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.
