听听听听听听 147.0 | 听 |
| Cash, cash equivalents, and restricted cash at end of period | $ | 听听听听听听听听听听听听听听听听听 193.1 | 听 | 听 | $ | 听听听听听听听听听听听听听听听听听 105.7 | 听 |
| Supplemental Cash Flow Information | 听 | 听 | 听 | ||||
| Cash payments for interest, net of amount capitalized | $ | 70.1 | 听 | 听 | $ | 41.0 | 听 |
| Cash payments for income taxes, net of refunds | $ | 6.8 | 听 | 听 | $ | 1.3 | 听 |
| 听 | 听 | 听 | 听 | ||||
| Non-cash Investing and Financing Activities | 听 | 听 | 听 | ||||
| Acquisition of property, equipment and software by finance leases | $ | 13.7 | 听 | 听 | $ | 25.3 | 听 |
| Increase (decrease) in property, equipment and software accrued in liabilities | 听 | (1.3 | ) | 听 | 听 | 3.2 | 听 |
| Other non-cash activity | 听 | (0.5 | ) | 听 | 听 | 鈥� | 听 |
| Non-cash purchases of property, equipment and software | $ | 11.9 | 听 | 听 | $ | 28.5 | 听 |
| 听 | 听 | 听 | 听 | ||||
| Non-cash gain on sale of property and equipment | $ | (5.1 | ) | 听 | $ | 鈥� | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| SEGMENT DATA | ||||||||||||||||
| 听 | ||||||||||||||||
| (In millions, except %) | 听 | Three Months Ended June 30, | 听 | % Change | ||||||||||||
| Revenue by segment: | 听 | 听 | 2024 | 听 | 听 | 听 | 2025 | 听 | 听 | Actual | 听 | Constant Currency (a) | ||||
| Public Cloud | 听 | $ | 424.9 | 听 | 听 | $ | 416.6 | 听 | 听 | 听 | (2.0 | )% | 听 | 听 | (2.2 | )% |
| Private Cloud | 听 | 听 | 260.0 | 听 | 听 | 听 | 249.7 | 听 | 听 | 听 | (4.0 | )% | 听 | 听 | (4.8 | )% |
| Total consolidated revenue | 听 | $ | 684.9 | 听 | 听 | $ | 666.3 | 听 | 听 | 听 | (2.7 | )% | 听 | 听 | (3.2 | )% |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| (In millions, except %) | 听 | Six Months Ended June 30, | 听 | % Change | ||||||||||||
| Revenue by segment: | 听 | 听 | 2024 | 听 | 听 | 听 | 2025 | 听 | 听 | 听 | Actual | 听 | 听 | 听 | Constant Currency (a) | 听 |
| Public Cloud | 听 | $ | 847.3 | 听 | 听 | $ | 832.2 | 听 | 听 | 听 | (1.8 | )% | 听 | 听 | (1.7 | )% |
| Private Cloud | 听 | 听 | 528.4 | 听 | 听 | 听 | 499.5 | 听 | 听 | 听 | (5.5 | )% | 听 | 听 | (5.7 | )% |
| Total consolidated revenue | 听 | $ | 1,375.7 | 听 | 听 | $ | 1,331.7 | 听 | 听 | 听 | (3.2 | )% | 听 | 听 | (3.3 | )% |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| (a) | Refer to "Non-GAAP Financial Measures" in this section for further explanation and reconciliation. |
| 听 | 听 |
| 听 | Three Months Ended June 30, | 听 | Year-Over-Year Comparison | |||||||||||||||||
| (In millions, except %) | 听 | 2024 | 听 | 听 | 听 | 2025 | 听 | 听 | ||||||||||||
| Segment operating profit (a): | Amount | 听 | % of Segment Revenue | 听 | Amount | 听 | % of Segment Revenue | 听 | Amount | 听 | % Change | |||||||||
| Public Cloud | $ | 10.7 | 听 | 听 | 2.5 | % | 听 | $ | 16.2 | 听 | 听 | 3.9 | % | 听 | $ | 5.5 | 听 | 听 | 51.4 | % |
