Algorhythm Holdings Recaps Transformational 2025 Marked by Key Customer Wins, Major Contract Expansions and Strong Revenue Growth

Rhea-AI Summary

Algorhythm Holdings (NASDAQ: RIME) recapped a transformational 2025 driven by SemiCab's AI logistics growth, new enterprise contracts, and product launches.

Key metrics: SemiCab ARR rose 220% from $2.5M in January to over $8M today, with a forward-looking ARR of $15M; the company reported a 10x increase in contracted freight volume and closed multiple multi-million-dollar contract expansions including a $6M award and up to $3M expansion.

Corporate actions: acquisition of SMCB Solutions India, divestiture of Singing Machine for $4.5M, and launch of Apex SaaS targeting the U.S. full-truckload market.

Positive

• ARR +220% from $2.5M to >$8M in 2025
• Forward-looking ARR of $15M from current contracts
• Largest contract expansion: $6M with Asian Paints
• Divestiture raised $4.5M and reduced cash burn
• Apex SaaS entry into $450B U.S. full-truckload market

Negative

• None.

Key Figures

ARR January 2025 $2.5 million SemiCab annualized revenue run-rate at start of 2025

Current ARR over $8 million SemiCab annualized revenue run-rate by year-end 2025

Forward-looking ARR $15 million Based on current SemiCab customer contracts and expansions

Freight volume growth 10x increase Increase in contracted freight volume during 2025

Business divestiture $4.5 million Sale of Singing Machine karaoke business to Stingray Group

Marico expansion up to $3 million Contract expansion for freight coverage across key India lanes

Asian Paints expansion $6 million Largest SemiCab contract expansion, lanes increased from 25 to 183

U.S. truckload TAM $450 billion Estimated size of U.S. full-truckload market targeted by Apex

Market Reality Check

$1.20 Last Close

Volume Volume 68,461 vs 229,542 20-day average (relative volume 0.3x) indicates muted trading interest ahead of this update. low

Technical Shares at $1.35 are trading below the $2.29 200-day moving average, reflecting a longer-term downtrend despite growth messaging.

Peers on Argus 1 Up 1 Down

Peers show mixed moves: BOXL -0.02%, FEBO -2.92%, AXIL -1.13%, while MSN +2.07% and WLDS +1.43%. Momentum scanner flags WLDS at +5.63% and MSN at -7.15%, suggesting stock-specific rather than broad sector drivers around this news.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 11	Contract expansion	Positive	+1.6%	Largest SemiCab contract expansion, boosting projected ARR above $13M.
Dec 05	Partnership announcement	Positive	+29.1%	Provisi.ai partnership to drive Apex SaaS growth in U.S. market.
Nov 24	Contract expansion	Positive	+9.0%	Marico expansion adding roughly $3M annualized revenue opportunity.
Nov 19	Earnings update	Positive	-23.2%	Q3 revenue up 1,273% YoY to $1.7M with improved operating metrics.
Nov 19	Earnings release	Positive	-23.2%	Detailed Q3 2025 financials and pivot to AI logistics/SaaS model.

Pattern Detected

Positive logistics and SaaS updates have often triggered strong upside moves, while major financial result disclosures have coincided with sharp declines.

Recent Company History

Over the last months, Algorhythm highlighted rapid scaling of its SemiCab logistics platform. On Nov 19, 2025, Q3 results showed revenue up 1,273% YoY to $1.7M, yet the stock fell about 23%. Subsequent India contract wins and expansions, including a Marico deal with roughly $3M annualized opportunity and a record $6M expansion lifting projected ARR above $13M, saw positive price reactions. A U.S. Apex SaaS partnership announcement on Dec 5 aligned with a near 29% gain, underscoring market interest in scalable SaaS growth.

Market Pulse Summary

This announcement details a year of rapid transformation, with SemiCab’s ARR rising from $2.5 million to over $8 million and forward-looking ARR of $15 million based on signed contracts. Multiple India FMCG wins, a record $6 million Asian Paints expansion, and launch of the Apex SaaS platform into a $450 billion U.S. full‑truckload market frame an asset‑light growth strategy. Investors may track execution on Apex pilots, additional contract expansions, and how this growth interacts with the company’s recently disclosed financing and capital‑structure developments.

