Rackspace Technology, Inc. Q4 FY2025 earnings call

• Framed company strategy in response to market shift towards AI operating at scale in enterprise systems, emphasizing Rackspace as infrastructure and operations backbone for enterprise AI.
• Made executive team changes for better execution. Built platform engineering capability with forward - deployed engineers working directly in customer environments, e.g., with Palantir, aiming to scale to over 250 Palantir - trained engineers in 12 months.
• Private cloud expanded platform capabilities, introduced support for Oracle People Tools and Rack Connect Global Internet on Partner Fabric. Public cloud secured wins in various regions, expanded product portfolio with managed cloud database operations and streamlined deployment options for enterprise software and AI - enabled managed services.
• 2025 marked structural improvement in public cloud with stronger customer retention and margin expansion, and private cloud had sustained customer engagement with long - term programs.

Private Cloud: Fourth quarter revenue $241 million, below guided range due to a healthcare contract ramping slower; full year 2025 revenue $990 million, down 6% y-o-y. Public Cloud: Fourth quarter revenue $442 million, exceeding guided range, driven by services and infrastructure resale; full year 2025 revenue $1.7 billion, services revenue up 6%. Private cloud is a foundational profit engine, public cloud shows momentum in services.

• Beginning in 2026, moving to annual guidance framework. Full - year GAAP revenue expected $2.6B - $2.7B, down 1% at midpoint. Private cloud revenue expected $1.25B - $1.75B, up 6% at midpoint. Public cloud revenue expected $1.575B - $1.625B, down 6% at midpoint.
• Private cloud growth balanced across year with large deployments moving into production. Public cloud services revenue expected mid - high teens y - o - y excluding a low - margin government contract transition.
• Total non - GAAP operating profit expected $160 - $170 million, up 31% at midpoint. Adjusted EBITDA expected $305 - $315 million, up 12% at midpoint. Non - GAAP loss expected 15 - 20 cents per share.