Quarterly ResultJul 9, 2026, 08:18 AM
Rackspace Q2 Prelim Results, FY26 Outlook Cut; $250M ATM Offering
AI Summary
Rackspace Technology announced preliminary Q2 2026 financial results and a reduced full-year 2026 outlook, with revenue guidance cut by $150 million and Adjusted EBITDA by $20 million. The company also entered into an at-the-market offering agreement to sell up to $250 million of common stock to fund its strategic shift towards becoming an operator of the full enterprise AI stack. Additionally, Rackspace extended its accounts receivable securitization facility to July 2029 and increased its potential limit to $350 million.
Key Highlights
- Rackspace entered an ATM offering to sell up to $250M in common stock.
- Preliminary Q2 2026 revenue expected between $641M and $649M.
- Preliminary Q2 2026 GAAP Net Loss expected between $(91)M and $(62)M.
- Preliminary Q2 2026 Adjusted EBITDA expected between $58M and $62M.
- Revised FY26 revenue outlook lowered by $150M to $2,450M-$2,550M.
- Revised FY26 Adjusted EBITDA outlook lowered by $20M to $285M-$295M.
- Extended accounts receivable securitization facility to July 2029, increasing limit to $350M.
- Palantir named Rackspace a Preferred Partner in Regulated and Sovereign Markets.
Price Impact
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