Algorhythm Holdings (RIME) AI Stock Analysis

• Market Cap: $7.85M
• Dividend Yield: N/A
• Average Volume (3M): 210.97K
• Price to Earnings (P/E): ―
• Beta (1Y): >-0.01
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 25
• Sector: Technology
• Sector Strength: 79
• Industry: Consumer Electronics
• EPS (TTM): -4.66
• Shares Outstanding: 2,514,571
• 10 Day Avg. Volume: 472,466
• 30 Day Avg. Volume: 210,967
• PEG Ratio: 0.15
• Price to Book (P/B): 84.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.53K
• Enterprise Value/Market Cap: 111.56
• Enterprise Value/Revenue: 10.84
• Enterprise Value/Gross Profit: 183.06
• Enterprise Value/Ebitda: -21.76
• 1Y Price Target: $5.00
• Price Target Upside: 76.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: $3.00 ▲(6.01%Upside)

Algorhythm Holdings’ overall stock score reflects significant financial challenges, with negative equity and poor cash flow weighing heavily on its prospects. The technical analysis provides some short-term bullish signals, but long-term challenges remain. The strategic acquisitions and board appointment offer potential growth, but immediate issues persist.

Algorhythm Holdings Business Overview & Revenue Model

Company Description

Algorhythm Holdings, Inc., together with its subsidiaries, engages in the development, marketing, and sale of consumer karaoke audio equipment, accessories, and musical recordings in North America, Australia, the United Kingdom, Europe, and internationally. It offers karaoke products under the Singing Machine brand; licensed karaoke microphone products under the Carpool Karaoke brand; microphone and accessories, and portable Bluetooth microphones under the Party Machine brand; music entertainment singing machines for children under the brand Singing Machine Kids; connected vehicle karaoke devices; and karaoke music subscription services for the iOS and Android platforms, as well as a web-based download store and integrated streaming services for hardware. The company primarily sells its products to retailers, including national chains, warehouse clubs, department stores, lifestyle merchants, specialty stores, and direct mail catalogs and showrooms. The company was formerly known as The Singing Machine Company, Inc. and changed its name to Algorhythm Holdings, Inc. in September 2024. Algorhythm Holdings, Inc. was incorporated in 1982 and is headquartered in Fort Lauderdale, Florida.

How the Company Makes Money

Algorhythm Holdings generates revenue primarily through the sale and licensing of its proprietary software solutions. The company offers subscription-based models for their analytics platforms, allowing clients to access powerful data insights and AI-driven tools on a recurring basis. Additionally, Algorhythm Holdings partners with major corporations to develop bespoke AI applications, creating significant streams of income from consultancy and implementation fees. The company also engages in strategic partnerships and collaborations with industry leaders to enhance their product offerings and expand market reach, thereby augmenting their earnings potential.

Algorhythm Holdings Financial Statement Overview

Summary

Algorhythm Holdings faces significant financial challenges, including declining revenues, consistent net losses, negative equity, and poor cash flow management. These indicators of financial distress necessitate strategic restructuring to restore stability and growth.

Income Statement

Algorhythm Holdings has experienced a decline in revenue from $38.93 million in 2023 to $23.49 million in 2024, reflecting a significant revenue drop. The gross profit margin has decreased, and the company has faced consistent net losses, with a net profit margin of -99.06% in 2024. The EBIT and EBITDA margins are also negative, indicating operational challenges. Overall, the income statement reflects declining sales and profitability, posing risks to financial stability.

Balance Sheet

The balance sheet shows a concerning negative stockholders' equity of $-9.49 million in 2024, indicating financial distress. The debt-to-equity ratio cannot be calculated due to negative equity, but the high total liabilities compared to assets suggest leverage issues. The equity ratio is negative, further highlighting financial instability and potential solvency risks.

Cash Flow

The company reported negative free cash flow in 2024 of $-8.63 million, highlighting cash flow challenges. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting profits to cash. The financing cash flow is positive, suggesting reliance on external financing. Overall, cash flow management appears weak, with significant operating cash outflows.

Breakdown
Dec 2024	Dec 2023	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
23.49M	38.93M	39.30M	47.51M	45.80M
	Gross Profit
4.78M	8.25M	9.21M	10.81M	12.30M
	EBIT
-13.93M	-8.19M	-3.70M	69.00K	1.43M
	EBITDA
-22.02M	-7.81M	-2.18M	1.11M	3.40M
	Net Income Common Stockholders
-23.26M	-8.53M	-4.64M	230.00K	2.17M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.55M	6.70M	2.90M	2.29M	396.58K
	Total Assets
18.30M	27.71M	16.65M	22.67M	16.76M
	Total Debt
650.00K	4.01M	735.65K	4.42M	3.42M
	Net Debt
-6.90M	-2.69M	-2.16M	2.13M	3.03M
	Total Liabilities
28.82M	20.14M	6.32M	12.63M	8.85M
	Stockholders Equity
-9.48M	7.58M	10.33M	10.04M	7.91M
Cash Flow		Free Cash Flow
-8.63M	457.33K	-574.00K	-2.13M	-30.14K
	Operating Cash Flow
-8.56M	548.00K	-330.00K	-2.01M	171.02K
	Investing Cash Flow
-2.25M	-18.67K	-244.00K	-118.00K	-201.16K
	Financing Cash Flow
11.65M	4.55M	1.18M	4.02M	81.52K

Algorhythm Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.83
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RIME, the sentiment is Negative. The current price of 2.83 is above the 20-day moving average (MA) of 2.71, above the 50-day MA of 2.56, and below the 200-day MA of 35.08, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 52.04 is Neutral, neither overbought nor oversold. The STOCH value of 53.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RIME.

Algorhythm Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
VERB	53 Neutral	$11.51M	―	-66.08%	―	3125.00%	98.06%
RIME	48 Neutral	$7.85M	―	-619.57%	―	―	―
IDAI	44 Neutral	$5.11M	―	-369.03%	―	-34.68%	-265.79%
VS	39 Underperform	$10.83M	―	-34.07%	―	-78.87%	85.62%
WTO		$3.24M	―	-69.61%	―	―	―
MITQ	48 Neutral	$5.46M	―	-21.35%	―	-4.85%	43.93%

Algorhythm Holdings Corporate Events

Algorhythm Holdings Appoints Ajesh Kapoor to Board

On May 19, 2025, Algorhythm Holdings appointed Ajesh Kapoor to its board of directors. Mr. Kapoor, who has over 30 years of experience in logistics and supply chain technology, is the Founder and CEO of SemiCab, an AI logistics and distribution business. His appointment is expected to leverage his expertise to accelerate the transformation of Algorhythm’s business and strengthen its industry positioning.

Algorhythm Holdings Completes Acquisition of SMCB Solutions

On May 2, 2025, Algorhythm Holdings, through its subsidiary SemiCab Holdings, acquired SMCB Solutions Private Ltd., an Indian company, marking its second transaction with SemiCab, Inc. This acquisition, valued at $1.75 million and 119,742 shares of Algorhythm’s common stock, expands Algorhythm’s global AI transportation footprint and provides access to a rapidly growing Indian market. The acquisition is expected to accelerate revenue growth, expand the multinational client base, and serve as a blueprint for international expansion. The AI platform offered by SemiCab improves freight utilization, reduces costs, and enhances sustainability, aligning with India’s modernization efforts in the logistics sector.