Rackspace Technology Inc. (RXT) carries a Roarable Rating of D- (Sell) with 39/100 RQD Confidence due to weak cash-flow efficiency and sensitivity to current interest rates. Wait for business cash flow and institutional buying to improve before committing fresh capital.
As of 2026-11-02, Rackspace Technology Inc. (NASDAQ: RXT) is rated D- (Sell / SELL) by Roarable's 5-pillar RQD engine with a composite confidence score of 39/100 at a spot price of $2.62 (-12.37% 1D, market cap $762.1M). Pillar breakdown: Fundamental Cash Engine 8/20, Institutional 13F & Options Flow 6/20, Executive Insider Alignment 8/20, FRED Macro Regime Fit 8/20, and SEC Balance-Sheet Forensics 9/20. Across 714 tracked Technology issuers, RXT ranks #501 in composite RQD confidence.
Within the Technology sector (Computer Software: Programming Data Processing), RXT carries a Roarable D- (39/100 RQD), trailing P/E of N/A, gross margin of 18.9%, and ROIC of -5.7%. By comparison, PUBM (PubMatic Inc. (Class A)) holds a D+ grade (52/100 RQD, P/E N/A, ROIC -11.6%, cap $774.8M) and BMBL (Bumble Inc. (Class A)) posts a D grade (48/100 RQD, P/E N/A, ROIC -35.0%, cap $789.2M). Among the 5-stock peer group, EVER leads on earnings multiple (8.1x) while EVER leads on capital efficiency (69.1% ROIC).
Per RXT's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-12-31, CIK 0001810019), Rackspace Technology Inc. generated $2.69B in revenue (-1.9% YoY), -$225.8M in net income, and $90.6M in free cash flow against $2.80B in total assets and $2.72B in total debt. Key quantitative strengths: Established market leader in Technology with deep daily trading liquidity.. Primary risk factors monitored: Company executives have done more routine share selling than personal cash buying lately.. Institutional options positioning shows a 50% call / 50% put premium split.
Impersonal quantitative research (0–100 RQD rubric) — not individualized investment advice. Past performance does not guarantee future results. Full Disclaimer
SEC Form 4 / 13F Thermometer: 45% Net Buy • Disciplined Float (-0.40% YoY Shares)
SEC XBRL FY 2025 (10-K): 3.4% FCF Margin ($90.6M FCF) & 18.9% Gross Margin
Put hedging (50% put share) caps near-term gamma upside (-14 pts vs max)
While RXT currently carries a cautious 39/100 (D-) rating due to Whale & Options Positioning (6/20), shorts face asymmetric squeeze risk if free cash flow inflects or management executes accretive buybacks.
Established market leader in Technology with deep daily trading liquidity.
Options & Short-Covering Gamma: Reclaiming the 50-day SMA ($3.39) and Max Pain ($2.75) forces dealer call-delta covering toward $9.03.
Forensic Repair Trigger: Halting share dilution (Disciplined Float (-0.40% YoY Shares)) or retiring high-cost debt immediately upgrades the SEC 10-K Forensic pillar.
Rackspace Technology Inc. (RXT) dropped -12.37% to $2.62, trading at 27% of its 52-week range ($0.39 – $8.6). Stretched risk/reward at current multiples (-6% return on capital) under elevated 10-year interest-rate pressure.
Yahoo Finance Australia report covering Rackspace Technology Inc. (RXT) market action, institutional positioning, and fundamental catalysts.
Yahoo! Finance Canada report covering Rackspace Technology Inc. (RXT) market action, institutional positioning, and fundamental catalysts.
TradingView report covering Rackspace Technology Inc. (RXT) market action, institutional positioning, and fundamental catalysts.
Simply Wall St report covering Rackspace Technology Inc. (RXT) market action, institutional positioning, and fundamental catalysts.
Stock Titan report covering Rackspace Technology Inc. (RXT) market action, institutional positioning, and fundamental catalysts.
MarketBeat report covering Rackspace Technology Inc. (RXT) market action, institutional positioning, and fundamental catalysts.
Simply Wall St report covering Rackspace Technology Inc. (RXT) market action, institutional positioning, and fundamental catalysts.
Stock Titan report covering Rackspace Technology Inc. (RXT) market action, institutional positioning, and fundamental catalysts.
Advanced Micro Devices (NasdaqGS:AMD) is supplying data center compute for a new private AI infrastructure deployed by Rackspace Technology for Hinduja Global Solutions. HGS is using the AMD powered Rackspace environment
Multi-year comparable XBRL diluted share count not disclosed (ETF or recent listing).
vs. -1.9% actual YoY revenue growth (assuming 9.25% cost of equity & 16.5x terminal multiple).
