Algorhythm Holdings Inc Stock Price, News & Analysis

Algorhythm Holdings (NASDAQ: RIME) has sold its Singing Machine karaoke business to Stingray Music USA for $4.5 million in a strategic transaction combining cash payment and assumption of selected liabilities. The deal eliminates approximately $4 million in liabilities from Algorhythm's balance sheet.

The sale marks a pivotal shift as Algorhythm focuses on its SemiCab AI freight platform, which has demonstrated significant growth with annualized revenue reaching $7 million, more than triple its January 2025 levels. The transaction will reduce annual cash outflows by over 70% and streamline operations by eliminating U.S. headcount associated with the consumer electronics division.

Algorhythm Holdings (NASDAQ: RIME) announced that its subsidiary, SemiCab India, has secured an expanded Master Services Agreement with Kellanova India. The agreement positions SemiCab as a top 5 transportation service provider for Kellanova India, focusing on the South-West-Central corridors.

The expansion follows a successful pilot program initiated in 2023, with SemiCab winning the competitive bid in Q1 2025. SemiCab's AI-powered Collaborative Transportation Platform will provide managed transportation services to Kellanova India, which commands approximately 75% market share in India's breakfast cereal category.

Algorhythm Holdings (NASDAQ: RIME) announced that its subsidiary, SemiCab India, has secured an expanded Master Services Agreement with a major CPG manufacturer. The agreement includes a 200% increase in serviced lanes to over 40 heavily populated routes across India. Additionally, SemiCab India is introducing a pioneering "drop & hook" freight model pilot program, marking its first implementation in India's FMCG sector. This innovative model allows drivers to drop full trailers and immediately hook up to pre-loaded ones, potentially reducing turnaround times by up to 80% and increasing monthly truck mileage from 3,200 to 5,000 miles with minimal additional costs. The program, set to launch in June 2025, leverages SemiCab's Collaborative Transportation Platform to overcome traditional infrastructure and operational constraints in the Indian market.

Algorhythm Holdings (NASDAQ: RIME) announced that its subsidiary SemiCab India has secured four new pilot agreements and four contract expansions with enterprise customers in India for its AI-powered digital freight orchestration platform. The contract expansions from existing clients are expected to increase lanes and volume by 100-200%, adding coverage for 20+ high-density lanes and boosting annualized revenue run rate by over 400% compared to Q1 2025. The new pilot programs, starting June 2025, came from NDFE members and expand operations to South-West-Central corridors. SemiCab India currently operates 140+ trucks with rights to add 450 more, targeting a fleet of 1,000 vehicles by end-2025. The company's platform aims to capture opportunities in India's freight transportation market, projected to grow from $140B to $240B by 2029.

Algorhythm Holdings (NASDAQ: RIME) has appointed Ajesh Kapoor to its board of directors, effective May 19, 2025. Kapoor brings over 30 years of logistics and supply chain technology expertise to the board. He is the Founder and CEO of SemiCab, an AI logistics company recognized as a Gartner Cool Vendor. Previously, he served as VP of Product Management at GT Nexus (acquired by Infor for $675M), Global Head of Supply Chain Advisory Services at Wipro Technologies, and Founder/CTO of GEOCOMtms (acquired by RedPrairie/Blue Yonder). Notably, Algorhythm acquired SemiCab's US business component in July 2024.

CEO Gary Atkinson highlighted Kapoor's proven track record in building successful companies and teams, expressing confidence in leveraging his expertise to accelerate the company's business transformation.

Algorhythm Holdings (NASDAQ: RIME) reported its Q1 2025 financial results, showing a decline in revenue to $2.0 million from $2.4 million in Q1 2024. The company's net loss widened to $9.2 million, largely due to $6.4 million in non-cash warrant-related expenses. Despite lower revenue, gross profit margin improved by 4.4% to 25.1%.

The company highlighted its recent acquisition of SMCB Solutions Private Ltd. (SemiCab India), which operates at a $4.6 million annualized revenue run rate and is expected to double by year-end. SemiCab India has expanded its fleet to 140 trucks with access to 450 more, potentially enabling revenue growth to $23 million in H2 2025. Algorhythm aims to grow its fleet to over 1,000 vehicles by end-2025.

While karaoke product sales decreased due to tariff impacts, management expects SemiCab's logistics business to offset these losses. The company ended Q1 with $3.3 million in cash and reduced inventory by 14% to $1.9 million.

Algorhythm Holdings (NASDAQ: RIME), an AI technology and consumer electronics holding company, has scheduled its Q1 2025 earnings release for Thursday, May 15, 2025. The company will follow up with a conference call on Friday, May 16, 2025, at 10:00 a.m. EDT to discuss financial results and provide a business update.

Investors can join the call using the dial-in number 888-999-3182 with Conference ID: RIME. An audio replay will be made available later that day on the company's investor relations website at https://ir.algoholdings.com.

Algorhythm Holdings (NASDAQ: RIME) announced a significant expansion of its SemiCab India subsidiary's fleet capacity through new freight services agreements with FTL carriers in Q1 2025. The company has increased its active fleet to 140 trucks, with rights to add 450 more trucks through current contracts. SemiCab India expects to expand further to over 1,000 trucks by end-2025 through new carrier relationships.

The expansion aims to meet growing demand from FMCG customers, with each long-haul FTL truck generating approximately $40,000 in annual freight revenue. With current supplier contracts enabling a fleet of 590 trucks, SemiCab India has the potential to increase its annualized revenue from $4.6 million to over $23 million in H2 2025, depending on demand.

Algorhythm Holdings (NASDAQ: RIME) has acquired SMCB Solutions Private Ltd. (SemiCab India) for $1.75 million in promissory notes and 119,742 shares of common stock (5% of outstanding shares). SemiCab India has shown impressive growth, more than doubling its annualized revenue run rate from $1.8M to $4.5M since January 2025, with expectations to double again by year-end.

The acquisition provides access to India's $1.3T logistics sector and establishes partnerships with leading FMCG companies. SemiCab's AI platform, selected by the National Digital Freight Exchange (NDFE), delivers significant improvements: increasing freight utilization from 65% to 90%, reducing shipping costs by 10%, boosting trucking capacity by 30%, and cutting carbon emissions by 25%.

This marks Algorhythm's second transaction with SemiCab, following its U.S. business acquisition in July 2024, and positions the company to scale operations by over 25x in the Indian market.