| Private Cloud | 听 | 68.8 | 听 | 听 | 26.5 | % | 听 | 听 | 61.5 | 听 | 听 | 24.6 | % | 听 | 听 | (7.3 | ) | 听 | (10.6 | )% |
| Corporate functions (b) | 听 | (59.2 | ) | 听 | 听 | 听 | 听 | (50.4 | ) | 听 | 听 | 听 | 听 | 8.8 | 听 | 听 | (14.9 | )% | ||
| Non-GAAP Operating Profit (c) | $ | 20.3 | 听 | 听 | 听 | 听 | $ | 27.3 | 听 | 听 | 听 | 听 | $ | 7.0 | 听 | 听 | 34.5 | % | ||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||
| 听 | Six Months Ended June 30, | 听 | Year-Over-Year Comparison | |||||||||||||||||
| (In millions, except %) | 听 | 2024 | 听 | 听 | 听 | 2025 | 听 | 听 | ||||||||||||
| Segment operating profit (a): | Amount | 听 | % of Segment Revenue | 听 | Amount | 听 | % of Segment Revenue | 听 | Amount | 听 | % Change | |||||||||
| Public Cloud | $ | 听听听听听听听听听 18.9 | 听 | 听 | 2.2 | % | 听 | $ | 听听听听听听听听听 33.5 | 听 | 听 | 4.0 | % | 听 | $ | 听听听听听听听听听 14.6 | 听 | 听 | 77.2 | % |
| Private Cloud | 听 | 听听听听听听听听听 139.9 | 听 | 听 | 26.5 | % | 听 | 听 | 听听听听听听听听听 122.5 | 听 | 听 | 24.5 | % | 听 | 听 | 听听听听听听听听听 (17.4 | ) | 听 | (12.4 | )% |
| Corporate functions (b) | 听 | 听听听听听听听 (124.5 | ) | 听 | 听 | 听 | 听 | 听听听听听听听 (103.1 | ) | 听 | 听 | 听 | 听 | 听听听听听听听听听听听 21.4 | 听 | 听 | (17.2 | )% | ||
| Non-GAAP Operating Profit (c) | $ | 听听听听听听听听听 34.3 | 听 | 听 | 听 | 听 | $ | 听听听听听听听听听 52.9 | 听 | 听 | 听 | 听 | $ | 听听听听听听听听听 18.6 | 听 | 听 | 54.2 | % | ||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||
| (a) | Segment revenue less expenses directly attributable to running the respective segments鈥� business. These expenses exclude centralized corporate function costs. |
| (b) | Costs that are not allocated to segments. These costs are related to centralized corporate functions that provide services to the segments in areas such as accounting, information technology, marketing, legal and human resources. |
| (c) | Refer to "Non-GAAP Financial Measures" in this section for further explanation and reconciliation. |
| 听 | |
| NON-GAAP FINANCIAL MEASURES | |
| 听 | |
Constant Currency Revenue
We use constant currency revenue as an additional metric for understanding and assessing our growth excluding the effect of foreign currency rate fluctuations on our international business operations. Constant currency information compares results between periods as if exchange rates had remained constant period over period and is calculated by translating the non-U.S. dollar income statement balances for the most current period to U.S. dollars using the average exchange rate from the comparative period rather than the actual exchange rates in effect during the respective period. We also believe this is an important metric to help investors evaluate our performance in comparison to prior periods.
