What are Rackspace Technology, Inc.'s profit margins?

Gross margin is 18.5% and operating margin is -3.0%, with a -5.4% net margin.

Where does Rackspace Technology, Inc.'s income statement data come from?

Every line is extracted from Rackspace Technology, Inc.'s SEC filings (10-K and 10-Q) and tagged in XBRL. Switch between quarterly, annual, and trailing-twelve-month views, or open any line for its full history and peer comparisons.

Rackspace Technology, Inc. RXT Income Statement

Income Statement Balance Sheet Cash Flow Ratios Segments

Quarterly Annual TTM

YoY

Simplified Detailed

	FY'25	FY'24	FY'23	FY'22
Total revenue	$2.69B-1.9%	$2.74B-7.4%	$2.96B-5.3%	$3.12B+3.7%
Rental income	$100K—	$0-100%	$800K-66.7%	$2.4M-7.7%
Total cost of revenue	$2.18B-1.1%	$2.2B-5.4%	$2.33B+2.8%	$2.27B+9.3%
Gross profit	$506.4M-5.1%	$533.4M-15.2%	$628.8M-26.6%	$856.9M-8.5%
Gross margin	18.9%-0.6pp	19.5%-1.8pp	21.3%-6.2pp	27.4%-3.7pp
Research and development	$39.1M-13.9%	$45.4M+3.9%	$43.7M+78.4%	$24.5M-13.4%
Selling, general and administrative	$607.1M-14.2%	$707.6M-7.8%	$767.2M-10.3%	$855.3M-5.7%
Compensation and benefits	$45.1M-28.9%	$63.4M-3.1%	$65.4M-5.9%	$69.5M-7.8%
Occupancy and equipment	$66.3M-0.6%	$66.7M+5.4%	$63.3M+9.0%	$58.1M-6.6%
Advertising	$22.8M-13.6%	$26.4M-4.3%	$27.6M-19.8%	$34.4M+2.4%
Depreciation and amortization	$146M-5.3%	$154.1M-4.3%	$161M-3.5%	$166.8M-7.2%
Provision for credit losses	——	$19.5M+117%	$9M-27.4%	$12.4M—
Operating income	-$100.7M+88.9%	-$909.1M-1.1%	-$899.4M-32.5%	-$679M-27,060%
Operating margin	-3.7%+29.5pp	-33.2%-2.8pp	-30.4%-8.7pp	-21.7%-21.7pp
Interest expense	$82.7M-15.6%	$98M-55.8%	$221.6M+6.3%	$208.5M+1.7%
Other income (expense), net	-$101.1M—	——	$45M+121%	-$218.7M+11.3%
Gain (loss) on extinguishment of debt	$0-100%	$147.2M-45.7%	$271.3M—	$0+100%
Gain (loss) on disposal of assets	$300K—	——	$300K—	——
Income before income taxes	-$201.8M+77.1%	-$881.5M+1.2%	-$891.9M+0.6%	-$897.7M-260%
Income tax expense	$24M+203%	-$23.3M—	——	-$92.9M—
Net income	-$225.8M+73.7%	-$858.2M+0.9%	-$865.8M-7.6%	-$804.8M-269%
Net margin	-8.4%+22.9pp	-31.4%-2.1pp	-29.3%-3.5pp	-25.8%-18.5pp
Diluted earnings per share	-$0.95+75.3%	-$3.85+4.9%	-$4.05-6.3%	-$3.81-259%
Basic earnings per share	-$0.95+75.3%	-$3.85+4.9%	-$4.05-6.3%	-$3.81-259%
Weighted-average shares, diluted	949M+5.4%	900.6M+4.8%	859.6M+2.0%	842.9M+1.6%
Weighted-average shares, basic	949M+6.0%	895.5M+4.2%	859.6M+2.0%	842.9M+1.6%
Accounts Receivable, Allowance for Credit Loss, Additions	$11.2M-38.8%	$18.3M+98.9%	$9.2M-16.4%	$11M+104%
Share-based compensation expense related to employee stock plans	$28.6M-40.5%	$48.1M-25.5%	$64.6M-7.1%	$69.5M-7.8%
Advertising costs	$22.8M-13.6%	$26.4M-4.3%	$27.6M-19.8%	$34.4M+2.4%
Pre-tax stock-based compensation cost	$45.1M-28.9%	$63.4M-3.1%	$65.4M-5.9%	$69.5M-7.8%
Share-Based Payment Arrangement, Expense, after Tax	$35.6M-28.9%	$50.1M-3.1%	$51.7M-5.8%	$54.9M-7.9%
Accounts Receivable, Allowance for Credit Loss, Writeoff	$21M+66.7%	$12.6M-6.0%	$13.4M+113%	$6.3M-20.3%
Amortization of debt issuance costs and debt discount and premium	$6M—	——	$7.9M-1.3%	$8M—
