Algorhythm Holdings Announces Record First Quarter 2026 Financial Results
Rhea-AI Summary
Algorhythm Holdings (NASDAQ:RIME) reported record Q1 2026 results, with revenue rising 71% sequentially and 1,851% year-over-year to $2.4 million. Net loss narrowed to $5.4 million, cash and restricted cash reached $10.9 million, and total assets grew to $18.5 million. The company achieved ARR above $12 million, added major India customers, expanded contracts, raised $9.5 million under a financing facility, and returned to positive stockholders’ equity of $3.2 million, above Nasdaq’s $2.5 million listing threshold.
AI-generated analysis. Not financial advice.
Positive
- Q1 2026 revenue rose 71% sequentially to $2.4 million
- Revenue increased 1,851% year-over-year to $2.4 million
- Cash and restricted cash grew 78% to $10.9 million
- Net loss reduced 42% year-over-year to $5.4 million
- Stockholders’ equity improved to $3.2 million from a $1.9 million deficit
- Annualized revenue run rate exceeded $12 million
- Raised $9.5 million under a $20 million financing facility
- New and expanded contracts with Coca-Cola India, MTR Foods, Unilever India, Apollo Tyres
Negative
- Company still reported a net loss of $5.4 million in Q1 2026
- Cash and restricted cash declined to about $9.4 million by May 12, 2026 from $10.9 million at quarter-end
News Market Reaction – RIME
On the day this news was published, RIME gained 3.82%, reflecting a moderate positive market reaction. Argus tracked a peak move of +13.9% during that session. Argus tracked a trough of -16.0% from its starting point during tracking. Our momentum scanner triggered 9 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $374K to the company's valuation, bringing the market cap to $10.16M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
RIME was down 8.76% while peers showed mixed moves: BOXL -5.46%, FEBO +6.48%, WLDS +3.06%, AXIL +1.41%. Momentum scanner only flagged AXIL moving down, indicating RIME’s action has been stock-specific rather than a broad sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 02 | Full-year 2025 results | Positive | -4.5% | 2025 revenue up 1,367% and net loss down 32% with lower liabilities. |
| Nov 19 | Q3 2025 earnings | Positive | -23.2% | Q3 revenue up 1,273% YoY with lower operating expenses and losses. |
| Aug 20 | Q2 2025 earnings | Positive | -19.3% | Revenue and margins improved and net loss fell sharply versus 2024. |
| May 16 | Q1 2025 earnings | Negative | +3.5% | Revenue declined and net loss widened on large non-cash warrant expense. |
| Apr 16 | Full-year 2024 results | Negative | -4.0% | 2024 revenue fell and net loss increased during strategic transition. |
Earnings releases have often seen negative or contrary price reactions, with most past earnings days posting declines despite operational improvement.
Over the past year, Algorhythm’s earnings reports have focused on transforming into an AI-driven logistics platform and scaling SemiCab. Full-year 2024 results showed revenue pressure and higher losses, while 2025 results highlighted a 1,367% revenue jump and reduced net loss. Quarterly 2025 updates emphasized revenue growth, margin expansion, and lower losses. Despite these improvements, four of five earnings events were followed by share price declines, framing today’s record Q1 2026 results against a history of muted or negative market responses.
Historical Comparison
Past earnings headlines for RIME led to an average move of -9.52%, often negative even on improving fundamentals. Today’s record Q1 revenue and narrowed loss fit a pattern of strong reported growth following the SemiCab acquisition.
Earnings releases trace a shift from 2024 revenue and loss pressure to 2025’s high-growth SemiCab-driven profile, with recurring updates on ARR expansion, margin improvement, and narrowing losses as the AI logistics strategy scales.
Market Pulse Summary
This announcement details record Q1 2026 revenue of $2.4 million, a sharply lower net loss of $5.4 million, and stronger cash of $10.9 million, alongside an ARR above $12 million. It also notes additional funding under a $20 million facility and a return to positive stockholders’ equity of $3.2 million. Investors may track future quarters for sustained revenue growth, cash trends, and progress monetizing the Apex SaaS platform in U.S. and European markets.
Key Terms
annualized revenue run rate financial
arr financial
saas technical
stockholders’ equity financial
full-truckload technical
nasdaq regulatory
ai-powered technical
AI-generated analysis. Not financial advice.
