📊 RIME Key Takeaways
Is RIME a Good Investment? Thesis Analysis
Algorhythm Holdings is in severe financial distress with negative stockholders equity of -$1.9M, indicating technical insolvency. The company is burning cash at $5.4M annually with only $1.6M in liquidity and negative gross margins of -29.9%, suggesting a fundamentally broken business model unable to generate positive returns on revenue.
Why Buy RIME? Key Strengths
- No long-term debt obligations
- Some cash reserves remaining ($1.6M)
- Minimal capital expenditure needs suggesting lean cost structure
RIME Investment Risks to Consider
- Negative stockholders equity indicates balance sheet insolvency
- Severe liquidity crisis with current ratio of 0.55x; insufficient current assets to cover current liabilities
- Massive revenue collapse of 81% YoY to only $4.4M indicates collapsing demand
- Negative gross margins of -29.9% reveal broken unit economics and core business model failure
- Operating cash flow of -$5.4M annually will exhaust remaining $1.6M cash within months
- Total liabilities exceed total assets by $1.9M creating solvency risk
Key Metrics to Watch
- Cash burn rate and months of cash runway remaining
- Revenue stabilization or further decline
- Gross margin improvement toward breakeven
- Stockholders equity recovery from negative territory
- Operating cash flow return to positive territory
RIME Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
RIME Profitability Ratios
RIME vs Technology Sector
How Algorhythm Holdings, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is RIME Overvalued or Undervalued?
Based on fundamental analysis, Algorhythm Holdings, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
RIME Balance Sheet & Liquidity
RIME 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Algorhythm Holdings, Inc.'s revenue has declined by 90% over the 5-year period, indicating business contraction. The most recent EPS of $-353.87 indicates the company is currently unprofitable.
RIME Growth Metrics (YoY)
RIME Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $127.0K | $1.2M | $0.13 |
| Q2 2025 | $2.4M | N/A | $-0.24 |
| Q1 2025 | $2.0M | N/A | $-4.66 |
| Q3 2024 | $10.6M | N/A | $0.03 |
| Q2 2024 | $2.4M | $97.5K | $0.02 |
| Q1 2024 | $2.4M | -$16.0K | $-0.01 |
| Q3 2023 | $7.1M | $1.4M | $-0.61 |
| Q2 2023 | $17.1M | $280.5K | $0.08 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
RIME Capital Allocation
RIME SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Algorhythm Holdings, Inc. (CIK: 0000923601)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RIME
What is the AI rating for RIME?
Algorhythm Holdings, Inc. (RIME) has an AI rating of STRONG SELL with 98% confidence, based on fundamental analysis of SEC EDGAR filings.
What are RIME's key strengths?
Claude: No long-term debt obligations. Some cash reserves remaining ($1.6M).
What are the risks of investing in RIME?
Claude: Negative stockholders equity indicates balance sheet insolvency. Severe liquidity crisis with current ratio of 0.55x; insufficient current assets to cover current liabilities.
What is RIME's revenue and growth?
Algorhythm Holdings, Inc. reported revenue of $4.4M.
Does RIME pay dividends?
Algorhythm Holdings, Inc. does not currently pay dividends.
Where can I find RIME SEC filings?
Official SEC filings for Algorhythm Holdings, Inc. (CIK: 0000923601) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RIME's EPS?
Algorhythm Holdings, Inc. has a diluted EPS of $-6.41.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is RIME a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Algorhythm Holdings, Inc. has a STRONG SELL rating with 98% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is RIME stock overvalued or undervalued?
Valuation metrics for RIME: ROE of N/A (sector avg: 22%), net margin of -361.4% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy RIME stock in 2026?
Our dual AI analysis gives Algorhythm Holdings, Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RIME's free cash flow?
Algorhythm Holdings, Inc.'s operating cash flow is $-5.4M, with capital expenditures of $14.0K. FCF margin is -124.1%.
How does RIME compare to other Technology stocks?
Vs Technology sector averages: Net margin -361.4% (avg: 18%), ROE N/A (avg: 22%), current ratio 0.55 (avg: 2.5).