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Algorhythm Holdings Inc Financials

RIME
Source SEC Filings (10-K/10-Q) Data as of Mar 31, 2026 Currency USD FYE December

This page shows Algorhythm Holdings Inc (RIME) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 16 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI RIME FY2025

Algorhythm’s cost base and cash needs still reflect a much larger operation, while sales have shrunk below break-even scale.

FY2025 operating cash flow of -$7.3M was almost identical to free cash flow of -$7.3M, with capex only $14K; the cash drain is coming from running the business, not from expanding it. Paired with a current ratio of 0.5x and negative equity of -$1.9M, that points to an operating model being financed externally because current activity is not funding itself.

Gross losses in FY2024-FY2025 mean the company sold below direct cost, so overhead cuts alone would not fix profitability; the unit economics were negative before corporate expenses. That is a material break from FY2021-FY2023, when gross margin remained positive between 22.8% and 26.9% even as earnings weakened.

The balance sheet flipped from cushion to constraint: current ratio moved from 2.5x in FY2023 to 0.5x in FY2025 while cash fell from $2.9M to $1.6M. Earlier years also looked working-capital heavy, especially with inventory at $14.2M in FY2022, so the business first tied up cash in operations and now lacks the liquidity buffer that once helped absorb that strain.

[ NOT FINANCIAL ADVICE ]

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 17 / 100
Financial Health Score 17/100

Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →

Health score ≠ stock price. This rates the quality of Algorhythm Holdings Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability
14

Algorhythm Holdings Inc has an operating margin of -181.0%, meaning the company retains $-181 of operating profit per $100 of revenue. This below-average margin results in a low score of 14/100, suggesting thin profitability after operating expenses. This is up from -2842.4% the prior year.

Growth
1

Algorhythm Holdings Inc's revenue surged 1378.5% year-over-year to $4.4M, reflecting rapid business expansion. This strong growth earns a score of 1/100.

Leverage
56

Algorhythm Holdings Inc has a moderate D/E ratio of -7.84. This balance of debt and equity financing earns a leverage score of 56/100.

Liquidity
6

Algorhythm Holdings Inc's current ratio of 0.55 is below the typical benchmark, resulting in a score of 6/100. This tight liquidity could limit financial flexibility if cash inflows slow.

Cash Flow
7

While Algorhythm Holdings Inc generated -$7.3M in operating cash flow, capex of $14K consumed most of it, leaving -$7.3M in free cash flow. This results in a low score of 7/100, reflecting heavy capital investment rather than weak cash generation.

Altman Z-Score Distress
-9.16

Algorhythm Holdings Inc scores -9.16, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($7.9M) relative to total liabilities ($14.6M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.

Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.

Piotroski F-Score Partial
5/8

Algorhythm Holdings Inc passes 5 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 2 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, both operating efficiency signals pass.

Earnings Quality Low Quality
0.46x

For every $1 of reported earnings, Algorhythm Holdings Inc generates $0.46 in operating cash flow (-$7.3M OCF vs -$15.9M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.

Key Financial Metrics

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Earnings & Revenue

Revenue
$4.4M
YoY+1378.5%
5Y CAGR-35.2%
10Y CAGR-19.7%

Algorhythm Holdings Inc generated $4.4M in revenue in fiscal year 2025. This represents an increase of 1378.5% from the prior year.

EBITDA
-$7.9M
YoY+5.9%

Algorhythm Holdings Inc's EBITDA was -$7.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 5.9% from the prior year.

Net Income
-$15.9M
YoY+31.8%

Algorhythm Holdings Inc reported -$15.9M in net income in fiscal year 2025. This represents an increase of 31.8% from the prior year.

EPS (Diluted)
$-6.41
YoY+98.2%

Algorhythm Holdings Inc earned $-6.41 per diluted share (EPS) in fiscal year 2025. This represents an increase of 98.2% from the prior year.

Cash & Balance Sheet

Free Cash Flow
-$7.3M
YoY+15.1%

Algorhythm Holdings Inc generated -$7.3M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 15.1% from the prior year.

Cash & Debt
$1.6M
YoY-77.4%
5Y CAGR+36.4%
10Y CAGR+30.2%

Algorhythm Holdings Inc held $1.6M in cash against $0 in long-term debt as of fiscal year 2025.

Dividends Per Share
N/A
Shares Outstanding
3M
YoY-80.9%

Algorhythm Holdings Inc had 3M shares outstanding in fiscal year 2025. This represents a decrease of 80.9% from the prior year.

