Quarterly ResultMay 8, 2026, 04:14 PM
Rackspace Q1 Net Income $8.3M; Revenue $678.1M
AI Summary
Rackspace Technology reported a net income of $8.3 million for Q1 2026, a significant improvement from a net loss of $71.5 million in Q1 2025. Revenue increased to $678.1 million from $665.4 million year-over-year. The positive earnings were significantly aided by a $55.8 million gain on debt extinguishment. The company remains highly leveraged with $2,477.6 million in total debt principal outstanding as of March 31, 2026, and experienced a decrease in cash and cash equivalents.
Key Highlights
- Q1 2026 net income was $8.3 million, a significant improvement from a $71.5 million net loss in Q1 2025.
- Q1 2026 revenue increased to $678.1 million from $665.4 million in Q1 2025.
- Diluted EPS for Q1 2026 was $0.03, up from $(0.31) in Q1 2025.
- Recorded a $55.8 million gain on debt extinguishment in Q1 2026.
- Total debt principal outstanding was $2,477.6 million as of March 31, 2026.
- Net cash provided by operating activities was $5.1 million for Q1 2026.
- Repurchased $68.3 million of 3.50% FLSO Senior Secured Notes for $34.5 million.
- Cash and cash equivalents decreased to $93.6 million from $105.8 million.
Price Impact
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