Good day, and thank you for standing by. Welcome to the Rackspace Fourth Quarter 2025 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Sagar Hebbar, Head of Investor Relations. Please go ahead.

Thank you, and welcome to Rackspace Technologies Fourth Quarter 2025 Earnings Conference Call. I'm Sagar Hebbar, Head of Investor Relations. Joining me today are Gajen Kandiah, our Chief Executive Officer, and Mark Marino, our Chief Financial Officer. As a reminder, certain comments we make on this call will be forward-looking. These statements involve risks and uncertainties, which could cause actual results to differ. A discussion of these risks and uncertainties is included in our SEC filings. Rackspace Technology assumes no obligation to update the information presented on the call, except as required by law. Our presentation includes certain non-GAAP financial measures and adjustments to these measures, which we believe provide useful information to our investors. In accordance with SEC rules, we have provided a reconciliation of these measures to their most directly comparable GAAP measures in the earnings press release and presentation, both of which are available on our Investor Relations website. I will now turn the call over to Gajen for an update on the business.

Thank you, Sagar. I want to start by framing clearly where we are going as a company and why. Since I joined 5 months ago, we have sharpened our strategy in response to a clear shift in the market. Organizations now expect AI to deliver returns on their investment. As a result, they are moving beyond isolated AI experiments to operating AI at scale inside core enterprise systems. AI is infusing every workload and as it becomes embedded in customer data, financial systems and regulated processes, where it runs starts to matter. Whether across edge, core, private cloud, public cloud or sovereign environments, those choices directly impact performance, cost and compliance. Managing those environments as one coordinated system is critical, especially in regulated industries where lapses can cause service disruption, regulatory exposure and escalating costs. The market is also entering what many are calling a private cloud renaissance. As AI moves into data-sensitive and regulated workloads, enterprises are recognizing that not all of it belongs in a pure public cloud model. Demand for governed, private and hybrid architectures with greater control over performance, cost and data residency is accelerating. Put simply, Rackspace is the infrastructure and operations backbone for enterprise AI, the layer that makes AI governable, scalable and real inside the environments that matter most. These are the environments Rackspace knows inside out. For 25 years, we have operated the compute, security and operations layer across private cloud, public cloud and edge in regulated industries where governance, sovereignty and uptime are nonnegotiable. Executing on this requires the right leadership. Since joining, I have made changes to our executive team, bringing in leaders with deep operational and delivery expertise. This was intentional. The opportunity in front of us is not primarily a strategy challenge. It is an execution challenge. I'm…

Thanks, Gajen. Three things stand out in the quarter. First, we beat revenue guidance, driven by public cloud outperformance. Second, non-GAAP operating profit came in at $41 million, above the high end of our range with margins up 120 basis points sequentially. Third, we ended the year with $397 million in total liquidity and $60 million in cash flow from operations for the quarter, a strong foundation heading into 2026. In the fourth quarter, total company GAAP revenue was $683 million, non-GAAP gross profit margin was 18.1% of GAAP revenue, down 180 basis points sequentially, driven by lower revenue in private cloud and higher mix of public cloud infrastructure. For the full year 2025, non-GAAP gross profit margin was 19.4%, down 120 basis points year-over-year. This was, again, a result of a year-over-year decline in private cloud revenue. Non-GAAP operating profit was $41 million, while non-GAAP operating profit margin was 6% of GAAP revenue, an increase of 120 basis points sequentially. For the full year 2025, non-GAAP operating profit margin was 4.7%, up 80 basis points versus prior year, driven by lower OpEx as we continue to optimize costs across the company. Non-GAAP loss per share was $0.01, beating our guided range of a $0.03 to $0.05 loss per share. Cash flow from operations was $60 million and free cash flow was $56 million in the fourth quarter. For the full year, cash flow from operations was $151 million and free cash flow was $91 million. We ended the year with $106 million in cash on hand and $397 million in total liquidity. Turning to our segment results. For the private cloud segment, GAAP revenue for the fourth quarter was $241 million, below our guided range due to a recently signed health care contract ramping more slowly than initially expected.…

Before I wrap up, thank you to our customers, partners and all Rackers. In my first full quarter here, I have seen a company built on trust with our people, customers and partners. Our strengths are clear, a culture focused on customer outcomes, a portfolio designed for regulated environments and significant growth potential in health care, sovereign and AI. As AI and complex workloads move into production, our role is to help clients orchestrate critical systems across private, public, edge and sovereign clouds, turning data into outcomes with reliability, security and precision. That is how we earn and keep trust. With that, I will turn the call back over to Sagar.

Thank you, everyone, for joining us. If you have any questions, please e-mail us at ir@rackspace.com. We look forward to engaging with the sell-side and investor community in the coming weeks as we continue to articulate our strategic road map and financial priorities. Have a great rest of your day.

This concludes today's conference. Thank you for your participation. You may now disconnect.