📊 RIME Key Takeaways
Is Algorhythm Holdings, Inc. (RIME) a Good Investment?
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.
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
- No long-term debt obligations
- Some cash reserves remaining ($1.6M)
- Minimal capital expenditure needs suggesting lean cost structure
- 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
- 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
- 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
- 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
- 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 |
|---|---|---|---|
| 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.
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 94% combined 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). 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: Negative stockholders equity indicates balance sheet insolvency. Severe liquidity crisis with current ratio of 0.55x; insufficient current assets to cover current liabilities. 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 $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 94% 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).