Algorhythm Holdings shares surge 22.22% premarket after reporting 1273% YoY revenue growth, cost cuts, and sale of Singing Machine business.

Algorhythm Holdings surged 22.22% in premarket trading following the release of its third-quarter 2025 financial results, which highlighted a 1,273% year-over-year revenue increase to $1.7 million and a 33% reduction in operating expenses. The company announced the $4.5 million sale of its Singing Machine karaoke business, transforming it into an AI-focused logistics and distribution company. SemiCab, its subsidiary, launched the Apex SaaS platform, secured a $560 million-annual-sales contract with Bajaj Electricals, and appointed new leadership to drive U.S. expansion. Management emphasized reduced cash burn, a strengthened balance sheet with $2.8 million in cash, and future growth from AI-driven logistics. The CEO highlighted the strategic shift toward high-margin SaaS revenue and a $450 billion U.S. market opportunity, aligning with the stock’s sharp premarket rise.