Stock options excluded as their inclusion would be anti-dilutive (in shares)	91.5M-31.6%	133.8M-18.2%	163.6M+69.7%	96.4M+19.0%
Acquisition of property, equipment and software by finance leases	$50.6M+24.0%	$40.8M-39.7%	$67.7M+84.5%	$36.7M-39.2%
Acquisition of property, equipment and software by financing obligations	——	——	$25M—	——
Cash, Cash Equivalent, Restricted Cash, and Restricted Cash Equivalent, Period Increase (Decrease), Including Exchange Rate Effect and Discontinued Operation	——	-$52.7M-66.2%	-$31.7M+28.0%	-$44M-126%
Number of votes per share	10.0%	10.0%	10.0%	10.0%
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	-$242.4M+72.9%	-$894.4M-3.7%	-$862.4M-16.5%	-$740.3M-284%
Revenue recognized that was included in deferred income at the beginning of the period	$145.2M+7.6%	$135M+6.7%	$126.5M+28.3%	$98.6M-8.9%
Federal	-$11.7M-11,600%	-$100K-150%	$200K0.0%	$200K+167%
Foreign	$10.4M-9.6%	$11.5M-36.5%	$18.1M+58.8%	$11.4M+104%
Current State And Local Tax Expense Benefit	$1.6M+433%	$300K-95.7%	$7M+62.8%	$4.3M-20.4%
Federal	$8.4M+135%	-$23.8M+30.6%	-$34.3M+58.0%	-$81.7M-213%
Deferred Foreign Income Tax Expense Benefit	$7.2M+357%	-$2.8M+66.7%	-$8.4M-25.4%	-$6.7M+53.1%
Deferred taxes	$23.7M—	——	-$42.2M+61.2%	-$108.8M-162%
State	$8.1M+196%	-$8.4M-1,150%	$800K+104%	-$20.4M-1,755%
Defined Contribution Plan Cost Recognized	$14.2M0.0%	$14.2M-12.9%	$16.3M+3.8%	$15.7M+3.3%
Depreciation	$151.4M+7.1%	$141.3M-32.3%	$208.7M-5.5%	$220.9M-9.9%
Effect of exchange rate changes on cash, cash equivalents and restricted cash	——	-$3M—	——	——
Effective tax rates	-$0.12-558%	$0.03+36.8%	$0.02-81.6%	$0.1-16.9%
Income taxes at U.S. statutory rate of 21%	——	——	——	——
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent	——	——	——	——
Effective Income Tax Rate Reconciliation Change In Enacted Tax Rate	——	——	——	——
Tax impact of the March 2024 Refinancing Transactions	——	——	——	——
Foreign operations	——	——	——	——
Non-deductible compensation	$5.5M—	——	——	——
Effective Income Tax Rate Reconciliation Nondeductible Expense Impairment Losses	——	——	——	——
Share-based compensation	——	——	——	——
Non-deductible compensation	——	——	——	——
Excess tax benefits associated with employee equity plans (in percent)	——	——	——	——
State income taxes – net of federal income tax benefit	——	——	——	——
Changes in unrecognized tax benefits	——	——	——	——
Effective Income Tax Rate Reconciliation Tax Exempt Income	——	——	——	——
Share-Based Payment Arrangement, Expense, Tax Benefit	$9.5M-28.6%	$13.3M-2.9%	$13.7M-6.2%	$14.6M-7.6%
Federal Income Tax Expense Benefit Continuing Operations	-$3.3M+86.2%	-$23.9M+29.9%	-$34.1M—	——
Finance Lease Cost	$60.2M+5.2%	$57.2M-30.6%	$82.4M+10.3%	$74.7M+0.3%
Finance Lease Interest Payment On Liability	$28.6M-1.0%	$28.9M-1.0%	$29.2M+9.4%	$26.7M-0.7%
Finance Lease Principal Payments	$56.6M-0.5%	$56.9M-28.6%	$79.7M+18.6%	$67.2M+32.8%
Finance Lease Right Of Use Asset Amortization	$32.2M+1.3%	$31.8M-43.0%	$55.8M+9.0%	$51.2M+10.6%
Foreign Income Tax Expense Benefit Continuing Operations	$17.6M+102%	$8.7M-10.3%	$9.7M—	——
Foreign Currency Translation and Other Adjustments	——	-$1.8M—	——	——
Federal taxes	-$400K—	——	——	——
Foreign	$8.1M—	——	——	——
State taxes	$600K—	——	——	——
