Algorhythm Holdings (RIME)
NASDAQ:RIME
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Algorhythm Holdings
(NASDAQ:RIME)
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Rating:44Neutral
Price Target:
$0.67
▼(-44.00% Downside)
Action:Reiterated
Date:05/14/26
The score is held down primarily by very weak financial performance (deep losses, heavy cash burn, and leverage vs. a thin equity cushion) and a clearly bearish technical setup (price well below key moving averages with negative MACD). The earnings call provides some upside via rapid revenue growth and improving balance-sheet metrics, but near-term profitability pressure and the promissory-note default limit confidence.
Positive Factors
Explosive revenue growth and SemiCab run rate
Sustained, large percentage revenue gains and a >$12M annualized run rate indicate the acquired SemiCab business is scaling. A rising revenue base improves operating leverage potential and supports investments in growth initiatives, making future margin recovery and SaaS cross‑sell more feasible if customer ramps continue.
Negative Factors
Heavy cash burn and negative operating cash flow
Persistent, sizable negative operating and free cash flow forces dependence on external financing and limits strategic flexibility. Continued cash burn increases refinancing and dilution risk, and constrains the company’s ability to sustain investment cycles if revenue ramps slow or financing terms tighten.
Read all positive and negative factors
Positive Factors
Negative Factors
Explosive revenue growth and SemiCab run rate
Sustained, large percentage revenue gains and a >$12M annualized run rate indicate the acquired SemiCab business is scaling. A rising revenue base improves operating leverage potential and supports investments in growth initiatives, making future margin recovery and SaaS cross‑sell more feasible if customer ramps continue.
Read all positive factors
Algorhythm Holdings (RIME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.25M
Dividend YieldN/A
Average Volume (3M)60.76K
Price to Earnings (P/E)―
Beta (1Y)-0.99
Revenue Growth-64.30%
EPS Growth99.11%
CountryUS
Employees25
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)-2.91
Shares Outstanding14,651,665
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 Cap0.25
Enterprise Value/Revenue0.31
Enterprise Value/Gross Profit-3.75
Enterprise Value/Ebitda-0.25
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-2.85
Revenue Forecast (FY)$17.00M
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 intern...
Algorhythm Holdings Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 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
18
Very Negative
Balance Sheet
22
Negative
Cash Flow
16
Very Negative
| Breakdown | Mar 2026 | Mar 2025 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.39M | 23.49M | 38.93M | 39.30M | 47.51M |
| Gross Profit | -1.31M | 4.78M | 8.25M | 9.21M | 10.81M |
| EBITDA | -14.17M | -22.02M | -7.81M | -2.18M | 1.91M |
| Net Income | -16.05M | -23.26M | -8.53M | -4.64M | 230.00K |
Balance Sheet | |||||
| Total Assets | 12.72M | 18.30M | 27.71M | 16.65M | 34.06M |
| Cash, Cash Equivalents and Short-Term Investments | 1.63M | 7.55M | 6.70M | 2.90M | 7.38M |
| Total Debt | 11.40M | 650.00K | 4.01M | 735.65K | 10.78M |
| Total Liabilities | 14.58M | 28.82M | 20.14M | 6.32M | 22.26M |
| Stockholders Equity | -117.00K | -9.48M | 7.58M | 10.33M | 11.80M |
Cash Flow | |||||
| Free Cash Flow | -9.86M | -8.63M | 457.33K | -574.00K | -2.13M |
| Operating Cash Flow | -9.85M | -8.56M | 548.00K | -330.00K | -2.01M |
| Investing Cash Flow | -167.00K | -2.25M | -109.00K | -244.00K | -118.00K |
| Financing Cash Flow | 8.93M | 11.65M | 1.67M | 1.18M | 4.02M |
Algorhythm Holdings Technical Analysis
Negative
1.20
Price Trends
1.06
Negative
1.20
Negative
1.63
Negative
Market Momentum
-0.12
Negative
39.33
Neutral
48.27
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 1.2 is above the 20-day moving average (MA) of 0.83, above the 50-day MA of 1.06, and below the 200-day MA of 1.63, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 39.33 is Neutral, neither overbought nor oversold. The STOCH value of 48.27 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 3 New Risks
1.
Our charter provides for limitations of director liability and indemnification of directors and officers and employees. Q1, 2023
2.
If securities analysts do not publish research or reports about our business or if they publish negative evaluations of our stock, the price of our common stock could decline. Q1, 2023
3.
A possible "short squeeze" due to a sudden increase in demand of our common stock that largely exceeds supply may lead to price volatility in our common stock. Q1, 2023
Algorhythm Holdings Peers Comparison
UnderperformOutperform
Sector (61)
RIME
Algorhythm Holdings
0.70
-1.92
-73.32%
MSN
Emerson Radio
0.40
<0.01
1.26%
WTO
UTime
0.94
-1,134.06
-99.92%
FOXX
Foxx Development Holdings
3.94
-1.86
-32.07%
WLDS
Wearable Devices Ltd.
0.77
-4.07
-84.16%
FEBO
Fenbo Holdings Limited
1.00
-0.25
-20.00%
Algorhythm Holdings Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Algorhythm Holdings Faces Default on SemiCab Promissory Note
Negative
May 7, 2026
On May 2, 2025, Algorhythm Holdings, Inc. issued a $1,750,000 promissory note to SemiCab Inc. in connection with an equity purchase agreement involving its subsidiary, SemiCab Holdings, LLC, with $1,500,000 due on May 2, 2026, and $250,000 due on ...
Business Operations and StrategyRegulatory Filings and Compliance
Algorhythm Updates Investor Presentation, Emphasizes Cautious Disclosure
Neutral
May 5, 2026
On May 5, 2026, Algorhythm Holdings, Inc. updated its corporate presentation, saying it will use the new materials in investor meetings and make them available on its website, while stressing that the presentation is being furnished to regulators ...
Business Operations and StrategyExecutive/Board Changes
Algorhythm Holdings Amends CEO Contract and Equity Incentives
Positive
Feb 27, 2026
On February 23, 2026, Algorhythm Holdings entered into an amended and restated three-year employment agreement with Chief Executive Officer Gary Atkinson, replacing his April 22, 2022 contract and providing for automatic one-year renewals. The new...
Business Operations and StrategyPrivate Placements and Financing
Algorhythm Holdings Secures New Pre-Paid Financing Agreement
Neutral
Feb 23, 2026
On February 17, 2026, Algorhythm Holdings, Inc. entered into a fourth secured pre-paid purchase agreement with Streeterville Capital, LLC under an existing securities purchase framework of up to $20 million, issuing a $10.355 million pre-paid purc...
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.