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Algorhythm Holdings (RIME) AI Stock Analysis
Algorhythm Holdings
(NASDAQ:RIME)
The overall score of 42 reflects a company in severe financial distress, with collapsing revenue, negative margins, high debt, and significant cash burn. The stock's technical trend is deeply bearish. The primary positive offset is a recent corporate event involving a strategic pivot into renewable energy and new leadership, which introduces potential for a turnaround but carries substantial execution and dilution risk.
Algorhythm Holdings (RIME) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $1.96M
- Dividend Yield
- ―
- Average Volume (3M)
- 3.83M
- Price to Earnings (P/E)
- -0.0
- Beta (1Y)
- -0.72
- Revenue Growth
- -63.48%
- EPS Growth
- 97.83%
- Country
- US
- Employees
- 48
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Consumer Electronics
Algorhythm Holdings Business Overview & Revenue Model
Company Description
Algorhythm Holdings, Inc., along with its affiliated companies, operates globally in the consumer entertainment sector, specializing in karaoke. The company is responsible for designing, marketing, and distributing a range of audio equipment, accompa...
Algorhythm Holdings Earnings Call Summary
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.
Q1-2026 Updates
Positive Updates
Negative 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
Financial health is critically weak. Revenue has collapsed, gross margins are negative, and net losses are substantial (-183% of revenue). The balance sheet is highly leveraged with a debt-to-equity ratio of 2.7, and cash flows are deeply negative, indicating a severe cash burn. These factors present a high-risk profile.
Income Statement
15Very NegativeBalance Sheet
12Very NegativeCash Flow
10Very Negative| Breakdown | TTM | Mar 2026 | Mar 2025 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.52M | 4.39M | 23.49M | 32.58M | 39.30M | 47.51M |
| Gross Profit | -2.24M | -1.31M | 4.78M | 7.01M | 9.21M | 10.81M |
| EBITDA | -12.66M | -14.17M | -22.02M | -7.95M | -2.18M | 1.91M |
| Net Income | -15.63M | -16.05M | -23.26M | -9.38M | -4.64M | 230.00K |
Balance Sheet | ||||||
| Total Assets | 18.57M | 12.72M | 18.30M | 27.71M | 16.65M | 34.06M |
| Cash, Cash Equivalents and Short-Term Investments | 4.97M | 1.63M | 7.55M | 6.70M | 2.90M | 7.38M |
| Total Debt | 9.02M | 11.40M | 650.00K | 4.01M | 735.65K | 10.78M |
| Total Liabilities | 15.29M | 14.58M | 28.82M | 20.14M | 6.32M | 22.26M |
| Stockholders Equity | 3.28M | -117.00K | -9.48M | 7.58M | 10.33M | 11.80M |
Cash Flow | ||||||
| Free Cash Flow | -11.13M | -9.86M | -8.63M | 457.33K | -574.00K | -2.13M |
| Operating Cash Flow | -11.00M | -9.85M | -8.56M | 548.00K | -330.00K | -2.01M |
| Investing Cash Flow | 167.00K | -167.00K | -2.25M | -109.00K | -244.00K | -118.00K |
| Financing Cash Flow | 17.98M | 8.93M | 11.65M | 1.67M | 1.18M | 4.02M |
Algorhythm Holdings Technical Analysis
Price Trends
Market Momentum
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 0.10 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.18, and below the 200-day MA of 0.75, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 30.15 is Neutral, neither overbought nor oversold. The STOCH value of 34.39 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.
Latest Risks Added
3 New RisksAlgorhythm Holdings Peers Comparison
Overall Rating
SONO61Neutral
TBCH54Neutral
GPRO44Neutral
KOSS44Neutral- RIME42Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| SONO | 61Neutral | $1.91B | -50.74 | -9.55% | ― | 5.64% | ― |
| TBCH | 54Neutral | $287.45M | -85.26 | -2.96% | ― | -17.54% | -118.65% |
| GPRO | 44Neutral | $202.12M | -0.97 | -529.55% | ― | -23.86% | -36.75% |
| KOSS | 44Neutral | $32.09M | -34.02 | -2.90% | ― | -10.74% | -304.85% |
| RIME | 42Neutral | $2.00M | -0.03 | -635.94% | ― | -63.48% | 97.83% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| RIME | Algorhythm Holdings, Inc. | 0.10 | -1.94 | -95.29% | |
| MSN | Emerson Radio | 0.32 | -0.18 | -36.87% | |
| GPRO | GoPro Inc | 0.95 | -0.73 | -43.49% | |
| KOSS | Koss Corporation | 3.13 | -1.48 | -32.10% | |
| TBCH | Turtle Beach Corp | 15.73 | -0.56 | -3.44% | |
| SONO | Sonos Inc | 15.73 | -0.68 | -4.14% |
Algorhythm Holdings Corporate Events
Algorhythm Updates Investor Presentation and Communications Disclosure
NeutralOn September 21, 2026, Algorhythm Holdings, Inc. and Continuation Capital, Inc. agreed to terminate a July 21, 2026 settlement agreement covering company liabilities originally totaling about $1.93 million, which had been tied to the issuance of up t...
Algorhythm pivots into renewable energy with Azure acquisition
PositiveOn September 15, 2026, Algorhythm Holdings, through its Azure Holdings subsidiary, closed an asset purchase from Azure Energy, LLC, acquiring substantially all assets and selected liabilities of a waste-to-power and biomass-to-power renewable energy...
Algorhythm Settles Liabilities Through Equity Issuance Agreement
NeutralOn July 21, 2026, Algorhythm Holdings, Inc. entered into a settlement agreement with Continuation Capital, Inc. to resolve approximately $1.93 million in acquired liabilities by issuing up to 5 million shares of common stock, with CCI’s holding...
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.
Date of analysis: Oct 24, 2026