Algorhythm Holdings Reports First Quarter 2025 Financial Results
Rhea-AI Summary
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.
AI-generated analysis. Not financial advice.
Positive
- Gross profit margin increased by 4.4% to 25.1%
- SemiCab India's revenue expected to double its current $4.6M run rate by year-end
- Potential to quadruple revenue to $23M in H2 2025 with additional fleet capacity
- 14% reduction in inventory levels
- Plans to expand fleet to over 1,000 vehicles by end-2025
Negative
- Revenue declined 16.7% to $2.0M from $2.4M YoY
- Net loss increased significantly to $9.2M from $2.4M YoY
- Operating loss widened to $2.8M from $2.3M YoY
- Declining karaoke business sales due to tariff impacts
- Low cash position of $3.3M given expanding operations
News Market Reaction – RIME
On the day this news was published, RIME gained 3.46%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Fort Lauderdale, FL, May 16, 2025 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (“Algorhythm”) (NASDAQ: RIME) – an AI technology and consumer electronics holding company, announced today its results of operations for the three-month period ended March 31, 2025.
Q1 2025 Financial Highlights
- Algorhythm reported revenue of
$2.0 million for the three months ended March 31, 2025 compared to$2.4 million for the three months ended March 31, 2024. - Gross profit margin increased by
4.4% to25.1% from20.7% compared to the same period of the prior year. Gross profit was$0.5 million for the three months ended March 31, 2025. - Loss from operations increased
$0.5 million to$2.8 million for the three months ended March 31, 2025, compared to$2.3 million for the three months ended March 31, 2024. - Net loss increased
$6.8 million to$9.2 million for the three months ended March 31, 2025, compared to$2.4 million for the three months ended March 31, 2024. - Adjusted net loss, a non-GAAP measure, was
$3.2 million for the three months ended March 31, 2025, compared to$2.4 million for the three months ended March 31, 2024. - Inventory was reduced by
14% during the three months ended March 31, 2025, from$2.2 million as of December 31, 2024 to$1.9 million as of March 31, 2025. - The Company had cash on hand to
$3.3 million as of March 31, 2025.
A reconciliation of adjusted net loss on a GAAP and non-GAAP basis is included in the table below entitled “Reconciliation of GAAP to non-GAAP Financial Measures”.
2025 Business Highlights
“2025 is off to an incredible start, highlighted by our recent acquisition of SMCB Solutions Private Ltd. (“SemiCab India”), which operates SemiCab’s AI enabled, cloud-based Collaborative Transportation Platform in the Indian market,” stated Gary Atkinson, Chief Executive Officer of Algorhythm. “SemiCab India is currently operating at an annualized revenue run rate of
“I am highly optimistic at the Company’s outlook for the back half of 2025 and beyond,” continued Mr. Atkinson. “I believe our strategic pivot into AI logistics services with SemiCab will prove to be the correct decision, particularly during this period of extreme economic volatility. We have already seen a seismic move of manufacturing coming into India as a result of tariffs. We foresee this will create opportunities to solve logistics problems and force more optimization throughout the transportation industry. We are committed to continue to invest into the growth of our SemiCab business to take advantage of these opportunities.”
Q1 2025 Financial Summary
Algorhythm generated revenue of
The Company reported a net loss for the three-month period ended March 31, 2025 of
“The warrants that we issued in December 2024 were subject to certain contingencies that resulted in us recording a warrant liability of
Non-GAAP Financial Measures
The Company prepares it’s consolidated financial statements in accordance with United States generally accepted accounting principles (“GAAP”). In addition to disclosing financial information prepared in accordance with GAAP, this release also includes non-GAAP operating income, non-GAAP net income and non-GAAP net income per share data for the periods presented. Management uses non-GAAP financial measures internally for financial and operational decision-making and as a means to evaluate period-to-period comparisons. The Company’s management believes that these non-GAAP financial measures provide useful supplemental information to management and investors regarding the performance of the Company's core business operations, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.
These non-GAAP financial measures are not recognized measures for financial statement presentation under U.S. GAAP and do not have standardized meanings. Accordingly, they may be different from similar non-GAAP financial measures presented by other companies. These non-GAAP financial measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP financial measures. Investors should consider these non-GAAP financial measures as a supplement to, and not as a substitute for, corresponding financial measures calculated in accordance with GAAP.
For the purposes of this press release, the following non-GAAP financial measures have the following meanings:
“Adjusted net loss” means net loss plus depreciation and amortization, reduction in SMCB loan in exchange for services, provision for estimated cost of returns, change in fair value of warrant liability, provision for inventory obsolescence, credit losses, reserve for sales returns, and stock-based compensation.
For further information, please refer to the Company’s Annual Report on Form 10-K filed with the SEC on April 15, 2025 and available online at www.sec.gov.
For a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please see the table below entitled “Reconciliation of GAAP to Non-GAAP Financial Measures”.
Conference Call Details:
Date: Friday, May 16, 2025
Time: 10:00 a.m. EDT
Dial-in number: 888-999-3182
Conference ID: RIME
An audio rebroadcast of the call will be available later in the day at:
About Algorhythm Holdings
Algorhythm Holdings, Inc. is an AI technology and consumer electronics holding company with two primary business units – SemiCab and Singing Machine.
SemiCab is an emerging leader in the global logistics and distribution industry. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address these 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
Singing Machine is the worldwide leader in consumer karaoke products. Based in Fort Lauderdale, Florida, and founded over forty years ago, it designs and distributes the industry's widest assortment of at-home and in-car karaoke entertainment products. Its product portfolio is marketed under both proprietary brands and popular licenses, including Carpool Karaoke and Sesame Street. Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select Wi-Fi-capable products and is also developing the world’s first globally available, fully integrated in-car karaoke system. Its products are sold in over 25,000 locations worldwide, including Amazon, Costco, Sam’s Club, Target, and Walmart.
