The company's profitability has collapsed, evidenced by a negative gross margin of -28.2% in 2026Q1, as the cost of goods sold now consistently exceeds total revenue.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 | Mar'00 | Mar'99 | Mar'98 | Mar'97 |
|---|
| Sales/Revenue | 8.23M | 4.39M | 23.49M | 38.93M | 39.3M | 47.51M | 45.8M | 38.5M | 46.48M | 60.81M | 52.92M | 48.86M | 39.31M | 31.38M | 34.44M | 25.94M | 19.17M | 21.28M | 31.78M | 34.07M | 26.73M | 32.31M | 38.21M | 70.54M | 95.61M | 62.48M | 34.88M | 19.03M | 9.55M | 6.23M | 10.67M |
| Revenue Growth % | -64.3% | -81.31% | -39.65% | -0.94% | -17.29% | 3.73% | 18.97% | -17.17% | -23.56% | 14.91% | 8.32% | 24.29% | 25.27% | -8.88% | 32.74% | 35.36% | -9.92% | -33.05% | -6.71% | 27.44% | -17.25% | -15.45% | -45.83% | -26.22% | 53.04% | 79.14% | 83.24% | 99.34% | 53.25% | -41.64% | 105.46% |
| Cost of Goods Sold | 8.92M | 5.71M | 18.71M | 30.68M | 30.09M | 36.7M | 33.51M | 30.32M | 34.71M | 45.14M | 39.08M | 36.94M | 31M | 24.27M | 26.37M | 20.46M | 15.35M | 17.73M | 26.3M | 26.7M | 21.17M | 27.67M | 28.95M | 68.72M | 72.33M | 40.85M | 22.16M | 13.61M | 7.03M | 5.05M | 9.15M |
| COGS % of Revenue | - | 129.95% | 79.65% | 78.8% | 76.57% | 77.24% | 73.15% | 78.76% | 74.67% | 74.23% | 73.85% | 75.6% | 78.86% | 77.35% | 76.57% | 78.88% | 80.1% | 83.33% | 82.74% | 78.37% | 79.2% | 85.67% | 75.75% | 97.42% | 75.65% | 65.39% | 63.54% | 71.52% | 73.62% | 81.1% | 85.67% |
| Gross Profit | -691K | -1.31M | 4.78M | 8.25M | 9.21M | 10.81M | 12.3M | 8.18M | 11.77M | 15.67M | 13.84M | 11.92M | 8.31M | 7.11M | 8.07M | 5.48M | 3.81M | 3.55M | 5.48M | 7.37M | 5.56M | 4.63M | 9.26M | 1.82M | 23.28M | 21.62M | 12.72M | 5.42M | 2.52M | 1.18M | 1.53M |
| Gross Margin % | -8.39% | -29.95% | 20.35% | 21.2% | 23.43% | 22.76% | 26.85% | 21.24% | 25.33% | 25.77% | 26.15% | 24.4% | 21.14% | 22.65% | 23.43% | 21.12% | 19.9% | 16.67% | 17.26% | 21.63% | 20.8% | 14.34% | 24.25% | 2.58% | 24.35% | 34.61% | 36.46% | 28.48% | 26.38% | 18.9% | 14.33% |
| Gross Profit Growth % | - | -127.5% | -42.07% | -10.38% | -14.85% | -12.05% | 50.38% | -30.54% | -24.88% | 13.27% | 16.09% | 43.41% | 16.95% | -11.93% | 47.26% | 43.64% | 7.55% | -35.33% | -25.55% | 32.52% | 20.05% | -50.01% | 409.45% | -92.19% | 7.69% | 70.04% | 134.56% | 115.26% | 113.84% | -23% | 277.94% |
| Operating Expenses | 10.06M | 6.63M | 18.71M | 16.44M | 12.91M | 10.75M | 10.87M | 11.42M | 10.72M | 14.67M | 10.85M | 9.98M | 7.74M | 6.83M | 6.5M | 5.01M | 4.41M | 6.5M | 7.51M | 7.21M | 7.15M | 6.79M | 10.88M | 22.01M | 21.67M | 13.39M | 7.69M | 3.9M | 1.54M | 2.64M | 4.96M |
| OpEx % of Revenue | - | 151.06% | 79.62% | 42.24% | 32.84% | 22.62% | 23.74% | 29.67% | 23.07% | 24.13% | 20.5% | 20.43% | 19.7% | 21.76% | 18.87% | 19.3% | 23.03% | 30.56% | 23.62% | 21.17% | 26.74% | 21.02% | 28.49% | 31.21% | 22.66% | 21.43% | 22.05% | 20.47% | 16.18% | 42.41% | 46.44% |
