- Reve ue of $609 millio i the Thi d Qua te , dow 9% Yea -ove -Yea
- P ivate Cloud Reve ue was $260 millio , up 4% Yea -ove -Yea
- Public Cloud Reve ue was $349 millio , dow 17% Yea -ove -Yea
- Thi d Qua te 2026 Cash Flow F om Ope ati g Activities was $36 millio ; Cash Flow F om Ope ati g Activities was $69 millio o a T aili g-Twelve-Mo th Basis
- Raisi g full-yea 2026 eve ue outlook by $35 millio at the midpoi t
- Mai tai i g full-yea 2026 No -GAAP Ope ati g P ofit a d Adjusted EBITDA outlook
SAN ANTONIO, Nov. 09, 2026 (GLOBE NEWSWIRE) — Rackspace Tech ology, I c. (Nasdaq: RXT), a global e te p ise AI i f ast uctu e a d solutio s p ovide , today a ou ced esults fo its thi d qua te e ded Septembe 30, 2026.
Gaje Ka diah, Chief Executive Office , stated, “This qua te we co ti ued to execute o ou busi ess a d fi a cial pla a d eaffi m ou p ofit outlook fo the full yea while modestly i c easi g ou eve ue outlook.”
M . Ka diah added, “As I e te my seco d yea as CEO, we have moved f om establishi g ou st ategy to become the ope ato of the full e te p ise AI stack a d c eati g the f amewo k to execute it, to ow t a slati g ou go-to-ma ket effo ts a d la ge existi g capacity footp i t i to fu the commitme ts, apid deployme ts a d high ma gi ope atio s.”
Reve ue was $609 millio i the thi d qua te of 2026, a dec ease of 9.3% o a epo ted basis a d 9.2% o a co sta t cu e cy (1) basis compa ed to eve ue of $671 millio i the thi d qua te of 2025.
P ivate Cloud eve ue was $260 millio i the thi d qua te of 2026, a i c ease of 4.2% o a epo ted a d co sta t cu e cy basis compa ed to eve ue of $250 millio i the thi d qua te of 2025.
Public Cloud eve ue was $349 millio i the thi d qua te of 2026, a dec ease of 17.2% o a epo ted a d co sta t cu e cy basis compa ed to eve ue of $422 millio i the thi d qua te of 2025.
Loss f om ope atio s was $(13) millio i the thi d qua te of 2026, compa ed to loss f om ope atio s of $(34) millio i the thi d qua te of 2025.
Net loss was $(54) millio i the thi d qua te of 2026, compa ed to et loss of $(67) millio i the thi d qua te of 2025.
Net loss pe diluted sha e was $(0.21) i the thi d qua te of 2026, compa ed to et loss pe diluted sha e of $(0.28) i the thi d qua te of 2025.
No -GAAP Ope ati g P ofit was $36 millio i the thi d qua te of 2026, a i c ease of 12% compa ed to $32 millio i the thi d qua te 2025.
No -GAAP Loss Pe Sha e was $(0.06) i the thi d qua te of 2026, a decli e of 20% compa ed to No -GAAP Loss Pe Sha e of $(0.05) i the thi d qua te of 2025.
Capital expe ditu es we e $104 millio i the thi d qua te of 2026, compa ed to $34 millio i the thi d qua te of 2025.
As of Septembe 30, 2026, we had cash a d cash equivale ts of $108 millio a d total liquidity of $170 millio , i cludi g ou Revolvi g C edit Facility.
| (1 | ) | Co sta t cu e cy eve ue a d ce tai othe measu es i this elease a e o -GAAP fi a cial measu es. See “No -GAAP Fi a cial Measu es” a d the tables that accompa y this elease fo defi itio s a d eco ciliatio s of these o -GAAP measu es to the most compa able GAAP measu es. |
Rackspace Tech ology is p ovidi g guida ce as follows:
| $2,510 – $2,560 millio | $995 – $1,015 millio | $1,515 – $1,545 millio | $125 – $135 millio | $285 – $295 millio | ($0.25) – ($0.30) | ($220) – ($230) millio | 26% | 265 – 275 millio |
| (1) | No -GAAP Weighted Ave age Sha es guida ce excludes a y dilutio f om the ATM p og am, as futu e issua ce u de the p og am will depe d o p evaili g sha e p ice a d ma ket co ditio s. |
I fo matio about Rackspace Tech ology’s use of o -GAAP fi a cial measu es is p ovided below u de “No -GAAP Fi a cial Measu es”.