| 听 | 听 | Three Months Ended June 30, 2024 | 听 | Three Months Ended June 30, 2025 | 听 | % Change | ||||||||||||||||
| (In millions, except %) | 听 | Revenue | 听 | Revenue | 听 | Foreign Currency Translation (a) | 听 | Revenue in Constant Currency | 听 | Actual | 听 | Constant Currency | ||||||||||
| Public Cloud | 听 | $ | 424.9 | 听 | 听 | $ | 416.6 | 听 | 听 | $ | (0.8 | ) | 听 | $ | 415.8 | 听 | 听 | (2.0 | )% | 听 | (2.2 | )% |
| Private Cloud | 听 | 听 | 260.0 | 听 | 听 | 听 | 249.7 | 听 | 听 | 听 | (2.2 | ) | 听 | 听 | 247.5 | 听 | 听 | (4.0 | )% | 听 | (4.8 | )% |
| Total | 听 | $ | 684.9 | 听 | 听 | $ | 666.3 | 听 | 听 | $ | (3.0 | ) | 听 | $ | 663.3 | 听 | 听 | (2.7 | )% | 听 | (3.2 | )% |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| 听 | 听 | Six Months Ended June 30, 2024 | 听 | Six Months Ended June 30, 2025 | 听 | % Change | ||||||||||||||||
| (In millions, except %) | 听 | Revenue | 听 | Revenue | 听 | Foreign Currency Translation (a) | 听 | Revenue in Constant Currency | 听 | Actual | 听 | Constant Currency | ||||||||||
| Public Cloud | 听 | $ | 847.3 | 听 | 听 | $ | 832.2 | 听 | 听 | $ | 0.3 | 听 | 听 | $ | 832.5 | 听 | 听 | (1.8 | )% | 听 | (1.7 | )% |
| Private Cloud | 听 | 听 | 528.4 | 听 | 听 | 听 | 499.5 | 听 | 听 | 听 | (1.4 | ) | 听 | 听 | 498.1 | 听 | 听 | (5.5 | )% | 听 | (5.7 | )% |
| Total | 听 | $ | 1,375.7 | 听 | 听 | $ | 1,331.7 | 听 | 听 | $ | (1.1 | ) | 听 | $ | 1,330.6 | 听 | 听 | (3.2 | )% | 听 | (3.3 | )% |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| (a) | The effect of foreign currency is calculated by translating current period results using the average exchange rate from the prior comparative period. |
Non-GAAP Gross Profit
We present Non-GAAP Gross Profit because we believe the measure is useful in analyzing trends in our underlying, recurring gross margins. We define Non-GAAP Gross Profit as gross profit, adjusted to exclude the impact of share-based compensation expense, purchase accounting-related effects, and certain business transformation-related costs.
| 听 | Three Months Ended June 30, | 听 | Six Months Ended June 30, | ||||||||||||
| (In millions) | 听 | 2024 | 听 | 听 | 听 | 2025 | 听 | 听 | 听 | 2024 | 听 | 听 | 听 | 2025 | 听 |
| Gross profit | $ | 131.4 | 听 | 听 | $ | 129.2 | 听 | 听 | $ | 264.2 | 听 | 听 | $ | 256.1 | 听 |
| Share-based compensation expense | 听 | 2.0 | 听 | 听 | 听 | 1.3 | 听 | 听 | 听 | 3.9 | 听 | 听 | 听 | 3.1 | 听 |
| Purchase accounting impact on expense (a) | 听 | 0.6 | 听 | 听 | 听 | 0.2 | 听 | 听 | 听 | 1.2 | 听 | 听 | 听 | 0.4 | 听 |
| Restructuring and transformation expenses (b) | 听 | 4.6 | 听 | 听 | 听 | 1.2 | 听 | 听 | 听 | 9.6 | 听 | 听 | 听 | 4.4 | 听 |
| Non-GAAP Gross Profit | $ | 138.6 | 听 | 听 | $ | 131.9 | 听 | 听 | $ | 278.9 | 听 | 听 | $ | 264.0 | 听 |
| (a) | Adjustment for the impact of purchase accounting from the November 2016 merger on expenses. |
| (b) | Adjustment for the impact of business transformation and optimization activities, as well as associated severance, certain facility closure costs and lease termination expenses. Also includes payroll taxes associated with the exercise of stock options and vesting of restricted stock. |
| 听 | 听 |
Non-GAAP Net Income (Loss), Non-GAAP Operating Profit and Adjusted EBITDA
We present Non-GAAP Net Income (Loss), Non-GAAP Operating Profit and Adjusted EBITDA because they are a basis upon which management assesses our performance and we believe they are useful to evaluating our financial performance. We believe that excluding items from net income that may not be indicative of, or are unrelated to, our core operating results, and that may vary in frequency or magnitude, enhances the comparability of our results and provides a better baseline for analyzing trends in our business.