| Selling, General & Admin | 6.99M | 6.63M | 15.11M | 16.44M | 12.91M | 10.75M | 10.57M | 10.85M | 8.62M | 11.25M | 10.64M | 9.79M | 7.61M | 6.66M | 6.39M | 4.97M | 4.35M | 6.46M | 7.46M | 7.19M | 7.04M | 5.34M | 9.64M | 22.01M | 21.67M | 13.39M | 7.69M | 3.78M | 1.54M | 2.28M | 2.37M |
| SG&A % of Revenue | - | 151.06% | 64.33% | 42.24% | 32.84% | 22.62% | 23.09% | 28.18% | 18.55% | 18.5% | 20.11% | 20.03% | 19.37% | 21.22% | 18.55% | 19.16% | 22.68% | 30.35% | 23.46% | 21.1% | 26.35% | 16.52% | 25.22% | 31.21% | 22.66% | 21.43% | 22.05% | 19.86% | 16.18% | 36.65% | 22.21% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 100K | 200K | 100K | 196.85K | 114.53K | 200.55K | 70.87K | 37.85K | 66.88K | 45.15K | 51.63K | 22.49K | 104.22K | 132.28K | 239.24K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | 0.22% | 0.33% | 0.19% | 0.4% | 0.29% | 0.64% | 0.21% | 0.15% | 0.35% | 0.21% | 0.16% | 0.07% | 0.39% | 0.41% | 0.63% | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 3.59M | 0 | 0 | 0 | 298.36K | 571.44K | 159.66K | 19.97K | 109.03K | 0 | 15.73K | -32.41K | 39.4K | 0 | 0 | 0 | 0 | 0 | 0 | 1.32M | 1.01M | 0 | 0 | 0 | 0 | 116.37K | 0 | 358.27K | 2.59M |
| Operating Income | -10.75M | -7.95M | -13.93M | -8.19M | -3.7M | 69K | 1.43M | -3.24M | 1.05M | 1M | 2.99M | 1.94M | 568.61K | 278.96K | 1.57M | 470.91K | -598.67K | -2.96M | -2.02M | 156.38K | -1.59M | -2.16M | -1.62M | -20.2M | 1.61M | 8.24M | 5.03M | 1.53M | 973.65K | -1.46M | -3.43M |
| Operating Margin % | -130.62% | -181.01% | -59.27% | -21.04% | -9.41% | 0.15% | 3.11% | -8.43% | 2.26% | 1.65% | 5.64% | 3.96% | 1.45% | 0.89% | 4.56% | 1.82% | -3.12% | -13.89% | -6.36% | 0.46% | -5.94% | -6.68% | -4.24% | -28.63% | 1.69% | 13.18% | 14.42% | 8.02% | 10.2% | -23.5% | -32.11% |
| Operating Income Growth % | - | 42.92% | -70.01% | -121.49% | -5459.42% | -95.16% | 143.93% | -409.33% | 4.65% | -66.44% | 54.17% | 240.68% | 103.83% | -82.23% | 233.37% | 178.66% | 79.75% | -46.13% | -1393.49% | 109.84% | 26.43% | -33.28% | 91.98% | -1351.08% | -80.4% | 63.8% | 229.53% | 56.7% | 166.5% | 57.29% | 0.3% |
| EBITDA | -10.5M | -7.7M | -13.47M | -7.81M | -2.75M | 1.11M | 1.72M | -2.98M | 1.31M | 1.22M | 3.15M | 2.11M | 698.87K | 447.1K | 1.68M | 642.73K | -168.56K | -2.52M | -1.56M | 467.66K | -1.03M | -1.47M | -910.94K | -18.54M | 2.24M | 8.63M | 5.33M | 1.64M | 1.12M | -1.29M | -3.03M |
| EBITDA Margin % | -127.57% | -175.34% | -57.32% | -20.06% | -7% | 2.34% | 3.76% | -7.73% | 2.82% | 2.01% | 5.96% | 4.32% | 1.78% | 1.42% | 4.88% | 2.48% | -0.88% | -11.83% | -4.92% | 1.37% | -3.86% | -4.55% | -2.38% | -26.28% | 2.34% | 13.81% | 15.28% | 8.63% | 11.71% | -20.66% | -28.36% |
| EBITDA Growth % | 25.16% | 42.83% | -72.48% | -183.72% | -347.93% | -35.6% | 157.93% | -327.39% | 7.06% | -61.23% | 49.49% | 201.77% | 56.31% | -73.39% | 161.41% | 481.31% | 93.3% | -60.95% | -434.32% | 145.29% | 29.77% | -61.42% | 95.09% | -928.74% | -74.08% | 61.95% | 224.52% | 46.89% | 186.87% | 57.5% | 5.71% |