Defi itio s of o -GAAP fi a cial measu es a d the eco ciliatio s to the most di ectly compa able measu es i acco da ce with ge e ally accepted accou ti g p i ciples i the U ited States (“GAAP”) a e p ovided i subseque t sectio s of this p ess elease a ative a d suppleme tal schedules. Rackspace Tech ology has ot eco ciled No -GAAP Ope ati g P ofit, Adjusted EBITDA, No -GAAP Loss Pe Sha e, No -GAAP Othe I come (Expe se) o No -GAAP Tax Expe se Rate guida ce to the most di ectly compa able GAAP measu e because it does ot p ovide guida ce o GAAP et i come (loss) o the eco cili g items betwee these No -GAAP measu es a d GAAP et i come (loss) as a esult of the u ce tai ty ega di g, a d the pote tial va iability of, ce tai of these items, such as sha e-based compe satio expe se. Acco di gly, a eco ciliatio of the o -GAAP fi a cial measu e guida ce to the co espo di g GAAP measu e is ot available without u easo able effo t. With espect to No -GAAP Ope ati g P ofit, Adjusted EBITDA, No -GAAP Loss Pe Sha e, No -GAAP Othe I come (Expe se) a d No -GAAP Tax Expe se Rate guida ce, adjustme ts i futu e pe iods a e ge e ally expected to be simila to the ki ds of cha ges a d costs excluded f om these No -GAAP measu es i p io pe iods, but the impact of such adjustme ts could be sig ifica t.
Rackspace Tech ology will hold a co fe e ce call, Novembe 10, 2026, at 7:30am CT / 8:30am ET to discuss its thi d qua te 2026 esults.
I te ested pa ties may access the co fe e ce call as follows:
To liste to the live webcast o access the eplay followi g the webcast, please visit ou i vesto elatio s website at the followi g li k: https://i . ackspace.com/ ews-a d-eve ts/eve ts-a d-p ese tatio s.
To obtai a dial-i umbe , please p e- egiste at the followi g li k: https:// egiste -co f.media-se ve .com/ egiste /BI0b0c05e627404fb498019571d04fbeb0.
Regist a ts will eceive dial-i i fo matio a d a PIN allowi g them to access the live call.
Rackspace Tech ology is the ope ato of the full e te p ise AI stack f om gove ed p ivate cloud to AI i fe e ce a d age ts i p oductio . With a Outcomes-as-a-Se vice model built o secu e i f ast uctu e, data fou datio s, a d fo wa d-deployed e gi ee i g, Rackspace delive s busi ess esults fo egulated a d missio -c itical i dust ies whe e gove a ce, sove eig ty, a d uptime a e o – egotiable.
Rackspace Tech ology has made stateme ts i this p ess elease a d othe epo ts, fili gs, a d othe public w itte a d ve bal a ou ceme ts that a e fo wa d-looki g a d the efo e subject to isks a d u ce tai ties. All stateme ts, othe tha stateme ts of histo ical fact, i cluded i this p ess elease a e, o could be, “fo wa d-looki g stateme ts” withi the mea i g of the P ivate Secu ities Litigatio Refo m Act of 1995 a d a e made i elia ce o the safe ha bo p otectio s p ovided the eu de . These fo wa d-looki g stateme ts elate to a ticipated fi a cial pe fo ma ce, ma ageme t’s pla s a d objectives fo futu e ope atio s, busi ess p ospects, outcome of egulato y p oceedi gs, ma ket co ditio s, a d othe matte s. A y fo wa d-looki g stateme t made i this p ess elease speaks o ly as of the date o which it is made. We u de take o obligatio to publicly update o evise a y fo wa d-looki g stateme t, whethe as a esult of ew i fo matio , futu e developme ts o othe wise. Fo wa d-looki g stateme ts ca be ide tified by va ious wo ds such as “expects,” “i te ds,” “will,” “a ticipates,” “believes,” “co fide t,” “co ti ue,” “p opose,” “seeks,” “could,” “may,” “should,” “estimates,” “fo ecasts,” “might,” “goals,” “objectives,” “ta gets,” “pla ed,” “p ojects,” a d simila exp essio s. These fo wa d-looki g stateme ts a e based o ma ageme t’s cu e t beliefs a d assumptio s a d o i fo matio cu e tly available to ma ageme t. Rackspace Tech ology cautio s that these stateme ts a e subject to isks a d u ce tai ties, ma y of which a e outside of ou co t ol, a d could cause futu e eve ts o esults to be mate ially diffe e t f om those stated o implied i this p ess elease, i cludi g amo g othe s, isk facto s that a e desc ibed i Rackspace Tech ology, I c.’s A ual Repo ts o Fo m 10-K, Qua te ly Repo ts o Fo m 10-Q, Cu e t Repo ts o Fo m 8-K, a d othe fili gs with the Secu ities a d Excha ge Commissio , i cludi g the sectio s e titled “Risk Facto s” a d “Ma ageme t’s Discussio a d A alysis of Fi a cial Co ditio a d Results of Ope atio s” co tai ed the ei .
