Algorhythm Holdings (RIME) AI Stock Analysis

• Market Cap: $2.66M
• Dividend Yield: N/A
• Average Volume (3M): 60.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 25
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): -1.15
• Shares Outstanding: 2,721,778
• 10 Day Avg. Volume: 43,346
• 30 Day Avg. Volume: 60,758
• PEG Ratio: -0.15
• Price to Book (P/B): -16.88
• Price to Sales (P/S): 6.81
• P/FCF Ratio: -18.56
• Enterprise Value/Market Cap: 2.38
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 1.17
• Enterprise Value/Ebitda: -0.27
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $0.94 ▼(-21.33% Downside)

The score is primarily weighed down by weak financial performance (declining historical revenue, persistent losses, negative operating/free cash flow) and a distressed balance sheet with negative equity. Bearish technicals reinforce the risk. Earnings-call guidance and product/contract momentum provide upside potential, but corporate compliance/financing pressure keeps the overall score low.

Positive Factors

Launch of high‑margin SaaS (SemiCab Apex)

Apex shifts revenue mix toward cloud subscription economics, which are structurally higher margin and more recurring than services or one-off projects. Over 2–6 months, successful SaaS adoption materially improves gross margins, cash predictability, and scalability into enterprise accounts.

Post‑acquisition revenue acceleration and enterprise traction

Rapid revenue lift and conversion of pilots into multiyear contracts indicate product-market fit and validated commercial GTM. Enterprise client wins provide sticky recurring revenue, references for expansion, and a foundation to sustainably grow contractual ARR over the medium term.

Superior operational efficiency in India

Significantly higher asset utilization demonstrates algorithmic competitive advantage and operational leverage. Sustained utilization gains translate into better unit economics, improved gross margins for logistics offerings, and a defensible performance claim when scaling internationally.

Negative Factors

Negative stockholders' equity

Materially negative equity is a structural solvency concern that constrains financing options, increases cost of capital, and risks listing compliance. Over months, this forces dilutive or restrictive financing solutions and can limit strategic investments or M&A flexibility.

Sustained revenue contraction and weak margins

A multi‑year revenue decline combined with deteriorating gross margins signals structural demand, pricing, or execution issues. Persistent negative operating margins reduce reinvestment capacity, hinder scalable growth of new SaaS offerings, and prolong the path to sustainable profitability.

Negative operating and free cash flow

Negative operating and free cash flow create dependency on external funding for day‑to‑day operations and scaling. Over the medium term this increases dilution or debt risk, limits capital allocation to product development and sales, and can slow global rollouts of SemiCab Apex.

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 through multiple streams, primarily by offering subscription-based access to its analytics platforms, which provide clients with ongoing data services and insights. Additionally, the company earns income from consulting services, where it collaborates with businesses to implement tailored algorithmic solutions that address unique challenges. Key partnerships with industry leaders in technology and sector-specific enterprises enhance its market reach and credibility, leading to increased sales. The company also engages in licensing its proprietary algorithms to third-party firms, further diversifying its revenue sources.

Algorhythm Holdings Financial Statement Overview

Summary

Algorhythm Holdings faces significant financial challenges with declining revenues, negative profitability, and cash flow issues. The negative equity and high leverage pose substantial risks, necessitating strategic interventions to stabilize and improve financial performance.

Income Statement

Algorhythm Holdings has experienced declining revenue from $47.5M in 2022 to $23.5M in 2024, indicating significant revenue contraction. The gross profit margin has also decreased, reflecting reduced profitability. Net profit margins are negative due to substantial net losses, with EBIT and EBITDA margins also negative, indicating operational challenges.

Balance Sheet

The company has a negative stockholders' equity of -$9.5M in 2024, indicating financial distress. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is negative, highlighting a highly leveraged position with potential solvency risks.

