Algorhythm Holdings (RIME) AI Stock Analysis

• Market Cap: $3.59M
• Dividend Yield: N/A
• Average Volume (3M): 60.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• 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: 1.76
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $1.50 ▲(25.00% Upside)

Algorhythm Holdings faces significant financial and valuation challenges, with negative profitability and cash flow issues being the most critical factors. While the earnings call provided some optimism with strategic growth initiatives, the overall financial distress and compliance issues weigh heavily on the stock's outlook.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and successful strategic initiatives, positioning the company for future expansion.

New Product Launch

The launch of SemiCab Apex, aimed at global markets, offers rapid scalability and high margins, enhancing long-term profitability and market reach.

Strategic Partnerships

The partnership with Provisi.ai supports the launch of SemiCab Apex, leveraging collaborative freight orchestration to expand U.S. market presence.

Negative Factors

Financial Distress

The negative equity and high leverage indicate financial distress, posing risks to solvency and limiting the company's ability to invest in growth.

Cash Flow Challenges

Negative operating cash flow reflects inefficiencies in cash generation, potentially impacting the company's ability to fund operations and growth.

Nasdaq Compliance Notice

Non-compliance with Nasdaq equity requirements highlights financial instability, risking potential delisting and affecting investor confidence.

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: 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 1.2 is below the 20-day moving average (MA) of 1.55, below the 50-day MA of 1.83, and below the 200-day MA of 2.28, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 35.32 is Neutral, neither overbought nor oversold. The STOCH value of 4.67 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	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RIME	44 Neutral	$3.59M	>-0.01	-1487.19%	―	―	―
FEBO	44 Neutral	$14.93M	-7.51	―	―	11.95%	-956.47%
WLDS	39 Underperform	$9.99M	-0.17	-268.12%	―	-9.05%	77.41%

Algorhythm Holdings Corporate Events

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.

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.

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.

Algorhythm Holdings Appoints New Board Members

On October 6, 2025, Algorhythm Holdings appointed Scott Thorn and Kapil Gupta to its Board of Directors, enhancing its strategic and technological expertise. Thorn, with a background in luxury hospitality and cannabinoid wellness products, and Gupta, a seasoned technology leader, bring valuable experience to the company. Additionally, Mathieu Peloquin resigned from the Board on the same day, and Bernardo Melo was terminated as Chief Revenue Officer on August 21, 2025, though he remains a Board member.