| D&A (Non-Cash Add-back) | 251K | 249K | 458K | 382.67K | 946K | 1.04M | 298.36K | 269.11K | 259.66K | 219.97K | 166.03K | 171.78K | 130.25K | 168.14K | 110.27K | 171.82K | 430.12K | 439.43K | 459.35K | 311.27K | 556.05K | 688.95K | 709.29K | 1.66M | 622.3K | 394.46K | 301.06K | 116.37K | 144.23K | 177.27K | 400.08K |
| EBIT | -10.75M | -14.42M | -22.48M | -8.19M | -3.13M | 867K | 3.04M | -3.26M | 1.05M | 1M | 3.03M | 1.96M | 568.61K | 278.96K | 1.57M | 470.91K | -598.67K | -2.96M | -2.02M | 128.73K | -1.67M | 197.7K | -1.42M | -20.2M | 1.61M | 8.24M | 5.03M | 1.53M | 973.65K | -1.46M | -3.43M |
| Net Interest Income | -1.77M | -747K | -10.78M | -398.67K | -479K | -580K | -473.97K | -254.04K | -257.93K | -304.99K | -263.31K | -335.14K | -305.75K | -53.45K | -48.42K | -7.8K | -20.87K | -94.98K | -131.75K | -127.02K | -42.35K | -2.1M | -2.18M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | -8.89M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.77M | 747K | 1.89M | 398.67K | 479K | 580K | 473.97K | 254.04K | 257.93K | 304.99K | 263.31K | 335.14K | 305.75K | 53.45K | 48.42K | 7.8K | 20.87K | 94.98K | 131.75K | 127.02K | 42.35K | 2.1M | 2.18M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -1.77M | -7.21M | -10.44M | -340K | 90K | 218K | 1.2M | -254.04K | -257.93K | -304.99K | -263.31K | -335.14K | -305.75K | -53.45K | -48.42K | -7.8K | -20.87K | -94.98K | -131.75K | -154.67K | -126.24K | 254.17K | -1.97M | -1.73M | -197.65K | -50.82K | -839.57K | -947.98K | -219.5K | 0 | -447.24K |
| Pretax Income | -12.52M | -15.16M | -24.37M | -8.53M | -3.61M | 287K | 2.63M | -3.5M | 791.03K | 697.36K | 2.72M | 1.6M | 262.86K | 225.52K | 1.52M | 463.12K | -619.55K | -3.05M | -2.15M | 1.71K | -1.71M | -1.91M | -3.59M | -21.92M | 1.42M | 8.18M | 4.19M | 577.69K | 754.16K | 0 | -3.88M |
| Pretax Margin % | -152.08% | -345.32% | -103.72% | -21.91% | -9.18% | 0.6% | 5.74% | -9.09% | 1.7% | 1.15% | 5.15% | 3.28% | 0.67% | 0.72% | 4.42% | 1.79% | -3.23% | -14.34% | -6.78% | 0.01% | -6.42% | -5.9% | -9.4% | -31.08% | 1.48% | 13.1% | 12.01% | 3.04% | 7.9% | - | -36.3% |
| Income Tax | 47K | 47K | 0 | 0 | 1.03M | 57K | 456.87K | -641.81K | 159.48K | 544.88K | 1.02M | -101.38K | 92.7K | -778.8K | -1.62M | 0 | 0 | 0 | 36.65K | 0 | -2.45M | 0 | 0 | 758.5K | 198.77K | 1.9M | 491.74K | -160.3K | -170K | 0 | 0 |
| Effective Tax Rate % | -0.38% | -0.31% | 0% | 0% | -28.55% | 19.86% | 17.38% | 18.34% | 20.16% | 78.13% | 37.35% | -6.33% | 35.27% | -345.34% | -106.44% | 0% | 0% | 0% | -1.7% | 0% | 143.07% | 0% | 0% | -3.46% | 14.03% | 23.16% | 11.74% | -27.75% | -22.54% | - | 0% |
| Net Income | -12.07M | -16.05M | -23.26M | -8.53M | -4.64M | 230K | 2.17M | -2.86M | 631.55K | 152.49K | 1.71M | 1.7M | 170.16K | 1M | 3.14M | 463.12K | -619.55K | -3.05M | -2.19M | 1.71K | 738.59K | -1.91M | -3.59M | -22.68M | 1.22M | 6.29M | 3.7M | 737.99K | 924.16K | -906.59K | -3.88M |