We define Non-GAAP Net Income (Loss) as net income (loss) adjusted to exclude the impact of non-cash charges for share-based compensation, transaction-related costs and adjustments, restructuring and transformation charges, costs related to the Hosted Exchange incident, the amortization of acquired intangible assets, goodwill and asset impairment charges, the interest expense impact from the refinancing transactions announced in March 2024 (the 鈥淢arch 2024 Refinancing Transactions鈥�), and certain other non-operating, non-recurring or non-core gains and losses, as well as the tax effects of these non-GAAP adjustments.
We define Non-GAAP Operating Profit as income (loss) from operations adjusted to exclude the impact of non-cash charges for share-based compensation, transaction-related costs and adjustments, restructuring and transformation charges, costs related to the Hosted Exchange incident, the amortization of acquired intangible assets, goodwill and asset impairment charges, and certain other non-operating, non-recurring or non-core gains and losses.
We define Adjusted EBITDA as net income (loss) adjusted to exclude the impact of non-cash charges for share-based compensation, transaction-related costs and adjustments, restructuring and transformation charges, costs related to the Hosted Exchange incident, certain other non-operating, non-recurring or non-core gains and losses, interest expense, expenses for our accounts receivable purchase agreement, income taxes, depreciation and amortization, and goodwill and asset impairment charges.
Non-GAAP Operating Profit and Adjusted EBITDA are management's principal metrics for measuring our underlying financial performance. Non-GAAP Operating Profit and Adjusted EBITDA, along with other quantitative and qualitative information, are also the principal financial measures used by management and our Board of Directors in determining performance-based compensation for our management and key employees.
These non-GAAP measures are not intended to imply that we would have generated higher income or avoided net losses if the November 2016 merger and the subsequent transactions and initiatives had not occurred. In the future we may incur expenses or charges such as those added back to calculate Non-GAAP Net Income (Loss), Non-GAAP Operating Profit or Adjusted EBITDA. Our presentation of Non-GAAP Net Income (Loss), Non-GAAP Operating Profit and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these items. Other companies, including our peer companies, may calculate similarly-titled measures in a different manner from us, and therefore, our non-GAAP measures may not be comparable to similarly-titled measures of other companies. Investors are cautioned against using these measures to the exclusion of our results in accordance with GAAP.
Net income (loss) reconciliation to Non-GAAP Net Loss
| 听 | Three Months Ended June 30, | 听 | Six Months Ended June 30, | ||||||||||||
| (In millions) | 听 | 2024 | 听 | 听 | 听 | 2025 | 听 | 听 | 听 | 2024 | 听 | 听 | 听 | 2025 | 听 |
| Net income (loss) | $ | 25.0 | 听 | 听 | $ | (54.5 | ) | 听 | $ | (615.6 | ) | 听 | $ | (126.0 | ) |
| Share-based compensation expense | 听 | 19.5 | 听 | 听 | 听 | 10.0 | 听 | 听 | 听 | 32.3 | 听 | 听 | 听 | 22.0 | 听 |
| Transaction-related adjustments, net (a) | 听 | 1.6 | 听 | 听 | 听 | 0.4 | 听 | 听 | 听 | 2.6 | 听 | 听 | 听 | 1.9 | 听 |
| Restructuring and transformation expenses (b) | 听 | 14.5 | 听 | 听 | 听 | 4.4 | 听 | 听 | 听 | 35.4 | 听 | 听 | 听 | 17.5 | 听 |