Key Terms

software-as-a-service (saas) technical

"launched “Apex”, its new software-as-a-service (SaaS) platform that brings"

Software-as-a-service (SaaS) is a way of delivering software over the internet where customers pay a subscription to use applications hosted and maintained by a provider, like renting a tool or streaming a service rather than buying and installing it. For investors it matters because subscriptions create predictable, recurring revenue and can scale quickly with low distribution costs, while metrics like customer retention and churn directly affect future cash flow and valuation.

saas technical

"Apex”, its new software-as-a-service (SaaS) platform that brings SemiCab’s"

SaaS, or Software as a Service, is a way of delivering computer programs over the internet, allowing users to access and use them through a web browser without needing to install or maintain the software themselves. For investors, it highlights a business model where companies generate recurring revenue by providing ongoing access to their software, often leading to predictable income and growth potential.

ai technical

"SemiCab’s proprietary AI powered Collaborative Transportation Platform, which is quickly"

Artificial intelligence (AI) is technology that enables machines to mimic human thinking and learning, allowing them to analyze information, recognize patterns, and make decisions. For investors, AI matters because it can improve how businesses operate, create new products, or identify opportunities faster and more accurately than humans alone, potentially impacting company success and market trends.

3pls technical

"technology to 3PLs and multi-enterprise shippers in the United States."

3PLs are third‑party logistics providers — outside companies hired to handle warehousing, packing, shipping and related supply‑chain services for a business. Think of them as a professional moving and delivery team a company rents instead of running its own trucks and warehouses. Investors care because using 3PLs changes a company’s costs, speed of delivery, inventory flexibility and exposure to logistical risks, all of which can affect sales, margins and growth prospects.

full-truckload technical

"entry into the $450 billion U.S. full-truckload market through our new Apex"

A full-truckload is a freight shipment that fills an entire truck or uses the truck’s capacity for a single shipper, rather than sharing space with other customers. Like renting a whole moving van instead of using a shared courier, it usually moves faster and more directly, affects shipping costs, inventory timing and carbon footprint, and helps investors assess a company’s logistics efficiency and exposure to transportation price swings.

master service agreement financial

"the Company signed a new master service agreement with Bajaj Electricals, one"

A master service agreement (MSA) is a framework contract that sets standard terms—such as pricing rules, responsibilities, liability limits and dispute processes—for all future work between two parties, so individual projects only need a short statement of work. For investors, an MSA matters because it creates predictable revenue procedures, reduces deal-making friction, clarifies risk exposure and can speed sales cycles, improving the company’s ability to win and deliver repeat business.

AI-generated analysis. Not financial advice.

New Fortune 500 customer contracts, 10x increase in contracted freight volume, and successful launch of Apex SaaS platform are expected to drive accelerating long-term revenue growth 

Fort Lauderdale, FL, Dec. 22, 2025 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (“Algorhythm”) (NASDAQ: RIME) – a leading AI technology company, today issued a year-end business recap of the corporate transformation that it underwent during 2025 and the strong revenue growth achieved by its SemiCab business.

Algorhythm entered the second half of the year as a pure-play AI logistics platform following the divestiture of its legacy Singing Machine consumer electronics business in August. Algorhythm has entered a period of rapid growth due to the success of SemiCab’s proprietary AI powered Collaborative Transportation Platform, which is quickly being adopted by major global shippers and carriers that want to generate the cost savings and distribution efficiencies that SemiCab can deliver.

Financial Achievements

SemiCab achieved significant growth in a variety of financial metrics during the 2025 calendar year, including the following:

• SemiCab’s annualized revenue run-rate (ARR) increased 220% from $2.5 million in January to over $8 million today.
  
  
• SemiCab currently has a forward-looking ARR of $15 million based on current customer contracts and recent contract expansions.
  
  

Algorhythm expects these financial metrics to continue to improve throughout 2026 as it executes upon new contracts and contract expansions that SemiCab signed during 2025.

Contract Wins and Expansions

During 2025, SemiCab achieved five new contract wins with some of the largest multinational fast moving consumer goods companies (FMCGs) in India, and was awarded six contract expansions for increased lanes and trip volume ranging between 100% and 600%, including the following:

• In June, SemiCab announced that it was awarded a multi-million-dollar expansion by Proctor & Gamble India that covering new geographic regions across the country.
  
  
• In July, SemiCab announced that Kellanova awarded the Company a significant expansion into new freight lanes following a successful pilot program.
  
  
• In August, SemiCab announced that the Company signed a new master service agreement with Bajaj Electricals, one of the largest electronics manufacturers in India, with over $560 million in annual sales.
  
