Rackspace Technology 2025 Q3 Earnings 64% Reduction in Net Loss to $67.1M

Rackspace Technology reported mixed Q3 2025 results, with revenue declining 0.7% year-over-year but net losses narrowing significantly. The 64.0% reduction in net loss to $67.1 million and 65.9% improvement in EPS to -$0.28 underscore progress, though the company remains unprofitable after seven consecutive years of losses.

Revenue

Public Cloud remained the largest contributor with $421.60 million, while Private Cloud added $249.60 million to the total consolidated revenue of $671.20 million. This represents a slight decline from $675.80 million in the same period of 2024, driven by mixed performance across segments.

Earnings/Net Income

The 65.9% improvement in EPS to -$0.28 highlights progress in narrowing losses, though the company remains unprofitable. The net loss decreased to $67.1 million for Q3 2025 compared to $186.6 million in Q3 2024, primarily due to reduced operating losses and lower interest expenses. This marked improvement follows the absence of goodwill impairment charges in 2025.

Price Action

Rackspace Technology’s stock price faced downward pressure post-earnings, declining 0.84% in a single trading day, 21.33% over the prior week, and 11.28% month-to-date. The prolonged earnings-driven volatility reflects investor skepticism despite reduced losses, with the company’s seven-year streak of quarterly losses weighing on market sentiment.

Post-Earnings Price Action Review

Additional News

Rackspace Technology completed the sale of its corporate headquarters and relocated to a newly leased office space, signaling strategic cost optimization efforts. The company also reported the absence of goodwill impairment charges in Q3 2025, a key factor in its improved net loss. Management emphasized evaluating the impact of recent accounting pronouncements while prioritizing liquidity and operational stability.

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