Rackspace Technology, Inc. 10-Q

Financial Statements (unaudited)

ITEM 1 - FINANCIAL STATEMENTS RACKSPACE TECHNOLOGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions, except per share data) December 31, 2025 June 30, 2026 ASSETS Current assets: Cash and cash equivalents $ 105.8 $ 110.6 Accounts receivable, net of allowance for credit losses and accrued customer credits of $ 12.2 and $ 12.4 , respectively 266.5 278.7 Prepaid expenses 84.4 96.0 Other current assets 61.1 70.6 Total current assets 517.8 555.9 Property, equipment and software, net 596.3 574.6 Goodwill, net 740.1 738.7 Intangible assets, net 698.3 635.8 Operating right-of-use assets 144.6 119.9 Other non-current assets 102.7 120.4 Total assets $ 2,799.8 $ 2,745.3 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable and accrued expenses $ 413.9 $ 394.8 Accrued compensation and benefits 85.4 67.0 Deferred revenue 94.6 96.3 Debt 27.3 24.8 Accrued interest 5.4 5.5 Operating lease liabilities 54.7 49.3 Finance lease liabilities 48.0 61.5 Financing obligations 14.0 10.1 Other current liabilities 23.4 26.2 Total current liabilities 766.7 735.5 Non-current liabilities: Debt 2,718.7 2,761.9 Operating lease liabilities 84.2 66.6 Finance lease liabilities 297.7 297.0 Financing obligations 39.3 37.2 Deferred income taxes 34.7 47.0 Other non-current liabilities 78.0 81.2 Total liabilities 4,019.3 4,026.4 Commitments and Contingencies (Note 8) Stockholders' deficit: Preferred stock, $ 0.01 par value per share: 5.0 shares authorized; no shares issued or outstanding — — Common stock, $ 0.01 par value per share: 1,495.0 shares authorized; 248.4 and 254.8 shares issued; 245.3 and 251.7 shares outstanding, respectively 2.5 2.5 Additional paid-in capital 2,709.7 2,716.9 Accumulated other comprehensive income (loss) 7.5 ( 2.1 ) Accumulated deficit ( 3,908.2 ) ( 3,967.4 ) Treasury stock, at cost; 3.1 shares held ( 31.0 ) ( 31.0 ) Total stockholders' deficit ( 1,219.5 ) ( 1,281.1 ) Total liabilities and stockholders' deficit $ 2,799.8 $ 2,745.3 See accompanying notes to the unaudited condensed consolidated financial statements. - 3 - Table of Contents RACKSPACE TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2025 2026 2025 2026 Revenue $ 666.3 $ 670.1 $ 1,331.7 $ 1,348.2 Cost of revenue ( 537.1 ) ( 555.3 ) ( 1,075.6