What is Algorhythm Holdings Inc's earnings per share (EPS)?

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 Financials

RIME

Source SEC Filings (10-K/10-Q) Updated 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 2026-05-14

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.

Financial Health Signals

Financial Profile 16/100

Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). 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

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 0/100, suggesting thin profitability after operating expenses. This is up from -2842.4% the prior year.

Growth

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 0/100.

Leverage

Algorhythm Holdings Inc carries a low D/E ratio of -7.84, meaning only $-7.84 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 90/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

Algorhythm Holdings Inc's current ratio of 0.55 is below the typical benchmark, resulting in a score of 5/100. This tight liquidity could limit financial flexibility if cash inflows slow.

Cash Flow

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 0/100, reflecting heavy capital investment rather than weak cash generation.

Piotroski F-Score Neutral

5/9

Algorhythm Holdings Inc passes 5 of 9 financial strength tests. 2 of 4 profitability signals pass, 1 of 3 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

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	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	$4.4M+1378.5%	$297K-99.2%	$39.3M-17.3%	$47.5M+3.7%	$45.8M+19.0%	$38.5M
Cost of Revenue	$5.7M+1062.1%	$491K-98.4%	$30.1M-18.0%	$36.7M+9.5%	$33.5M+10.5%	$30.3M
Gross Profit	-$1.3M-577.8%	-$194K-102.1%	$9.2M-14.8%	$10.8M-12.1%	$12.3M+50.4%	$8.2M
R&D Expenses	N/A	N/A	$100K0.0%	$100K0.0%	$100K0.0%	$100K
SG&A Expenses	$6.6M+42.4%	$4.7M-50.8%	$9.5M+32.2%	$7.2M+8.5%	$6.6M+0.5%	$6.6M
Operating Income	-$7.9M+5.9%	-$8.4M-128.3%	-$3.7M-5459.4%	$69K-95.2%	$1.4M+143.9%	-$3.2M
Interest Expense	N/A	N/A	$33K	$0	N/A	$241K
Income Tax	$47K	N/A	$1.0M+1707.0%	$57K-87.5%	$457K+171.2%	-$642K
Net Income	-$15.9M+31.8%	-$23.3M-401.4%	-$4.6M-2116.5%	$230K-89.4%	$2.2M+176.0%	-$2.9M
EPS (Diluted)	$-6.41+98.2%	$-353.87-21346.7%	$-1.65-1278.6%	$0.14	$1.67+2485.7%	$-0.07

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	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$12.7M-30.5%	$18.3M+9.9%	$16.6M-26.5%	$22.7M+35.2%	$16.8M+1.0%	$16.6M
Current Assets	$7.9M-52.7%	$16.8M+10.3%	$15.2M-23.4%	$19.8M+52.9%	$13.0M-6.1%	$13.8M
Cash & Equivalents	$1.6M-77.4%	$7.2M+149.8%	$2.9M+26.4%	$2.3M+477.6%	$397K+14.9%	$345K
Inventory	N/A	$2.2M-75.9%	$9.1M-35.8%	$14.2M+157.9%	$5.5M-27.8%	$7.6M
Accounts Receivable	$1.1M	N/A	$2.1M-25.5%	$2.8M+26.0%	$2.2M+18.8%	$1.9M
Goodwill	$2.7M+241.2%	$786K	N/A	N/A	N/A	N/A
Total Liabilities	$14.6M-49.4%	$28.8M+356.2%	$6.3M-50.0%	$12.6M+42.7%	$8.9M-18.9%	$10.9M
Current Liabilities	$14.4M-49.2%	$28.4M+364.2%	$6.1M-49.0%	$12.0M+70.9%	$7.0M-26.0%	$9.5M
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	N/A
Total Equity	-$1.9M+82.3%	-$10.5M-201.8%	$10.3M+2.9%	$10.0M+26.9%	$7.9M+39.1%	$5.7M
Retained Earnings	-$65.0M-32.3%	-$49.2M-151.9%	-$19.5M-31.2%	-$14.9M-21.4%	-$12.3M+15.1%	-$14.4M

