Dive Brief:

• Phil Rodoni resigned as Rubicon’s CEO, as well as from his position on the company’s board of directors. The changes, announced Monday, were effective as of June 28.
• Osman Ahmed, previously the company’s lead independent director, is now interim CEO. Ahmed was formerly CEO of Founder SPAC, which partnered with Rubicon to take the company public in 2022. He was also a cofounder of New Circle Capital and senior advisor at 10X Capital.
• “Rubicon is here to stay, and we are energized for the future of our company,” said Ahmed in a letter to shareholders. The letter also said Rubicon is “conducting an active review” of ways to increase efficiency and prioritize certain programs for its brokerage customers.

Dive Insight:

Rubicon has struggled financially since going public via a special purpose acquisition corporation transaction in 2022, which led to lower proceeds than expected. The CEO resignation is the latest in a series of leadership changes and other course corrections.

Rodoni, previously the company’s chief technology officer, took over when founder Nate Morris departed as CEO in October 2022. Rubicon also elevated Kevin Schubert to president and CFO at the time as part of a plan to improve the company’s profitability. 

Rubicon embarked on a series of layoffs, cost-cutting moves, debt restructuring and the recent sale of its fleet software business to Rodina Capital. It has also touted incremental improvements in profit margin and other metrics. Revenue was nearly $698 million last year. The company has also reported a string of quarterly net losses and negative adjusted earnings before interest, depreciation, amortization and taxes.

Efforts to boost its stock price via a reverse split last year didn’t stick, as shares dropped below $1 for long enough that the company was delisted by the New York Stock Exchange in June. The stock, which is now trading on the OTC markets, opened July 1 at $0.10.

“Unfortunately, Rubicon’s share price has not been reflective of the significant operational progress enabled by these initiatives, nor what I believe to be the near-term potential of our business. But, as we have shown over the past 18 months, our team is ever resilient and will continue to execute and grow profitably,” said Ahmed in the shareholder letter.

Ahmed said proceeds from the fleet software sale, followed by paying down some debt, gives the company “operational flexibility and a nimble balance sheet.” Rubicon is focused on growing its brokerage business by signing more long-term agreements with commercial clients, an effort led by Chief Commercial Officer Tom Owston.

Rodoni’s departure was preceded by Schubert exiting June 1. Schubert was replaced by interim CFO Grant Deans. The company also cut its chief operating officer as part of layoffs earlier this year. Rodoni, who joined the company in 2015, is eligible for up to $3.6 million in separation payments via multiple installments.

“It has been a pleasure leading Rubicon,” Rodoni said in a statement. “We have come a long way as an organization, and I remain excited for the company’s future under its new leadership.”

Ahmed’s base salary is $500,000. He is also eligible for a potential “transaction bonus” of up to $500,000 in cash if the company is acquired, recapitalized or involved in other potential outcomes. Ahmed has left the board’s audit committee and is no longer its lead independent director, but he will remain as a member.