| Hosted Exchange incident expenses, net of proceeds received or expected to be received under our insurance coverage | 听 | (0.1 | ) | 听 | 听 | 鈥� | 听 | 听 | 听 | 0.1 | 听 | 听 | 听 | 鈥� | 听 |
| Impairment of goodwill | 听 | 鈥� | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | 573.2 | 听 | 听 | 听 | 鈥� | 听 |
| Impairment of assets, net | 听 | 鈥� | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | 20.0 | 听 | 听 | 听 | 鈥� | 听 |
| Net gain on divestiture and investments (c) | 听 | 鈥� | 听 | 听 | 听 | (0.3 | ) | 听 | 听 | (0.1 | ) | 听 | 听 | (0.2 | ) |
| Gain on debt extinguishment, net of debt modification costs | 听 | (72.5 | ) | 听 | 听 | 鈥� | 听 | 听 | 听 | (129.2 | ) | 听 | 听 | 鈥� | 听 |
| Interest expense impact from the March 2024 Refinancing Transactions (d) | 听 | (25.6 | ) | 听 | 听 | (21.1 | ) | 听 | 听 | (25.6 | ) | 听 | 听 | (42.1 | ) |
| Other adjustments (e) | 听 | 0.1 | 听 | 听 | 听 | (1.5 | ) | 听 | 听 | 0.5 | 听 | 听 | 听 | (1.1 | ) |
| Amortization of intangible assets (f) | 听 | 38.6 | 听 | 听 | 听 | 37.6 | 听 | 听 | 听 | 77.3 | 听 | 听 | 听 | 75.0 | 听 |
| Tax effect of non-GAAP adjustments (g) | 听 | (22.4 | ) | 听 | 听 | 10.0 | 听 | 听 | 听 | (18.0 | ) | 听 | 听 | 23.3 | 听 |
| Non-GAAP Net Loss | $ | (21.3 | ) | 听 | $ | (15.0 | ) | 听 | $ | (47.1 | ) | 听 | $ | (29.7 | ) |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
Loss from operations reconciliation to Non-GAAP Operating Profit
| 听 | Three Months Ended June 30, | 听 | Six Months Ended June 30, | ||||||||||||
| (In millions) | 听 | 2024 | 听 | 听 | 听 | 2025 | 听 | 听 | 听 | 2024 | 听 | 听 | 听 | 2025 | 听 |
| Loss from operations | $ | (53.8 | ) | 听 | $ | (25.1 | ) | 听 | $ | (706.6 | ) | 听 | $ | (63.5 | ) |
| Share-based compensation expense | 听 | 19.5 | 听 | 听 | 听 | 10.0 | 听 | 听 | 听 | 32.3 | 听 | 听 | 听 | 22.0 | 听 |
| Transaction-related adjustments, net (a) | 听 | 1.6 | 听 | 听 | 听 | 0.4 | 听 | 听 | 听 | 2.6 | 听 | 听 | 听 | 1.9 | 听 |
| Restructuring and transformation expenses (b) | 听 | 14.5 | 听 | 听 | 听 | 4.4 | 听 | 听 | 听 | 35.4 | 听 | 听 | 听 | 17.5 | 听 |
| Hosted Exchange incident expenses, net of proceeds received or expected to be received under our insurance coverage | 听 | (0.1 | ) | 听 | 听 | 鈥� | 听 | 听 | 听 | 0.1 | 听 | 听 | 听 | 鈥� | 听 |
| Impairment of goodwill | 听 | 鈥� | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | 573.2 | 听 | 听 | 听 | 鈥� | 听 |
| Impairment of assets, net | 听 | 鈥� | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | 20.0 | 听 | 听 | 听 | 鈥� | 听 |
| Amortization of intangible assets (f) | 听 | 38.6 | 听 | 听 | 听 | 37.6 | 听 | 听 | 听 | 77.3 | 听 | 听 | 听 | 75.0 | 听 |
| Non-GAAP Operating Profit | $ | 20.3 | 听 | 听 | $ | 27.3 | 听 | 听 | $ | 34.3 | 听 | 听 | $ | 52.9 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
Net income (loss) reconciliation to Adjusted EBITDA
| 听 | Three Months Ended June 30, | 听 | Six Months Ended June 30, | ||||||||||||
| (In millions) | 听 | 2024 | 听 | 听 | 听 | 2025 | 听 | 听 | 听 | 2024 | 听 | 听 | 听 | 2025 | 听 |
| Net income (loss) | $ | 25.0 | 听 | 听 | $ | (54.5 | ) | 听 | $ | (615.6 | ) | 听 | $ | (126.0 | ) |
| Share-based compensation expense | 听 | 19.5 | 听 | 听 | 听 | 10.0 | 听 | 听 | 听 | 32.3 | 听 | 听 | 听 | 22.0 | 听 |
| Transaction-related adjustments, net (a) | 听 | 1.6 | 听 | 听 | 听 | 0.4 | 听 | 听 | 听 | 2.6 | 听 | 听 | 听 | 1.9 | 听 |
| Restructuring and transformation expenses (b) | 听 | 14.5 | 听 | 听 | 听 | 4.4 | 听 | 听 | 听 | 35.4 | 听 | 听 | 听 | 17.5 | 听 |
| Hosted Exchange incident expenses, net of proceeds received or expected to be received under our insurance coverage | 听 | (0.1 | ) | 听 | 听 | 鈥� | 听 | 听 | 听 | 0.1 | 听 | 听 | 听 | 鈥� | 听 |