| Net Margin % | -146.59% | -365.52% | -98.99% | -21.91% | -11.8% | 0.48% | 4.74% | -7.42% | 1.36% | 0.25% | 3.22% | 3.49% | 0.43% | 3.2% | 9.12% | 1.79% | -3.23% | -14.34% | -6.89% | 0.01% | 2.76% | -5.9% | -9.4% | -32.16% | 1.27% | 10.07% | 10.6% | 3.88% | 9.68% | -14.55% | -36.3% |
| Net Income Growth % | 59.88% | 30.99% | -172.63% | -83.93% | -2116.52% | -89.41% | 176.04% | -552.38% | 314.17% | -91.06% | 0.16% | 901.06% | -83.06% | -68.02% | 578.22% | 174.75% | 79.69% | -39.23% | -128091.53% | -99.77% | 138.77% | 46.96% | 84.16% | -1962.64% | -80.64% | 70.15% | 400.86% | -20.14% | 201.94% | 76.61% | -0.63% |
| Net Income (Continuing) | -12.57M | -15.21M | -24.37M | -8.53M | -4.64M | 230K | 2.17M | -2.86M | 631.55K | 152.49K | 1.71M | 1.7M | 170.16K | 1M | 3.14M | 463.12K | -619.55K | -3.05M | -2.19M | 1.71K | 738.59K | -1.91M | -3.59M | -22.68M | 1.22M | 6.29M | 3.7M | 737.99K | 924.16K | -1.61M | -3.88M |
| Discontinued Operations | -273K | -1.54M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -2.02M | -1.74M | -1.04M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.22 | -6.48 | -2.56 | -1.75 | -1.65 | 0.14 | 1.67 | -2.22 | 0.48 | 0.12 | 1.30 | 1.32 | 0.13 | 0.78 | 2.46 | 0.37 | -0.49 | -2.44 | -2.01 | 0.00 | 0.90 | -5.70 | -11.83 | -15900.00 | 840.00 | 4740.00 | 3000.00 | 718.58 | 1481.02 | -48.56 | -32840.07 |
| EPS Growth % | 59.78% | -153.42% | -46.11% | -6.06% | -1278.57% | -91.62% | 175.23% | -562.5% | 300% | -90.77% | -1.52% | 915.38% | -83.33% | -68.29% | 564.86% | 175.51% | 79.92% | -21.39% | - | -99.81% | 115.79% | 51.82% | 99.93% | -1992.86% | -82.28% | 58% | 317.49% | -51.48% | 3149.88% | 99.85% | 40.31% |
| EPS (Basic) | - | -6.48 | -2.56 | -1.76 | -1.65 | 0.14 | 1.68 | -2.22 | 0.49 | 0.12 | 1.34 | 1.34 | 0.13 | 0.79 | 2.48 | 0.37 | -0.49 | -2.44 | -2.01 | 0.00 | 1.05 | -5.70 | -11.83 | -15900.00 | 900.00 | 5280.00 | 3540.00 | 763.17 | 1481.02 | -48.56 | -32840.07 |
| Diluted Shares Outstanding | 9.9M | 2.48M | 9.1M | 4.86M | 2.81M | 1.62M | 1.3M | 1.28M | 1.31M | 1.32M | 1.31M | 1.29M | 1.29M | 1.29M | 1.28M | 1.26M | 1.26M | 1.25M | 1.09M | 1.03M | 825.13K | 334.3K | 303.74K | 1.43K | 1.49K | 1.32K | 1.23K | 1.03K | 624 | 18.67K | 118 |
| Basic Shares Outstanding | 9.9M | 2.48M | 9.1M | 4.85M | 2.81M | 1.64M | 1.29M | 1.28M | 1.28M | 1.28M | 1.27M | 1.27M | 1.29M | 1.27M | 1.27M | 1.26M | 1.26M | 1.25M | 1.09M | 997.53K | 704.83K | 334.3K | 303.74K | 1.43K | 1.35K | 1.19K | 1.04K | 967 | 624 | 18.67K | 118 |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Liquidity exhaustion and insolvency
As reported in recent financial statements, Algorhythm Holdings has experienced a severe contraction in top-line performance, with quarterly revenue falling from $10.6M in 2024Q3 to $2.4M in 2026Q1, signaling that the legacy hardware business model is failing to maintain its historical market relevance.
