📊 RIME Key Takeaways
Is Algorhythm Holdings, Inc. (RIME) a Good Investment?
Algorhythm Holdings exhibits critical financial distress with 81.3% YoY revenue collapse, negative gross margins (-28.2%), and unsustainable operating cash burn of -$5.4M annually. Despite maintaining $7.7M in cash and zero long-term debt, the current ratio of 0.90x, severely negative operating margins (-181%), and deteriorating fundamentals suggest viability concerns within 12-24 months without significant turnaround.
Fundamentals indicate acute distress: revenue collapsed 81% YoY, gross margin is negative, and losses drive negative equity with very weak liquidity (current ratio 0.55x) and heavy cash burn. Without a swift turnaround to positive gross margins and new financing, dilution or insolvency risk is high.
Why Buy Algorhythm Holdings, Inc. Stock? RIME Key Strengths
- Maintains $7.7M in cash reserves providing near-term liquidity cushion
- No long-term debt reducing financial leverage and restructuring risk
- Asset base of $18.5M provides potential recovery value in liquidation scenario
- No long-term debt reduces fixed interest burden
- Asset-light model with minimal capex needs
- If gross margin turns positive, operating leverage could improve results
RIME Stock Risks: Algorhythm Holdings, Inc. Investment Risks
- Revenue collapsed 81.3% YoY to $2.4M indicating severe market rejection or business line failure
- Negative gross margin of -28.2% reveals fundamental business model dysfunction with costs exceeding revenue
- Operating cash burn of -$5.4M annually creates 18-24 month runway at current depletion rates
- Current ratio of 0.90x signals liquidity stress and potential inability to service short-term obligations
- Going-concern risk from negative equity and poor liquidity
- Dilution risk from likely capital raise to fund operations
- Business model viability risk evidenced by negative gross margin and 81% revenue decline
Key Metrics to Watch
- Quarterly revenue trend—stabilization or reversal of 81% decline critical for survival
- Gross margin recovery toward positive territory indicating operational fix
- Monthly cash burn rate and updated runway to cash depletion
- Gross margin (return to positive)
- Quarterly operating cash burn vs. cash balance
Algorhythm Holdings, Inc. (RIME) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
RIME Profit Margin, ROE & Profitability Analysis
RIME vs Technology Sector: How Algorhythm Holdings, Inc. Compares
How Algorhythm Holdings, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Algorhythm Holdings, Inc. Stock Overvalued? RIME Valuation Analysis 2026
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.
Algorhythm Holdings, Inc. Balance Sheet: RIME Debt, Cash & Liquidity
RIME Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
RIME Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $123.0K | -$5.1M | $-0.52 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Algorhythm Holdings, Inc. Dividends, Buybacks & Capital Allocation
RIME SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 91% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are RIME's key strengths?
Claude: Maintains $7.7M in cash reserves providing near-term liquidity cushion. No long-term debt reducing financial leverage and restructuring risk. ChatGPT: No long-term debt reduces fixed interest burden. Asset-light model with minimal capex needs.
What are the risks of investing in RIME?
Claude: Revenue collapsed 81.3% YoY to $2.4M indicating severe market rejection or business line failure. Negative gross margin of -28.2% reveals fundamental business model dysfunction with costs exceeding revenue. ChatGPT: Going-concern risk from negative equity and poor liquidity. Dilution risk from likely capital raise to fund operations.
What is RIME's revenue and growth?
Algorhythm Holdings, Inc. reported revenue of $2.4M.
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 $-0.52.
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 May 2026, Algorhythm Holdings, Inc. has a STRONG SELL rating with 91% 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 -161.2% (sector avg: 22%), net margin of -212.8% (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 -227.1%.
How does RIME compare to other Technology stocks?
Vs Technology sector averages: Net margin -212.8% (avg: 18%), ROE -161.2% (avg: 22%), current ratio 0.90 (avg: 2.5).