| Impairment of goodwill | 听 | 鈥� | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | 573.2 | 听 | 听 | 听 | 鈥� | 听 |
| Impairment of assets, net | 听 | 鈥� | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | 20.0 | 听 | 听 | 听 | 鈥� | 听 |
| Net gain on divestiture and investments (c) | 听 | 鈥� | 听 | 听 | 听 | (0.3 | ) | 听 | 听 | (0.1 | ) | 听 | 听 | (0.2 | ) |
| Gain on debt extinguishment, net of debt modification costs | 听 | (72.5 | ) | 听 | 听 | 鈥� | 听 | 听 | 听 | (129.2 | ) | 听 | 听 | 鈥� | 听 |
| Other expense, net (h) | 听 | 5.2 | 听 | 听 | 听 | 3.8 | 听 | 听 | 听 | 10.8 | 听 | 听 | 听 | 9.2 | 听 |
| Interest expense | 听 | 18.4 | 听 | 听 | 听 | 21.3 | 听 | 听 | 听 | 62.1 | 听 | 听 | 听 | 40.7 | 听 |
| Provision (benefit) for income taxes | 听 | (29.9 | ) | 听 | 听 | 4.6 | 听 | 听 | 听 | (34.6 | ) | 听 | 听 | 12.8 | 听 |
| Depreciation and amortization (i) | 听 | 73.4 | 听 | 听 | 听 | 74.7 | 听 | 听 | 听 | 148.3 | 听 | 听 | 听 | 147.8 | 听 |
| Adjusted EBITDA | $ | 55.1 | 听 | 听 | $ | 64.4 | 听 | 听 | $ | 105.3 | 听 | 听 | $ | 125.7 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
| (a) | Includes purchase accounting adjustments, exploratory acquisition and divestiture costs, and expenses related to financing activities. |
| (b) | Includes consulting and advisory fees related to business transformation and optimization activities, as well as associated severance, certain facility closure costs, and lease termination expenses. Also includes payroll taxes associated with the exercise of stock options and vesting of restricted stock. The six months ended June 30, 2024 also includes a |
| (c) | Includes gains and losses on investment and from dispositions. |
| (d) | Interest expense impact due to the accounting for contractual interest payments on debt instruments entered into as part of the March 2024 Refinancing Transactions, which reduced interest expense relative to contractual interest cost. |
| (e) | Primarily consists of foreign currency gains and losses. |
| (f) | All of our intangible assets are attributable to acquisitions, including the November 2016 merger. |
| (g) | We utilize an estimated structural long-term non-GAAP tax rate in order to provide consistency across reporting periods, removing the effect of non-recurring tax adjustments, which include but are not limited to tax rate changes, U.S. tax reform, share-based compensation, audit conclusions and changes to valuation allowances. When computing this long-term rate for the 2024 and 2025 interim periods, we based it on an average of the 2023 and estimated 2024 tax rates and 2024 and estimated 2025 tax rates, respectively, recomputed to remove the tax effect of non-GAAP pre-tax adjustments and non-recurring tax adjustments, resulting in a structural non-GAAP tax rate of |
| (h) | Primarily consists of foreign currency gains and losses and expense related to our accounts receivable purchase agreement. |
| (i) | Excludes accelerated depreciation expense related to facility closures. |
| 听 | 听 |
Non-GAAP Earnings (Loss) Per Share
We define Non-GAAP Earnings (Loss) Per Share as Non-GAAP Net Income (Loss) divided by our GAAP weighted average number of shares outstanding for the period on a diluted basis and further adjusted for the weighted average number of shares associated with securities which are anti-dilutive to GAAP loss per share. Management uses Non-GAAP Earnings (Loss) Per Share to evaluate the performance of our business on a comparable basis from period to period, including by adjusting for the impact of the issuance of shares.