This p ess elease i cludes seve al o -GAAP fi a cial measu es such as co sta t cu e cy eve ue, No -GAAP G oss P ofit, No -GAAP Net I come (Loss), No -GAAP Ope ati g P ofit, Adjusted EBITDA a d No -GAAP Ea i gs (Loss) Pe Sha e. These o -GAAP fi a cial measu es exclude the impact of ce tai costs, losses a d gai s that a e equi ed to be i cluded i ou p ofit a d loss measu es u de GAAP. Although we believe these measu es a e useful to i vesto s a d a alysts fo the same easo s they a e useful to ma ageme t, as desc ibed i the accompa yi g pages, these measu es a e ot a substitute fo , o supe io to, GAAP fi a cial measu es o disclosu es. Othe compa ies may calculate simila ly-titled o -GAAP measu es diffe e tly, limiti g thei useful ess as compa ative measu es. We have eco ciled each of these o -GAAP measu es to the applicable most compa able GAAP measu e i the accompa yi g pages.
| (I millio s, except % a d pe sha e data) | Reve ue | $ | 671.2 | 100.0 | % | $ | 609.1 | 100.0 | % | $ | (62.1 | ) | (9.3)% | Cost of eve ue | (541.3 | ) | (80.6)% | (496.0 | ) | (81.4)% | 45.3 | (8.4)% | G oss p ofit | 129.9 | 19.4 | % | 113.1 | 18.6 | % | (16.8 | ) | (12.9)% | Selli g, ge e al a d admi ist ative expe ses | (163.8 | ) | (24.4)% | (125.6 | ) | (20.6)% | 38.2 | (23.3)% | Loss f om ope atio s | (33.9 | ) | (5.1)% | (12.5 | ) | (2.1)% | 21.4 | (63.1)% | Othe i come (expe se): | I te est expe se | (21.2 | ) | (3.2)% | (35.5 | ) | (5.8)% | (14.3 | ) | 67.5 | % | Gai o i vestme ts, et | 0.1 | 0.0 | % | 0.1 | 0.0 | % | — | — | % | Othe expe se, et | (4.0 | ) | (0.6)% | (1.8 | ) | (0.3)% | 2.2 | (55.0)% | Total othe expe se | (25.1 | ) | (3.7)% | (37.2 | ) | (6.1)% | (12.1 | ) | 48.2 | % | Loss befo e i come taxes | (59.0 | ) | (8.8)% | (49.7 | ) | (8.2)% | 9.3 | (15.8)% | P ovisio fo i come taxes | (8.1 | ) | (1.2)% | (3.8 | ) | (0.6)% | 4.3 | (53.1)% | Net loss | $ | (67.1 | ) | (10.0)% | $ | (53.5 | ) | (8.8)% | $ | 13.6 | (20.3)% | Net loss pe sha e: | Basic a d diluted | $ | (0.28 | ) | $ | (0.21 | ) | Weighted ave age umbe of sha es outsta di g: | Basic a d diluted | 240.4 | 256.3 |
| (I millio s, except % a d pe sha e data) | Reve ue | $ | 2,002.9 | 100.0 | % | $ | 1,957.3 | 100.0 | % | $ | (45.6 | ) | (2.3)% | Cost of eve ue | (1,616.9 | ) | (80.7)% | (1,610.3 | ) | (82.3)% | 6.6 | (0.4)% | G oss p ofit | 386.0 | 19.3 | % | 347.0 | 17.7 | % | (39.0 | ) | (10.1)% | Selli g, ge e al a d admi ist ative expe ses | (483.4 | ) | (24.1)% | (410.5 | ) | (21.0)% | 72.9 | (15.1)% | Loss f om ope atio s | (97.4 | ) | (4.9)% | (63.5 | ) | (3.2)% | 33.9 | (34.8)% | Othe i come (expe se): | I te est expe se | (61.9 | ) | (3.1)% | (95.9 | ) | (4.9)% | (34.0 | ) | 54.9 | % | Gai o i vestme ts, et | 0.3 | 0.0 | % | 0.1 | 0.0 | % | (0.2 | ) | (66.7)% | Gai o debt exti guishme t | — | — | % | 62.5 | 3.2 | % | 62.5 | 100.0 | % | Othe expe se, et | (13.2 | ) | (0.7)% | (10.4 | ) | (0.5)% | 2.8 | (21.2)% | Total othe expe se | (74.8 | ) | (3.7)% | (43.7 | ) | (2.2)% | 31.1 | (41.6)% | Loss befo e i come taxes | (172.2 | ) | (8.6)% | (107.2 | ) | (5.5)% | 65.0 | (37.7)% | P ovisio fo i come taxes | (20.9 | ) | (1.0)% | (5.5 | ) | (0.3)% | 15.4 | (73.7)% | Net loss | $ | (193.1 | ) | (9.6)% | $ | (112.7 | ) | (5.8)% | $ | 80.4 | (41.6)% | Net loss pe sha e: | Basic a d diluted | $ | (0.82 | ) | $ | (0.45 | ) | Weighted ave age umbe of sha es outsta di g: | Basic a d diluted | 236.8 | 251.0 |
