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Algorhythm Holdings
(NASDAQ:RIME)
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Rating:44Neutral
Price Target:
$0.33
▼(-27.39% Downside)
Action:Reiterated
Date:08/22/26
RIME scores low primarily due to weak financial performance: sharply negative profitability (including negative gross profit) and heavy TTM cash burn, alongside meaningful leverage despite improved equity. Technicals reinforce the risk, with the price well below key moving averages and negative MACD indicating a sustained downtrend. The earnings call provides a partial offset via strong revenue momentum and higher run-rate guidance, but near-term margin pressure, rising operating expenses, and financing/forbearance issues remain significant, compounded by the Nasdaq bid-price compliance risk.
Positive Factors
Revenue and Run-Rate Growth
Rapid revenue expansion and higher run-rate guidance indicate meaningful customer adoption following the SemiCab acquisition. If execution continues, scale can improve fixed-cost absorption and establish a larger recurring operating base.
Negative Factors
Negative Gross Margins
The current managed-services model pays for truck access before routes are fully utilized, creating structural ramp risk. Margin improvement depends on customer density and execution, so revenue growth may not translate into sustainable profits quickly.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Run-Rate Growth
Rapid revenue expansion and higher run-rate guidance indicate meaningful customer adoption following the SemiCab acquisition. If execution continues, scale can improve fixed-cost absorption and establish a larger recurring operating base.
Read all positive factors
Algorhythm Holdings (RIME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.85M
Dividend YieldN/A
Average Volume (3M)60.76K
Price to Earnings (P/E)―
Beta (1Y)-0.80
Revenue Growth-63.48%
EPS Growth97.83%
CountryUS
Employees48
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)-2.92
Shares Outstanding16,990,135
10 Day Avg. Volume43,346
30 Day Avg. Volume60,758
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)-21.37
Price to Sales (P/S)0.57
P/FCF Ratio-0.25
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-1.55
Revenue Forecast (FY)$14.40M
Algorhythm Holdings Business Overview & Revenue Model
Company Description
Algorhythm Holdings, Inc., along with its affiliated companies, operates globally in the consumer entertainment sector, specializing in karaoke. The company is responsible for designing, marketing, and distributing a range of audio equipment, acco...
Algorhythm Holdings Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 25, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial progress: large YoY and sequential revenue growth, a rising annualized revenue run rate (> $12M), expanding customer base and fleet, improved liquidity ($10.9M cash) and a return to positive stockholders’ equity. Management also closed $9.5M financing and launched the Apex SaaS strategy with an expanding U.S. enterprise pipeline. Offsetting those positives are meaningful near-term margin and expense headwinds: a $680K gross loss driven by ramping truck contracts, operating expenses up materially (≈+236%), continued net losses ($5.4M), and a missed $1.5M promissory payment currently under forbearance (management characterizes this as a deliberate capital allocation decision). Overall, the company shows clear growth momentum and improved balance-sheet metrics, but execution risks and near-term profitability pressures remain.Positive Updates
Explosive Revenue Growth (YoY and QoQ)
Net sales increased 1,850% year-over-year to $2.4M (from $0.123M) and rose 71% sequentially from $1.4M in Q4 2025 to Q1 2026, driven primarily by the acquisition of SMCB (SemiCab India).
Negative Updates
Negative Gross Margin / Gross Loss
Gross loss of $680K in Q1 2026 (vs. $6K in Q1 2025) driven by managed-services model where SemiCab pays for truck access upfront while revenue ramps; gross margins are negative during ramp periods and expected to improve over 12 months as utilization increases.
Read all updates
Q1-2026 Updates
Positive
Negative
Explosive Revenue Growth (YoY and QoQ)
Net sales increased 1,850% year-over-year to $2.4M (from $0.123M) and rose 71% sequentially from $1.4M in Q4 2025 to Q1 2026, driven primarily by the acquisition of SMCB (SemiCab India).
