Algorhythm Holdings (RIME) AI Stock Analysis

• Market Cap: $5.00M
• Dividend Yield: N/A
• Average Volume (3M): 483.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 25
• Sector: Technology
• Sector Strength: 82
• Industry: Consumer Electronics
• EPS (TTM): -0.24
• Shares Outstanding: 2,514,571
• 10 Day Avg. Volume: 1,227,461
• 30 Day Avg. Volume: 483,780
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 1.17
• Enterprise Value/Ebitda: -0.27
• 1Y Price Target: $2.00
• Price Target Upside: 0.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: $2.00 ▲(0.50% Upside)

Algorhythm Holdings' overall stock score is primarily impacted by its poor financial performance, with declining revenues and negative profitability posing substantial risks. The technical analysis indicates a bearish trend, and the valuation is unattractive due to a negative P/E ratio. However, the strategic pivot to the SemiCab business and the positive outlook from the earnings call provide some optimism for future growth.

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 a combination of software licensing, subscription fees, and consulting services. The company charges clients for access to its proprietary analytics platforms, which are offered on a subscription basis, allowing businesses to leverage data-driven insights on an ongoing basis. Additionally, Algorhythm Holdings earns revenue from providing customized consulting services that help clients implement and optimize their analytics solutions. Key partnerships with major technology firms and healthcare providers further enhance its market reach and contribute to its overall earnings by facilitating access to a broader client base and enhancing product offerings.

Algorhythm Holdings Financial Statement Overview

Summary

Algorhythm Holdings is facing significant financial challenges, including 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	1.11M	3.40M
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	22.67M	16.76M
Cash, Cash Equivalents and Short-Term Investments	1.13M	7.55M	6.70M	2.90M	2.29M	396.58K
Total Debt	1.03M	650.00K	4.01M	735.65K	4.42M	3.42M
Total Liabilities	9.88M	28.82M	20.14M	6.32M	12.63M	8.85M
Stockholders Equity	2.81M	-9.48M	7.58M	10.33M	10.04M	7.91M
Cash Flow
Free Cash Flow	-10.29M	-8.63M	457.33K	-574.00K	-2.13M	-30.14K
Operating Cash Flow	-10.20M	-8.56M	548.00K	-330.00K	-2.01M	171.02K
Investing Cash Flow	-2.84M	-2.25M	-18.67K	-244.00K	-118.00K	-201.16K
Financing Cash Flow	11.31M	11.65M	4.55M	1.18M	4.02M	81.52K

Algorhythm Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.99 is below the 20-day moving average (MA) of 2.19, below the 50-day MA of 2.34, and below the 200-day MA of 7.90, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 41.54 is Neutral, neither overbought nor oversold. The STOCH value of 16.96 is Positive, 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	$35.55B	8.91	-10.55%	1.87%	8.47%	-8.26%
RIME	46 Neutral	$5.00M	―	-1487.19%	―	―	―
MSN	―	$8.69M	―	-21.52%	―	―	―
WTO	―	$23.92M	―	-567.57%	―	―	―
FOXX	―	$39.26M	129.24		―	―	―
FEBO	44 Neutral	$7.76M	―	-29.41%	―	11.95%	-956.47%
WLDS	42 Neutral	$1.10M	―	-167.89%	―	536.59%	-5.05%

Algorhythm Holdings Corporate Events

Algorhythm Holdings Enters $20M Securities Agreement

On August 21, 2025, Algorhythm Holdings, Inc. entered into a securities purchase agreement with Streeterville Capital, LLC to issue and sell shares of its common stock for up to $20 million. The proceeds are intended for working capital and other corporate purposes. The agreement includes an initial pre-paid purchase of $4.39 million and allows for additional purchases over a two-year period, subject to certain conditions. The company is required to file a registration statement for the resale of shares and obtain stockholder approval for issuing shares beyond a certain threshold. Additionally, Joseph Kling resigned from the board of directors on the same date, with no disagreements regarding company operations.

Algorhythm Holdings Sells Karaoke Business to Stingray

On August 1, 2025, Algorhythm Holdings sold its Singing Machine karaoke business to Stingray Music USA, a subsidiary of Stingray Group, for $4.5 million. This transaction, which eliminated approximately $4 million in liabilities and reduced annual cash outflows by over 70%, allows Algorhythm to focus on its AI freight platform, SemiCab. The sale marks a strategic shift for Algorhythm, enabling it to concentrate resources on SemiCab’s growth, which has significantly increased its revenue run rate since January 2025.