Margins & Returns

Gross Margin
-29.9%
YoY+35.4pp
5Y CAGR-51.2pp
10Y CAGR-51.1pp

Algorhythm Holdings Inc's gross margin was -29.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 35.4 percentage points from the prior year.

Operating Margin
-181.0%
YoY+2661.4pp
5Y CAGR-172.6pp
10Y CAGR-182.5pp

Algorhythm Holdings Inc's operating margin was -181.0% in fiscal year 2025, reflecting core business profitability. This is up 2661.4 percentage points from the prior year.

Net Margin
-361.4%
YoY+7469.2pp
5Y CAGR-354.0pp
10Y CAGR-361.9pp

Algorhythm Holdings Inc's net profit margin was -361.4% in fiscal year 2025, showing the share of revenue converted to profit. This is up 7469.2 percentage points from the prior year.

Return on Equity
N/A

Capital Allocation

R&D Spending
N/A
Share Buybacks
N/A
Capital Expenditures
$14K
YoY-80.0%
5Y CAGR-51.4%
10Y CAGR-8.9%

Algorhythm Holdings Inc invested $14K in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 80.0% from the prior year.

RIME Income Statement

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Revenue $2.4M N/A $1.7M-35.8% $2.7M+2108.1% $123K N/A $127K-94.8% $2.4M
Cost of Revenue $3.1M N/A $2.1M+18.9% $1.8M+1265.9% $129K N/A $159K-92.5% $2.1M
Gross Profit -$677K N/A -$351K-136.8% $954K+16000.0% -$6K N/A -$32K-109.9% $324K
R&D Expenses N/A N/A N/A N/A N/A N/A N/A N/A
SG&A Expenses $3.6M N/A $1.2M-19.4% $1.5M+42.2% $1.1M N/A $1.8M-12.8% $2.1M
Operating Income -$4.3M N/A -$1.6M-100.1% -$782K+26.4% -$1.1M N/A -$1.8M+70.4% -$6.2M
Interest Expense $13K N/A $34K N/A N/A N/A N/A $17K
Income Tax N/A N/A $24K N/A N/A N/A N/A -$52K
Net Income -$5.1M N/A -$3.0M-266.1% -$809K+91.2% -$9.2M N/A $1.2M+119.5% -$6.1M
EPS (Diluted) $-0.52 N/A $-1.15-379.2% $-0.24+94.8% $-4.66 N/A $0.13+100.1% $-190.68

RIME Balance Sheet

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Total Assets $18.5M+45.0% $12.7M+17.3% $10.8M-14.6% $12.7M+21.4% $10.5M-42.8% $18.3M-6.7% $19.6M+58.6% $12.4M
Current Assets $13.6M+71.7% $7.9M+43.9% $5.5M-27.6% $7.6M-15.4% $9.0M-46.2% $16.8M+16.4% $14.4M+22.2% $11.8M
Cash & Equivalents $7.7M+371.8% $1.6M-42.5% $2.8M+150.4% $1.1M-65.6% $3.3M-54.4% $7.2M+1064.7% $621K-50.1% $1.2M
Inventory N/A N/A N/A $2.7M+44.2% $1.9M-13.3% $2.2M-70.2% $7.3M+6.0% $6.9M
Accounts Receivable $918K-13.5% $1.1M N/A N/A N/A N/A N/A N/A
Goodwill $2.7M0.0% $2.7M-39.3% $4.4M0.0% $4.4M+462.1% $786K0.0% $786K-76.6% $3.4M N/A
Total Liabilities $15.3M+4.8% $14.6M+35.7% $10.7M+8.7% $9.9M+38.8% $7.1M-75.3% $28.8M+70.8% $16.9M+27.4% $13.2M
Current Liabilities $15.2M+5.0% $14.4M+37.6% $10.5M+13.5% $9.3M+37.3% $6.7M-76.3% $28.4M+72.5% $16.5M+81.1% $9.1M
Long-Term Debt N/A N/A N/A N/A N/A N/A N/A N/A
Total Equity $3.2M+270.3% -$1.9M-1960.0% $100K-96.4% $2.8M-15.9% $3.3M+131.8% -$10.5M-489.7% $2.7M+409.6% -$872K
Retained Earnings -$70.1M-7.9% -$65.0M-5.1% -$61.9M-5.0% -$58.9M-1.0% -$58.4M-18.7% -$49.2M-48.1% -$33.2M+3.5% -$34.4M

