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Rackspace Technology, Inc. RXT Public Cloud — Cost of Revenue, Excluding Third-Party Infrastructure

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Other financials

Income statement

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Revenue$670.1M+0.6%
Gross profit$114.8M-11.1%
Operating income-$33.2M-32.3%
Net income-$67.5M-23.9%
EPS (diluted)-$0.27-17.4%

Balance sheet

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Cash & equivalents$113.3M+7.2%
Total debt$3.3B-0.5%
Total equity-$1.3B-14.5%
Total assets$2.7B-5.2%

Cash flow

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Operating cash flow-$31.5M-475%
CapEx$16.8M-19.2%
Free cash flow-$48.3M-290%

Valuation

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Market cap$1.24B+333%
Enterprise value$4.39B+27.0%
P/S0.5×+0.4×

Profitability

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Gross margin17.9%-1.6pp
Operating margin-3.3%-1.3pp
Net margin-5.9%-2.1pp
FCF margin1.5%

Returns & leverage

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Return on equity-205.2%-222pp
Debt / equity117.7×+115×
Current ratio0.8×0.0×

Where this comes from

Reported directly by Rackspace Technology, Inc. in its filing.

Tagged under the XBRL concept rxt:CostOfRevenueExcludingThirdPartyInfrastructure.

The source filing: Rackspace Technology, Inc.’s 10-Q, filed August 10, 2026.

Filed
Aug 10, 2026, 4:26 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0001810019-26-000093
(In millions)Three Months Ended June 30, 2025Three Months Ended June 30, 2026Six Months Ended June 30, 2025Six Months Ended June 30, 2026
Public Cloud
Revenue$416.6$406.8$832.2$850.2
Third party infrastructure (1)(324.3)(322.3)(650.7)(676.2)
Other cost of revenue (2)(52.4)(45.2)(102.1)(95.4)
Other segment items (3)(23.7)(20.3)(45.9)(38.9)
Segment operating profit$16.2$19.0$33.5$39.7
Private Cloud
Revenue$249.7$263.3$499.5$498.0

ITEM 1 - FINANCIAL STATEMENTS

FAQ

What is Rackspace Technology, Inc.'s public cloud — cost of revenue, excluding third-party infrastructure?
Rackspace Technology, Inc. (RXT) reported public cloud — cost of revenue, excluding third-party infrastructure of $45.2M in Q2 2026.
What does public cloud — cost of revenue, excluding third-party infrastructure mean?
This metric represents the internal operational costs incurred to deliver public cloud services, specifically excluding the pass-through costs paid to third-party hyperscale infrastructure providers. It captures the expenses related to internal labor, proprietary software tools, and managed service delivery overhead required to support customer cloud environments. By isolating these costs, investors can better evaluate the operational efficiency and margin profile of the company's value-added professional and managed services within the public cloud segment.

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