Algorhythm (NASDAQ:RIME) executives used the company’s full-year 2025 earnings call to emphasize accelerating commercial traction for SemiCab, its AI-powered logistics platform, while CFO and General Counsel Alex Andre detailed results reshaped by the acquisition of SemiCab’s India operations and the sale of a legacy business.
Management highlights SemiCab’s goal: reducing empty miles
CEO Gary Atkinson said SemiCab is designed to address inefficiency in the truckload market, which he described as “a $3 trillion a year industry” where “roughly one in every three miles that a truck drives is driven empty.” Atkinson framed SemiCab as a “collaborative AI platform” that optimizes freight movement across multiple enterprises to build continuous movements—what the company calls round trips.
Customer wins and revenue run-rate progress
Atkinson said that in 2025 the company secured “four new Fortune 500 clients in India” and converted “five pilot programs into multi-million dollar contract expansions.” That activity, he said, pushed annualized revenue run rate to “nearly $10 million by year-end,” and he added that it is “already meaningfully higher in the first quarter of 2026.”
He also cited early 2026 customer activity, saying the company had already landed two new customers—“MTR Foods and Coca-Cola India”—plus “an additional contract expansion in India” during the first quarter of 2026. Atkinson added that, to date, “every single one of our pilot customers that has joined our network has come back to us looking for an expansion,” typically through more lanes, more volume, or new geographies.
2025 results shaped by acquisition and divestiture
Andre said the annual report filed with the SEC reflects two major transactions in 2025. On May 2, Algorhythm acquired SMCB Solutions Private Limited, which owns and operates the SemiCab India segment. On Aug. 1, the company sold its legacy consumer electronics business.
Because the consumer electronics unit was treated as discontinued operations under GAAP, Andre said the company’s “balance sheet, income statement, and statement of cash flows only reflect the financial results of our continuing operations, including the operations of SemiCab,” with discontinued operations reflected in select line items.
For the year ended 2025, Andre said sales increased 1,370% to $4.4 million from $300,000 in 2024, “primarily due to the acquisition” of SMCB. He said SemiCab India delivered $4.4 million of revenue during the eight months it was owned in 2025, while the legacy U.S. SemiCab business produced $300,000 of revenue during 2024.
Andre also provided an outlook tied to the company’s stated run rate. He said management expects revenue to increase substantially over the next 12 months, with SemiCab’s annualized revenue run rate expected to increase to “between $15 million and $20 million by the end of 2026.” He attributed the expected increase largely to growth in SemiCab India’s managed services business, along with some revenue anticipated from a new SaaS business announced in the fall.
Margins, operating expenses, and net loss
Andre said gross loss for 2025 was $1.3 million, compared with $194,000 in 2024. He explained that results reflect SemiCab India’s managed services model, where SemiCab pays for access to trucks and generates revenue by completing shipments for customers. When the company enters new territories, it may contract for truck access before route density builds, leading to a ramp-up period where costs are incurred while revenue scales more gradually—producing negative gross margins.
“As the network matures in each region and the truck utilization rate improves, the growth in revenue begins to outpace the increases in trucking costs,” Andre said, adding that the company views the ramp-up as “a necessary investment in long-term scale and profitability.” He said the company expects gross loss as a percentage of revenue to decrease over the next 12 months as revenue growth outpaces increases in cost of sales.
Operating expenses in 2025 decreased nearly 20% to $6.6 million from $8.2 million, driven primarily by a $3.6 million goodwill impairment recorded in 2024, partially offset by a $2 million increase in general and administrative expenses. Andre said the company expects G&A to rise over the next 12 months as it invests in growing SemiCab.
Net loss from continuing operations decreased to $15.2 million from $18.9 million. Andre noted that $6.5 million of the 2025 net loss and $8.9 million of the 2024 net loss consisted of “one-time non-cash charges for warrants” from prior capital raises. He said the company expects net loss from continuing operations to decrease over the next 12 months due to anticipated revenue increases and an expectation it will not incur future warrant-related losses, though that improvement could be partially offset by higher growth-related expenses.
Cash position strengthens; Apex SaaS positioned as future growth engine
Andre said Algorhythm ended 2025 with $6.1 million in cash and had $10.9 million as of March 25, 2026, which he characterized as a strong position to support growth through the remainder of 2026. He also said liabilities were reduced by almost 50% between year-end 2024 and year-end 2025, primarily due to a reduction in outstanding warrant liabilities.
Atkinson later drew a distinction between two business models:
- Managed services in India, which he said generates all current revenue and serves enterprise shippers including Procter & Gamble, Unilever, Kellogg’s, and “recently announced Coca-Cola.” In this model, he said SemiCab does not own trucks or employ drivers, but acts “as a virtual carrier,” sourcing trucks and directing continuous movements through its platform.
- SemiCab Apex, described as a global SaaS offering intended to deliver a “high margin and asset light” subscription model. Atkinson said Apex is “not a TMS system” and is designed to sit adjacent to existing transportation management systems with simple integration.
In the Q&A, Atkinson said recent media attention helped open discussions with some of the world’s largest logistics service providers, though he cautioned such enterprises “don’t move quickly” and called them “medium-term opportunities.” He said Apex margins could be “closer to the traditional 90% SaaS margin.”
Pressed on rollout timing and adoption hurdles, Atkinson said Apex is already developed and “available today,” with implementation typically requiring a relatively light integration through APIs. He described the main gating factor as the commercial agreement cycle rather than technology. He also outlined a sales approach where prospects provide historical shipping data, which SemiCab’s optimizer uses to quantify potential mileage and cost savings for the customer without reducing service levels.
Andre also addressed restricted cash, saying it consists of some proceeds received from Streeterville that are held in a reserve account until Streeterville is able to purchase securities from the company; as those purchases occur, the funds are released over time.
Atkinson closed by noting the company had recently completed its first quarter ended March 31 and expects to share those results next month.
About Algorhythm (NASDAQ:RIME)
Algorhythm Holdings, Inc, together with its subsidiaries, engages in the development, marketing, and sale of consumer karaoke audio equipment, accessories, and musical recordings in North America, Australia, the United Kingdom, Europe, and internationally. It offers karaoke products under the Singing Machine brand; licensed karaoke microphone products under the Carpool Karaoke brand; microphone and accessories, and portable Bluetooth microphones under the Party Machine brand; music entertainment singing machines for children under the brand Singing Machine Kids; connected vehicle karaoke devices; and karaoke music subscription services for the iOS and Android platforms, as well as a web-based download store and integrated streaming services for hardware.
