Algorhythm Holdings, Inc. Q3 FY25 Results

“Our third quarter was a transformational period for the company,” stated Gary Atkinson, Chief Executive Officer of Algorhythm. “With the sale of Singing Machine, we transformed Algorhythm Holdings into a high-growth, AI technology company while significantly reducing our cash burn and strengthening our balance sheet. We also unveiled our new “Apex” SaaS platform, marking our move into the $450 billion U.S. full-truckload market. Apex will provide us with asset-light recurring revenue and high gross profit margins from platform licensing, accelerated market penetration through white-label partnerships, and a growing data ecosystem that strengthens AI accuracy and customer value.” Mr. Atkinson continued, “Our SemiCab business has grown more than 1,200% year-over-year, with our third quarter revenue reflecting the annualized run rate of $7 million that we achieved during our second quarter. Future growth will now be driven by a combination of our SemiCab India business and our SemiCab U.S. business. The India segment will benefit from the numerous new contract wins and expansions that we announced during our second quarter, as well as our recent fleet expansion to 450 trucks which provides us with the ability to generate in excess of $23 million in annual revenue. Growth in the U.S. will be driven by Michael Silvagni, SemiCab’s new VP of U.S. Sales, and his team, and will be supported by Vasudha Khurana, SemiCab’s new VP of Brand and Communications. This segment is expected to begin generating material recurring SaaS-based revenue for us when we complete our broader rollout of the Apex software platform in 2026, and longer term is expected to be our primary source of revenue.”

“Revenue increased over 1,200%, from $0.1M to $1.7 million, year-over-year, driven by the acquisition of SemiCab India this past May and its continued growth thereafter,” stated Alex Andre, Chief Financial Officer of Algorhythm. “We also experienced a substantial drop in operating expenses, driven largely by a steep decrease in general and administrative expenses that resulted from a variety of cost-reduction measures we implemented during the past couple of quarters. We expect revenue to continue to increase over the next 12 months as our SemiCab business continues to grow in India and as we benefit from the broader rollout of our SaaS business in the U.S. during 2026. Cash outflows will continue trending lower compared to historical levels due to the sale of Singing Machine, however increases in our strategic investments in SemiCab’s business will offset some of these reductions.”