What is Rackspace Technology, Inc.'s free cash flow margin?

Rackspace Technology, Inc. (RXT) reported free cash flow margin of 2.8% in Q1 2026.

What is the long-term trend for Rackspace Technology, Inc.'s free cash flow margin?

Over 3 years (2021 to 2025), Rackspace Technology, Inc.'s free cash flow margin has grown at a -27.1% compound annual growth rate (CAGR), from 8.7% to 3.4%.

What does free cash flow margin mean?

Free cash flow (operating cash flow minus capital expenditures) as a percentage of revenue, trailing twelve months. Measures how efficiently revenue converts into discretionary cash.

Rackspace Technology, Inc. RXT Free cash flow margin

Free cash flow margin at other companies

International Business MachinesIBM

18.7%-1.3pp

CognizantCTSH

11.5%+0.9pp

Equinix, Inc.EQIX

-10.6%-14.6pp

AccentureACN

17.2%+2.3pp

Kyndryl HoldingsKD

-3%—

Rigetti Computing, Inc.RGTI

-815.2%+296pp

Other financials

Income statement

See full

Revenue$678.1M+1.9%

Gross profit$119.1M-6.1%

Operating income-$17.8M+53.6%

Net income$8.3M+112%

EPS (diluted)$0.03+110%

Balance sheet

See full

Cash & equivalents$96.0M-26.8%

Total debt$3.2B-3.1%

Total equity-$1.2B-13.4%

Total assets$2.8B-6.8%

Cash flow

See full

Operating cash flow$5.1M-59.5%

CapEx$14.5M+74.7%

Free cash flow-$9.4M-319%

Valuation

See full

Market cap$1.81B-39.7%

Enterprise value$4.89B-6.3%

P/S0.7×-0.4×

Profitability

See full

Gross margin18.5%-1.0pp

Operating margin-3%-1.2pp

Net margin-5.4%-1.8pp

Returns & leverage

See full

Return on equity-205.2%-222pp

Debt / equity117.7×+115×

Current ratio0.7×-0.1×

Where this comes from

Calculated from Rackspace Technology, Inc.’s reported figures.

free cash flow/total revenue=2.8%

Based on trailing twelve months.

The official record: Rackspace Technology, Inc.’s 10-Q, filed May 8, 2026, on SEC EDGAR. View the filing →

Ask your AI about Rackspace Technology, Inc.'s free cash flow margin.

Connect your AI assistant and compare it to peers, right in your chat.

Connect your AI

Claude

Questions, answered.

What is Rackspace Technology, Inc.'s free cash flow margin?: Rackspace Technology, Inc. (RXT) reported free cash flow margin of 2.8% in Q1 2026.
What is the long-term trend for Rackspace Technology, Inc.'s free cash flow margin?: Over 3 years (2021 to 2025), Rackspace Technology, Inc.'s free cash flow margin has grown at a -27.1% compound annual growth rate (CAGR), from 8.7% to 3.4%.
What does free cash flow margin mean?: Free cash flow (operating cash flow minus capital expenditures) as a percentage of revenue, trailing twelve months. Measures how efficiently revenue converts into discretionary cash.