Algorhythm Holdings, Inc. (NASDAQ: RIME) reported its third‑quarter 2025 results, showing a dramatic 1,273% jump in revenue to $1.7 million, driven almost entirely by its AI‑driven logistics platform, SemiCab. The company posted a net loss of $1.9 million, an improvement from the $2.1 million loss reported in Q3 2024, and a gross profit margin of 35.1%, up from 13.3% a year earlier.
Revenue growth was concentrated in the SemiCab segment, which rose from $0.1 million in Q3 2024 to $1.7 million in Q3 2025, a 1,600% increase. The surge was fueled by the acquisition of SemiCab India and the launch of the Apex SaaS platform in the United States, which opened new revenue streams in the $450 billion full‑truckload market. The legacy Singing Machine business, sold for $4.5 million, no longer contributes to the top line.
Operating expenses fell to $1.2 million from $1.8 million a year earlier, reflecting aggressive cost‑control measures following the divestiture. Gross profit margin expansion to 35.1% indicates that the company is benefiting from higher‑margin contracts and improved operational leverage. Despite these gains, the company remains unprofitable, with cash on hand dropping to $2.8 million from $7.2 million in Q2 2025, raising liquidity concerns.
CEO Gary Atkinson said the sale of the Singing Machine business was a “major milestone” that allows the company to “fully focus all of our time, energy and capital on accelerating the growth of SemiCab.” CFO Alex Andre highlighted that the 1,200% revenue increase was driven by the growth of SemiCab India and that operating expenses had been substantially reduced through cost‑reduction measures.
The market reacted negatively, with investors weighing the impressive top‑line growth against the company’s continued net loss, narrowing cash position, and the uncertainty of achieving profitability in the near term.
The company did not provide new guidance for the remainder of 2025, but its focus on expanding SemiCab’s footprint, launching Apex, and maintaining disciplined spending suggests a cautious outlook. The ability to convert revenue growth into profitability will be closely watched as Algorhythm transitions from a legacy consumer‑electronics business to a pure‑play AI logistics platform.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.