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Algorhythm Holdings (RIME)
NASDAQ:RIME
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Algorhythm Holdings
(NASDAQ:RIME)
Rating:46Neutral
Price Target:
$2.50
▲(1.63% Upside)
Algorhythm Holdings (RIME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.19M
Dividend YieldN/A
Average Volume (3M)66.98K
Price to Earnings (P/E)―
Beta (1Y)0.21
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees25
SectorTechnology
Sector Strength94
IndustryConsumer Electronics
Share Statistics
EPS (TTM)-4.66
Shares Outstanding2,514,571
10 Day Avg. Volume69,506
30 Day Avg. Volume66,981
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.75
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit0.97
Enterprise Value/Ebitda-0.21
Forecast
1Y Price Target
$3.75Price Target Upside52.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Algorhythm Holdings Business Overview & Revenue Model
Company DescriptionAlgorhythm Holdings (RIME) is a technology-driven company specializing in data analytics and artificial intelligence solutions. The company operates primarily in the sectors of financial services and healthcare, offering core products that include advanced predictive analytics tools, machine learning algorithms, and data management systems. Algorhythm Holdings focuses on providing businesses with actionable insights to optimize their operations and enhance decision-making processes.
How the Company Makes MoneyAlgorhythm Holdings generates revenue through a combination of software licensing, subscription fees, and consulting services. The company charges clients for access to its proprietary analytics platforms, which are offered on a subscription basis, allowing businesses to leverage data-driven insights on an ongoing basis. Additionally, Algorhythm Holdings earns revenue from providing customized consulting services that help clients implement and optimize their analytics solutions. Key partnerships with major technology firms and healthcare providers further enhance its market reach and contribute to its overall earnings by facilitating access to a broader client base and enhancing product offerings.
Algorhythm Holdings Earnings Call Summary
Earnings Call Date:May 16, 2025
(Q1-2025)
| % Change Since: -5.38%|
Next Earnings Date:Aug 25, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. The acquisition and growth of SemiCab are clear highlights, showcasing potential for future growth, particularly in India. However, the decrease in sales, increased tariffs, and the impact of one-time charges present significant challenges. Overall, while there are promising developments, the immediate financial challenges balance out the positive aspects.Q1-2025 Updates
Positive Updates
Acquisition of SemiCab India
Algorhythm Holdings successfully acquired SemiCab India, which is expected to significantly impact the company's growth. SemiCab India is positioned as the exclusive technology provider to the National Digital Freight Exchange (NDFE) in India, handling a total freight spend of over $1.4 billion annually.
Growth in SemiCab Sales
SemiCab's U.S. and India sales have grown nearly five-fold since July of the previous year, with an increase in the number of clients and pilot programs with major companies such as Procter & Gamble and Unilever.
Improvement in Gross Margin
Gross margin improved from 21% to 25% due to a decrease in returns, despite a decrease in sales.
Compliance with NASDAQ Listing Requirements
Algorhythm Holdings achieved stockholders’ equity of $3.3 million, regaining compliance with NASDAQ’s listing requirements.
Negative Updates
Decrease in Sales
Sales decreased from $2.4 million in Q1 2024 to $2 million in Q1 2025, primarily due to lower sales of Singing Machine karaoke products.
Increased Tariffs and Trade War Impact
The company faces challenges from increased tariffs on goods imported from China, affecting the karaoke products business, which is expected to see decreased sales over the next 12 months.
Increased Expenses
Selling expenses increased to $760,000 from $630,000, and G&A expenses rose to $2.5 million from $2.1 million, largely due to investments in the SemiCab business.
One-Time Non-Cash Losses
The company recorded a one-time non-cash charge of $6.5 million related to the change in fair value of warrants, affecting stockholders’ equity and resulting in a decrease from $5 million to a deficit of $11.6 million at the end of 2024.
