Algorhythm Holdings Reports Second Quarter 2026 Financial Results

Revenue Increases 25% Sequentially and 161% YOY to $3.0 Million 

Fort Lauderdale, FL, Aug. 14, 2026 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (the “Company”) (NASDAQ: RIME) – a leading provider of AI-powered logistics solutions, today announced its financial results for the second quarter ended June 30, 2026.

Q2 2026 Financial Highlights

• Revenue increased 25% sequentially to $3.0 million for the second quarter of 2026 compared to $2.4 million in the first quarter of 2026.
• Revenue increased $1.8 million, or 161%, from $1.2 million in the second quarter of 2025.
• Gross margin percentage improved by 850 basis points or approximately 30% sequentially.
• Cash and restricted cash totaled approximately $8.0 million as of June 30, 2026.
• Total assets grew 46% to $18.6 million at June 30, 2026 from $12.7 million at December 31, 2025.
  
  

Q2 2026 Business Highlights

During the quarter, the Company’s business continued to execute on numerous fronts as follows:

• Expanded SemiCab's relationship with Procter & Gamble India through an additional contract expansion, increasing annualized contract value by approximately 32%.
• Signed a new Master Services Agreement with Onida Electronics, expanding SemiCab's enterprise customer portfolio in India.
• Continued commercial expansion of the SemiCab Apex SaaS platform in North America through investments in business development and the hiring of Jonathan Miller as Vice President of U.S. Sales.
• Participated as a Gold Sponsor at Reuters Events: Supply Chain USA 2026, showcasing Apex to enterprise shippers, logistics providers and transportation leaders.
• Hosted the inaugural SemiCab Freight Network Forum, bringing together supply chain executives to discuss AI, freight orchestration and transportation network optimization.
  
  

CEO Commentary

"We are pleased with our second quarter financial results, highlighted by continued strong sequential and year-over-year revenue growth," said Gary Atkinson, Chief Executive Officer of Algorhythm Holdings. “Revenue was $3.0 million for the quarter, representing an increase of 25% sequentially and 161% year over year. We continue to maintain a strong balance sheet with more than $6 million in cash on the books and almost $3.3 million of stockholders’ equity.”

“During the quarter, we signed a new master services agreement with Onida Electronics and expanded our relationship with Procter & Gamble India, providing us with additional validation for our SemiCab technology platform,” continued Mr. Atkinson. “We also engaged in a variety of public networking events, showcasing our Apex SaaS product offering as a Gold Sponsor at Reuters Events: Supply Chain USA 2026 and hosting our inaugural SemiCab Freight Network Forum.”

“Looking ahead, our focus will be on financial discipline,” added Mr. Atkinson. “We will be focused on controlling our costs and reducing our expenses where we can as we continue to evaluate business and acquisition opportunities that we believe will enhance long-term shareholder value. We are excited about what the future holds for Algorhythm Holdings.”

About Algorhythm Holdings

Algorhythm Holdings, Inc. is a leading AI technology company that owns and operates SemiCab. 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.

Investor Relations Contact

Brendan Hopkins
407-645-5295
[email protected]
www.algoholdings.com

Media Contact

FischTank PR
[email protected]

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, 2025. 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.

Algorhythm Holdings, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS

  June 30, 2026  December 31, 2025   (unaudited)    Assets                 Current Assets        Cash $4,972,000  $1,632,000 Restricted cash  2,983,000   4,514,000 Accounts receivable, net of allowances of $0 and $113,000, respectively  1,444,000   1,061,000 Prepaid expenses and other current assets  3,988,000   729,000 Total Current Assets  13,387,000   7,936,000          Property and equipment, net  36,000   22,000 Operating lease- right of use assets  304,000   - Other non-current assets  95,000   79,000 Intangible assets, net  2,064,000   2,005,000 Goodwill  2,682,000   2,682,000 Total Assets $18,568,000  $12,724,000          Liabilities and Shareholders’ Equity                 Current Liabilities        Accounts payable $2,229,000  $1,413,000 Accrued expenses  3,106,000   1,556,000 Other current liabilities  756,000   69,000 Current portion of operating lease liabilities  90,000   - Promissory notes payable, net  6,413,000   9,102,000 Notes payable to related parties  2,300,000   2,300,000 Total Current Liabilities  14,894,000   14,440,000          Operating lease liabities, net of current portion  216,000   - Long-term provision for employee benefits  178,000   144,000 Total Liabilities  15,288,000   14,584,000          Commitments and Contingencies                 Shareholders’ Equity (Deficit)        Preferred stock, $1.00 par value; 1,000,000 shares authorized; 3,500 and -0- shares issued and outstanding at June 30, 2026 and December 31, 2025  4,000   - Common stock, $0.01 par value; 800,000,000 and 100,000,000 shares authorized; 15,670,768 and 3,414,542 shares issued and outstanding at June 30, 2026 and December 31, 2025  157,000   35,000 Additional paid-in capital  80,210,000   65,674,000 Accumulated other comprehensive loss  (19,000)  (25,000)Accumulated deficit  (73,978,000)  (65,043,000)Non-controlling interest  (2,336,000)  (1,743,000)Treasury stock, 10,990 shares reserved at June 30, 2026 and December 31, 2025  (758,000)  (758,000)Total Shareholders’ Equity (Deficit)  3,280,000   (1,860,000)         Total Liabilities and Shareholders’ Equity (Deficit) $18,568,000  $12,724,000 

Algorhythm Holdings, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

  For the Three Months Ended  For the Six Months Ended   June 30, 2026  June 30, 2025  June 30, 2026  June 30, 2025              Net Sales $3,005,000  $1,152,000  $5,405,000  $1,275,000                  Cost of Sales  3,598,000   1,492,000   6,675,000   1,621,000                  Gross Loss  (593,000)  (340,000)  (1,270,000)  (346,000)                 Operating Expenses                Selling expenses  49,000   -   82,000   - General and administrative expenses  2,059,000   868,000   5,693,000   1,924,000 Total Operating Expenses  2,108,000   868,000   5,775,000   1,924,000                  Loss From Operations  (2,701,000)  (1,208,000)  (7,045,000)  (2,270,000)                 Other Expenses                Change in fair value of warrant liability  -   -   -   (6,468,000)Loss on debt extinguishment  (400,000)  -   (400,000)  - Interest expense, net  (1,045,000)  (27,000)  (2,081,000)  (43,000)Total Other Expenses  (1,445,000)  (27,000)  (2,481,000)  (6,511,000)                 Loss From Continuing Operations Before Income Tax  (4,146,000)  (1,235,000)  (9,526,000)  (8,781,000)                 Income tax loss attributable to continuing operations  (3,000)  -   (3,000)  -                  Net Loss From Continuing Operations  (4,149,000)  (1,235,000)  (9,529,000)  (8,781,000)                 Net loss from discontinued operations  -   426,000   -   (1,322,000)                 Net Loss  (4,149,000)  (809,000)  (9,529,000)  (10,103,000)                 Net loss attributable to non-controlling interest  320,000   224,000   594,000   327,000                  Net Loss Available to Common Shareholders $(3,829,000) $(585,000) $(8,935,000) $(9,776,000)                 Loss Per Common Share                Basic and diluted from continuing operations $(0.25) $(0.41) $(0.71) $(3.80)Basic and diluted from discontinued operations  -   0.17   -   (0.59)Basic and diluted $(0.25) $(0.24) $(0.71) $(4.40)                 Weighted Average Common and Common Equivalent Shares:                Basic and diluted  15,148,297   2,472,464   12,537,525   2,224,047