Algorhythm Holdings Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
Algorhythm Holdings (NASDAQ:RIME) reported Q2 2026 revenue of $3.0 million, up 25% sequentially from $2.4 million and 161% year over year from $1.2 million. Management highlighted an 850 bps sequential improvement in gross margin percentage, though the quarter still showed a gross loss of $593,000.
Net loss available to common shareholders was $3.8 million versus $585,000 in Q2 2025, driven by a $2.7 million operating loss and $1.4 million in other expenses, including $1.0 million of net interest expense and a $400,000 loss on debt extinguishment. Cash and restricted cash totaled about $8.0 million, with total assets of $18.6 million versus $12.7 million at year-end 2025. Shareholders’ equity improved to $3.3 million from a deficit of $1.9 million.
Business highlights included expanding SemiCab’s contract with Procter & Gamble India (approximately 32% increase in annualized contract value), signing a new Master Services Agreement with Onida Electronics, continued rollout of the Apex SaaS platform in North America, and appointing a Vice President of U.S. Sales.
Positive
- Revenue $3.0M in Q2 2026, up 25% sequentially and 161% YoY
- Total assets $18.6M at June 30, 2026, up 46% from $12.7M
- Shareholders’ equity improved to $3.3M from a $(1.9)M deficit
- Cash and restricted cash of about $8.0M as of June 30, 2026
- Expanded Procter & Gamble India contract, raising annualized value ~32%
- New Master Services Agreement signed with Onida Electronics in India
Negative
- Q2 2026 net loss available to common shareholders of $3.8M
- Operating loss of $2.7M in Q2 2026 versus $1.2M in Q2 2025
- Gross loss of $593K in Q2 2026 despite higher revenue
- Interest expense, net rose to $1.0M from $27K in Q2 2025
- Six‑month net loss of $9.5M for 2026 versus $10.1M in 2025
- Current liabilities of $14.9M exceed current assets of $13.4M at June 30, 2026
News Explained
The Q2 balance sheet reports
Market Reaction – RIME
Following this news, RIME has declined 11.60%, reflecting a significant negative market reaction. Argus tracked a trough of -10.7% from its starting point during tracking. Our momentum scanner has triggered 11 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $0.40. Trading volume is exceptionally heavy at 30.3x the average, suggesting significant selling pressure.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 14 | Q1 2026 earnings | Positive | +3.8% | Revenue growth, narrower loss, higher cash, and positive stockholders’ equity |
| Apr 02 | 2025 earnings report | Positive | -4.5% | Revenue growth, narrower net loss, lower liabilities, and expanded logistics operations |
| Nov 19 | Q3 2025 earnings | Positive | -23.2% | Revenue growth, lower operating expenses, asset sale, and logistics expansion |
| Aug 20 | Q2 2025 earnings | Positive | -19.3% | Higher revenue, improved margin, reduced loss, and new logistics contracts |
| May 16 | Q1 2025 earnings | Negative | +3.5% | Lower revenue, wider net loss, and negative effects from discontinued operations |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-matched earnings announcements produced four divergences among five observations, with an average 24-hour move of -7.96%.
Key Terms
basis points financial
restricted cash financial
master services agreement regulatory
saas platform technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Revenue Increases
Fort Lauderdale, FL, Aug. 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 second quarter ended June 30, 2026.
Q2 2026 Financial Highlights
- Revenue increased
25% sequentially to$3.0 million for the second quarter of 2026 compared to$2.4 million in the first quarter of 2026. - Revenue increased
$1.8 million , or161% , from$1.2 million in the second quarter of 2025. - Gross margin percentage improved by 850 basis points or approximately
30% sequentially. - Cash and restricted cash totaled approximately
$8.0 million as of June 30, 2026. - Total assets grew
46% to$18.6 million at June 30, 2026 from$12.7 million at December 31, 2025.
Q2 2026 Business Highlights
During the quarter, the Company’s business continued to execute on numerous fronts as follows:
- Expanded SemiCab's relationship with Procter & Gamble India through an additional contract expansion, increasing annualized contract value by approximately
32% . - Signed a new Master Services Agreement with Onida Electronics, expanding SemiCab's enterprise customer portfolio in India.
- Continued commercial expansion of the SemiCab Apex SaaS platform in North America through investments in business development and the hiring of Jonathan Miller as Vice President of U.S. Sales.
- Participated as a Gold Sponsor at Reuters Events: Supply Chain USA 2026, showcasing Apex to enterprise shippers, logistics providers and transportation leaders.
- Hosted the inaugural SemiCab Freight Network Forum, bringing together supply chain executives to discuss AI, freight orchestration and transportation network optimization.
CEO Commentary
"We are pleased with our second quarter financial results, highlighted by continued strong sequential and year-over-year revenue growth," said Gary Atkinson, Chief Executive Officer of Algorhythm Holdings. “Revenue was
“During the quarter, we signed a new master services agreement with Onida Electronics and expanded our relationship with Procter & Gamble India, providing us with additional validation for our SemiCab technology platform,” continued Mr. Atkinson. “We also engaged in a variety of public networking events, showcasing our Apex SaaS product offering as a Gold Sponsor at Reuters Events: Supply Chain USA 2026 and hosting our inaugural SemiCab Freight Network Forum.”
“Looking ahead, our focus will be on financial discipline,” added Mr. Atkinson. “We will be focused on controlling our costs and reducing our expenses where we can as we continue to evaluate business and acquisition opportunities that we believe will enhance long-term shareholder value. We are excited about what the future holds for Algorhythm Holdings.”