The sharp decline in revenue suggests that the company's core karaoke hardware products are losing traction with consumers, likely due to the proliferation of software-based alternatives. This downward trend appears to be accelerating, casting significant doubt on the viability of the current business model during the transition to the 'Algorhythm' brand.
Based on the company's latest income statement data, gross margins have deteriorated into negative territory, reaching -28.2% in 2026Q1, which implies that the cost of goods sold now consistently exceeds the revenue generated from hardware sales, a trend that appears fundamentally unsustainable for any consumer electronics firm.
The shift to negative gross margins suggests that the company is likely incurring significant inventory write-downs or is unable to pass through rising logistics and manufacturing costs to its retail partners. This margin profile indicates a lack of pricing power and suggests that the current product portfolio is value-destructive at the unit level.
According to the provided quarterly data, RIME's operating expenses remain disproportionately high relative to revenue, with SG&A costs of $3.7M in 2026Q1 dwarfing the $2.4M in total revenue, which highlights a complete lack of operating leverage and an inability to scale the business toward profitability.
The persistent gap between operating expenses and gross profit suggests that the company's overhead structure is misaligned with its current revenue scale. Investors should monitor whether management can implement meaningful cost-cutting measures, as the current burn rate appears to be rapidly depleting the company's limited cash reserves.
While management has rebranded to Algorhythm Holdings to signal a pivot toward technology, the income statement reveals that the company continues to struggle with legacy hardware economics, as evidenced by the -2.1% net margin and the absence of meaningful recurring revenue growth in the most recent periods.
The rebranding may be viewed by some as a cosmetic attempt to distance the firm from its failing karaoke business, yet the financials show no evidence of a successful transition to a high-margin software model. The lack of R&D investment, which has remained at zero, further suggests that the 'Algorhythm' pivot may lack the necessary capital backing to succeed.
Quick answers to the most common questions about buying RIME stock.
For fiscal year 2025, Algorhythm Holdings, Inc. (RIME) reported total revenue of $4.4M. This represents a 58.9% decline compared to $10.7M in 1996.
Algorhythm Holdings, Inc. (RIME) reported a net loss of $16.1M for the fiscal year ending 2025.
Algorhythm Holdings, Inc. (RIME) reported an operating income of $-7.9M, resulting in an operating profit margin of -181.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Algorhythm Holdings, Inc. (RIME) generated $-1.3M in gross profit for the year, representing a gross profit margin of -29.9%. This demonstrates the company's core pricing power and production efficiency.