Rackspace Technology profit margin RXT
Gross, operating and net profit as a share of revenue over the last twelve months, from 2019.
- Net margin, 12 months
- −5.9%
- Operating margin, 12 months
- −3.3%
- Net margin on a year earlier
- +7.8 pts
- Peer median
- 7.4%
Over the twelve months to Jun 30, 2026, Rackspace Technology kept −5.9% of its revenue as net profit, with an operating margin of −3.3% and a gross margin of 17.9%.
Five years earlier its net margin was −9.3%.
The median for 10 application software stocks of a similar size is 7.4%.
Profit margin over time
Fiscal year by fiscal year
| Fiscal year | Net margin | Operating margin | Gross margin |
|---|---|---|---|
| FY2025 | −8.4% | −3.7% | 18.9% |
| FY2024 | −31.4% | −33.2% | 19.5% |
| FY2023 | −28.3% | −30.4% | 21.3% |
| FY2022 | −25.8% | −21.7% | 27.4% |
| FY2021 | −7.3% | −0.1% | 31.1% |
| FY2020 | −9.1% | 0.9% | 36.4% |
| FY2019 | −4.2% | 4.2% | 41.5% |
Quarter by quarter
| Quarter | Ended | Net margin, 12 months | Change on a year | Operating margin |
|---|---|---|---|---|
| Q2 FY26 | −5.9% | +7.8 pts | −3.3% | |
| Q1 FY26 | −5.4% | +5.3 pts | −3.0% | |
| Q4 FY25 | −8.4% | +22.9 pts | −3.7% | |
| Q3 FY25 | −9.3% | +18.7 pts | −4.7% | |
| Q2 FY25 | −13.7% | +15.1 pts | −9.9% | |
| Q1 FY25 | −10.7% | +19.3 pts | −10.9% | |
| Q4 FY24 | −31.4% | −3.0 pts | −33.2% | |
| Q3 FY24 | −27.9% | +7.8 pts | −32.3% | |
| Q2 FY24 | −28.8% | +15.5 pts | −34.0% | |
| Q1 FY24 | −30.0% | +14.4 pts | −33.6% | |
| Q4 FY23 | −28.3% | −2.6 pts | −30.4% | |
| Q3 FY23 | −35.7% | −14.1 pts | −36.7% |
Against its peers
Companies in Software - Application nearest Rackspace Technology's size, closest first, today.
| Company | Profit margin |
|---|---|
| RXTRackspace Technology | −5.9% |
| MNTNMNTN | 18.0% |
| YEXTYext | 5.9% |
| NRDSNerdwallet | 7.6% |
| TASKTaskUs | 8.8% |
| EVEREverQuote | 15.2% |
| IBEXIBEX | 7.2% |
| CARSCars.com | 4.7% |
| OOMAOoma | 3.6% |
| HSTMHealthstream | 6.6% |
| UPWKUpwork | 12.9% |
| Peer median | 7.4% |
Where Rackspace Technology ranks
What the profit margin tells you
Profit as a share of revenue at three levels: gross (after making the product), operating (after running the business) and net (after everything, including tax and interest).
Compare within an industry. 10% is superb for a retailer and poor for a software company.
More on Rackspace Technology
Valuation data, not investment advice. Prices as of . Reported figures come from the company's filings with the SEC.