No active Ellis Vennor swing setup published on RXT today. View full Setup Ledger →
No direct multi-tier Butterfly edges indexed yet for RXT. Explore sector supply chains on /butterfly.
Across 714 tracked Technology securities in the Roarable RQD universe, Rackspace Technology Inc. (RXT) ranks #501 by composite RQD confidence (39/100, grade D-) and #381 by equity capitalization ($762.1M). Within this direct 5-issuer industry benchmark cohort, EVER leads on earnings valuation at 8.1x trailing P/E, while EVER leads on capital efficiency and profitability with 69.1% ROIC and 96.0% gross margin. EVER currently holds the highest overall quantitative score in the immediate peer group at 80/100 (B+) compared with RXT at 39/100 (D-).
| Ticker / Company | Roarable Grade | RQD Score | Trailing P/E | Gross Margin | ROIC | 1D Change | Market Cap | Head-to-Head |
|---|---|---|---|---|---|---|---|---|
| RXT
ACTIVE
Rackspace Technology Inc. | D- | 39/100 | — | 18.9% | -5.7% | -12.37% | $762.1M | Benchmark Subject |
| PUBM PubMatic Inc. (Class A) | D+ | 52/100 | — | 63.6% | -11.6% | -6.58% | $774.8M | /pubm-vs-rxt → |
| BMBL Bumble Inc. (Class A) | D | 48/100 | — | 70.8% | -35.0% | +0.17% | $789.2M | /bmbl-vs-rxt → |
| EVER EverQuote Inc. (Class A) | B+ | 80/100 | 8.1x | 96.0% | 69.1% | +3.11% | $803.5M | /ever-vs-rxt → |
| SMWB Similarweb Ltd. | D | 46/100 | — | 79.5% | -35.0% | -2.67% | $804.9M | /smwb-vs-rxt → |
In its most recent audited fiscal period (FY2025, filed 2025-12-31), Rackspace Technology Inc. (RXT) reported GAAP revenue of $2.69B (-1.9% vs. FY2024 revenue of $2.74B , and -9.2% cumulative change since FY2023) , GAAP net income of -$225.8M, operating cash flow of $151.4M, and free cash flow of $90.6M (+227.2% YoY). On the balance sheet, RXT closed FY2025 with $2.80B in total assets against $2.72B in total debt (Altman Z-Score: 0.20, Piotroski F-Score: 4/9).
| Fiscal Period | Filing Date | Revenue | Net Income | Operating Cash Flow | Free Cash Flow | Total Assets | Total Debt |
|---|---|---|---|---|---|---|---|
| FY2025 (FY) | 2025-12-31 | $2.69B | -$225.8M | $151.4M | $90.6M | $2.80B | $2.72B |
| FY2024 (FY) | 2024-12-31 | $2.74B | -$858.2M | $39.9M | -$71.2M | $3.05B | $2.76B |
| FY2023 (FY) | 2023-12-31 | $2.96B | -$837.8M | $374.9M | $374.9M | — | — |
As of 2026-11-02, Rackspace Technology Inc. (NASDAQ: RXT) is rated D- (Sell / SELL) by Roarable's 5-pillar RQD engine with a composite confidence score of 39/100 at a spot price of $2.62 (-12.37% 1D, market cap $762.1M). Pillar breakdown: Fundamental Cash Engine 8/20, Institutional 13F & Options Flow 6/20, Executive Insider Alignment 8/20, FRED Macro Regime Fit 8/20, and SEC Balance-Sheet Forensics 9/20. Across 714 tracked Technology issuers, RXT ranks #501 in composite RQD confidence.
Within the Technology sector (Computer Software: Programming Data Processing), RXT carries a Roarable D- (39/100 RQD), trailing P/E of N/A, gross margin of 18.9%, and ROIC of -5.7%. By comparison, PUBM (PubMatic Inc. (Class A)) holds a D+ grade (52/100 RQD, P/E N/A, ROIC -11.6%, cap $774.8M) and BMBL (Bumble Inc. (Class A)) posts a D grade (48/100 RQD, P/E N/A, ROIC -35.0%, cap $789.2M). Among the 5-stock peer group, EVER leads on earnings multiple (8.1x) while EVER leads on capital efficiency (69.1% ROIC).
