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SemiCab Awarded $6 Million Contract Expansion, Accelerating Projected ARR to Over $13 Million

SemiCab (NASDAQ: RIME) secured a $6.0 million contract expansion under its Master Services Agreement with one of India’s largest paint manufacturers and retailers on Dec. 11, 2025.

(Very High)

Sentiment and the balance of points

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Rhea-AI Summary

SemiCab (NASDAQ: RIME) secured a $6.0 million contract expansion under its Master Services Agreement with one of India’s largest paint manufacturers and retailers on Dec. 11, 2025. Committed lanes increased more than seven-fold to 183 lanes, adding up to $5.5 million in annual service revenue versus an initial pilot that managed 25 lanes and generated about $0.5 million annually.

The award is the largest single contract in SemiCab history and is expected to lift its annualized revenue run rate (ARR) to more than $13 million once complete. The expansion follows multiple 2025 contract scale-ups in India and leverages SemiCab’s AI-enabled Collaborative Transportation Platform to target lower logistics costs and reduced empty miles.

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Positive

  • Committed lanes increased to 183
  • Expansion adds up to $5.5M annual service revenue
  • ARR expected to exceed $13M
  • Largest single contract award in company history
  • Pilot-to-expansion revenue growth from $0.5M to incremental $5.5M

Negative

  • None.
Argus Dec 11 session
+1.55% close to close Open Argus
Details

News Market Reaction – RIME

On Dec 11, the day this news came out, RIME closed 1.55% above the previous close.

Data tracked by StockTitan Argus for the Dec 11 session.

Key Figures

Contract expansion value: $6 million Projected ARR: Over $13 million Customer annual sales: Over $4 billion +5 more
Contract expansion value
$6 million
Largest SemiCab contract expansion in company history
Projected ARR
Over $13 million
SemiCab annualized revenue run rate once expansion is complete
Customer annual sales
Over $4 billion
Paint manufacturer customer’s annual sales across 60 countries
Committed lanes post-expansion
183 lanes
Expanded Master Services Agreement lane count
Incremental annual revenue
Up to $5.5 million
Additional annual service revenue opportunity from expansion
Initial pilot lanes
25 lanes
Commercial pilot launched in early 2023
Pilot annual revenue
Approximately $0.5 million
Annual revenue generated from initial pilot program
Pilot program revenue range
$1–$2 million
Revenue from typical pilot programs over 6–12 months

Historical Context

5 past events · Latest: Dec 05
5 events
  1. Dec 05

    Partnership announcement

    24h Move
    +29.1%

    Joint sales deal with Provisi.ai to scale Apex SaaS freight platform.

  2. Nov 24

    Contract expansion

    24h Move
    +9.0%

    Multi-million Marico expansion adding about $3M in annualized revenue.

  3. Nov 19

    Earnings highlight

    24h Move
    -23.2%

    Q3 revenue surged 1,273% YoY to $1.7M amid SemiCab-driven growth.

  4. Nov 19

    Earnings release

    24h Move
    -23.2%

    Record revenue growth and AI logistics pivot detailed in Q3 results.

  5. Nov 17

    Earnings date notice

    24h Move
    -1.0%

    Scheduling announcement for Q3 2025 earnings call and webcast.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

master services agreement, annualized revenue run rate
2 terms
master services agreement financial
"SemiCab has secured a major expansion of its Master Services Agreement with one of India’s"
A master services agreement is a standing contract that sets the main terms, responsibilities, pricing framework and processes for future work between two parties, allowing individual projects or orders to be added later without renegotiating core terms. For investors, it signals predictability and reduced legal friction around revenue streams and costs—like a subscription plan for services that makes future income and obligations easier to forecast and value.
annualized revenue run rate financial
"is expected to increase its annualized revenue run rate (ARR) to more than $13 million"
Annualized revenue run rate is an estimate of how much revenue a company would generate over a full year if its current short-term sales pace (for a week, month or quarter) continued unchanged; it simply multiplies the recent period’s revenue to project a 12‑month total. Investors use it as a quick snapshot to judge growth and set expectations—like using a car’s current speed to estimate yearly mileage—but it can mislead if the recent period was unusually high or low.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Largest Contract Expansion in Company’s History, 10X Increase Over Initial Pilot Program

Fort Lauderdale, FL, Dec. 11, 2025 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (“Algorhythm”) (NASDAQ: RIME) – a leading AI technology company, announced today that SemiCab has secured a major expansion of its Master Services Agreement with one of India’s largest paint manufacturers and retailers. The customer, one of the 10 largest global shippers in the paints industry with over $4 billion in annual sales, operates across 60 countries in Asia-Pacific, Africa, and the Middle East.

Under the newly expanded agreement, the number of committed lanes has grown more than seven-fold to 183 lanes, representing up to an additional $5.5 million in annual service revenue for SemiCab. SemiCab initially launched a commercial pilot program with the customer in early 2023, managing 25 lanes and generating approximately $0.5 million in annual revenue.

This $6 million expansion marks the largest single contract award in SemiCab’s history and is expected to increase its annualized revenue run rate (ARR) to more than $13 million once the expansion is complete. Powered by its AI-enabled, cloud-based Collaborative Transportation Platform, SemiCab’s logistics and distribution solutions are designed to reduce logistics costs, improve delivery accuracy, and eliminate empty miles – key drivers of efficiency and sustainability in the global freight industry.

Ajesh Kapoor, CEO of SemiCab Holdings, LLC, commented, "We’re thrilled to expand one of our largest customer relationships to date. This award is a strong validation of the results our AI-powered platform delivers. By increasing freight volume across this network, we can unlock even greater efficiencies, reduce empty miles, and provide even greater cost savings for our customers."

“As our network grows and more freight flows through our platform, we unlock powerful network effects that create new opportunities for optimization and efficiency,” added Mr. Kapoor. “Each new customer and expanded contract not only increases the volume of shipments we manage but also strengthens the density and reach of our network. This creates a self-reinforcing cycle – higher utilization, lower empty miles, and improved economics – that allows us to scale rapidly and capture additional growth opportunities across India.”

Since 2021, SemiCab has entered into more than a dozen pilot programs with new customers in both the US and India. These pilot programs generate between $1 million and $2 million in freight services revenue for SemiCab over a period of 6 to 12 months. As these pilot programs complete their initial term, many customers expand both the volume and geographic scope of the awarded lanes.

This is now the fifth major contract expansion in India in 2025 to expand significantly beyond the initial pilot phase. SemiCab announced a similar contract expansion with Kellanova India, one of the largest fast-moving consumer packaged goods producers in India, in early June 2025 and with a Fortune 50 global CPG company in August 2025.

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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did SemiCab's Dec. 11, 2025 contract expansion add to annual revenue?

The expansion adds up to $5.5 million in annual service revenue.

What ARR does SemiCab (RIME) expect after the $6 million expansion?

SemiCab expects its annualized revenue run rate to be more than $13 million once the expansion is complete.

How many lanes will SemiCab manage after the Dec. 11, 2025 expansion?

Committed lanes increased to 183 lanes, a more than seven-fold rise from the pilot.

What was the size and result of the initial pilot with this customer?

The initial pilot managed 25 lanes and generated approximately $0.5 million in annual revenue.

Which customers did SemiCab expand contracts with earlier in 2025?

SemiCab expanded contracts in 2025 with Kellanova India in June and a Fortune 50 global CPG company in August.

What operational benefits does SemiCab cite from its AI platform for RIME shareholders?

The company cites reduced logistics costs, improved delivery accuracy, and elimination of empty miles derived from its AI-enabled Collaborative Transportation Platform.

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