Algorhythm Holdings (RIME) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $2.4 million, up 71% sequentially and 1,851% year-over-year, following the transition to a pure-play AI logistics company and the sale of the karaoke business in August 2025.

• SemiCab, the AI-enabled logistics platform, is now the sole operating segment, with a focus on India and plans for U.S. and European expansion.

• Added major new customers including Coca-Cola India and MTR Foods, and expanded agreements with Apollo Tyres and Unilever India.

• Significant investments in technology, personnel, and marketing are planned to drive growth.

• Cash and restricted cash increased to $10.9 million, with positive stockholders' equity of $3.2 million, exceeding Nasdaq listing requirements.

Financial highlights

• Net sales rose to $2.4 million in Q1 2026, up 1,850% year-over-year, driven by the SemiCab India acquisition.

• Gross loss for the quarter was $677,000, reflecting early-stage scaling costs in India.

• Net loss from continuing operations decreased to $5.38 million from $7.55 million year-over-year, mainly due to lower non-cash warrant charges.

• Operating expenses increased to $3.67 million from $1.06 million year-over-year, mainly due to higher G&A and stock-based compensation.

• Cash and restricted cash at quarter-end totaled $10.9 million, with stockholders' equity at $3.2 million.

Outlook and guidance

• Revenue expected to continue increasing, with annualized run rate projected between $15 million and $20 million by year-end 2026.

• Gross loss as a percentage of revenue anticipated to decrease as customer base and truck utilization grow.

• Operating expenses and net loss are projected to rise as investments in SemiCab continue, but G&A expenses may decrease as stock-based compensation moderates.