Dec. 29 at 1:32 PM
$RXT Rackspace's financial health is fragile but not in immediate crisis as of December 29, 2025. The debt maturity wall in 2028 gives time for execution on turnaround efforts (e.g., AI-driven growth, margin expansion), and liquidity supports operations in the short term.
However, the combination of high leverage, ongoing revenue declines, and intense competition makes it a high-risk situation — any slowdown in cash generation or failure to grow higher-margin segments could exacerbate pressures.
Analysts generally rate it a "Hold" with modest price targets, viewing it as a speculative turnaround play rather than a stable investment.
