Stocks · Technology · Software - Infrastructure
Rackspace Technology, Inc. RXT
$4.12 +6.74% Close, Oct 2, 2026 · NASDAQ · Market cap $1.05B
Strong trendHigh risk
Next earnings report: Nov 5, 2026
Scroll or pinch to zoom, drag to move. Daily prices adjusted for splits. Markers: E = earnings (green beat, red miss), S = split, D = dividend.
Three things to know
- Over the past year the stock returned +196.4%, ahead of the S&P 500 by 181.3 percentage points.
- Net debt is 10.9× EBITDA, a high level of leverage.
- Operating margin widened to -2.1% from -9.2% a year earlier.
PromtFinance scores
Each score is a percentile within the Technology sector (0–100). Under each score: how the stock ranks in its sector on every component. As of Oct 5, 2026.
Growth11Very weak
How fast revenue, earnings and cash flow are growing.
- Revenue growth (TTM, YoY)Bottom 18%
- FCF growth (TTM, YoY)Bottom 19%
- Revenue growth, 3-year CAGRBottom 16%
- Revenue growth accelerationTop 48%
Quality14Very weak
Returns on capital, margins, earnings quality and balance-sheet strength.
- Return on invested capitalBottom 32%
- Gross marginBottom 9%
- Operating marginBottom 33%
- Accruals (lower is better)Top 38%
- Net debt / EBITDA (lower is better)Bottom 2%
- Interest coverBottom 32%
Value61Neutral
How cheap the shares are relative to earnings, cash flow and their own history.
- Earnings yieldBottom 13%
- Free-cash-flow yieldTop 42%
- EBITDA / enterprise valueTop 25%
- Sales / enterprise valueTop 23%
Momentum85Strong
Strength and persistence of the price trend, including versus the S&P 500.
- 12-month return excluding last monthTop 7%
- 6-month returnTop 1%
- 1-year return vs S&P 500Top 5%
- Distance from 52-week highBottom 20%
- Trend checklist (0–4)Top 18%
Revisions4Very weak
Earnings surprises and analyst sentiment (estimate-revision history is being collected).
- Average EPS surprise, last 4 quartersBottom 17%
- Consecutive EPS beatsBottom 31%
- Share of analysts rating BuyBottom 2%
- Upside to consensus price targetBottom 40%
Stability1Very weak
Low volatility, shallow drawdowns, low market sensitivity and modest leverage.
- Volatility, 60 days (lower is better)Bottom 10%
- Maximum drawdown, 3 yearsBottom 8%
- Beta vs S&P 500 (lower is better)Bottom 1%
- Net debt / EBITDA (lower is better)Bottom 2%
What changed
Latest four quarters versus the same period a year earlier (growth: versus one quarter earlier).
| Measure | Before | Now | |
|---|---|---|---|
| Revenue growth (YoY) | -0.5% | 0.2% | ↑ |
| Gross margin | 16.7% | 13.9% | ↓ |
| Operating margin | -9.2% | -2.1% | ↑ |
| FCF margin | 2.0% | 1.5% | ↓ |
Fundamental momentum
| Measure | Now (TTM) | Year / quarter before | Sector rank | |
|---|---|---|---|---|
| Revenue growth (TTM, YoY) | 0.2% | -0.5% | ↑ | Bottom 18% |
| Gross margin | 13.9% | 16.7% | ↓ | Bottom 9% |
| Operating margin | -2.1% | -9.2% | ↑ | Bottom 33% |
| Net margin | -5.9% | -13.7% | ↑ | — |
| Free-cash-flow margin | 1.5% | 2.0% | ↓ | — |
| Return on invested capital | -2.6% | — | Bottom 32% | |
| Revenue growth, 3-year CAGR | -4.9% | — | Bottom 16% |
Quality of earnings and balance sheet
- Accruals (net income − OCF) / assetsLower is better; high accruals can signal weaker earnings quality.