| (I millio s, except pe sha e data) | Cu e t assets: | Cash a d cash equivale ts | $ | 105.8 | $ | 108.0 | Accou ts eceivable, et of allowa ce fo c edit losses a d acc ued custome c edits of $12.2 a d $11.1, espectively | 266.5 | 212.3 | P epaid expe ses | 84.4 | 80.7 | Othe cu e t assets | 61.1 | 94.3 | Total cu e t assets | 517.8 | 495.3 | P ope ty, equipme t a d softwa e, et | 596.3 | 638.1 | Goodwill, et | 740.1 | 738.7 | I ta gible assets, et | 698.3 | 604.6 | Ope ati g ight-of-use assets | 144.6 | 117.4 | Othe o -cu e t assets | 102.7 | 157.0 | Total assets | $ | 2,799.8 | $ | 2,751.1 | Cu e t liabilities: | Accou ts payable a d acc ued expe ses | $ | 413.9 | $ | 444.7 | Acc ued compe satio a d be efits | 85.4 | 68.2 | Defe ed eve ue | 94.6 | 69.3 | Debt | 27.3 | 22.4 | Acc ued i te est | 5.4 | 6.1 | Ope ati g lease liabilities | 54.7 | 48.7 | Fi a ce lease liabilities | 48.0 | 73.7 | Fi a ci g obligatio s | 14.0 | 9.7 | Othe cu e t liabilities | 23.4 | 18.3 | Total cu e t liabilities | 766.7 | 761.1 | No -cu e t liabilities: | Debt | 2,718.7 | 2,770.2 | Ope ati g lease liabilities | 84.2 | 64.9 | Fi a ce lease liabilities | 297.7 | 312.7 | Fi a ci g obligatio s | 39.3 | 35.4 | Defe ed i come taxes | 34.7 | 28.8 | Othe o -cu e t liabilities | 78.0 | 85.3 | Total liabilities | 4,019.3 | 4,058.4 | Commitme ts a d Co ti ge cies | Stockholde s’ deficit: | P efe ed stock, $0.01 pa value pe sha e: 5.0 sha es autho ized; o sha es issued o outsta di g | — | — | Commo stock, $0.01 pa value pe sha e: 1,495.0 sha es autho ized; 248.4 a d 262.3 sha es issued; 245.3 a d 259.2 sha es outsta di g, espectively | 2.5 | 2.6 | Additio al paid-i capital | 2,709.7 | 2,745.5 | Accumulated othe comp ehe sive i come (loss) | 7.5 | (3.5 | ) | Accumulated deficit | (3,908.2 | ) | (4,020.9 | ) | T easu y stock, at cost; 3.1 sha es held | (31.0 | ) | (31.0 | ) | Total stockholde s’ deficit | (1,219.5 | ) | (1,307.3 | ) | Total liabilities a d stockholde s’ deficit | $ | 2,799.8 | $ | 2,751.1 |
| (I millio s) | Net loss | $ | (193.1 | ) | $ | (112.7 | ) | Adjustme ts to eco cile et loss to et cash p ovided by ope ati g activities: | Dep eciatio a d amo tizatio | 224.0 | 212.2 | Reductio i ca yi g amou t of ope ati g ight-of-use assets | 48.5 | 46.9 | Defe ed i come taxes | (2.2 | ) | (10.7 | ) | Sha e-based compe satio expe se | 40.2 | 21.0 | Gai o debt exti guishme t | — | (62.5 | ) | Gai o i vestme ts, et | (0.3 | ) | (0.1 | ) | P ovisio fo bad debts a d acc ued custome c edits | 8.3 | 3.3 | Amo tizatio of debt issua ce costs a d debt discou t a d p emium | 4.5 | 4.7 | No -cash fai value adjustme ts | (2.1 | ) | (3.2 | ) | Othe ope ati g activities | (0.3 | ) | (3.3 | ) | Cha ges i ope ati g assets a d liabilities: | Accou ts eceivable | 17.8 | 68.5 | P epaid expe ses a d othe cu e t assets | (14.4 | ) | (13.8 | ) | Accou ts payable, acc ued expe ses, a d othe cu e t liabilities | 7.5 | (19.8 | ) | Defe ed eve ue | (10.9 | ) | (24.4 | ) | Ope ati g lease liabilities | (52.1 | ) | (45.0 | ) | Othe o -cu e t assets a d liabilities | 16.3 | (51.8 | ) | Net cash p ovided by ope ati g activities | 91.7 | 9.3 | Pu chases of p ope ty, equipme t a d softwa e | (57.1 | ) | (65.8 | ) | Othe i vesti g activities | 1.7 | (4.5 | ) | Net cash used i i vesti g activities | (55.4 | ) | (70.3 | ) | P oceeds f om issua ce of commo stock, et of offe i g costs | — | 11.6 | P oceeds f om employee stock pla s | 0.3 | 0.2 | Sha es of commo stock withheld fo employee taxes | (2.0 | ) | (0.3 | ) | P oceeds f om bo owi gs u de lo g-te m debt a a geme ts | 130.0 | 330.0 | Payme ts o lo g-te m debt | (143.4 | ) | (220.4 | ) | Payme ts o fi a ci g compo e t of i te est ate swap | (13.0 | ) | (3.0 | ) | P i