Dropbox CEO Drew Houston Steps Down After 19 Years, Names Successor
Dropbox co-founder Drew Houston, 43, announced he will step down as CEO after 19 years, transitioning to executive chairman. Product chief Ashraf Alkarmi will become co-CEO immediately, then sole CEO after a transition period. The move follows pressure from activist investor Half Moon Capital and comes as Dropbox faces stagnant revenue, a market cap drop to ~$6 billion, and intense competition from tech giants and AI startups. The company also appointed Google Chrome VP Michael Torres as chief product officer.
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Dropbox Co-founder Andrew Houston to Step Down as CEO After 19 Years
Dropbox co-founder and CEO Andrew Houston will step down after 19 years leading the company, transitioning to the role of executive chairman. Ashraf Alkarmi, currently general manager of Dropbox's 'core' business, will become the new CEO. Houston and Alkarmi will serve as co-CEOs for a period to facilitate a smooth leadership transition. The announcement was made on May 27, 2026, and reported by Yahoo Finance via the Wall Street Journal. The change marks a significant leadership shift for the cloud storage company as it navigates its next phase of growth.
Yahoo FinanceDropbox CEO Drew Houston to Train Successor Ashraf Alkarmi as Co-CEO Before Stepping Down
Dropbox founder and CEO Drew Houston announced in a company memo that Ashraf Alkarmi has been promoted to co-CEO, with Houston planning to train him as his replacement over a transition period before stepping down to become executive chairman. Houston cited Alkarmi's leadership in transforming Dropbox's core business, navigating challenging periods including a 20% workforce reduction in 2024, and driving AI product innovation. Alkarmi joined Dropbox in November 2024 after the layoffs and has since overseen AI product launches. Houston emphasized Alkarmi's integrity, care for employees, and willingness to disagree when necessary. The transition marks the end of Houston's 19-year tenure as CEO of the company he co-founded.
All Content from Business InsiderDropbox Stock Reacts After CEO Drew Houston Announces Departure
Dropbox founder and CEO Drew Houston announced he will step down from the chief executive role, transitioning to a co-CEO structure with product chief Ashraf Alkarmi before eventually becoming executive chairman. Houston, who founded the cloud storage company in 2007, will remain as co-CEO for an unspecified transition period. The announcement comes as Dropbox faces stiff competition from Google Drive, Apple iCloud, and Microsoft OneDrive. The company reported $629.5 million in total revenue for its most recent quarter ending March 31, 2026, and has 700 million registered users with over 18 million paid users. The article notes that Houston's departure follows a trend of well-known tech CEOs stepping away, including Apple's Tim Cook.
Yahoo FinanceDropbox CEO Andrew Houston to step down, insider Ashraf Alkarmi named successor
Dropbox announced on May 26, 2026, that co-founder and CEO Andrew Houston will step down after a transition period, with insider Ashraf Alkarmi promoted to co-CEO before becoming sole chief executive. Alkarmi, who joined Dropbox in 2024, previously held product leadership roles at Vimeo, Amazon, and Meta. The company has been increasing investment in AI, including Dropbox Dash. Houston will become executive chairman after nearly two decades with the company. The leadership change follows pressure from activist investor Half Moon Capital, which had pushed for Houston's resignation and changes to Dropbox's dual-class voting structure. Dropbox also appointed Michael Torres, currently Alphabet's Chrome VP, as chief product officer. The company reported first-quarter revenue of $629.5 million, beating analyst estimates. Dropbox shares fell nearly 2% on the news.
Yahoo FinanceDropbox CEO Andrew Houston to step down, insider Ashraf Alkarmi named successor
Dropbox announced on May 26, 2026, that co-founder and CEO Andrew Houston will step down after a transition period, with insider Ashraf Alkarmi promoted to co-CEO before becoming sole chief executive. Alkarmi, who joined Dropbox in 2024, previously held product leadership roles at Vimeo, Amazon, and Meta. The company has been increasing investment in AI, including Dropbox Dash. Shares fell nearly 2% on the news. Activist investor Half Moon Capital, which had pushed for Houston's resignation in March 2025, expressed support for the leadership change, citing potential for value through product monetization and pricing model revamps. Dropbox also appointed Michael Torres, currently VP for Chrome at Google, as chief product officer effective July 7. The company reported Q1 revenue of $629.5 million, beating analyst estimates. Houston will transition to executive chairman after nearly two decades with the company.
Yahoo FinanceDropbox CEO Drew Houston Steps Down, Ashraf Alkarmi Named Co-CEO
Dropbox co-founder Drew Houston is transitioning out of the CEO role he has held since founding the company, moving to executive chairman after an interim period sharing the co-CEO title with Ashraf Alkarmi. Alkarmi, who had served as general manager of Dropbox's core business, becomes co-CEO effective immediately alongside Houston. After a transition period, Houston is expected to take on the executive chairman role while Alkarmi becomes sole CEO. Alkarmi's compensation includes an $825,000 yearly salary, a target bonus equal to his base salary, and about $12.65 million in restricted stock units. Separately, Michael Torres, currently vice president of product for Google's Chrome, will join Dropbox as chief product officer on July 7. Houston indicated his next move will be entrepreneurial, with AI as the focus. Dropbox is now valued at just over $6 billion, down from a $10 billion valuation in 2014. The company passed $2 billion in yearly revenue in 2021, but growth has slowed, and sales dropped in 2025.
Yahoo FinanceDropbox CEO Drew Houston Steps Down, Ashraf Alkarmi Named Co-CEO
Dropbox co-founder Drew Houston is stepping down as CEO after founding the company, transitioning to executive chairman after an interim co-CEO period with Ashraf Alkarmi. Alkarmi, previously general manager of Dropbox's core business, becomes co-CEO effective immediately and will later become sole CEO. His compensation includes an $825,000 salary, a target bonus, and $12.65 million in restricted stock units. Separately, Michael Torres, VP of product at Google Chrome, will join as chief product officer on July 7. Houston, now 43, founded Dropbox at age 24 and led it through its IPO. He plans to focus on AI entrepreneurship. Dropbox's valuation has fallen to just over $6 billion from $10 billion in 2014, with revenue declining in 2025. The company expects Q2 and full-year 2026 results to meet or exceed guidance. Houston credited Alkarmi with improving company culture and product innovation.
Yahoo FinanceDropbox CEO Drew Houston to step down after 19 years, transitioning to executive chairman
Dropbox co-founder and CEO Drew Houston, 43, announced he will step down as CEO after 19 years, transitioning to executive chairman. Product chief Ashraf Alkarmi will be promoted to co-CEO, initially sharing the role with Houston before taking over fully. Houston founded Dropbox at age 24, taking it from Y Combinator to a public listing in 2018. Despite pioneering cloud storage and reaching over 18 million paying users, Dropbox's market cap has fallen to about $6 billion, down from its first-day trading high and below its 2014 private valuation of $10 billion. Revenue has been roughly flat for two years and declined slightly in 2025. The company faces intense competition from Apple, Google, Amazon, Microsoft, and Box, as well as new threats from AI tools by OpenAI and Anthropic. Houston expressed satisfaction with his tenure, noting Dropbox remains widely used by media professionals and designers.
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