Quarterly ResultMay 14, 2026, 08:07 AM
Algorhythm Holdings Q1 Net Sales $2.4M; Loss Narrows to $5.38M
AI Summary
Algorhythm Holdings reported a significant increase in net sales to $2.4 million for Q1 2026, up from $123,000 in Q1 2025, while narrowing its net loss to $5.38 million from $9.29 million year-over-year. The company also saw a substantial improvement in its financial position, moving from a shareholder deficit to positive equity of $3.17 million. Despite these improvements, the company issued a going concern warning, citing insufficient cash to fund operations for at least one year and a history of operating losses. The company has transitioned its focus to its SemiCab AI technology business after selling its Singing Machine business in August 2025.
Key Highlights
- Net Sales surged to $2,400,000 for Q1 2026, a substantial increase from $123,000 in Q1 2025.
- Net Loss narrowed to $(5,380,000) in Q1 2026, compared to $(9,294,000) in Q1 2025.
- Loss Per Common Share improved significantly to $(0.52) from $(4.66) year-over-year.
- Total Shareholders' Equity shifted to a positive $3,168,000 as of March 31, 2026, from a deficit of $(1,860,000) at December 31, 2025.
- Cash and restricted cash increased to $10,939,000 at March 31, 2026, from $6,146,000 at December 31, 2025.
- The company received $8,843,000 in net cash from financing activities during Q1 2026.
- Management issued a going concern warning due to insufficient cash to fund operations for at least one year.
- The company completed the sale of its Singing Machine business on August 1, 2025, now focusing on its SemiCab AI technology.