Sale of Receivables |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Transfers and Servicing [Abstract] | |
| Sale of Receivables | Sale of Receivables On September 29, 2023, Rackspace US, Inc. and Rackspace Receivables II, LLC, a bankruptcy-remote special purpose vehicle ("SPV"), each an indirect subsidiary of the company, entered into an accounts receivable purchase agreement (the "Receivables Purchase Agreement") with PNC Bank, National Association ("PNC") and other parties thereto. On February 12, 2024, the Receivables Purchase Agreement was amended to include certain international subsidiaries of the company as parties to the agreement and Rackspace Receivables Canada Limited, a Canadian indirect subsidiary of the company, was established as a SPV. We recorded $5.3 million and $4.1 million of yield charges and fees for the three months ended June 30, 2025 and 2026, respectively, and $10.3 million and $8.7 million of yield charges and fees for the six months ended June 30, 2025 and 2026, respectively, in connection with sold accounts receivable. This expense is recorded within "Other expense, net" in the Condensed Consolidated Statements of Comprehensive Loss. The outstanding portfolio of sold accounts receivable derecognized from our Condensed Consolidated Balance Sheet as of December 31, 2025 and June 30, 2026 was $253.8 million and $203.5 million, respectively. The SPVs hold unsold accounts receivable of $47.0 million as of June 30, 2026 that are pledged as collateral to PNC. On July 2, 2026, the SPVs, and certain other subsidiaries of the company entered into an amendment to the Receivables Purchase Agreement with PNC. This amendment, among other things, extended the termination date from September 29, 2026 to the earlier of July 2, 2029 or six months prior to the maturity date of our Revolving Credit Facility (or any revolving credit facility that refinances or replaces such revolving credit facility) and permits the aggregate maximum limit of accounts receivable the SPVs can sell to be increased from $300.0 million to $350.0 million.
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