For additional information, please go to www.singingmachine.com.
Investor Relations Contact:
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.
| Algorhythm Holdings, Inc. and Subsidiaries | ||||||||
| Consolidated Balance Sheets (Unaudited) | ||||||||
| March 31, 2025 | December 31, 2024 | |||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash | $ | 3,296,000 | $ | 7,550,000 | ||||
| Accounts receivable, net of allowances of | 1,385,000 | 4,373,000 | ||||||
| Accounts receivable, related party | 357,000 | 212,000 | ||||||
| Note receivable, related party | 1,201,000 | 701,000 | ||||||
| Inventory | 1,895,000 | 2,186,000 | ||||||
| Returns asset | 751,000 | 1,621,000 | ||||||
| Prepaid expenses and other current assets | 126,000 | 120,000 | ||||||
| Total Current Assets | 9,011,000 | 16,763,000 | ||||||
| Property and equipment, net | 253,000 | 284,000 | ||||||
| Other non-current assets | 81,000 | 124,000 | ||||||
| Intangible assets, net | 330,000 | 345,000 | ||||||
| Goodwill | 786,000 | 786,000 | ||||||
| Total Assets | $ | 10,461,000 | $ | 18,302,000 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 1,301,000 | $ | 3,808,000 | ||||
| Accrued expenses | 2,414,000 | 4,224,000 | ||||||
| Refund due to customer | 630,000 | 38,000 | ||||||
| Reserve for sales returns | 1,742,000 | 3,355,000 | ||||||
| Warrant liability | - | 16,603,000 | ||||||
| Current portion of notes payable to related parties | 551,000 | 265,000 | ||||||
| Other current liabilities | 97,000 | 145,000 | ||||||
| Total Current Liabilities | 6,735,000 | 28,438,000 | ||||||
| Notes payable to related parties, net of current portion | 385,000 | 385,000 | ||||||
| Total Liabilities | 7,120,000 | 28,823,000 | ||||||
| Commitments and Contingencies | ||||||||
| Shareholders' Equity (Deficit) | ||||||||
| Preferred stock, | ||||||||
| issued and outstanding at March 31, 2025 and December 31, 2024 | - | - | ||||||
| Common stock, | ||||||||
| 2,394,829 and 470,825 shares issued and outstanding at March 31, 2025 and | ||||||||
| December 31, 2024 | 24,000 | 5,000 | ||||||
| Additional paid-in capital | 63,577,000 | 39,682,000 | ||||||
| Accumulated deficit | (58,363,000 | ) | (49,172,000 | ) | ||||
| Non-controlling interest | (1,139,000 | ) | (1,036,000 | ) | ||||
| Treasury stock, 10,990 and -0- shares reserved at March 31, 2025 and 2024 | (758,000 | ) | - | |||||
| Total Algorhythm Holdings Shareholders' Equity (Deficit) | 3,341,000 | (10,521,000 | ) | |||||
| Total Liabilities and Shareholders' Equity (Deficit) | $ | 10,461,000 | $ | 18,302,000 | ||||
| Algorhythm Holdings, Inc. and Subsidiaries | ||||||||
| Consolidated Statements of Operations (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Net Sales | $ | 1,993,000 | $ | 2,426,000 | ||||
| Cost of Goods Sold | 1,493,000 | 1,924,000 | ||||||
| Gross Profit | 500,000 | 502,000 | ||||||
| Operating Expenses | ||||||||
| Selling expenses | 764,000 | 630,000 | ||||||
| General and administrative expenses | 2,546,000 | 2,159,000 | ||||||
| Total Operating Expenses | 3,310,000 | 2,789,000 | ||||||
| Loss from Operations | (2,810,000 | ) | (2,287,000 | ) | ||||
| Other Expenses | ||||||||
| Change in fair value of warrant liability | (6,468,000 | ) | - | |||||
| Interest expense | (16,000 | ) | (28,000 | ) | ||||
| Total Other Expenses | (6,484,000 | ) | (28,000 | ) | ||||
| Loss Before Income Tax Benefit | (9,294,000 | ) | (2,315,000 | ) | ||||
| Income Tax Provision | - | (52,000 | ) | |||||
| Net Loss | (9,294,000 | ) | (2,367,000 | ) | ||||
| Net loss attributable to non-controlling interest | 103,000 | - | ||||||
| Net Loss Available to Common Stockholders | $ | (9,191,000 | ) | $ | (2,367,000 | ) | ||
| Loss per common share | ||||||||
| Basic and diluted | $ | (4.66 | ) | $ | (73.76 | ) | ||
| Weighted Average Common and Common | ||||||||
| Equivalent Shares: | ||||||||
| Basic and diluted | 1,972,869 | 32,090 | ||||||
| Algorhythm Holdings, Inc. | ||||||||
| Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) | ||||||||
| Table 1: Adjusted Net Loss | ||||||||
| For the Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Net loss (as reported) | $ | (9,294,000 | ) | $ | (2,367,000 | ) | ||
| Depreciation and amortization | 91,000 | 136,000 | ||||||
| Reduction in SMCB loan in exchange for services | 172,000 | - | ||||||
| Provision for estimated cost of returns | 870,000 | 658,000 | ||||||
| Change in fair value of warrant liability | 6,468,000 | - | ||||||
| Provision for inventory obsolescence | 4,000 | - | ||||||
| Credit losses | 3,000 | 101,000 | ||||||
| Reserve for sales returns | (1,614,000 | ) | (971,000 | ) | ||||
| Stock based compensation | 85,000 | 19,000 | ||||||
| Adjusted net loss | $ | (3,215,000 | ) | $ | (2,424,000 | ) | ||
