Revenue Increases 71% Sequentially as Cash Balance Grows to Almost $11 Million
Fort Lauderdale, FL, May 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 first quarter ended March 31, 2026, including the achievement of a record amount of revenue since becoming a pure-play AI technology company.
First Quarter 2026 Financial Highlights
Revenue increased $1.0 million, or 71%, sequentially to $2.4 million for the three months ended March 31, 2026 compared to $1.4 million for the three months ended December 31, 2025. Revenue increased $2.3 million, or 1,851%, year-over-year to $2.4 million for the three months ended March 31, 2026 from $123,000 for the three months ended March 31, 2025. Cash and restricted cash totaled $10.9 million at March 31, 2026, an increase of 78% compared to $6.1 million at December 31, 2025. Net loss decreased $3.9 million, or 42%, to $5.4 million (of which $1.8 million consisted of non-cash expenses) for the three months ended March 31, 2026 from $9.3 million for the three months ended March 31, 2025. Total assets grew 45% to $18.5 million at March 31, 2026 compared to $12.7 million at December 31, 2025.
“We are off to a strong start in 2026, with first quarter revenue growing more than 71% sequentially and more than 1,800% year-over-year as we continue to scale our SemiCab business,” stated Gary Atkinson, Chief Executive Officer of Algorhythm Holdings. “Our SMCB acquisition in May 2025 continues to deliver meaningful results, and our customer base in India is broadening as existing customers expand their lane coverage and new enterprise shippers come on board. With our Apex SaaS platform opening the door to the U.S. and European markets, we believe we are well-positioned to sustain strong revenue growth throughout the remainder of 2026.”
“Our balance sheet strengthened significantly during the first quarter,” added Alex Andre, Chief Financial Officer of Algorhythm Holdings. “We ended the quarter with $10.9 million in cash and restricted cash, up from $6.1 million at year-end 2025, providing us with substantially greater liquidity to support the growth of our SemiCab business. As of May 12, 2026, we had a cash and restricted cash balance of almost $9.4 million.
“We also reduced our net loss by more than 40% year-over-year, reflecting both the elimination of prior-year non-cash warrant charges and continued discipline in managing our operating expenses relative to revenue growth,” added Mr. Andre. “Importantly, we returned to positive stockholders’ equity of $3.2 million from a deficit of $1.9 million at the end of 2025, a swing of approximately $5.0 million, which exceeds the $2.5 million threshold required by Nasdaq’s continued listing standards.”
The Company expects net sales to continue to grow over the remainder of 2026 as its SemiCab business expands its customer base in India and begins generating revenue in the United States and Europe through its Apex SaaS platform.
First Quarter 2026 Business Highlights
During its first fiscal quarter, the Company made several notable announcements, including the following:
The Company achieved an annualized revenue run rate (ARR) of more than $12 million. It entered into new service agreements with Coca-Cola India and MTR Foods and was awarded a contract expansion with Unilever India and Apollo Tyres. It raised an additional $9.5 million under its existing $20 million financing facility. SemiCab appointed Jonathan Miller as Vice President of U.S. Sales to drive sales of its Apex SaaS platform offering in the U.S. and Europe, bringing almost 30 years of logistics and freight technology leadership experience to the company.
“SemiCab has evolved into a leading high-growth AI logistics company that is delivering real savings, real efficiency gains, and real environmental benefits to some of the world’s largest shippers,” stated Mr. Atkinson. “The rollout of our Apex SaaS platform marks our entry into the more than $450 billion U.S. full-truckload market and provides us with the opportunity to generate asset-light, recurring revenue with attractive gross margins. We remain focused on disciplined execution, prudent capital management, and continued investment in the technology and customer relationships that we believe will drive long-term shareholder value.”
Conference Call Details
Management will host a conference call to discuss the financial results and provide a business update. Date: Thursday, May 14, 2026 Time: 10:00 a.m. EDT Dial-in number: 888-999-3182 Conference ID: RIME
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