-27%

est. 2Y upside i

DevOps & InfraIPO

Rank

#4248

Sector

Managed Cloud Services / IT Services

Est. Liquidity

~0Y

Data Quality

Data: Medium

Rackspace is deeply distressed with 40%+ probability of severe equity impairment.

Last updated: March 20, 2026

Bull (15%)+80%

Restructuring succeeds, Private Cloud +10%, AI revenue, re-rates to 0.35x rev (~$3.45).

Base (45%)-25%

Revenue decline continues -2-4%, margins compress, stock to $1.40-1.50.

Bear (40%)-70%

Debt breach, Chapter 11, equity diluted/wiped. Stock below $0.60.

Est. time to liquidity~0.0 years

Preference Stack Risk

low

Public but Apollo 65% control; debt senior to all equity.

Dilution Risk

high

Distressed balance sheet = high probability of dilutive equity issuance.

Secondary Liquidity

active

NASDAQ-listed.

Private Cloud - Delivery 13 roles

Private Cloud - INTL Sales and Field Marketing 6 roles

Private Cloud - Americas Healthcare and Tech 4 roles

Private Cloud - Commercial 2 roles

Public Cloud - COO 2 roles

Private Cloud - Americas Financial Services 1 role

Private Cloud - Enterprise and Marketing 1 role

Private Cloud - INTL COO 1 role

Private Cloud - Leadership 1 role

Public Cloud - Americas GTM 1 role

Public Cloud - AWS Business Development 1 role

Public Cloud - Leadership 1 role

Public Cloud – Sales Executives 1 role

View all 76 open roles at Rackspace

Last updated: March 10, 2026

Questions to Ask at the Interview

Strategic questions based on Rackspace's data — designed to show you've done your homework.

  • 1

    Debt maturity and covenant headroom?

  • 2

    AI Launchpad commercial structure?

  • 3

    Apollo exit thesis and equity dilution planning?

Community

Valuation Sentiment

Our model estimates -27% upside. What do you think?

Anonymous. Do not share material non-public information.


Community Discussion

Comments are reviewed before they appear publicly.

0/2000

Loading comments...

Disclaimer: This analysis is AI-generated and does not constitute financial or career advice. Always conduct your own due diligence.