Algorhythm Holdings Q2 rev up 12% YoY to $2.7mln, net loss down $5.3mln.

• Algorhythm Holdings Q2 revenue up to $2.7mln, +12.5% YoY • Gross profit margin increased to 35.1% • Gross profit at $1mln • Operating expenses down to $1.7mln, -73% YoY • Net loss decreased to $0.8mln • Cash on hand at $1.1mln as of June 30, 2025

Algorhythm Holdings, Inc. (NASDAQ: RIME), an AI technology holding company, announced its second-quarter 2025 financial results, showcasing significant improvements in key performance indicators. The company reported a 12.5% year-over-year (YoY) increase in revenue to $2.7 million, up from $2.4 million in Q2 2024. This growth was driven primarily by the acquisition of SMCB Solutions Private Ltd. (SemiCab India) and the sale of its Singing Machine subsidiary [1].

The gross profit margin expanded substantially to 35.1%, from 13.3% in the same period last year, resulting in a gross profit of approximately $1.0 million for Q2 2025. This improvement reflects the company's strategic pivot toward higher-margin technology services [1].

Operating expenses decreased significantly by $4.8 million to $1.7 million, representing a 73% YoY reduction. This substantial reduction in operating expenses contributed to a significant decrease in net loss, which narrowed from $6.1 million to $0.8 million in Q2 2025. The sale of the Singing Machine subsidiary for $4.5 million eliminated approximately $4.0 million in liabilities, further strengthening the company's balance sheet [1].

The SemiCab business, a key component of Algorhythm's AI logistics platform, demonstrated robust growth. The annualized revenue run rate for SemiCab increased from $2 million in January to $7 million as of June 30, 2025, a 250% increase. The company's fleet size more than tripled from 140 to 450 trucks, and it plans to expand its fleet to over 1,000 vehicles by the end of 2025. SemiCab secured five new contracts with multinational FMCG companies and expanded four existing contracts by 100-200% in volume [1].

Despite these positive developments, Algorhythm's cash position remains a concern, with $1.1 million on hand as of June 30, 2025. This represents less than two quarters of runway at current burn rates. However, management expects further reductions in net losses over the next year [1].

Algorhythm's transformation into a high-growth, technology-focused AI distribution and logistics company is evident in its Q2 2025 performance. While the company remains unprofitable, the positive trajectory suggests potential for future profitability. Investors should closely monitor the company's progress and cash management strategies [1].

References:
[1] https://www.stocktitan.net/news/RIME/algorhythm-holdings-reports-second-quarter-2025-financial-g2d0yn4kfe0x.html