Cash Flow

Operating cash flow has turned negative in 2024, and free cash flow is also negative, reflecting cash flow challenges. The free cash flow to net income ratio is not favorable, indicating inefficiencies in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.34M	23.49M	38.93M	39.30M	47.51M	45.80M
Gross Profit	5.41M	4.78M	8.25M	9.21M	10.81M	12.30M
EBITDA	-23.67M	-22.02M	-7.81M	-2.18M	1.91M	3.34M
Net Income	-23.74M	-23.26M	-8.53M	-4.64M	230.00K	2.17M
Balance Sheet
Total Assets	12.70M	18.30M	27.71M	16.65M	34.06M	22.30M
Cash, Cash Equivalents and Short-Term Investments	1.13M	7.55M	6.70M	2.90M	7.38M	823.37K
Total Debt	1.03M	650.00K	4.01M	735.65K	10.78M	3.94M
Total Liabilities	9.88M	28.82M	20.14M	6.32M	22.26M	13.20M
Stockholders Equity	4.17M	-9.48M	7.58M	10.33M	11.80M	9.10M
Cash Flow
Free Cash Flow	-8.67M	-8.63M	457.33K	-574.00K	-2.13M	-30.14K
Operating Cash Flow	-8.58M	-8.56M	548.00K	-330.00K	-2.01M	171.02K
Investing Cash Flow	-2.84M	-2.25M	-109.00K	-244.00K	-118.00K	-201.16K
Financing Cash Flow	11.31M	11.65M	1.67M	1.18M	4.02M	81.52K

Algorhythm Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.20
• 50DMA: Negative
• 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 1.2 is above the 20-day moving average (MA) of 1.08, below the 50-day MA of 1.47, and below the 200-day MA of 2.18, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 34.15 is Neutral, neither overbought nor oversold. The STOCH value of 30.09 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 *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
FEBO	44 Neutral	$14.05M	-6.19	―	―	11.95%	-956.47%
RIME	43 Neutral	$2.66M	>-0.01	-1487.19%	―	―	―
WLDS	39 Underperform	$7.74M	-0.15	-268.12%	―	-9.05%	77.41%

Algorhythm Holdings Corporate Events

Algorhythm Holdings expands funding via new equity financing

On December 19, 2025, Algorhythm Holdings, Inc. entered into a third secured pre-paid common stock purchase with Streeterville Capital, LLC under an existing August 21, 2025 securities purchase agreement that allows for up to $20 million in aggregate pre-paid equity financings. The latest transaction totals a principal amount of $1.09 million, includes a $90,000 original issue discount, carries 9% annual interest with a three-year maturity, and was executed as a private placement exempt from Securities Act registration, with Univest Securities, LLC receiving an 8% placement fee, further bolstering the company’s funding capacity through structured equity financing.

The most recent analyst rating on (RIME) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Algorhythm Holdings stock, see the RIME Stock Forecast page.

Algorhythm Holdings Receives Nasdaq Compliance Notice

Algorhythm Holdings, Inc. received a notice from the Nasdaq Stock Market on November 28, 2025, indicating that the company’s stockholders’ equity, as reported in its quarterly report for the period ending September 30, 2025, did not meet the minimum requirement of $2,500,000. The company’s equity was reported at $100,000. This notice does not immediately affect the company’s stock listing, and Algorhythm Holdings plans to submit a compliance plan by January 12, 2026. If accepted, the company may receive an extension to meet the requirement, but there is no guarantee of acceptance or compliance. An appeal process is available if the plan is not accepted.

The most recent analyst rating on (RIME) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Algorhythm Holdings stock, see the RIME Stock Forecast page.

Algorhythm Holdings Approves Key Proposals at Annual Meeting

On November 20, 2025, Algorhythm Holdings, Inc. held its annual meeting where stockholders approved several significant proposals. These included an amendment to the 2022 Equity Incentive Plan, a reverse stock split, reincorporation from Delaware to Nevada, and pre-paid financing transactions. Additionally, stockholders ratified the selection of M&K CPAs as the independent auditor for the fiscal year ending December 31, 2025.

The most recent analyst rating on (RIME) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Algorhythm Holdings stock, see the RIME Stock Forecast page.

Jay B. Foreman Resigns from Algorhythm Holdings Board

On November 14, 2025, Jay B. Foreman resigned from Algorhythm Holdings‘ Board of Directors, with no disagreements cited. Algorhythm reported a 1,273% year-over-year revenue growth for Q3 2025, driven by its SemiCab subsidiary. The company sold its karaoke business, focusing on AI technology and logistics, and launched a new SaaS platform, Apex. SemiCab expanded its operations in India and the U.S., securing new contracts and appointing new leadership to drive growth. Financially, Algorhythm reduced operating expenses and net losses, while increasing cash reserves, positioning itself for future growth in the AI logistics sector.

The most recent analyst rating on (RIME) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Algorhythm Holdings stock, see the RIME Stock Forecast page.