About Algorhythm Holdings
Algorhythm Holdings, Inc. is a leading AI technology company that owns and operates SemiCab. 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
| June 30, 2026 | December 31, 2025 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash | $ | 4,972,000 | $ | 1,632,000 | ||||
| Restricted cash | 2,983,000 | 4,514,000 | ||||||
| Accounts receivable, net of allowances of | 1,444,000 | 1,061,000 | ||||||
| Prepaid expenses and other current assets | 3,988,000 | 729,000 | ||||||
| Total Current Assets | 13,387,000 | 7,936,000 | ||||||
| Property and equipment, net | 36,000 | 22,000 | ||||||
| Operating lease- right of use assets | 304,000 | - | ||||||
| Other non-current assets | 95,000 | 79,000 | ||||||
| Intangible assets, net | 2,064,000 | 2,005,000 | ||||||
| Goodwill | 2,682,000 | 2,682,000 | ||||||
| Total Assets | $ | 18,568,000 | $ | 12,724,000 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 2,229,000 | $ | 1,413,000 | ||||
| Accrued expenses | 3,106,000 | 1,556,000 | ||||||
| Other current liabilities | 756,000 | 69,000 | ||||||
| Current portion of operating lease liabilities | 90,000 | - | ||||||
| Promissory notes payable, net | 6,413,000 | 9,102,000 | ||||||
| Notes payable to related parties | 2,300,000 | 2,300,000 | ||||||
| Total Current Liabilities | 14,894,000 | 14,440,000 | ||||||
| Operating lease liabities, net of current portion | 216,000 | - | ||||||
| Long-term provision for employee benefits | 178,000 | 144,000 | ||||||
| Total Liabilities | 15,288,000 | 14,584,000 | ||||||
| Commitments and Contingencies | ||||||||
| Shareholders’ Equity (Deficit) | ||||||||
| Preferred stock, | 4,000 | - | ||||||
| Common stock, | 157,000 | 35,000 | ||||||
| Additional paid-in capital | 80,210,000 | 65,674,000 | ||||||
| Accumulated other comprehensive loss | (19,000 | ) | (25,000 | ) | ||||
| Accumulated deficit | (73,978,000 | ) | (65,043,000 | ) | ||||
| Non-controlling interest | (2,336,000 | ) | (1,743,000 | ) | ||||
| Treasury stock, 10,990 shares reserved at June 30, 2026 and December 31, 2025 | (758,000 | ) | (758,000 | ) | ||||
| Total Shareholders’ Equity (Deficit) | 3,280,000 | (1,860,000 | ) | |||||
| Total Liabilities and Shareholders’ Equity (Deficit) | $ | 18,568,000 | $ | 12,724,000 | ||||
Algorhythm Holdings, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||
| Net Sales | $ | 3,005,000 | $ | 1,152,000 | $ | 5,405,000 | $ | 1,275,000 | ||||||||
| Cost of Sales | 3,598,000 | 1,492,000 | 6,675,000 | 1,621,000 | ||||||||||||
| Gross Loss | (593,000 | ) | (340,000 | ) | (1,270,000 | ) | (346,000 | ) | ||||||||
| Operating Expenses | ||||||||||||||||
| Selling expenses | 49,000 | - | 82,000 | - | ||||||||||||
| General and administrative expenses | 2,059,000 | 868,000 | 5,693,000 | 1,924,000 | ||||||||||||
| Total Operating Expenses | 2,108,000 | 868,000 | 5,775,000 | 1,924,000 | ||||||||||||
| Loss From Operations | (2,701,000 | ) | (1,208,000 | ) | (7,045,000 | ) | (2,270,000 | ) | ||||||||
| Other Expenses | ||||||||||||||||
| Change in fair value of warrant liability | - | - | - | (6,468,000 | ) | |||||||||||
| Loss on debt extinguishment | (400,000 | ) | - | (400,000 | ) | - | ||||||||||
| Interest expense, net | (1,045,000 | ) | (27,000 | ) | (2,081,000 | ) | (43,000 | ) | ||||||||
| Total Other Expenses | (1,445,000 | ) | (27,000 | ) | (2,481,000 | ) | (6,511,000 | ) | ||||||||
| Loss From Continuing Operations Before Income Tax | (4,146,000 | ) | (1,235,000 | ) | (9,526,000 | ) | (8,781,000 | ) | ||||||||
| Income tax loss attributable to continuing operations | (3,000 | ) | - | (3,000 | ) | - | ||||||||||
| Net Loss From Continuing Operations | (4,149,000 | ) | (1,235,000 | ) | (9,529,000 | ) | (8,781,000 | ) | ||||||||
| Net loss from discontinued operations | - | 426,000 | - | (1,322,000 | ) | |||||||||||
| Net Loss | (4,149,000 | ) | (809,000 | ) | (9,529,000 | ) | (10,103,000 | ) | ||||||||
| Net loss attributable to non-controlling interest | 320,000 | 224,000 | 594,000 | 327,000 | ||||||||||||
| Net Loss Available to Common Shareholders | $ | (3,829,000 | ) | $ | (585,000 | ) | $ | (8,935,000 | ) | $ | (9,776,000 | ) | ||||
| Loss Per Common Share | ||||||||||||||||
| Basic and diluted from continuing operations | $ | (0.25 | ) | $ | (0.41 | ) | $ | (0.71 | ) | $ | (3.80 | ) | ||||
| Basic and diluted from discontinued operations | - | 0.17 | - | (0.59 | ) | |||||||||||
| Basic and diluted | $ | (0.25 | ) | $ | (0.24 | ) | $ | (0.71 | ) | $ | (4.40 | ) | ||||
| Weighted Average Common and Common Equivalent Shares: | ||||||||||||||||
| Basic and diluted | 15,148,297 | 2,472,464 | 12,537,525 | 2,224,047 | ||||||||||||
