Rubicon Technologies Reports Mixed Q3 Results, Net Loss Improvement, and Ongoing Challenges

Rubicon Technologies, Inc. reported mixed financial results for the third quarter and the first nine months of 2024, reflecting both revenue growth and ongoing challenges in profitability. For the three months ended September 30, 2024, total revenue increased to $182.5 million, an 8.3% rise from $168.5 million in the same period of 2023. However, for the nine months ended September 30, 2024, total revenue decreased to $508.7 million, down 2.1% from $519.5 million year-over-year.

The company experienced a notable improvement in its net loss for the third quarter, reporting a loss of $8.5 million compared to a loss of $30.2 million in the prior year, marking a 72% improvement. For the nine-month period, Rubicon achieved a net income of $906,000, a significant recovery from a net loss of $62.4 million in the same period of 2023. This turnaround was largely attributed to a $59.7 million gain from the sale of its Software-as-a-Service (SaaS) business, completed on May 7, 2024.

Despite the positive developments, the company continues to face challenges. Total costs and expenses for the third quarter rose to $188.4 million, up from $180.5 million in 2023, driven by increased service costs and operational expenses. The loss from continuing operations for the nine months ended September 30, 2024, was $(56.0) million, slightly improved from $(61.7) million in the previous year.

Rubicon's financial position showed a decline in cash and cash equivalents, which fell to $1.3 million as of September 30, 2024, from $18.7 million at the end of 2023. The company reported total liabilities of $308.2 million, down from $362.3 million at the end of 2023, indicating some progress in managing its debt load.

Strategically, Rubicon executed a reverse stock split on September 26, 2023, at a ratio of 1-for-8, and is exploring refinancing options due to liquidity concerns. The company is also considering a potential stock offering of up to $50 million to enhance liquidity. Additionally, it has initiated cost reduction measures and is focusing on operational efficiencies to address its financial challenges.

As of September 30, 2024, Rubicon's stockholders' deficit was $(126.1) million, an improvement from $(172.8) million at the end of 2023. The company is classified as an emerging growth company and is actively working to remediate a material weakness in its internal controls over financial reporting, which has led to restatements of prior financial statements.