Algorhythm Holdings Reports Improved Net Loss and Revenue Growth for Q2 2025

Algorhythm Holdings, Inc. reported a net loss of $585,000, or $0.24 per share, for the three months ended June 30, 2025, a significant improvement compared to a net loss of $6,119,000, or $190.68 per share, for the same period in 2024. The company generated revenues of $2,716,000 during the latest quarter, up from $2,440,000 in the prior year, primarily driven by its SemiCab logistics business. Gross profit for the quarter was $954,000, representing a gross margin of 35.1%, compared to $324,000 and a margin of 13.3% in the previous year. The increase in gross profit was attributed to higher sales and a reduction in the cost of goods sold.

In terms of operational changes, Algorhythm Holdings completed the acquisition of SMCB on May 2, 2025, for $1,750,000, which included the issuance of a promissory note. This acquisition is expected to enhance the company's logistics capabilities in India. The company also underwent a significant organizational change with the sale of its Singing Machine business on August 1, 2025, for $500,000, which will allow it to focus solely on its SemiCab operations. The company’s total assets decreased to $12,695,000 as of June 30, 2025, down from $18,302,000 at the end of 2024, largely due to the sale of the Singing Machine business.

Customer engagement metrics showed a positive trend, with the SemiCab business gaining traction among major retailers and brands. The company reported a decrease in operating expenses to $1,736,000 for the three months ended June 30, 2025, down from $6,478,000 in the same period last year, primarily due to the absence of operating lease impairment expenses that had impacted the previous year’s results. The reduction in expenses is expected to continue as the company streamlines operations following the divestiture of its Singing Machine segment.

Looking ahead, Algorhythm Holdings anticipates substantial growth in net sales from its SemiCab business over the next 12 months, driven by an expanding customer base in the United States and India. The company expects total net sales to increase, offsetting the loss of revenue from the Singing Machine business. However, it also cautioned that gross profit may decrease due to rising costs associated with increased sales volume. The company plans to seek additional capital to support its operations and growth initiatives, although it faces uncertainty regarding its ability to secure such financing.

Overall, while Algorhythm Holdings has made significant strides in improving its financial performance and operational focus, it remains cautious about its liquidity and the challenges of sustaining growth in a competitive market. The company’s future performance will depend on the successful execution of its strategic initiatives and the ability to navigate market conditions effectively.