Wed, Aug 21, 10:03 AM (146 days ago)
Rubicon Technologies, Inc. reported a challenging second quarter for 2024, with total revenue declining to $163.1 million, down 5.1% year-over-year. Service revenue fell by 7.2% due to contract cancellations, despite new customer additions and price increases. However, recyclable commodity revenue increased by 17.9%, driven by higher prices. The company recognized a significant gain of $59.7 million from the sale of its SaaS business, which contributed to a net income of $27.3 million, contrasting sharply with a net loss of $22.8 million in the prior year. Despite this gain, ongoing operational losses from continuing operations totaled $30.0 million. Cash and cash equivalents dropped to $8.2 million, with total current liabilities at $247.2 million, raising concerns about liquidity. The company anticipates challenges in meeting its liquidity needs over the next 12 months, prompting cost-reduction initiatives and operational efficiencies. Debt remains a critical issue, with $72.0 million outstanding under the June 2023 Revolving Credit Facility. The company is under pressure to initiate a sale process for its remaining assets following the SaaS divestiture, as stipulated by its lenders. Overall, while the sale provided a temporary boost, significant uncertainties regarding future operations and cash flow persist.