Algorhythm Holdings, Inc. (RIME) AI Stock Analysis
RIME AI stock analysis summary
AI ResearchAlgorhythm Holdings, Inc. (RIME) is a technology and consumer electronics holding company operating logistics optimization and renewable energy infrastructure businesses. Annual revenue dropped from $47.5M in FY2022 to $4.4M in FY2026, leading to a net income of -$16.1M. Over the past year, the stock fell 94.6% to close at $0.12 on October 16, 2026.
- Market cap
- $2.5M
- Revenue (TTM)
- $8.5M
- P/E
- — fwd 10.0x
- 1Y return
- -94.6% S&P 500 16.8%
- Avg. target
- $5.00 4066.7% vs last close
Bull case
- Quarterly revenue increased 160.9% year-over-year in the latest quarter ending June 30, 2026.
- The stock trades at a price-to-sales ratio of 0.3x, well below the US-listed Technology peer median of 2.8x.
- One analyst forecasts next fiscal year revenue to expand 205.6% to reach $44.0M.
Bear case
- FY2026 revenue contracted 81.3% to $4.4M, producing a net margin of -365.5% and net income of -$16.1M.
- Free cash flow was -$9.9M in FY2026 while cash reserves stood at $5.0M as of June 30, 2026.
- Shares fell 94.6% over the past year and closed at $0.12 on October 16, 2026.
What Algorhythm does
Algorhythm Holdings, Inc., formerly known as The Singing Machine Company, Inc., operates as a technology and consumer electronics holding company in India. Its SemiCab platform uses real-time load tendering data and pre-built integrations with TMS and ELD partners to orchestrate collaboration across manufacturers, retailers, distributors, and carriers. The platform relies on advanced predictive optimization models to facilitate fully loaded round trips. In addition, the company develops renewable energy plants and serves as a project development and advisory firm creating firm-capacity renewable infrastructure using a proprietary pyrolysis-to-power process. The business was incorporated in 1982 and is based in Fort Lauderdale, Florida.
Growth and profitability
Algorhythm Holdings saw annual revenue decline from $47.5M in FY2022 to $23.5M in FY2025 and $4.4M in FY2026, reflecting a 5-year revenue CAGR of -37.4%. Revenue fell 81.3% in FY2026, alongside a gross margin of -29.9% and an operating margin of -181.0%. Net income deteriorated from $230,000 in FY2022 to -$16.1M in FY2026, yielding a net margin of -365.5% and an EPS of -$1.91. Over the trailing twelve months, revenue totaled $8.5M with an operating margin of -89.9% and an EPS of -$2.72. However, in the latest quarter ending June 30, 2026, quarterly revenue grew 160.9% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, the company held $5.0M in cash and short-term investments against total debt of $9.0M, resulting in net debt of $4.0M. Shareholders' equity was $3.3M, yielding a debt-to-equity ratio of 2.75 and a current ratio of 0.90. For FY2026, operating cash flow stood at -$9.8M and free cash flow was -$9.9M. The company spent $14,000 on capital expenditures and $758,000 on share buybacks, while its share count expanded 747.3% over five years.
Valuation and performance
With a market capitalization of $2.5M and an enterprise value of $7.9M, Algorhythm Holdings trades at a price-to-sales multiple of 0.3x, below the 2.8x median of its US-listed Technology peers. Its enterprise value-to-revenue ratio is 0.9x, and its EV/EBITDA multiple is 16.1x compared to the peer median of 16.6x. The forward P/E multiple is 10.0x versus the peer median of 18.8x, alongside a PEG ratio of 0.56. Over the past year, the stock fell 94.6%, while the S&P 500 gained 16.8%.
What analysts expect
Algorhythm Holdings has a mean price target of $5.00 from Wall Street coverage, representing a 4066.7% premium over its last closing price of $0.12. For the fiscal year ending December 31, 2026, the EPS estimate is -$1.55 on $0 in revenue. For the next fiscal year, one analyst projects revenue of $44.0M, representing 205.6% growth, with an estimated EPS of -$1.07. Over the last four quarters, the company beat EPS estimates 2 times. The next earnings date is scheduled for November 18, 2026.
Key risks and what to watch
- The current ratio of 0.90 indicates that short-term liabilities exceed liquid assets as of June 30, 2026.
- A high debt-to-equity ratio of 2.75 highlights financial leverage with total debt of $9.0M against $3.3M in equity.
- Ongoing cash burn is significant, with FY2026 operating cash flow reaching -$9.8M.
- Shareholder dilution has been substantial, with total share count increasing 747.3% over a 5-year period.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this RIME AI stock analysis
This page is an AI-written research summary of Algorhythm Holdings, Inc. (RIME). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: RIME income statement, RIME balance sheet, RIME key metrics, RIME analyst forecast, RIME chart. See the RIME stock overview for the latest quote and news.
RIME AI stock analysis FAQ
What is Algorhythm Holdings, Inc. and what does it do?
Formerly known as The Singing Machine Company, Inc., Algorhythm Holdings, Inc. is a holding company with operations in logistics technology and renewable energy infrastructure. Its SemiCab business coordinates freight trips using predictive optimization models, while its energy unit develops pyrolysis-to-power projects.
What was Algorhythm Holdings' revenue and net income in FY2026?
In FY2026, Algorhythm Holdings generated revenue of $4.4M, a drop of 81.3% from the prior fiscal year. The company recorded a net income of -$16.1M and an operating margin of -181.0%.
Does RIME pay a dividend?
No, RIME does not pay a dividend. Capital allocation in FY2026 included $14,000 for capital expenditures and $758,000 for share buybacks.
What is the analyst price target for RIME stock?
The mean analyst price target for RIME is $5.00, which is 4066.7% above the last closing price of $0.12 on October 16, 2026.
When is the next earnings release for Algorhythm Holdings?
The next earnings report date for Algorhythm Holdings is scheduled for November 18, 2026.