May 26 (Reuters) - Dropbox said on Tuesday that CEO and co-founder Andrew Houston will step down after a transition period, promoting insider Ashraf Alkarmi to co-CEO ahead of his succession as the sole chief executive.
The file hosting service provider's shares fell more than 1% in early trading. They have fallen over 3% this year.
Here are some details:
• Following a transition period, Alkarmi will become sole CEO and Houston will move into the role of executive chairman.
• "AI is changing what's possible,
and our customers are going to see a very different Dropbox – faster, smarter and built around the way they actually work," Alkarmi said.
• Alkarmi is stepping into the role after serving as general manager of the company's core products, including file sharing, e-signature tool Sign and document platform DocSend.
• Before joining Dropbox in 2024, Alkarmi held product leadership roles at Vimeo, Amazon and Meta Platforms.
• In March 2025, the Wall Street Journal reported that activist investor Half Moon Capital was pressuring Dropbox to scrap its dual-class structure, which gives Houston extra voting power.
• Dropbox also appointed Michael Torres chief product officer, effective July 7.
• Torres is currently vice president for the Chrome browser at Alphabet's Google, before which he led product leadership for Amazon's Kindle.
• Earlier in the month, Dropbox reported first-quarter revenue of $629.5 million, beating analysts' average estimate of $620.6 million, according to data compiled by LSEG.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Joyjeet Das)
