Algorhythm Holdings (RIME) AI Stock Analysis

• Market Cap: $5.93M
• Dividend Yield: N/A
• Average Volume (3M): 60.76K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.72
• 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: 0.90
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 0.99
• Enterprise Value/Ebitda: -0.23
• 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: $1.00 ▼(-16.67% Downside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is held down primarily by weak financial performance (revenue contraction, negative profitability/cash flow, and negative equity). Technicals also remain bearish with the price below key moving averages and negative MACD. Positive earnings-call growth guidance and platform expansion help, but are outweighed by balance-sheet stress and the Nasdaq equity compliance overhang.

Positive Factors

Acquisition-driven revenue growth

The SMCB acquisition materially expanded revenue and client relationships, producing a meaningful run-rate lift and driving Fortune 500 customer wins. This M&A-driven scale improves market reach and provides a durable base to cross-sell SaaS and consulting services over the next 2–6 months and beyond.

Launch of high-margin SaaS product

SemiCab Apex shifts the business toward recurring, scalable SaaS revenue with higher gross-margin potential. Over time this reduces reliance on one-off consulting, enhances gross margin sustainability, and supports faster global expansion without proportional operating expense increases.

Strong operational metrics in flagship market

Superior asset utilization demonstrates operational leverage and a competitive service offering in logistics. Higher utilization drives better unit economics, supporting margin recovery and allowing the company to scale capacity and pricing advantages sustainably as it expands geographically.

Negative Factors

Negative stockholders' equity

Negative equity signals deep balance-sheet stress and potential solvency risk, constraining the company’s ability to access debt markets and increasing dependence on dilutive financing. This structural weakness can impair long-term strategic flexibility and supplier/customer confidence.

Negative operating and free cash flow

Persistent negative OCF and FCF undermine self-funded growth and force reliance on external capital. Over months this limits reinvestment in product development and scaling, increases financing costs or dilution risk, and elevates execution risk for global SaaS rollouts.

Nasdaq compliance overhang

A Nasdaq deficiency creates a structural listing risk that can force expedited, potentially dilutive financings or operational trade-offs to meet equity requirements. Combined with use of structured pre-paid equity financings, this creates longer-term capital-structure uncertainty and higher funding costs.

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

Financials indicate high risk: revenues fell sharply from $47.5M (2022) to $23.5M (2024), profitability remains negative (EBIT/EBITDA and net margins negative), operating and free cash flow turned negative in 2024, and stockholders’ equity is negative (-$9.5M in 2024), raising solvency concerns.

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	Mar 2025	Jun 2023	Jun 2022	Jun 2021	Jun 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: Positive
• Last Price: 1.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 1.2 is below the 20-day moving average (MA) of 1.49, below the 50-day MA of 1.29, and below the 200-day MA of 2.05, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 57.78 is Neutral, neither overbought nor oversold. The STOCH value of 32.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$12.50M	-5.45	―	―	11.95%	-956.47%
RIME	43 Neutral	$5.93M	-0.01	-1487.19%	―	―	―
WLDS	41 Neutral	$5.38M	-0.11	-268.12%	―	-9.05%	77.41%

Algorhythm Holdings Corporate Events

Algorhythm Holdings Updates Outstanding Common Share Count

As of January 21, 2026, Algorhythm Holdings, Inc. reported that it had 5,758,102 shares of common stock, with a par value of $0.01 per share, issued and outstanding. This share count disclosure provides investors and other stakeholders with an updated view of the company’s equity structure and potential dilution base as of that date.

The most recent analyst rating on (RIME) stock is a Hold with a $0.78 price target. To see the full list of analyst forecasts on Algorhythm Holdings stock, see the RIME Stock Forecast page.

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.