| 听 | Three Months Ended June 30, | 听 | Six Months Ended June 30, | ||||||||||||
| (In millions, except per share amounts) | 听 | 2024 | 听 | 听 | 听 | 2025 | 听 | 听 | 听 | 2024 | 听 | 听 | 听 | 2025 | 听 |
| Net income (loss) attributable to common stockholders | $ | 25.0 | 听 | 听 | $ | (54.5 | ) | 听 | $ | (615.6 | ) | 听 | $ | (126.0 | ) |
| Non-GAAP Net Loss | $ | (21.3 | ) | 听 | $ | (15.0 | ) | 听 | $ | (47.1 | ) | 听 | $ | (29.7 | ) |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Weighted average number of shares - Diluted | 听 | 229.6 | 听 | 听 | 听 | 238.0 | 听 | 听 | 听 | 222.2 | 听 | 听 | 听 | 235.0 | 听 |
| Effect of dilutive securities (a) | 听 | 鈥� | 听 | 听 | 听 | 1.3 | 听 | 听 | 听 | 7.3 | 听 | 听 | 听 | 7.1 | 听 |
| Non-GAAP weighted average number of shares - Diluted | 听 | 229.6 | 听 | 听 | 听 | 239.3 | 听 | 听 | 听 | 229.5 | 听 | 听 | 听 | 242.1 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Net earnings (loss) per share - Diluted | $ | 0.11 | 听 | 听 | $ | (0.23 | ) | 听 | $ | (2.77 | ) | 听 | $ | (0.54 | ) |
| Per share impacts of adjustments to net income (loss) (b) | 听 | (0.20 | ) | 听 | 听 | 0.17 | 听 | 听 | 听 | 2.56 | 听 | 听 | 听 | 0.41 | 听 |
| Per share impacts of shares after adjustments to net income (loss) (a) | 听 | 0.00 | 听 | 听 | 听 | 0.00 | 听 | 听 | 听 | 0.00 | 听 | 听 | 听 | 0.01 | 听 |
| Non-GAAP Loss Per Share | $ | (0.09 | ) | 听 | $ | (0.06 | ) | 听 | $ | (0.21 | ) | 听 | $ | (0.12 | ) |
| (a) | Potential common share equivalents consist of shares issuable upon the exercise of stock options, vesting of restricted stock units (including performance-based restricted stock units) or purchases under the Employee Stock Purchase Plan as well as contingent shares associated with our acquisition of Datapipe Parent, Inc. Certain of our potential common share equivalents are contingent on certain investment funds managed by affiliates of Apollo Global Management, Inc. achieving pre-established performance targets based on a multiple of their invested capital, which are included in the denominator for the entire period if such shares would be issuable as of the end of the reporting period assuming the end of the reporting period was the end of the contingency period. |
| (b) | Reflects the aggregate adjustments made to reconcile Non-GAAP Net Loss to our net income (loss), as noted in the above table, divided by the GAAP diluted number of shares outstanding for the relevant period. |
| 听 | 听 |
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