Algorhythm Holdings Sees Q2 2025 Improvement, Revenue Increases to $2.7 Million

Algorhythm Holdings reported a Q2 2025 net loss of $809,000, a significant improvement from the $6.1 million loss in the same period last year. Revenue increased to $2.7 million from $2.4 million, and gross profit rose to $954,000 from $324,000. However, the company faces challenges, including a substantial decrease in cash reserves and ongoing legal proceedings.

Algorhythm Holdings, Inc. (NASDAQ: RIME) reported its financial results for the second quarter of 2025, showing a significant improvement in its financial performance compared to the same period last year. The company reported a net loss of $809,000, a substantial decrease from the $6.1 million loss in Q2 2024. Revenue for the quarter increased to $2.7 million from $2.4 million, and gross profit rose to $954,000 from $324,000 [1].

The company's Chief Executive Officer, Gary Atkinson, highlighted several key achievements during the quarter. Algorhythm completed the acquisition of SMCB Solutions Private Ltd. (SemiCab India), a managed services provider of SemiCab's AI logistics platform. The company also sold its consumer karaoke subsidiary, Singing Machine, for $4.5 million, which helped reduce liabilities by approximately $4.0 million and strengthen its balance sheet [1].

The acquisition of SemiCab India and the sale of Singing Machine were significant drivers of the company's growth. SemiCab won five new contracts with leading multinational fast-moving consumer goods (FMCG) companies in India, expanding its footprint in the country's high-growth logistics market. The company's fleet size increased from 140 to 450 trucks, positioning SemiCab to raise its annualized revenue run rate to $23 million [1].

However, Algorhythm faces challenges, including a substantial decrease in cash reserves. As of June 30, 2025, the company had $1.1 million in cash on hand, down from $7.55 million at the end of 2024. The company also faces ongoing legal proceedings, which could impact its financial performance in the future [1].

The company's Chief Financial Officer, Alex Andre, stated that the net loss improvement was primarily due to a $3.9 million reduction in operating lease impairment and lower general and administrative expenses. He expects net loss to continue trending lower over the next 12 months, primarily due to the sale of Singing Machine and the corresponding reduction in operating expenses, which will be partially offset by strategic investments to accelerate growth in the SemiCab business [1].

Despite the challenges, Algorhythm's financial results for Q2 2025 indicate progress in its transformation into a high-growth, technology-focused AI distribution and logistics company. The company's focus on strategic acquisitions and divestments, along with its expansion into the Indian logistics market, positions it for continued growth in the future.

References:
[1] https://www.globenewswire.com/news-release/2025/08/20/3136299/0/en/Algorhythm-Holdings-Reports-Second-Quarter-2025-Financial-Results.html