Rackspace Q4 Revenue Falls 0.4% to $683M; Public Cloud Up 6%
Rackspace reported Q4 revenue of $683 million, down 0.4% year-over-year, with private cloud off 10% at $241 million and public cloud up 6% at $442 million. Net loss narrowed to $33 million from $56 million and non-GAAP operating profit rose 5% to $41 million; 2026 revenue guidance is $2.6–2.7 billion.
1. Fourth Quarter 2025 Results
Rackspace reported fourth quarter revenue of $683 million, down 0.4% year-over-year. Private cloud revenue declined 10% to $241 million while public cloud revenue rose 6% to $442 million; net loss narrowed from $56 million to $33 million and non-GAAP operating profit increased 5% to $41 million with operating cash flow of $60 million.
2. Full Year 2025 Performance
Full year revenue reached $2.686 billion, down 2% from $2.737 billion in 2024. Private cloud revenue fell 6% to $990 million and public cloud revenue edged up 1% to $1.696 billion; net loss improved from $858 million to $226 million and non-GAAP operating profit climbed 19% to $126 million, with year-end cash of $106 million and liquidity of $397 million.
3. 2026 Financial Outlook
Rackspace projects 2026 revenue of $2.6–2.7 billion, with private cloud revenue of $1.025–1.075 billion and public cloud revenue of $1.575–1.625 billion. The company expects non-GAAP operating profit of $160–170 million, adjusted EBITDA of $305–315 million and a non-GAAP loss per share of $0.15–0.20.