cipal payme ts of fi a ce lease liabilities | (43.3 | ) | (40.6 | ) | P i cipal payme ts of fi a ci g obligatio s | (13.2 | ) | (11.9 | ) | Net cash p ovided by (used i ) fi a ci g activities | (84.6 | ) | 65.6 | Effect of excha ge ate cha ges o cash, cash equivale ts, a d est icted cash | 2.6 | (1.9 | ) | I c ease (dec ease) i cash, cash equivale ts, a d est icted cash | (45.7 | ) | 2.7 | Cash, cash equivale ts, a d est icted cash at begi i g of pe iod | 147.0 | 108.0 | Cash, cash equivale ts, a d est icted cash at e d of pe iod | $ | 101.3 | $ | 110.7 |
| Cash payme ts fo i te est, et of amou t capitalized | $ | 62.7 | $ | 97.9 | Cash payme ts fo i come taxes, et of efu ds | $ | 2.7 | $ | 8.7 | Acquisitio of p ope ty, equipme t a d softwa e by fi a ce leases | $ | 29.9 | $ | 46.6 | Acquisitio of p ope ty, equipme t a d softwa e by fi a ci g obligatio s | — | 3.7 | I c ease i p ope ty, equipme t a d softwa e acc ued i liabilities | 5.6 | 52.3 | Acquisitio of p ope ty, equipme t a d softwa e th ough issua ce of commo stock | — | 14.0 | Othe o -cash activity | (1.0 | ) | (15.2 | ) | No -cash pu chases of p ope ty, equipme t a d softwa e | $ | 34.5 | $ | 101.4 | Offe i g costs i cluded i acc ued liabilities | $ | — | $ | 0.5 |
| (I millio s, except %) | Public Cloud | $ | 421.6 | $ | 349.1 | (17.2)% | (17.2)% | P ivate Cloud | 249.6 | 260.0 | 4.2 | % | 4.2 | % | Total co solidated eve ue | $ | 671.2 | $ | 609.1 | (9.3)% | (9.2)% |
| (I millio s, except %) | Public Cloud | $ | 1,253.8 | $ | 1,199.3 | (4.3)% | (4.6)% | P ivate Cloud | 749.1 | 758.0 | 1.2 | % | 0.6 | % | Total co solidated eve ue | $ | 2,002.9 | $ | 1,957.3 | (2.3)% | (2.6)% |
| (a) | Refe to “No -GAAP Fi a cial Measu es” i this sectio fo fu the expla atio a d eco ciliatio . |
| (I millio s, except %) | Public Cloud | $ | 14.0 | 3.3 | % | $ | 27.2 | 7.8 | % | $ | 13.2 | 94.3 | % | P ivate Cloud | 67.2 | 26.9 | % | 53.4 | 20.5 | % | (13.8 | ) | (20.5)% | Co po ate fu ctio s(b) | (49.2 | ) | (44.7 | ) | 4.5 | (9.1)% | No -GAAP Ope ati g P ofit(c) | $ | 32.0 | $ | 35.9 | $ | 3.9 | 12.2 | % |
| (I millio s, except %) | Public Cloud | $ | 47.5 | 3.8 | % | $ | 66.9 | 5.6 | % | $ | 19.4 | 40.8 | % | P ivate Cloud | 189.7 | 25.3 | % | 168.8 | 22.3 | % | (20.9 | ) | (11.0)% | Co po ate fu ctio s(b) | (152.3 | ) | (141.7 | ) | 10.6 | (7.0)% | No -GAAP Ope ati g P ofit(c) | $ | 84.9 | $ | 94.0 | $ | 9.1 | 10.7 | % |
| (a) | Segme t eve ue less expe ses di ectly att ibutable to u i g the espective segme ts’ busi ess. These expe ses exclude ce t alized co po ate fu ctio costs. | (b) | Costs that a e ot allocated to segme ts. These costs a e elated to ce t alized co po ate fu ctio s that p ovide se vices to the segme ts i a eas such as accou ti g, i fo matio tech ology, ma keti g, legal a d huma esou ces. | (c) | Refe to “No -GAAP Fi a cial Measu es” i this sectio fo fu the expla atio a d eco ciliatio . |
We use co sta t cu e cy eve ue as a additio al met ic fo u de sta di g a d assessi g ou g owth excludi g the effect of fo eig cu e cy ate fluctuatio s o ou i te atio al busi ess ope atio s. Co sta t cu e cy i fo matio compa es esults betwee pe iods as if excha ge ates had emai ed co sta t pe iod ove pe iod a d is calculated by t a slati g the o -U.S. dolla i come stateme t bala ces fo the most cu e t pe iod to U.S. dolla s usi g the ave age excha ge ate f om the compa ative pe iod athe tha the actual excha ge ates i effect du i g the espective pe iod. We also believe this is a impo ta t met ic to help i vesto s evaluate ou pe fo ma ce i compa iso to p io pe iods.