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	FY25	FY24	FY23	FY22	FY21	FY20
Operating Cash Flow	-$7.3M+14.6%	-$8.6M-2492.7%	-$330K+83.6%	-$2.0M-1276.5%	$171K-61.5%	$445K
Capital Expenditures	$14K-80.0%	$70K-71.3%	$244K+106.8%	$118K-41.3%	$201K-61.1%	$518K
Free Cash Flow	-$7.3M+15.1%	-$8.6M-1402.8%	-$574K+73.1%	-$2.1M-6966.1%	-$30K+58.6%	-$73K
Investing Cash Flow	N/A	-$2.2M-820.1%	-$244K-106.8%	-$118K+41.3%	-$201K+61.1%	-$518K
Financing Cash Flow	N/A	$11.6M+888.8%	$1.2M-70.7%	$4.0M+4836.0%	$82K-60.5%	$207K
Dividends Paid	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

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	FY25	FY24	FY23	FY22	FY21	FY20
Gross Margin	-29.9%+35.4pp	-65.3%-88.8pp	23.4%+0.7pp	22.8%-4.1pp	26.9%+5.6pp	21.2%
Operating Margin	-181.0%+2661.4pp	-2842.4%-2833.0pp	-9.4%-9.6pp	0.1%-3.0pp	3.1%+11.5pp	-8.4%
Net Margin	-361.4%+7469.2pp	-7830.6%-7818.8pp	-11.8%-12.3pp	0.5%-4.3pp	4.7%+12.2pp	-7.4%
Return on Equity	N/A	N/A	-44.9%-47.2pp	2.3%-25.2pp	27.5%+77.7pp	-50.2%
Return on Assets	-124.7%+2.3pp	-127.1%-99.2pp	-27.9%-28.9pp	1.0%-11.9pp	13.0%+30.2pp	-17.2%
Current Ratio	0.55-0.0	0.59-1.9	2.48+0.8	1.65-0.2	1.85+0.4	1.45
Debt-to-Equity	-7.84-5.1	-2.74-3.4	0.61-0.6	1.26+0.1	1.12-0.8	1.92
FCF Margin	-166.8%+2737.6pp	-2904.4%-2902.9pp	-1.5%+3.0pp	-4.5%-4.4pp	-0.1%+0.1pp	-0.2%

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

What is Algorhythm Holdings Inc's annual revenue?

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.

How fast is Algorhythm Holdings Inc's revenue growing?

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

Is Algorhythm Holdings Inc profitable?

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

What is Algorhythm Holdings Inc's EBITDA?

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

What is Algorhythm Holdings Inc's gross margin?

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.

What is Algorhythm Holdings Inc's operating margin?

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.

What is Algorhythm Holdings Inc's net profit margin?

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.

What is Algorhythm Holdings Inc's free cash flow?

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.

What is Algorhythm Holdings Inc's operating cash flow?

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

What are Algorhythm Holdings Inc's total assets?

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

What are Algorhythm Holdings Inc's capital expenditures?

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

How many shares does Algorhythm Holdings Inc have outstanding?

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

What is Algorhythm Holdings Inc's current ratio?

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.

What is Algorhythm Holdings Inc's debt-to-equity ratio?

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.

What is Algorhythm Holdings Inc's return on assets (ROA)?

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.

What is Algorhythm Holdings Inc's cash runway?

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.

Why is Algorhythm Holdings Inc's debt-to-equity ratio negative or unusual?

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.

What is Algorhythm Holdings Inc's Piotroski F-Score?

Algorhythm Holdings Inc (RIME) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. 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.

Are Algorhythm Holdings Inc's earnings high quality?

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.

How financially healthy is Algorhythm Holdings Inc?

Algorhythm Holdings Inc (RIME) scores 16 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.