Rubicon Technologies (RBT) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $163.1 million, down 5.1% year-over-year, with gross profit falling 54.6% to $4.5 million.

• Net income reached $27.3 million, a turnaround from a $22.8 million net loss in Q2 2023, driven by the $59.7 million gain from the SaaS/Fleet Technology Business Unit sale.

• Adjusted EBITDA was $(12.4) million, a 27.8% decline from $(9.7) million in Q2 2023.

• Sale of the SaaS/Fleet Technology Business Unit for $94.2 million, including $61.7 million cash and $20 million in convertible preferred stock, improved liquidity and reduced debt.

• Osman Ahmed appointed interim CEO on July 1, 2024.

Financial highlights

• Service revenue was $146.7 million (down $11.3 million); recyclable commodity revenue rose to $16.4 million (up $2.5 million) year-over-year.

• Adjusted gross profit was $10.6 million, down 34.5% year-over-year; adjusted gross profit margin declined to 6.5% from 9.4%.

• Net income margin was 16.8%, compared to a net loss margin of (13.3)% in Q2 2023.

• Adjusted EBITDA margin was (7.6)% versus (5.7)% in Q2 2023.

• Net earnings per share were $0.29, compared to a loss of $(0.99) per share in Q2 2023.

Outlook and guidance

• Management expects product development and general and administrative costs to decrease as a percentage of revenue over the next 12 months.

• Sale proceeds and new capital are expected to accelerate the path to profitability and support core business growth.

• Company projects insufficient liquidity to meet obligations over the next 12 months, raising substantial doubt about going concern status.

• Additional capital is needed; no firm commitments for new financing as of the report date.

• Focus remains on customer-centric solutions and expanding RUBICONConnect™ for commercial waste generators.