Algorhythm Holdings shares surge 17.68% premarket after reporting 1273% YoY revenue growth and strategic AI business transformation.

Algorhythm Holdings surged 17.68% in premarket trading following the release of record third-quarter financial results and strategic business developments. The company reported a 1,273% year-over-year revenue increase to $1.7 million, driven by its SemiCab subsidiary’s growth and the acquisition of its India operations. A $4.5 million sale of the Singing Machine karaoke business reduced operating expenses by 33% and strengthened cash reserves to $2.8 million. SemiCab’s launch of the Apex SaaS platform and a $560 million-annual-sales contract with Bajaj Electricals signaled expansion into the U.S. logistics market, while cost-cutting measures and leadership hires further bolstered growth prospects. CEO Gary Atkinson emphasized the transformation into a high-margin AI technology firm, with SemiCab’s U.S. SaaS rollout expected to generate recurring revenue starting in 2026. The combination of revenue acceleration, strategic divestitures, and market expansion catalyzed the premarket rally.