Revenue Increases
Fort Lauderdale, FL, May 14, 2026 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (the “Company”) (NASDAQ: RIME) – a leading provider of AI-powered logistics solutions, today announced its financial results for the first quarter ended March 31, 2026, including the achievement of a record amount of revenue since becoming a pure-play AI technology company.
First Quarter 2026 Financial Highlights
- Revenue increased
$1.0 million , or71% , sequentially to$2.4 million for the three months ended March 31, 2026 compared to$1.4 million for the three months ended December 31, 2025. - Revenue increased
$2.3 million , or 1,851% , year-over-year to$2.4 million for the three months ended March 31, 2026 from$123,000 for the three months ended March 31, 2025. - Cash and restricted cash totaled
$10.9 million at March 31, 2026, an increase of78% compared to$6.1 million at December 31, 2025. - Net loss decreased
$3.9 million , or42% , to$5.4 million (of which$1.8 million consisted of non-cash expenses) for the three months ended March 31, 2026 from$9.3 million for the three months ended March 31, 2025. - Total assets grew
45% to$18.5 million at March 31, 2026 compared to$12.7 million at December 31, 2025.
“We are off to a strong start in 2026, with first quarter revenue growing more than
“Our balance sheet strengthened significantly during the first quarter,” added Alex Andre, Chief Financial Officer of Algorhythm Holdings. “We ended the quarter with
“We also reduced our net loss by more than
The Company expects net sales to continue to grow over the remainder of 2026 as its SemiCab business expands its customer base in India and begins generating revenue in the United States and Europe through its Apex SaaS platform.
First Quarter 2026 Business Highlights
During its first fiscal quarter, the Company made several notable announcements, including the following:
- The Company achieved an annualized revenue run rate (ARR) of more than
$12 million . - It entered into new service agreements with Coca-Cola India and MTR Foods and was awarded a contract expansion with Unilever India and Apollo Tyres.
- It raised an additional
$9.5 million under its existing$20 million financing facility. - SemiCab appointed Jonathan Miller as Vice President of U.S. Sales to drive sales of its Apex SaaS platform offering in the U.S. and Europe, bringing almost 30 years of logistics and freight technology leadership experience to the company.
“SemiCab has evolved into a leading high-growth AI logistics company that is delivering real savings, real efficiency gains, and real environmental benefits to some of the world’s largest shippers,” stated Mr. Atkinson. “The rollout of our Apex SaaS platform marks our entry into the more than
Conference Call Details
Management will host a conference call to discuss the financial results and provide a business update.
Date: Thursday, May 14, 2026
Time: 10:00 a.m. EDT
Dial-in number: 888-999-3182
Conference ID: RIME
About Algorhythm Holdings
Algorhythm Holdings, Inc. is a leading AI technology company focused on the growth and development of SemiCab, an emerging leader in the global logistics and distribution industry. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address common supply-chain problems globally. Its AI-enabled, cloud-based Collaborative Transportation Platform achieves the scalability required to predict and optimize millions of loads and hundreds of thousands of trucks. SemiCab uses real-time data from API-based load tendering and pre-built integrations with TMS and ELD partners to orchestrate collaboration across manufacturers, retailers, distributors, and their carriers. SemiCab uses AI/ML predictions and advanced predictive optimization models to enable fully loaded round trips. With SemiCab’s AI platform, shippers pay less and carriers make more without having to change a thing. For additional information, please go to: http://www.semicab.com
Investor Relations Contact
Brendan Hopkins
407-645-5295
investors@algoholdings.com
www.algoholdings.com
Media Contact
FischTank PR
Algorhythm@fischtankpr.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expects," "anticipates," "believes," "will," "will likely result," "will continue," "plans to," "potential," "promising," and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in Algorhythm’s reports to the SEC, including, without limitation Algorhythm’s Annual Report on Form 10-K for the year ended December 31, 2025. You should not place undue reliance on any forward-looking statement, each of which applies only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations, or as a result of new information, future events or otherwise.
