Algorhythm Reports $9.29M Q1 Loss Amid $2M Revenue Decline

Algorhythm Holdings, formerly The Singing Machine Company, reported a first-quarter net loss of $9.29 million on revenues of $1.99 million, down from $2.43 million the previous year, with increased operating expenses and significant warrant liability losses impacting results. Despite these financial challenges, the company is optimistic about growth prospects, particularly following its acquisition of SMCB Solutions Private, which operates SemiCab's AI-driven Collaborative Transportation Platform in India. SemiCab India currently runs an annualized revenue of $4.6 million, expected to double by year's end, supported by a fleet expansion from 140 trucks to potentially over 1,000 by the end of 2025 to meet rising demand. Algorhythm plans to leverage this expansion to significantly increase its revenue run rate, potentially exceeding $23 million in the latter half of the year if growth surpasses projections. The company is actively seeking external financing to support operations and sustain business activities amid liquidity concerns. Analysts maintain an 'Outperform' rating on Algorhythm with a significant price upside potential based on growth forecasts and valuation models.