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	$35.3M—	——	——	——
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount	-$42.4M—	——	——	——
Share-based compensation	$2.3M—	——	——	——
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount	$8.1M—	——	——	——
Changes in unrecognized tax benefits	-$5.7M—	——	——	——
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Amount	$1M—	——	——	——
Income Taxes Paid, Net	$8.3M-23.1%	$10.8M-9.2%	$11.9M+4.4%	$11.4M—
Accounts payable and other current liabilities	-$26.4M—	——	——	$69.8M-20.8%
Increase (Decrease) in Accounts Receivable	——	——	-$275.1M-434%	$82.4M+18.6%
Increase (decrease) in property, equipment and software accrued in liabilities	$15.3M+255%	-$9.9M+27.2%	-$13.6M-177%	$17.6M+266%
Increase (decrease) in contract liabilities and current deferred income	$10.4M+333%	$2.4M—	——	-$21.6M-191%
Short- and long-term operating lease liabilities	-$68.8M+16.9%	-$82.8M-26.2%	-$65.6M-0.2%	-$65.5M-6.7%
Increase (Decrease) in Other Noncurrent Assets and Liabilities, Net	$1.9M—	——	-$44.6M—	——
Increase (Decrease) in Prepaid Expense and Other Assets	——	-$10.5M+58.0%	-$25M-452%	$7.1M—
Interest capitalized	$700K-22.2%	$900K+12.5%	$800K+100%	$400K-33.3%
Interest Paid, Excluding Capitalized Interest, Operating Activity	$82.8M-20.1%	$103.6M-51.6%	$213.9M+20.2%	$177.9M-0.3%
Modified/renewed lease assets obtained in exchange for lease liabilities	$51.6M+15.2%	$44.8M+189%	$15.5M-33.2%	$23.2M-39.7%
Cash Provided by (Used in) Financing Activity, Including Discontinued Operation	-$134.6M—	——	-$312.8M-67.3%	-$187M-41.5%
Cash Provided by (Used in) Investing Activity, Including Discontinued Operation	-$58.4M+32.6%	-$86.6M+9.8%	-$96M+1.9%	-$97.9M-41.9%
Cash Provided by (Used in) Operating Activity, Including Discontinued Operation	$151.4M—	——	$374.9M+52.0%	$246.7M-33.5%
New lease assets obtained in exchange for lease liabilities	$17.3M-48.0%	$33.3M-22.7%	$43.1M+149%	$17.3M-7.0%
Non-cash purchases of property, equipment and software	$78.6M—	——	$84.4M+37.5%	$61.4M-35.0%
Number of common stock classes	10.0%	10.0%	10.0%	10.0%
Number of operating segments	——	——	——	——
Number of reportable segments	——	——	2—	——
Operating Lease Payments	$74.6M-16.6%	$89.5M+11.6%	$80.2M+9.4%	$73.3M-6.5%
Operating lease right-of-use assets amortization expense	$64.3M-4.9%	$67.6M-7.7%	$73.2M+22.4%	$59.8M-9.3%
Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax	$1.2M-50.0%	$2.4M-38.5%	$3.9M+139%	-$10.1M-206%
Foreign currency translation	$15.2M+285%	-$8.2M-203%	$8M—	——
Other Comprehensive Income Foreign Currency Translation Adjustment Tax Portion Attributable To Parent	-$1.3M-333%	-$300K-130%	$1M—	——
Net gains (losses) deferred	$2M-86.8%	$15.1M—	——	$86.9M+656%
Tax on unrealized gain on derivative hedge agreements	$1.8M-80.6%	$9.3M—	——	$30M+757%
Other Comprehensive Income Loss Cash Flow Hedge Gain Loss Reclassification After Tax	$33.8M-21.6%	$43.1M+44.1%	$29.9M—	——
Tax expense on reclassification of realized net derivative loss to net income	$11M-24.1%	$14.5M+40.8%	$10.3M—	——
Other comprehensive income/(loss)	-$16.6M+54.1%	-$36.2M-226%	-$11.1M-117%	$64.5M+153%