Algorhythm Holdings, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, 2026 | December 31, 2025 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash | $ | 7,699,000 | $ | 1,632,000 | ||||
| Restricted cash | 3,240,000 | 4,514,000 | ||||||
| Accounts receivable, net of allowances of | 918,000 | 1,061,000 | ||||||
| Prepaid expenses and other current assets | 1,773,000 | 729,000 | ||||||
| Total Current Assets | 13,630,000 | 7,936,000 | ||||||
| Property and equipment, net | 34,000 | 22,000 | ||||||
| Other non-current assets | 81,000 | 79,000 | ||||||
| Intangible assets, net | 2,028,000 | 2,005,000 | ||||||
| Goodwill | 2,682,000 | 2,682,000 | ||||||
| Total Assets | $ | 18,455,000 | $ | 12,724,000 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 984,000 | $ | 1,413,000 | ||||
| Accrued expenses | 1,691,000 | 1,556,000 | ||||||
| Other current liabilities | 688,000 | 69,000 | ||||||
| Promissory notes payable, net | 9,498,000 | 9,102,000 | ||||||
| Notes payable to related parties | 2,300,000 | 2,300,000 | ||||||
| Total Current Liabilities | 15,161,000 | 14,440,000 | ||||||
| Long-term provision for employee benefits | 126,000 | 144,000 | ||||||
| Total Liabilities | 15,287,000 | 14,584,000 | ||||||
| Commitments and Contingencies | ||||||||
| Shareholders’ Equity (Deficit) | ||||||||
| Preferred stock, | - | - | ||||||
| Common stock, | 147,000 | 35,000 | ||||||
| Additional paid-in capital | 75,979,000 | 65,674,000 | ||||||
| Accumulated other comprehensive loss | (32,000 | ) | (25,000 | ) | ||||
| Accumulated deficit | (70,149,000 | ) | (65,043,000 | ) | ||||
| Non-controlling interest | (2,019,000 | ) | (1,743,000 | ) | ||||
| Treasury stock, 10,990 shares reserved at March 31, 2026 and December 31, 2025 | (758,000 | ) | (758,000 | ) | ||||
| Total Shareholders’ Equity (Deficit) | 3,168,000 | (1,860,000 | ) | |||||
| Total Liabilities and Shareholders’ Equity/ (Deficit) | $ | 18,455,000 | $ | 12,724,000 | ||||
See notes to the condensed consolidated financial statements
Algorhythm Holdings, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Three Months Ended | ||||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Net Sales | $ | 2,400,000 | $ | 123,000 | ||||
| Cost of Sales | 3,077,000 | 129,000 | ||||||
| Gross Loss | (677,000 | ) | (6,000 | ) | ||||
| Operating Expenses | ||||||||
| Selling expenses | 33,000 | - | ||||||
| General and administrative expenses | 3,634,000 | 1,056,000 | ||||||
| Total Operating Expenses | 3,667,000 | 1,056,000 | ||||||
| Loss From Operations | (4,344,000 | ) | (1,062,000 | ) | ||||
| Other Expenses | ||||||||
| Change in fair value of warrant liability | - | (6,468,000 | ) | |||||
| Interest expense, net | (1,036,000 | ) | (16,000 | ) | ||||
| Total Other Expenses | (1,036,000 | ) | (6,484,000 | ) | ||||
| Loss From Continuing Operations Before Income Tax | (5,380,000 | ) | (7,546,000 | ) | ||||
| Income tax loss attributable to continuing operations | - | - | ||||||
| Net Loss From Continuing Operations | (5,380,000 | ) | (7,546,000 | ) | ||||
| Net loss from discontinued operations | - | (1,748,000 | ) | |||||
| Net Loss | (5,380,000 | ) | (9,294,000 | ) | ||||
| Net loss attributable to non-controlling interest | 274,000 | 103,000 | ||||||
| Net Loss Available to Common Shareholders | $ | (5,106,000 | ) | $ | (9,191,000 | ) | ||
| Loss Per Common Share | ||||||||
| Basic and diluted from continuing operations | $ | (0.52 | ) | $ | (3.77 | ) | ||
| Basic and diluted from discontinued operations | - | (0.89 | ) | |||||
| Basic and diluted | $ | (0.52 | ) | $ | (4.66 | ) | ||
| Weighted Average Common and Common Equivalent Shares: | ||||||||
| Basic and diluted | 9,897,743 | 1,972,869 | ||||||
See notes to the condensed consolidated financial statements
