Rackspace Technology appoints KPMG as new auditor

SAN ANTONIO, TX – Rackspace Technology, Inc. (NASDAQ:RXT), a leader in the field of cloud computing with annual revenue of $2.74 billion, has announced a change in its independent registered public accounting firm. The company’s Audit Committee decided to appoint KPMG LLP as its new auditor for the fiscal year ending December 31, 2025. According to InvestingPro data, the company currently operates with a significant debt burden of $3.34 billion.

The change came after Rackspace Technology dismissed PricewaterhouseCoopers LLP (PwC) on March 21, 2025. According to the company’s filing, PwC’s audit reports for the fiscal years ended December 31, 2024, and 2023 did not contain any adverse opinion or a disclaimer of opinion. Furthermore, there were no disagreements or reportable events between the company and PwC during those fiscal years and the subsequent interim period. InvestingPro analysis reveals concerning financial metrics, including a weak financial health score and a current ratio of 0.81, indicating potential challenges in meeting short-term obligations.

The appointment of KPMG followed a competitive bid process and comes without any prior consultations regarding accounting principles or auditing matters that would have influenced the company’s decision-making process.

Rackspace Technology, headquartered in San Antonio, Texas, operates in the computer programming and data processing industry. The company has been incorporated in Delaware and has a fiscal year-end on December 31.

The move to KPMG is part of the company’s regular review and selection process for its certifying accountant, ensuring compliance and transparency in its financial reporting.

The information regarding these changes in the company’s certifying accountant is based on a press release statement and a recent filing with the U.S. Securities and Exchange Commission.

In other recent news, Rackspace Technology, Inc. reported its fourth-quarter results, surpassing analyst expectations. The company achieved an adjusted earnings per share of -$0.02, outperforming the anticipated -$0.04. Revenue for the quarter reached $685.6 million, exceeding the consensus forecast of $674.98 million, although this marked a 5% year-over-year decline from $720 million in the same period last year. Private cloud revenue fell by 6% year-over-year to $269 million, while public cloud revenue decreased by 4% to $417 million. For the full year 2024, Rackspace’s total revenue dropped 7% to $2.74 billion.

Looking forward, Rackspace’s first-quarter 2025 guidance aligns with analyst expectations, with projected revenue between $653 million and $665 million and adjusted EPS forecasted between -$0.07 and -$0.09. Despite these results, investor sentiment appeared lukewarm, as the company’s shares fell, indicating a focus on the continued revenue declines. Rackspace’s cash and cash equivalents stood at $144 million as of the end of December 2024, with no outstanding balance on its $375 million revolving credit facility.

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