Company Guidance
During the 2025 first-quarter earnings call for Algorhythm Holdings, CEO Gary Atkinson highlighted the strategic acquisition of SemiCab India, emphasizing its role as the exclusive technology provider to the National Digital Freight Exchange (NDFE) in India. The NDFE, backed by the Indian government, facilitates a cooperative freight network for over 35 Fortune 1000 companies, addressing significant inefficiencies with an annual freight spend exceeding $1.4 billion. SemiCab has identified $400 million in potential optimizations within this spend. Despite a decrease in karaoke product sales from $2.4 million to $2 million due to inflation and tariffs, Algorhythm anticipates substantial revenue growth from SemiCab, projecting annualized revenue potential in India to surpass $20 million. Financially, the company improved its stockholders' equity to $3.3 million as of March 31, 2025, after overcoming a deficit caused by warrant liabilities.Algorhythm Holdings Financial Statement Overview
Summary
Algorhythm Holdings is facing severe financial challenges with declining revenues, consistent net losses, negative equity, and poor cash flow management. These issues indicate significant financial distress and a need for strategic restructuring.Income Statement
Algorhythm Holdings has experienced a decline in revenue from $38.93 million in 2023 to $23.49 million in 2024, reflecting a significant revenue drop. The gross profit margin has decreased, and the company has faced consistent net losses, with a net profit margin of -99.06% in 2024. The EBIT and EBITDA margins are also negative, indicating operational challenges. Overall, the income statement reflects declining sales and profitability, posing risks to financial stability.28
Negative
Balance Sheet
The balance sheet shows a concerning negative stockholders' equity of $-9.49 million in 2024, indicating financial distress. The debt-to-equity ratio cannot be calculated due to negative equity, but the high total liabilities compared to assets suggest leverage issues. The equity ratio is negative, further highlighting financial instability and potential solvency risks.15
Very Negative
Cash Flow
The company reported negative free cash flow in 2024 of $-8.63 million, highlighting cash flow challenges. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting profits to cash. The financing cash flow is positive, suggesting reliance on external financing. Overall, cash flow management appears weak, with significant operating cash outflows.32
Negative
| Breakdown | Dec 2024 | Dec 2023 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 23.49M | 38.93M | 39.30M | 47.51M | 45.80M |
| Gross Profit | 4.78M | 8.25M | 9.21M | 10.81M | 12.30M |
| EBITDA | -22.02M | -7.81M | -2.18M | 1.11M | 3.40M |
| Net Income | -23.26M | -8.53M | -4.64M | 230.00K | 2.17M |
Balance Sheet | |||||
| Total Assets | 18.30M | 27.71M | 16.65M | 22.67M | 16.76M |
| Cash, Cash Equivalents and Short-Term Investments | 7.55M | 6.70M | 2.90M | 2.29M | 396.58K |
| Total Debt | 650.00K | 4.01M | 735.65K | 4.42M | 3.42M |
| Total Liabilities | 28.82M | 20.14M | 6.32M | 12.63M | 8.85M |
| Stockholders Equity | -9.48M | 7.58M | 10.33M | 10.04M | 7.91M |
Cash Flow | |||||
| Free Cash Flow | -8.63M | 457.33K | -574.00K | -2.13M | -30.14K |
| Operating Cash Flow | -8.56M | 548.00K | -330.00K | -2.01M | 171.02K |
| Investing Cash Flow | -2.25M | -18.67K | -244.00K | -118.00K | -201.16K |
| Financing Cash Flow | 11.65M | 4.55M | 1.18M | 4.02M | 81.52K |
Algorhythm Holdings Technical Analysis
Negative
2.46
Price Trends
2.53
Negative
2.50
Negative
12.10
Negative
Market Momentum
-0.04
Positive
45.63
Neutral
26.67
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 2.46 is above the 20-day moving average (MA) of 2.44, below the 50-day MA of 2.53, and below the 200-day MA of 12.10, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 45.63 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 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.
If we do not continue to satisfy the nasdaq capital market continued listing requirements, our common stock could be delisted from the nasdaq capital market. Q1, 2023
2.
Certain provisions of our certificate of incorporation allow concentration of voting power, which may, among other things, delay or frustrate the removal of incumbent directors or a takeover attempt, even if such events may be beneficial to our stockholders. Q1, 2023
3.
Certain provisions of our certificate of incorporation, bylaws and delaware law make it more difficult for a third party to acquire us and make a takeover more difficult to complete, even if such a transaction were in the stockholders' interest. Q1, 2023
Algorhythm Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Performance Comparison
RIME
Algorhythm Holdings
2.32
-99.42
-97.72%
WLDS
Wearable Devices Ltd.
1.10
-32.06
-96.68%
FEBO
Fenbo Holdings Limited
0.72
-5.78
-88.92%
Algorhythm Holdings Corporate Events
M&A TransactionsBusiness Operations and Strategy
Algorhythm Holdings Sells Karaoke Business to Stingray
Positive
Aug 7, 2025
On August 1, 2025, Algorhythm Holdings sold its Singing Machine karaoke business to Stingray Music USA, a subsidiary of Stingray Group, for $4.5 million. This transaction, which eliminated approximately $4 million in liabilities and reduced annual cash outflows by over 70%, allows Algorhythm to focus on its AI freight platform, SemiCab. The sale marks a strategic shift for Algorhythm, enabling it to concentrate resources on SemiCab’s growth, which has significantly increased its revenue run rate since January 2025.
The most recent analyst rating on (RIME) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Algorhythm Holdings stock, see the RIME Stock Forecast page.
Executive/Board ChangesBusiness Operations and Strategy
Algorhythm Holdings Appoints Ajesh Kapoor to Board
Positive
May 23, 2025
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.
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.