| (I millio s, except %) | Public Cloud | $ | 421.6 | $ | 349.1 | $ | 0.1 | $ | 349.2 | (17.2)% | (17.2)% | P ivate Cloud | 249.6 | 260.0 | 0.1 | 260.1 | 4.2 | % | 4.2 | % | Total | $ | 671.2 | $ | 609.1 | $ | 0.2 | $ | 609.3 | (9.3)% | (9.2)% |
| (I millio s, except %) | Public Cloud | $ | 1,253.8 | $ | 1,199.3 | $ | (3.0 | ) | $ | 1,196.3 | (4.3)% | (4.6)% | P ivate Cloud | 749.1 | 758.0 | (4.3 | ) | 753.7 | 1.2 | % | 0.6 | % | Total | $ | 2,002.9 | $ | 1,957.3 | $ | (7.3 | ) | $ | 1,950.0 | (2.3)% | (2.6)% |
| (a) | The effect of fo eig cu e cy is calculated by t a slati g cu e t pe iod esults usi g the ave age excha ge ate f om the p io compa ative pe iod. |
We p ese t No -GAAP G oss P ofit because we believe the measu e is useful i a alyzi g t e ds i ou u de lyi g, ecu i g g oss ma gi s. We defi e No -GAAP G oss P ofit as g oss p ofit, adjusted to exclude the impact of sha e-based compe satio expe se, pu chase accou ti g- elated effects, a d ce tai busi ess t a sfo matio – elated costs.
| (I millio s) | G oss p ofit | $ | 129.9 | $ | 113.1 | $ | 386.0 | $ | 347.0 | Sha e-based compe satio expe se | 1.2 | 0.7 | 4.3 | 2.8 | Pu chase accou ti g impact o expe se(a) | 0.2 | 0.2 | 0.6 | 0.6 | Rest uctu i g a d t a sfo matio expe ses(b) | 2.3 | 4.7 | 6.7 | 16.5 | No -GAAP G oss P ofit | $ | 133.6 | $ | 118.7 | $ | 397.6 | $ | 366.9 |
| (a) | Adjustme t fo the impact of pu chase accou ti g f om the Novembe 2016 me ge o expe ses. | (b) | Adjustme t fo the impact of busi ess t a sfo matio a d optimizatio activities, as well as associated seve a ce, ce tai facility closu e costs a d lease te mi atio expe ses. Also i cludes pay oll taxes associated with the exe cise of stock optio s a d vesti g of est icted stock. |
We p ese t No -GAAP Net I come (Loss), No -GAAP Ope ati g P ofit a d Adjusted EBITDA because they a e a basis upo which ma ageme t assesses ou pe fo ma ce a d we believe they a e useful to evaluati g ou fi a cial pe fo ma ce. We believe that excludi g items f om et i come that may ot be i dicative of, o a e u elated to, ou co e ope ati g esults, a d that may va y i f eque cy o mag itude, e ha ces the compa ability of ou esults a d p ovides a bette baseli e fo a alyzi g t e ds i ou busi ess.
We defi e No -GAAP Net I come (Loss) as et i come (loss) adjusted to exclude the impact of o -cash cha ges fo sha e-based compe satio , t a sactio – elated costs a d adjustme ts, est uctu i g a d t a sfo matio cha ges, the amo tizatio of acqui ed i ta gible assets, goodwill a d asset impai me t cha ges, the i te est expe se impact f om the efi a ci g t a sactio s a ou ced i Ma ch 2024 (the “Ma ch 2024 Refi a ci g T a sactio s”), a d ce tai othe o -ope ati g, o – ecu i g o o -co e gai s a d losses, as well as the tax effects of these o -GAAP adjustme ts.
We defi e No -GAAP Ope ati g P ofit as i come (loss) f om ope atio s adjusted to exclude the impact of o -cash cha ges fo sha e-based compe satio , t a sactio – elated costs a d adjustme ts, est uctu i g a d t a sfo matio cha ges, the amo tizatio of acqui ed i ta gible assets, goodwill a d asset impai me t cha ges, a d ce tai othe o -ope ati g, o – ecu i g o o -co e gai s a d losses.
We defi e Adjusted EBITDA as et i come (loss) adjusted to exclude the impact of o -cash cha ges fo sha e-based compe satio , t a sactio – elated costs a d adjustme ts, est uctu i g a d t a sfo matio cha ges, ce tai othe o -ope ati g, o – ecu i g o o -co e gai s a d losses, i te est expe se, expe ses fo ou Receivables Pu chase Ag eeme t, i come taxes, dep eciatio a d amo tizatio , a d goodwill a d asset impai me t cha ges.
No -GAAP Ope ati g P ofit a d Adjusted EBITDA a e ma ageme t’s p i cipal met ics fo measu i g ou u de lyi g fi a cial pe fo ma ce. No -GAAP Ope ati g P ofit a d Adjusted EBITDA, alo g with othe qua titative a d qualitative i fo matio , a e also the p i cipal fi a cial measu es used by ma ageme t a d ou Boa d of Di ecto s i dete mi i g pe fo ma ce-based compe satio fo ou ma ageme t a d key employees.