Read all positive updates
Company Guidance
Management guided that SemiCab's annualized revenue run rate, which exceeded $12.0 million in Q1 2026, is expected to rise to $15–20 million by the end of 2026, with revenue continuing to increase after Q1 net sales of $2.4 million (up ~1,850% YoY from $123k and ~71% sequentially from $1.4M); they expect gross loss ($680k in Q1) to decline over the next 12 months as truck utilization improves, while operating expenses will increase to support growth (Q1 op ex $3.7M, up $2.6M YoY) but total op ex should fall as stock‑based compensation declines, other expenses are expected to remain roughly similar (~$1M in Q1), and net loss from continuing operations should moderate from Q1’s $5.4M (vs $7.5M prior year). Management reiterated capital allocation to scale managed services and roll out Apex SaaS (targeting the >$450B U.S. full‑truckload market), backed by $10.9M cash at March 31 (≈$9.4M subsequently), a $9.5M secured prepaid financing closed in February, repayment of two prior prepaid purchases (and most of a third), a return to positive stockholders’ equity of $3.2M (up ≈$5M from a $1.9M deficit, exceeding NASDAQ’s $2.5M threshold), a 45‑day forbearance on a $1.5M promissory note, and operational momentum (5,716 loads across 14 customers and a dedicated fleet up 30% Dec–Mar; India case studies show up to 70% empty‑mile reduction).Algorhythm Holdings Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
24
Negative
Cash Flow
10
Very Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.52M | 4.39M | 23.49M | 38.93M | 39.30M | 47.51M |
| Gross Profit | -2.24M | -1.31M | 4.78M | 8.25M | 9.21M | 10.81M |
| EBITDA | -12.83M | -14.17M | -22.02M | -7.81M | -2.18M | 1.91M |
| Net Income | -15.63M | -16.05M | -23.26M | -8.53M | -4.64M | 230.00K |
Balance Sheet | ||||||
| Total Assets | 18.57M | 12.72M | 18.30M | 27.71M | 16.65M | 34.06M |
| Cash, Cash Equivalents and Short-Term Investments | 4.97M | 1.63M | 7.55M | 6.70M | 2.90M | 7.38M |
| Total Debt | 9.02M | 11.40M | 650.00K | 4.01M | 735.65K | 10.78M |
| Total Liabilities | 15.29M | 14.58M | 28.82M | 20.14M | 6.32M | 22.26M |
| Stockholders Equity | 3.28M | -117.00K | -9.48M | 7.58M | 10.33M | 11.80M |
Cash Flow | ||||||
| Free Cash Flow | -11.13M | -9.86M | -8.63M | 457.33K | -574.00K | -2.13M |
| Operating Cash Flow | -11.00M | -9.85M | -8.56M | 548.00K | -330.00K | -2.01M |
| Investing Cash Flow | 167.00K | -167.00K | -2.25M | -109.00K | -244.00K | -118.00K |
| Financing Cash Flow | 17.98M | 8.93M | 11.65M | 1.67M | 1.18M | 4.02M |
Algorhythm Holdings Technical Analysis
Negative
0.46
Price Trends
0.49
Negative
0.69
Negative
1.07
Negative
Market Momentum
-0.05
Positive
35.98
Neutral
22.81
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 0.46 is above the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.49, and below the 200-day MA of 1.07, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 35.98 is Neutral, neither overbought nor oversold. The STOCH value of 22.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RIME.
Algorhythm Holdings Risk Analysis
Algorhythm Holdings disclosed 46 risk factors in its most recent earnings report. Algorhythm Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Algorhythm Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $226.74M | -68.24 | -2.96% | ― | -17.54% | -118.65% | |
54 Neutral | $1.87B | -49.71 | -9.55% | ― | 5.64% | ― | |
44 Neutral | $5.85M | -0.11 | -5433.38% | ― | -63.48% | 97.83% | |
43 Neutral | $117.90M | -0.61 | -529.55% | ― | -23.86% | -41.32% | |
37 Underperform | $33.80M | -29.99 | -3.62% | ― | 3.28% | -44.36% |
* Technology Sector Average
RIME
Algorhythm Holdings
0.33
-1.74
-84.22%
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11.24%
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KOSS
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TBCH
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12.59
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SONO
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15.41
1.77
12.98%
Algorhythm Holdings Corporate Events
Executive/Board ChangesLegal ProceedingsPrivate Placements and Financing
Algorhythm Settles Liabilities Through Equity Issuance Agreement
Neutral
Jul 24, 2026
On July 21, 2026, Algorhythm Holdings, Inc. entered into a settlement agreement with Continuation Capital, Inc. to resolve approximately $1.93 million in acquired liabilities by issuing up to 5 million shares of common stock, with CCI’s hold...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Algorhythm Holdings Restructures Capital via Series A Preferred
Neutral
Jul 2, 2026
On June 29, 2026, Algorhythm Holdings, Inc. entered into an exchange agreement with Streeterville Capital, LLC that carved out a $3.5 million partitioned pre-paid purchase from an existing $10.355 million secured pre-paid stock purchase, reducing ...
Delistings and Listing ChangesRegulatory Filings and Compliance
Algorhythm Holdings Receives Nasdaq Minimum Bid Price Notice
Negative
Jun 18, 2026
On June 16, 2026, Algorhythm Holdings disclosed that it received a notice from Nasdaq stating its shares had failed to meet the $1.00 minimum bid price requirement over the 30 trading days from May 4 to June 15, 2026. The company now has until Dec...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.