Algorhythm Holdings Inc. Common Stock (RIME)

FairStock Score: 26/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Algorhythm Holdings is a tiny AI and consumer electronics holding company with only 46 employees, operating in India and involved in logistics optimization and renewable energy. The filed numbers show why I am cautious. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $3.0 million and net income was -$3.8 million. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $2.4 million and net income was -$5.1 million. For FY2025, period ended 2025-12-31, revenue was $4.4 million and net loss was $15.9 million. FY2024 revenue was only $297,000 with a net loss of $23.3 million, while FY2023 revenue was $39.3 million and net loss was $4.6 million. Revenue is growing recently, but the company is not earning money; it is consuming it. Trailing free cash flow is -$11.5 million against a $2.2 million market cap, a -520.1% FCF yield per FairStock. Debt-to-equity is 2.75, ROE is -524.07%, ROCE is -50.87%, and FairStock's Altman Z-Score is -5.91. The stock closed at $0.13 on 2026-10-13, with P/B 0.36, so it looks cheap relative to book value. But a low price to book can be a trap when liabilities and cash burn are high. FairStock's Piotroski F-Score is 5/9, its overall score is 26/100, and its Lynch category is TURNAROUND: loss in latest year after earlier profits. I see no evidence of a durable competitive advantage in these numbers, and the balance sheet gives little margin of safety. Unless losses narrow and cash flow turns positive, the apparent bargain may be illusory.

In plain English: Algorhythm Holdings is a small technology company that works on AI logistics software, consumer electronics, and renewable energy. The business looks weak because it is losing money and using cash, even though sales have recently increased. At 13 cents a share, the price looks cheap compared with the company's accounting assets, but that low price reflects serious financial risk.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-03-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer