Algorhythm Holdings (RIME) AI Stock Analysis

• Market Cap: $6.36M
• Dividend Yield: N/A
• Average Volume (3M): 83.64K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.09
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 25
• Sector: Technology
• Sector Strength: 77
• Industry: Consumer Electronics
• EPS (TTM): -4.66
• Shares Outstanding: 2,514,571
• 10 Day Avg. Volume: 59,772
• 30 Day Avg. Volume: 83,637
• PEG Ratio: -0.07
• Price to Book (P/B): 6.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: $2.50 ▲( 5.04% Upside)

Algorhythm Holdings' overall score is primarily impacted by significant financial distress, including declining revenues and negative equity, which pose substantial risks. While recent acquisitions and corporate developments present growth potential, these are outweighed by the immediate financial challenges and weak valuation metrics.

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 demonstrates financial struggles with declining revenue and profit margins, coupled with negative earnings. The balance sheet shows reasonable leverage but declining equity levels. Cash flow generation is inconsistent, pointing to operational challenges. Improvement in cost management and revenue generation is critical for financial stability and growth.

Income Statement

Algorhythm Holdings has faced a decline in revenue over the recent periods, with a notable drop in Total Revenue from $47.5M in 2022 to $38.9M in 2023. The Gross Profit Margin has also decreased, indicating challenges in cost management or pricing power. The company has consistently reported negative EBIT and Net Income, showing operational inefficiencies. These factors highlight a weak financial performance with potential room for improvement.

Balance Sheet

The Balance Sheet reflects a moderate financial position with a Debt-to-Equity Ratio of 0.53 in 2023, indicating manageable leverage. However, the company's Stockholders' Equity has decreased over the years, pointing to a reduction in retained earnings or increased liabilities. The Equity Ratio is decent at around 27%, suggesting a stable asset structure despite financial pressures.

Cash Flow

Cash flow analysis shows inconsistent Free Cash Flow, highlighting volatility in cash generation. The Operating Cash Flow to Net Income Ratio is positive, but variable, indicating challenges in converting income into cash. The Free Cash Flow has improved recently but remains low, reflecting ongoing capital expenditure requirements and operational pressure.

Breakdown
TTM	Dec 2023	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
15.49M	38.93M	39.30M	47.51M	45.80M	38.50M
	Gross Profit
3.20M	8.25M	9.21M	10.81M	12.30M	8.18M
	EBIT
-7.18M	-8.19M	-3.70M	69.00K	1.43M	-3.24M
	EBITDA
-6.78M	-7.81M	-2.18M	1.11M	3.40M	-2.98M
	Net Income Common Stockholders
-7.29M	-8.53M	-4.64M	230.00K	2.17M	-2.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.65M	6.70M	2.90M	2.29M	396.58K	345.20K
	Total Assets
9.63M	27.71M	16.65M	22.67M	16.76M	16.60M
	Total Debt
2.50M	4.01M	735.65K	4.42M	3.42M	1.81M
	Net Debt
847.00K	-2.69M	-2.16M	2.13M	3.03M	1.46M
	Total Liabilities
7.03M	20.14M	6.32M	12.63M	8.85M	10.91M
	Stockholders Equity
2.60M	7.58M	10.33M	10.04M	7.91M	5.69M
Cash Flow		Free Cash Flow
-7.14M	457.33K	-574.00K	-2.13M	-30.14K	-72.78K
	Operating Cash Flow
-7.07M	548.00K	-330.00K	-2.01M	171.02K	444.76K
	Investing Cash Flow
-53.00K	-18.67K	-244.00K	-118.00K	-201.16K	-517.55K
	Financing Cash Flow
1.04M	4.55M	1.18M	4.02M	81.52K	206.57K

Algorhythm Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 2.38 is below the 20-day moving average (MA) of 2.54, below the 50-day MA of 2.42, and below the 200-day MA of 41.62, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 41.49 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	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%
VERB	54 Neutral	$8.89M	―	-66.08%	―	3125.00%	98.06%
MITQ	52 Neutral	$5.89M	―	-21.35%	―	-4.85%	43.93%
RIME	46 Neutral	$6.36M	―	-619.57%	―	―	―
VS	39 Underperform	$9.69M	―	-34.07%	―	-78.87%	85.62%
WTO		$4.14M	―	-69.61%	―	―	―
IDAI	43 Neutral	$5.09M	―	-369.03%	―	-34.68%	-357.03%

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.