Per RXT's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-12-31, CIK 0001810019), Rackspace Technology Inc. generated $2.69B in revenue (-1.9% YoY), -$225.8M in net income, and $90.6M in free cash flow against $2.80B in total assets and $2.72B in total debt. Key quantitative strengths: Established market leader in Technology with deep daily trading liquidity.. Primary risk factors monitored: Company executives have done more routine share selling than personal cash buying lately.. Institutional options positioning shows a 50% call / 50% put premium split.
RXT last traded at $2.62 (-12.37% on volume of 4,395,446 shares), positioning the stock -22.71% below its 50-day simple moving average ($3.39) and -18.63% below its 200-day simple moving average ($3.22). Across its 52-week range of $0.39 to $8.60, RXT sits at the 27.2% percentile with a 14-day RSI of 45.7 (NEUTRAL RANGE) and an implied next-earnings move of ±12.5% ($2.29 to $2.95).
Why RXT Stock dropped -12.37% Today — RQD Quant Desk Flash. Stretched risk/reward at current multiples (-6% return on capital) under elevated 10-year interest-rate pressure.
Per the Roarable RQD rating, RXT scores 39 out of 100 with a letter grade of D-, labeled "Roarable Sell — Vulnerable Balance Sheet & Flow." Each of the five pillars is scored out of 20:
For a prospective investor, the upside case rests on the FCF yield and the very large price move implied by the 52-week range ($0.39 – $8.6) against the current price of $2.99. The valuation tradeoff is that earnings-based multiples are unavailable, so the stock cannot be benchmarked on P/E, and the balance sheet signals indicate material financial risk. The rating's verdict is a sell-side caution: the fundamental and forensic pillars are weak, and the flow pillars do not offset them.
| Period | Revenue | Operating Income | Net Income | EPS | FCF | Cash | Debt |
|---|---|---|---|---|---|---|---|
| FY 2025 | $2685.7M | $-100.7M | $-225.8M | N/A | $90.6M | $105.8M | $2718.7M |
| FY 2024 | $2737.1M | $-909.1M | $-858.2M | N/A | $-71.2M | $144.0M | $2756.4M |
| FY 2023 | $2957.1M | $-899.4M | $-837.8M | N/A | $374.9M | N/A | N/A |
Per the SEC financials, revenue declined in each reported year, and the company recorded operating and net losses in all three periods. Per the market data, gross margin is 18.9%, operating margin is -3.7%, and net margin is -8.4%. ROIC is -5.7%. Per the Roarable RQD rating, the Altman Z-Score is 0.2 and the Piotroski F-Score is 4/9, and Debt/Equity is 0.5. Reported debt of $2718.7M against cash of $105.8M in FY 2025 indicates a heavily levered balance sheet relative to cash on hand.
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Yahoo Finance Australia report covering Rackspace Technology Inc. (RXT) market action, institutional positioning, and fundamental catalysts.
Yahoo! Finance Canada report covering Rackspace Technology Inc. (RXT) market action, institutional positioning, and fundamental catalysts.
TradingView report covering Rackspace Technology Inc. (RXT) market action, institutional positioning, and fundamental catalysts.
Simply Wall St report covering Rackspace Technology Inc. (RXT) market action, institutional positioning, and fundamental catalysts.
Stock Titan report covering Rackspace Technology Inc. (RXT) market action, institutional positioning, and fundamental catalysts.
MarketBeat report covering Rackspace Technology Inc. (RXT) market action, institutional positioning, and fundamental catalysts.
Simply Wall St report covering Rackspace Technology Inc. (RXT) market action, institutional positioning, and fundamental catalysts.
Stock Titan report covering Rackspace Technology Inc. (RXT) market action, institutional positioning, and fundamental catalysts.
Welcome to the RXT (Rackspace Technology Inc.) Roar Pit. Current RQD Composite is 39/100 (Roarable Sell — Vulnerable Balance Sheet & Flow) in Computer Software: Programming Data Processing. Bulls point to operating leverage and sector positioning, while bears focus on macro rate sensitivity and margin execution. Pick your side (🐂 Bull or 🐻 Bear) and drop your price target below.
Everyone in here is repeating the bull case on RXT, but look at what you are paying: current EV/EBITDA multiples with 18.9% gross margins. Unless Rackspace Technology Inc. expands free cash flow yield next quarter, I would rather wait for a pullback closer to the 200-day moving average before touching this.
Looking at the 5-pillar RQD breakdown on RXT, the market is fixating on short-term headline noise in Computer Software: Programming Data Processing and ignoring the balance sheet and cash flow trajectory. At $2.99 (52-wk range $0.39 - $8.60), any beat on forward guidance forces shorts and underweight funds to chase.
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