- -9.6%
- Stock-based compensation / revenueA cost to shareholders through dilution.
- 1.1%
- Receivables growth vs revenue growthReceivables growing much faster than sales can be a warning.
- +9.6 pp
- Net debt / EBITDABelow 1× is conservative; above 3× is high leverage.
- 10.88×
- Interest cover (operating income / interest)How many times operating profit covers interest.
- -0.5×
Shareholder returns
- Dividend yield (dividends paid, TTM)
- 0.00%
- Net buyback yield (TTM)
- 0.08%
- Shareholder yield
- 0.08%
- Share count change, 1 year
- +5.1%
- Share count change, 3-year CAGR
- +5.2%
Shareholder yield = dividends + net buybacks over the last four quarters, divided by market cap.
Based on the four quarters through Jun 30, 2026 (filed Aug 10, 2026).
Earnings and expectations
Earnings momentum
- Consecutive EPS beats
- 1
- Beats in the last 8 reports
- 5 of 8
- Average EPS surprise, last 4
- -19.1%
- Average 2-day reaction, last 8
- +14.6%
- Positive 20 days after report
- 2 of 8
Analysts
- Consensus price target
- $4.83
- Target vs current price
- +17.2%
- Analysts with a rating
- 13
- Share rating Buy or Strong Buy
- 15%
- Consensus rating
- Hold
How the stock reacted to recent reports
| Report date | EPS surprise | 2 days | 5 days | 20 days | 60 days |
|---|---|---|---|---|---|
| Aug 11, 2026 | +11.2% | -8.0% | -16.5% | -31.7% | — |
| May 7, 2026 | -86.5% | +55.1% | +154.2% | +146.3% | +110.1% |
| Feb 26, 2026 | +72.2% | +68.9% | +79.3% | -3.7% | +220.7% |
| Nov 6, 2025 | -73.1% | -5.8% | -23.2% | -33.5% | -68.2% |
| Aug 7, 2025 | -20.0% | +4.1% | +4.1% | +6.6% | +32.8% |
| May 8, 2025 | +25.0% | +0.7% | -10.5% | -18.9% | -14.7% |
| Feb 20, 2025 | +50.0% | -0.7% | -9.7% | -35.5% | -56.6% |
| Nov 12, 2024 | +50.0% | +2.5% | -12.2% | -7.5% | +5.7% |
Returns from the close before each report. Past reactions do not determine future ones.
Earnings history
| Report date | EPS | Estimate | Surprise | Revenue |
|---|---|---|---|---|
| Aug 11, 2026 | -$0.08 | -$0.09 | +11.2% | $670.1M |
| May 7, 2026 | -$0.06 | -$0.03 | -86.5% | $678.1M |
| Feb 26, 2026 | -$0.01 | -$0.04 | +72.2% | $682.8M |
| Nov 6, 2025 | -$0.05 | -$0.03 | -73.1% | $671.2M |
| Aug 7, 2025 | -$0.06 | -$0.05 | -20.0% | $666.3M |
| May 8, 2025 | -$0.06 | -$0.08 | +25.0% | $665.4M |
| Feb 20, 2025 | -$0.02 | -$0.04 | +50.0% | $685.6M |
| Nov 12, 2024 | -$0.04 | -$0.08 | +50.0% | $675.8M |
Valuation in context
| Multiple | Now | 5-year median | 5-year percentile | Sector rank (cheapness) |
|---|---|---|---|---|
| EV / EBITDA | 14.4× | — | — | Top 25% |
| EV / Sales | 1.57× | — | — | Top 23% |
| Free-cash-flow yield | 3.92% | — | — | Top 42% |
| Earnings yield | -15.70% | — | — | Bottom 13% |
Technical state
Trend checklist
- ✓ Price above 20-day average
- ✓ Price above 50-day average
- ✓ Price above 200-day average
- ✓ 50-day average above 200-day
- ✓ MACD histogram positive