  
• In November, SemiCab announced it was awarded a contract expansion by Marico of up to a $3 million for freight coverage across key India distribution lanes.
  
  
• In December, the Company announced that Asian Paints, one of the 10 largest global shippers in the paints industry with over $4 billion in annual sales, awarded SemiCab a $6 million contract expansion, the largest in SemiCab’s history, increasing Asian Paints’ active lanes from 25 to 183.
  
  

These results reflect the scalability of SemiCab’s AI model and the strong demand from global FMCGs seeking to save money and reduce the number of empty and idle trucks on the roads.

Business Highlights

On a broader, strategic level, 2025 represented a transformative year for Algorhythm, marked by several major transactions and additions to its management team that transformed Algorhythm into a technology focused AI distribution and logistics company growing rapidly on two continents.

• Algorhythm completed the acquisition of SMCB Solutions Private Ltd., expanding its SemiCab AI logistics and distribution business into India.
  
  
• Algorhythm divested its legacy Singing Machine karaoke business to Stingray Group, a global audio and video streaming and distribution business, for $4.5 million, reducing its cash burn and improving its balance sheet.
  
  
• SemiCab, launched “Apex”, its new software-as-a-service (SaaS) platform that brings SemiCab’s proven AI-driven collaborative logistics technology to 3PLs and multi-enterprise shippers in the United States.
  
  
• SemiCab appointed Michael Silvagni as its new VP of U.S. Sales to drive SemiCab’s SaaS strategy in the United States and Vasudha Khurana as VP of Brand and Communications to lead its brand development, marketing strategies, and global go-to-market initiatives.
  
  
• SemiCab won “Best Value” Award from its largest customer at LogiMeet 2025.
  
  

Through these initiatives, Algorhythm solidified SemiCab’s stature as the preeminent leader in the AI logistics and distribution space in India and as an emerging force in the SaaS space in the United States.

Outlook for 2026

Algorhythm enters 2026 with a rapidly growing global footprint, a quickly expanding enterprise customer base, and an asset-light SaaS strategy designed to improve the company’s margins and the scalability of its software. SemiCab’s deep pipeline of FMCGs and new Apex SaaS platform will drive new enterprise pilots across India and the United States. This, coupled with additional contract expansions with existing FMCG customers, will drive strong revenue growth throughout 2026.

“2026 is going to be an exciting year for us as we continue to position the company for long-term accelerating growth,” stated Gary Atkinson, CEO of Algorhythm Holdings. “SemiCab has evolved into a leading high-growth AI logistics platform that is delivering real savings, real efficiency gains, and real environmental benefits to some of the world’s largest shippers. During 2025, we acquired several new and expanded enterprise relationships, secured the largest contract award in our Company’s history, and meaningfully increased our annual run-rate revenues to more than $8 million.”

“We recently marked our entry into the $450 billion U.S. full-truckload market through our new Apex SaaS platform,” continued Mr. Atkinson. “Apex will provide us with asset-light recurring revenue and high gross profit margins from platform licensing, accelerated market penetration through white-label partnerships, and a growing data ecosystem that strengthens AI accuracy and customer value. Apex allows us to serve 3PLs and enterprise shippers with a flexible, scalable solution that enhances – rather than replaces – their existing transportation systems. We believe 2026 will be a pivotal year as we scale our technology across new customers, new markets, and new geographies.”

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

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, 2024. 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.

FAQ

What was SemiCab's ARR change in 2025 for RIME?

SemiCab's ARR increased 220% from $2.5M in January to over $8M by Dec 22, 2025.

How large is Algorhythm's forward-looking ARR (RIME) after 2025 contracts?

Algorhythm reports a forward-looking ARR of $15M based on current contracts and expansions.

Which customers awarded multi-million-dollar expansions to SemiCab in 2025?

Notable 2025 expansions include Asian Paints ($6M), Marico (up to $3M), and expansions with Proctor & Gamble India and Kellanova.

What corporate transactions did Algorhythm (RIME) complete in 2025?

Algorhythm acquired SMCB Solutions India and divested Singing Machine for $4.5M in 2025.

What is Apex and how does it affect RIME's strategy in 2026?

Apex is SemiCab's SaaS platform targeting 3PLs and enterprise shippers in the U.S., aiming for asset-light recurring revenue and higher gross margins.

How much did contracted freight volume change for SemiCab in 2025?

Contracted freight volume increased by 10x during 2025 according to the company recap.