FORT LAUDERDALE, FL / ACCESS Newswire / November 19, 2025 / When a company reports a 1,273% year-over-year revenue jump, the number naturally captures attention. In Algorhythm Holdings’ (NASDAQ:RIME) case, the most important insight is not only the size of the increase. It’s the fact that this growth reflects a business that looks completely different from the one that existed twelve months ago.
Algorhythm navigated a transition that few microcaps manage to pull off successfully. By leaving behind its legacy consumer business and rebuilding around an AI-driven logistics and distribution model, the company created a fundamentally different profile. The third quarter of 2025 is the first time that transformation is reflected cleanly in the numbers, and the initial results point to a promising direction.
RIME is Rebuilt From the Ground Up
Revenue for the period reached $1.7 million, a dramatic leap from the roughly $100 thousand posted in the third quarter of 2024. The acquisition and rapid expansion of SemiCab India, completed in May, did more than lift the numbers. It immediately became the engine of the new Algorhythm, proving that the company’s shift into AI-powered logistics has real commercial weight. The momentum is not limited to the top line.
Operating expenses moved in the right direction as well, shedding more than 33% to about $1.2 million. That kind of reduction shows discipline, but it also indicates a company cutting away what no longer fits and keeping what drives value. The combination pushed Algorhythm’s net loss from continuing operations to $1.9 million, a meaningful improvement of more than 10% over the prior year. This is what a rebuilt business looks like when the pieces start clicking. The structure is cleaner, the path forward is clearer, and the company now has numbers that align with its new identity.
Still, these financial improvements reflect more than strengthening fundamentals. They show that Algorhythm’s strategic pivot is gaining traction, following the sale of its longtime Singing Machine karaoke business to Stingray Group for $4.5 million, a move that eliminated millions in annual expenses and removed a cost structure that no longer matched its long-term identity. With that chapter closed, the numbers now reflect the business Algorhythm is actually building.
SemiCab and the Foundation of the New Growth Story
SemiCab is the value driver. The subsidiary delivered more than 1,200% year-over-year revenue growth during the quarter, driven by continued expansion across India and the early buildout of its operations in the United States.
India remains the primary contributor in the near term. SemiCab expanded its active fleet to 450 trucks, providing the capacity to generate more than $23 million in annual revenue when fully utilized. The expansion also builds on several new contract wins announced earlier in the year, creating a strong foundation to support a steepening revenue curve. Still, RIME’s growth engine doesn’t operate exclusively overseas.
The United States is also in play. While this segment is at an earlier stage, it carries significant long-term potential. To claim it, SemiCab launched Apex, an SaaS platform for 3PLs and multi-enterprise shippers. With the United States full truckload market approaching $450 billion, Apex targets a recurring revenue opportunity that positions Algorhythm for higher revenue and expanded margins.
Financial Structure and Liquidity Improvements
Algorhythm ended the quarter with $2.8 million in cash and, more importantly, gained access to new nondilutive working capital, with SemiCab securing a supply chain finance receivables facility with Bank of America. This facility provides access to millions of dollars in low-cost liquidity for Indian businesses.
For a technology company transitioning toward an asset-light software model, this kind of capital structure improvement is significant. It supports growth without dilution and provides the company with the financial resources needed to execute its rollout plans. It’s also rare for a company this size to secure top-tier banking support, especially at competitive rates.
Combining higher revenue, lower operating expenses, and a more focused business model suggests that Algorhythm is entering a different phase of development. The third quarter represents more than a record revenue milestone. It represents a transition point at which Algorhythm’s financials align perfectly with its strategy.
For those who track the evolution of small-cap logistics and AI-enabled supply chain platforms, this quarter’s report reflects a clearer view of what Algorhythm is building and how the pieces are beginning to align. So far, the results are in a word: excellent.
About Algorhythm Holdings
Algorhythm Holdings, Inc. is a leading AI technology company focused on the growth and development of SemiCab, an emerging leader in the global logistics and distribution industry. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address common supply-chain problems globally. Its AI-enabled, cloud-based Collaborative Transportation Platform achieves the scalability required to predict and optimize millions of loads and hundreds of thousands of trucks. SemiCab uses real-time data from API-based load tendering and pre-built integrations with TMS and ELD partners to orchestrate collaboration across manufacturers, retailers, distributors, and their carriers. SemiCab uses AI/ML predictions and advanced predictive optimization models to enable fully loaded round trips. With SemiCab’s AI platform, shippers pay less and carriers make more without having to change a thing. For additional information, please go to: http://www.semicab.com
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as “expects,” “anticipates,” “believes,” “will,” “will likely result,” “will continue,” “plans to,” “potential,” “promising,” and similar expressions. These statements are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in Algorhythm’s reports to the SEC, including, without limitation Algorhythm’s Annual Report on Form 10-K for the year ended December 31, 2024. You should not place undue reliance on any forward-looking statement, each of which applies only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations, or as a result of new information, future events or otherwise.
Media contact for this release: [email protected]
SOURCE: Algorhythm Holdings