Trend quality
- Days above the 50-day average
- 2
- Days above the 200-day average
- 118
- 50-day average slope (20 days)
- -14.4%
- 200-day average slope (20 days)
- +9.7%
- Distance from 50-day average
- +8.1%
- Distance from 200-day average
- +37.8%
- RSI (14)
- 57.2
- Relative volume
- 0.77×
Risk and drawdowns
- Volatility, 60 days (annualized)
- 101.7%
- Volatility vs own 5-year history
- 71th percentile · Normal for this stock
- Beta vs S&P 500 (2 years, weekly)
- 3.92
- Correlation with S&P 500
- 0.21
- Current drawdown from 1-year high
- -45.3%
- Maximum drawdown, 3 years
- -86.5%
Largest declines in the past six years
| From peak | To low | Decline | Length | Recovery |
|---|---|---|---|---|
| Apr 9, 2021 | Feb 12, 2026 | -98.4% | 1217 days | Not yet recovered |
| Feb 16, 2021 | Mar 5, 2021 | -20.3% | 13 days | 20 days (Apr 5, 2021) |
| Sep 30, 2020 | Nov 16, 2020 | -19.2% | 33 days | 15 days (Dec 8, 2020) |
| Jan 27, 2021 | Feb 2, 2021 | -14.4% | 4 days | 8 days (Feb 12, 2021) |
| Dec 11, 2020 | Jan 15, 2021 | -11.3% | 23 days | 6 days (Jan 26, 2021) |
Declines of 10% or more from a closing high, measured on daily closes.
Financial statements
- Market cap
- $1.05B
- EPS, diluted (TTM)
- -$0.65
- Revenue (TTM)
- $2.70B
- 52-week range
- $0.39 – $8.60
| FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | |
|---|---|---|---|---|---|
| Revenue | $3.01B | $3.12B | $2.96B | $2.74B | $2.69B |
| Gross profit | $936.8M | $856.9M | $648.6M | $533.4M | $359.5M |
| Operating income | -$2.5M | -$679.0M | -$899.4M | -$909.1M | -$68.4M |
| Net income | -$218.3M | -$804.8M | -$837.8M | -$858.2M | -$225.8M |
| EPS (diluted) | -$1.05 | -$3.81 | -$3.89 | -$3.82 | -$0.95 |
| Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | $675.8M | $685.6M | $665.4M | $666.3M | $671.2M | $682.8M | $678.1M | $666.3M |
| Net income | -$186.6M | -$56.0M | -$71.5M | -$54.5M | -$67.1M | -$32.7M | $8.3M | -$67.5M |
| EPS (diluted) | -$0.82 | -$0.25 | -$0.31 | -$0.23 | -$0.28 | -$0.13 | $0.03 | -$0.27 |
| FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | |
|---|---|---|---|---|---|
| Operating cash flow | $370.8M | $259.3M | $374.9M | $39.9M | $151.4M |
| Capital expenditure | -$108.4M | -$80.4M | -$96.9M | -$111.1M | -$60.8M |
| Free cash flow | $262.4M | $178.9M | $278.0M | -$71.2M | $90.6M |
| Dividends paid | $0 | $0 | $0 | $0 | $0 |
| Net share buybacks | $61.1M | -$31.0M | -$1.0M | -$4.3M | $500,000 |
Cash outflows are shown as negative numbers.
- Cash and short-term investments
- $110.6M
- Total assets
- $2.75B
- Total liabilities
- $4.03B
- Total debt
- $3.30B
- Net debt
- $3.19B
- Shareholders’ equity
- -$1.28B
As of Jun 30, 2026 (filed Aug 10, 2026).
Short interest
- Shares sold short
- 27,084,615
- Days to cover
- 3.61
- Change vs previous report
- +1.2%
FINRA short interest, settlement date Sep 15, 2026.
Stock splits
- Jul 20, 2020
- 1-for-12