Other Depreciation and Amortization	$298.3M+1.0%	$295.4M-20.1%	$369.7M-4.7%	$387.8M-8.7%
Other Noncash Income (Expense)	$2M-69.2%	$6.5M+1,725%	-$400K—	——
Other income, net (Note 6)	-$18.7M+13.8%	-$21.7M-334%	-$5M—	——
Payments For Derivative Instrument Financing Activities	$17.4M+0.6%	$17.3M-8.0%	$18.8M+9.3%	$17.2M+33.3%
Payment for (Proceeds from) Other Investing Activity	-$2.4M+68.4%	-$7.6M-744%	-$900K+82.7%	-$5.2M+35.8%
Payments to Acquire Property, Plant, and Equipment	$60.8M-45.3%	$111.1M+14.7%	$96.9M+20.5%	$80.4M-25.8%
Debt issued (Note 13)	$155M—	——	——	$0—
Net additions (releases) charged to costs and expenses	——	$19.5M+117%	$9M-27.4%	$12.4M—
Repayments Of Financing Obligations	$15.9M+3.9%	$15.3M-32.6%	$22.7M-53.7%	$49M-12.3%
Repayments of Long-Term Debt	$198.2M+21.6%	$163M-32.6%	$241.9M+952%	$23M-99.2%
Revenue From Contract With Customer Excluding Assessed Tax	$2.69B-1.9%	$2.74B-7.4%	$2.96B-5.3%	$3.12B+3.7%
Right Of Use Asset Obtained In Exchange For Operating Lease Liability	$68.9M-11.8%	$78.1M+33.3%	$58.6M+44.7%	$40.5M-29.1%
Expense	$20.7M-3.7%	$21.5M—	——	——
Stock-based compensation	$45.1M-28.9%	$63.4M-3.1%	$65.4M-5.9%	$69.5M-7.8%
Options granted (in shares)	——	——	——	——
Share-based Goods and Nonemployee Services Transaction, Modification of Terms, Incremental Compensation Cost	$100K—	$0-100%	$600K-70.0%	$2M+150%
Short Term Lease Cost	$1.9M+58.3%	$1.2M0.0%	$1.2M+71.4%	$700K+75.0%
State And Local Income Tax Expense Benefit Continuing Operations	$9.7M+220%	-$8.1M-204%	$7.8M—	——
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture	-$2M—	——	-$1M-225%	$800K-98.4%
Total Operating Lease Cost	$92.5M+2.7%	$90.1M+5.5%	$85.4M+14.9%	$74.3M-5.7%
Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions	$10M+100%	$5M+138%	$2.1M+10.5%	$1.9M-69.4%
Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions	$13.7M+7.9%	$12.7M+0.8%	$12.6M+15.6%	$10.9M+21.1%
Additions for tax positions of prior years	$700K+16.7%	$600K-33.3%	$900K+200%	$300K-98.1%
Additions charged to income tax expense	$61.1M-50.8%	$124.1M+217%	$39.2M+2,350%	$1.6M-59.0%
Valuation Allowance, Deferred Tax Asset, Reductions	$3.3M-80.4%	$16.8M-46.8%	$31.6M+2,157%	$1.4M—
Variable Lease Cost	$24.4M+9.9%	$22.2M+2.3%	$21.7M+21.2%	$17.9M-4.8%
Add: dilutive effect of potential common shares (in shares)	——	——	——	——
EBIT	-$100.7M+88.9%	-$909.1M-1.1%	-$899.4M-32.5%	-$679M-27,060%
EBITDA	$344.5M+175%	-$459.6M-24.7%	-$368.7M-196%	-$124.4M-121%
EBITDA	$344.5M+175%	-$459.6M-24.7%	-$368.7M-196%	-$124.4M-121%
EBITDA margin	12.8%+29.6pp	-16.8%-4.3pp	-12.5%-8.5pp	-4%-24.0pp
EBIT	-$100.7M+88.9%	-$909.1M-1.1%	-$899.4M-32.5%	-$679M-27,060%

Chart any of these lines over time, or line them up against competitors.

Compare these in charts →

Questions, answered.

What are Rackspace Technology, Inc.'s profit margins?: Gross margin is 18.5% and operating margin is -3.0%, with a -5.4% net margin.
Where does Rackspace Technology, Inc.'s income statement data come from?: Every line is extracted from Rackspace Technology, Inc.'s SEC filings (10-K and 10-Q) and tagged in XBRL. Switch between quarterly, annual, and trailing-twelve-month views, or open any line for its full history and peer comparisons.