RIME Cash Flow Statement

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Operating Cash Flow -$3.9M-32.2% -$3.0M-371.4% $1.1M+147.0% -$2.3M+25.1% -$3.1M+35.1% -$4.8M-391.8% $1.6M+157.5% -$2.9M
Capital Expenditures $14K+250.0% $4K+133.3% -$12K N/A N/A $0-100.0% $64K N/A
Free Cash Flow -$3.9M-32.5% -$3.0M-374.7% $1.1M N/A N/A -$4.8M-403.7% $1.6M N/A
Investing Cash Flow N/A N/A N/A -$686K-1.9% -$673K+69.3% -$2.2M-4563.8% -$47K N/A
Financing Cash Flow N/A N/A N/A $852K+280.1% -$473K-104.5% $10.6M+880.4% $1.1M+5252.4% -$21K
Dividends Paid N/A N/A N/A N/A N/A N/A N/A N/A
Share Buybacks N/A N/A N/A N/A N/A N/A N/A N/A

RIME Financial Ratios

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Gross Margin -28.2% N/A -20.1%-55.3pp 35.1%+40.0pp -4.9% N/A -25.2%-38.5pp 13.3%
Operating Margin -181.0% N/A -89.7%-60.9pp -28.8%+834.6pp -863.4% N/A -1435.4%-1183.2pp -252.2%
Net Margin -212.8% N/A -169.8%-140.0pp -29.8%+7442.6pp -7472.4% N/A 940.9%+1191.7pp -250.8%
Return on Equity -161.2% N/A -2962.0%-2933.2pp -28.8%+246.3pp -275.1% N/A 44.3% N/A
Return on Assets -27.7% N/A -27.3%-20.9pp -6.4%+81.5pp -87.9% N/A 6.1%+55.6pp -49.5%
Current Ratio 0.90+0.3 0.55+0.0 0.53-0.3 0.82-0.5 1.34+0.7 0.59-0.3 0.87-0.4 1.30
Debt-to-Equity 4.83+12.7 -7.84-115.3 107.45+103.9 3.52+1.4 2.13+4.9 -2.74-9.0 6.25+21.4 -15.18
FCF Margin -164.0% N/A 62.0% N/A N/A N/A 1240.9% N/A

Note: Shareholder equity is negative (-$1.9M), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.

Note: The current ratio is below 1.0 (0.55), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.

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Frequently Asked Questions

Algorhythm Holdings Inc (RIME) reported $4.4M in total revenue for fiscal year 2025. This represents a 1378.5% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

Algorhythm Holdings Inc (RIME) revenue grew by 1378.5% year-over-year, from $297K to $4.4M in fiscal year 2025.

No, Algorhythm Holdings Inc (RIME) reported a net income of -$15.9M in fiscal year 2025, with a net profit margin of -361.4%.

Algorhythm Holdings Inc (RIME) reported diluted earnings per share of $-6.41 for fiscal year 2025. This represents a 98.2% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Algorhythm Holdings Inc (RIME) had EBITDA of -$7.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

Algorhythm Holdings Inc (RIME) had a gross margin of -29.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

Algorhythm Holdings Inc (RIME) had an operating margin of -181.0% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

Algorhythm Holdings Inc (RIME) had a net profit margin of -361.4% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Algorhythm Holdings Inc (RIME) generated -$7.3M in free cash flow during fiscal year 2025. This represents a 15.1% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

Algorhythm Holdings Inc (RIME) generated -$7.3M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Algorhythm Holdings Inc (RIME) had $12.7M in total assets as of fiscal year 2025, including both current and long-term assets.

Algorhythm Holdings Inc (RIME) invested $14K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Algorhythm Holdings Inc (RIME) had 3M shares outstanding as of fiscal year 2025.

Algorhythm Holdings Inc (RIME) had a current ratio of 0.55 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.

Algorhythm Holdings Inc (RIME) had a debt-to-equity ratio of -7.84 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

Algorhythm Holdings Inc (RIME) had a return on assets of -124.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

Based on fiscal year 2025 data, Algorhythm Holdings Inc (RIME) had $1.6M in cash against an annual operating cash burn of $7.3M. This gives an estimated cash runway of approximately 3 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.

Algorhythm Holdings Inc (RIME) has negative shareholder equity of -$1.9M as of fiscal year 2025, which causes the debt-to-equity ratio to appear negative or not meaningful. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.

Algorhythm Holdings Inc (RIME) has an Altman Z-Score of -9.16, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

Algorhythm Holdings Inc (RIME) has a Piotroski F-Score of 5 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Algorhythm Holdings Inc (RIME) has an earnings quality ratio of 0.46x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Algorhythm Holdings Inc (RIME) scores 17 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.

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