Algorhythm Holdings (RIME) Q3 2025 earnings summary

Executive summary

• Completed sale of legacy Singing Machine business, transitioning to a single AI-driven logistics segment focused on SemiCab, with prior results reclassified as discontinued operations.

• Achieved record year-over-year revenue growth in Q3 2025, primarily due to the acquisition and expansion of SemiCab India.

• Operating expenses dropped to $1.2M from $1.8M year-over-year, reflecting cost-reduction measures and business transition.

• Net loss from continuing operations improved to $1.8M–$1.9M from $2.1M in Q3 2024.

• Cash on hand was $2.8M as of September 30, 2025.

Financial highlights

• Q3 2025 revenue rose to $1.7M–$1.74M from $100,000–$127,000 year-over-year, driven by SMCB Solutions acquisition and SemiCab India growth.

• Gross loss for Q3 2025 was $351,000 (20% of net sales), compared to $32,000 (25%) in Q3 2024.

• Operating expenses decreased to $1.2M from $1.8M year-over-year.

• Net loss from continuing operations was $1.8M–$1.9M for Q3 2025, compared to $2.1M in Q3 2024.

• Cash at September 30, 2025, was $2.8M–$2.84M, down from $7.23M at the start of the year.

Outlook and guidance

• Projected Q4 2025 revenue of $2M, with annualized revenue run rate expected to reach $15–$20M by end of next year, mainly from SemiCab India and U.S. SaaS business.

• Expects gross loss to decrease as revenue growth outpaces cost increases.

• Operating expenses and net loss expected to remain elevated due to continued investment in SemiCab and capital-raising activities.

• Ongoing cost reduction efforts anticipated to partially offset increased investment.

• U.S. segment anticipated to generate recurring SaaS revenue after broader Apex platform rollout in 2026.