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

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.

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.

Key Figures

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

Market Reality Check

$1.96 Last Close

Volume Volume 333,056 is below the 20-day average of 545,462, suggesting a modest participation level ahead of this news. low

Technical Shares at $1.93 are trading below the $2.31 200-day moving average, indicating a longer-term downtrend remains in place.

Peers on Argus

Peer moves are mixed, with names like BOXL (+2.6%) and MSN (+3.02%) up, while WLDS (-5.32%) and AXIL (-2.14%) are down, pointing to stock-specific drivers for RIME.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 05	Partnership announcement	Positive	+29.1%	Joint sales deal with Provisi.ai to scale Apex SaaS freight platform.
Nov 24	Contract expansion	Positive	+9.0%	Multi-million Marico expansion adding about $3M in annualized revenue.
Nov 19	Earnings highlight	Positive	-23.2%	Q3 revenue surged 1,273% YoY to $1.7M amid SemiCab-driven growth.
Nov 19	Earnings release	Positive	-23.2%	Record revenue growth and AI logistics pivot detailed in Q3 results.
Nov 17	Earnings date notice	Neutral	-1.0%	Scheduling announcement for Q3 2025 earnings call and webcast.

Pattern Detected

SemiCab-related growth and partnership news often saw positive price reactions, while the major Q3 earnings transition news coincided with a sharp selloff.

Recent Company History

Over the past month, Algorhythm pivoted firmly into AI-driven logistics through SemiCab. On Nov 19, 2025, record Q3 revenue of $1.7M and a strategic shift to AI logistics coincided with a -23.23% move, highlighting market concern over losses and financing. Subsequent SemiCab contract wins, including a $3M Marico expansion on Nov 24 and a Provisi.ai go-to-market partnership on Dec 5, triggered gains of 8.96% and 29.06%. Today’s largest-ever $6M SemiCab contract expansion fits this pattern of revenue-focused growth updates.

Market Pulse Summary

This announcement highlights SemiCab’s largest-ever $6 million contract expansion, lifting projected ARR to over $13 million and scaling lanes to 183. It builds on recent wins like the Marico expansion and Provisi.ai partnership that accelerated its AI logistics strategy. Against the backdrop of prior filings noting substantial losses and financing dependence, investors may watch conversion of pilots into long-term contracts and the pace of revenue realization from this expanded agreement.

AI-generated analysis. Not financial advice.

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

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.