Algorhythm Holdings AI Stock Analysis
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Algorhythm Holdings (RIME) AI Stock Analysis
Algorhythm Holdings
(NASDAQ:RIME)
Algorhythm Holdings receives a distressed overall score of 44, driven primarily by catastrophic financial performance, profound unprofitability, and severe cash burn. The company is highly leveraged, which is reflected in its bottom-tier valuation and bearish long-term technical downtrend. The only notable bright spot comes from recent corporate events, including debt reduction and a bold strategic acquisition pivoting into renewable energy infrastructure. While this new trajectory and leadership overhaul offer a speculative glimmer of a turnaround, the stock remains highly volatile and carries immense operational and liquidity risks.
Algorhythm Holdings (RIME) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $2.14M
- Dividend Yield
- ―
- Average Volume (3M)
- 5.39M
- Price to Earnings (P/E)
- -0.0
- Beta (1Y)
- -0.83
- 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
Algorhythm Holdings exhibits severe financial distress with negative gross margins (-26.3%) and a staggering cash burn (-$11.13 million FCF). The balance sheet is highly leveraged with a debt-to-equity ratio of 2.68x, posing existential liquidity risks without immediate restructuring or capital injections.
Income Statement
12Very NegativeBalance Sheet
22NegativeCash 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 above the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.15, and below the 200-day MA of 0.71, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 44.72 is Neutral, neither overbought nor oversold. The STOCH value of 49.16 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
0 New RisksAlgorhythm Holdings Peers Comparison
Overall Rating
SONO72Outperform
TBCH64Neutral
GPRO44Neutral- RIME44Neutral
KOSS40Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| SONO | 72Outperform | $2.14B | 23.96 | 22.14% | ― | 7.18% | ― |
| TBCH | 64Neutral | $296.01M | -543.00 | -0.51% | ― | -13.02% | -103.02% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| GPRO | 44Neutral | $145.63M | -0.64 | -529.55% | ― | -23.86% | -36.75% |
| RIME | 44Neutral | $2.96M | -0.04 | -635.94% | ― | -63.48% | 97.83% |
| KOSS | 40Underperform | $30.72M | -35.11 | -2.90% | ― | -10.74% | -304.85% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| RIME | Algorhythm Holdings, Inc. | 0.10 | -1.81 | -94.53% | |
| MSN | Emerson Radio | 0.29 | -0.17 | -36.70% | |
| GPRO | GoPro Inc | 0.63 | -0.91 | -58.90% | |
| KOSS | Koss Corporation | 3.23 | -1.52 | -32.00% | |
| TBCH | Turtle Beach Corp | 16.29 | 2.60 | 18.99% | |
| SONO | Sonos Inc | 17.97 | 2.09 | 13.16% |
Algorhythm Holdings Corporate Events
Algorhythm Holdings Announces COO Role Transition and Restructuring
NeutralOn November 9, 2026, Ryan J. Smith transitioned from chief operating officer of Algorhythm Holdings, Inc. to Delivery Project Executive and resigned from his previous position in connection with the change. The transition was part of an internal rest...
Algorhythm Holdings Reduces Streeterville Capital Outstanding Balance
PositiveOn February 17, 2026, Algorhythm Holdings entered into Secured Pre-Paid Purchase #4 with Streeterville Capital under an agreement providing for up to $20 million in aggregate pre-paid purchases of common stock; PPP #4 had a $10,355,000 principal amou...
Algorhythm Holdings Appoints Gregory Smith CEO and Chairman
NeutralOn October 30, 2026, Algorhythm Holdings’ board accepted Andrew Thompson’s resignation as chief executive officer and chairman, effective immediately, with no disagreement cited. On November 2, 2026, the board appointed director Gregory D. Smith, who...
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...
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: Nov 13, 2026