These o -GAAP measu es a e ot i te ded to imply that we would have ge e ated highe i come o avoided et losses if the Novembe 2016 me ge a d the subseque t t a sactio s a d i itiatives had ot occu ed. I the futu e we may i cu expe ses o cha ges such as those added back to calculate No -GAAP Net I come (Loss), No -GAAP Ope ati g P ofit o Adjusted EBITDA. Ou p ese tatio of No -GAAP Net I come (Loss), No -GAAP Ope ati g P ofit a d Adjusted EBITDA should ot be co st ued as a i fe e ce that ou futu e esults will be u affected by these items. Othe compa ies, i cludi g ou pee compa ies, may calculate simila ly-titled measu es i a diffe e t ma e f om us, a d the efo e, ou o -GAAP measu es may ot be compa able to simila ly-titled measu es of othe compa ies. I vesto s a e cautio ed agai st usi g these measu es to the exclusio of ou esults i acco da ce with GAAP.
| (I millio s) | Net loss | $ | (67.1 | ) | $ | (53.5 | ) | $ | (193.1 | ) | $ | (112.7 | ) | Sha e-based compe satio expe se | 18.2 | 4.0 | 40.2 | 21.0 | T a sactio – elated adjustme ts, et(a) | 0.2 | 0.1 | 2.1 | 2.2 | Rest uctu i g a d t a sfo matio expe ses(b) | 10.0 | 13.1 | 27.5 | 40.5 | Net gai o divestitu e a d i vestme ts(c) | (0.1 | ) | (0.1 | ) | (0.3 | ) | (0.1 | ) | Gai o debt exti guishme t | — | — | — | (62.5 | ) | I te est expe se impact f om the Ma ch 2024 Refi a ci g T a sactio s(d) | (21.1 | ) | (18.2 | ) | (63.2 | ) | (55.0 | ) | Othe adjustme ts(e) | (1.2 | ) | (4.1 | ) | (2.3 | ) | (4.2 | ) | Amo tizatio of i ta gible assets(f) | 37.5 | 31.2 | 112.5 | 93.8 | Tax effect of o -GAAP adjustme ts(g) | 12.1 | 10.0 | 35.4 | 24.1 | No -GAAP Net Loss | $ | (11.5 | ) | $ | (17.5 | ) | $ | (41.2 | ) | $ | (52.9 | ) |
| (I millio s) | Loss f om ope atio s | $ | (33.9 | ) | $ | (12.5 | ) | $ | (97.4 | ) | $ | (63.5 | ) | Sha e-based compe satio expe se | 18.2 | 4.0 | 40.2 | 21.0 | T a sactio – elated adjustme ts, et(a) | 0.2 | 0.1 | 2.1 | 2.2 | Rest uctu i g a d t a sfo matio expe ses(b) | 10.0 | 13.1 | 27.5 | 40.5 | Amo tizatio of i ta gible assets(f) | 37.5 | 31.2 | 112.5 | 93.8 | No -GAAP Ope ati g P ofit | $ | 32.0 | $ | 35.9 | $ | 84.9 | $ | 94.0 |
| (I millio s) | Net loss | $ | (67.1 | ) | $ | (53.5 | ) | $ | (193.1 | ) | $ | (112.7 | ) | Sha e-based compe satio expe se | 18.2 | 4.0 | 40.2 | 21.0 | T a sactio – elated adjustme ts, et(a) | 0.2 | 0.1 | 2.1 | 2.2 | Rest uctu i g a d t a sfo matio expe ses(b) | 10.0 | 13.1 | 27.5 | 40.5 | Net gai o divestitu e a d i vestme ts(c) | (0.1 | ) | (0.1 | ) | (0.3 | ) | (0.1 | ) | Gai o debt exti guishme t | — | — | — | (62.5 | ) | Othe expe se, et(h) | 4.0 | 1.8 | 13.2 | 10.4 | I te est expe se | 21.2 | 35.5 | 61.9 | 95.9 | P ovisio fo i come taxes | 8.1 | 3.8 | 20.9 | 5.5 | Dep eciatio a d amo tizatio (i) | 74.8 | 70.5 | 222.6 | 212.1 | Adjusted EBITDA | $ | 69.3 | $ | 75.2 | $ | 195.0 | $ | 212.3 |
| (a) | I cludes pu chase accou ti g adjustme ts, explo ato y acquisitio a d divestitu e costs, a d expe ses elated to fi a ci g activities. | (b) | I cludes co sulti g a d adviso y fees elated to busi ess t a sfo matio a d optimizatio activities, as well as associated seve a ce, ce tai facility closu e costs, a d lease te mi atio expe ses. Also i cludes pay oll taxes associated with the exe cise of stock optio s a d vesti g of est icted stock. | (c) | I cludes gai s a d losses o i vestme t a d f om dispositio s. | (d) | I te est expe se impact due to the accou ti g fo co t actual i te est payme ts o debt i st ume ts e te ed i to as pa t of the Ma ch 2024 Refi a ci g T a sactio s, which educed i te est expe se elative to co t actual i te est cost. | (e) | P ima ily co sists of fo eig cu e cy gai s a d losses. | (f) | All of ou i ta gible assets a e att ibutable to acquisitio s, i cludi g the Novembe 2016 me ge . | (g) | We utilize a estimated st uctu al lo g-te m o -GAAP tax ate i o de to p ovide co siste cy ac oss epo ti g pe iods, emovi g the effect of o – ecu i g tax adjustme ts, which i clude but a e ot limited to tax ate cha ges, U.S. tax efo m, sha e-based compe satio , audit co clusio s a d cha ges to valuatio allowa ces. Whe computi g this lo g-te m ate fo the 2025 a d 2026 i te im pe iods, we based it o a ave age of the 2024 a d estimated 2025 tax ates a d 2025 a d estimated 2026 tax ates, espectively, ecomputed to emove the tax effect of o -GAAP p e-tax adjustme ts a d o – ecu i g tax adjustme ts, esulti g i a st uctu al o -GAAP tax ate of 26% fo all pe iods. The o -GAAP tax ate could be subject to cha ge fo a va iety of easo s, i cludi g the apidly evolvi g global tax e vi o me t, sig ifica t cha ges i ou geog aphic ea i gs mix i cludi g due to acquisitio activity, o othe cha ges to ou st ategy o busi ess ope atio s. We will e-evaluate ou lo g-te m o -GAAP tax ate as app op iate. We believe that maki g these adjustme ts facilitates a bette evaluatio of ou cu e t ope ati g pe fo ma ce a d compa iso s to p io pe iods. | (h) | P ima ily co sists of fo eig cu e cy gai s a d losses a d expe se elated to ou Receivables Pu chase Ag eeme t. | (i) | Excludes accele ated dep eciatio expe se elated to facility closu es. |
We defi e No -GAAP Ea i gs (Loss) Pe Sha e as No -GAAP Net I come (Loss) divided by ou GAAP weighted ave age umbe of sha es outsta di g fo the pe iod o a diluted basis a d fu the adjusted fo the weighted ave age umbe of sha es associated with secu ities which a e a ti-dilutive to GAAP loss pe sha e. Ma ageme t uses No -GAAP Ea i gs (Loss) Pe Sha e to evaluate the pe fo ma ce of ou busi ess o a compa able basis f om pe iod to pe iod, i cludi g by adjusti g fo the impact of the issua ce of sha es.
| (I millio s, except pe sha e amou ts) | Net loss att ibutable to commo stockholde s | $ | (67.1 | ) | $ | (53.5 | ) | $ | (193.1 | ) | $ | (112.7 | ) | No -GAAP Net Loss | $ | (11.5 | ) | $ | (17.5 | ) | $ | (41.2 | ) | $ | (52.9 | ) | Weighted ave age umbe of sha es – Diluted | 240.4 | 256.3 | 236.8 | 251.0 | Effect of dilutive secu ities(a) | 1.8 | 14.2 | 6.5 | 13.5 | No -GAAP weighted ave age umbe of sha es – Diluted | 242.2 | 270.5 | 243.3 | 264.5 | Net loss pe sha e – Diluted | $ | (0.28 | ) | $ | (0.21 | ) | $ | (0.82 | ) | $ | (0.45 | ) | Pe sha e impacts of adjustme ts to et loss(b) | 0.23 | 0.14 | 0.64 | 0.24 | Pe sha e impacts of sha es afte adjustme ts to et loss(a) | 0.00 | 0.01 | 0.01 | 0.01 | No -GAAP Loss Pe Sha e | $ | (0.05 | ) | $ | (0.06 | ) | $ | (0.17 | ) | $ | (0.20 | ) |
| (a) | Pote tial commo sha e equivale ts co sist of sha es issuable upo the exe cise of stock optio s, vesti g of est icted stock u its (i cludi g pe fo ma ce-based est icted stock u its) o pu chases u de the Employee Stock Pu chase Pla as well as co ti ge t sha es associated with ou acquisitio of Datapipe Pa e t, I c. Ce tai of ou pote tial commo sha e equivale ts a e co ti ge t o ce tai i vestme t fu ds ma aged by affiliates of Apollo Global Ma ageme t, I c. achievi g p e-established pe fo ma ce ta gets based o a multiple of thei i vested capital, which a e i cluded i the de omi ato fo the e ti e pe iod if such sha es would be issuable as of the e d of the epo ti g pe iod assumi g the e d of the epo ti g pe iod was the e d of the co ti ge cy pe iod. | (b) | Reflects the agg egate adjustme ts made to eco cile No -GAAP Net Loss to ou et loss, as oted i the above table, divided by the GAAP diluted umbe of sha es outsta di g fo the eleva t pe iod. |
