Monitor cash burn trajectory and path to positive gross margin; the company's rapid share dilution and debt load are key risks. Next catalyst is Q3 guidance or any acquisition announcement.
Price Chart
Executive Summary
Algorhythm Holdings (RIME) reported Q2 2026 revenue of $3.0M (+161% YoY, +25% sequential) and GAAP EPS of -$0.25, beating consensus estimates of -$0.36 by 30.6%. Despite strong top-line growth and a significant EPS beat, the company remains deeply unprofitable with negative gross margins and ongoing cash burn, tempering the bullish signal.
Key Financial Metrics
Key Facts
- Revenue $3.005M, up 161% YoY from $1.152M and 25% sequentially from $2.4M
- GAAP EPS -$0.25 vs consensus -$0.36 (beat by 30.6%)
- Gross loss of $593,000; gross margin negative
- Cash and restricted cash $8.0M; total assets $18.6M
- Shares outstanding surged from 3.4M to 15.7M since Dec 2025
- Loss on debt extinguishment $400,000; interest expense $1.045M
Financial Impact
EPS beat of 30.6% on 161% revenue growth, but continued operating losses and negative gross margins limit upside
Risk Factors
- Continued operating losses and negative gross margins
- Significant share dilution (shares outstanding up 360% since Dec 2025)
- High debt levels ($8.7M in promissory and related-party notes)
- Micro-cap with low liquidity and high volatility
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3345377 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 7d ago | SC 13G | $0.1032 | awaiting T+60 | — | $0.1039 (+0.68%) |
Oct 7, 2026 19d ago | 3 | $0.1400 | awaiting T+60 | — | $0.1039 (−25.79%) |
Sep 21, 2026 5w ago | 8-K | $0.1835 | awaiting T+60 | — | $0.1039 (−43.38%) |
Aug 14, 2026 10w ago | Press Release | $0.3751 | awaiting T+60 | — | $0.1039 (−72.30%) |
Jun 22, 2026 18w ago | 8-K | $0.6600 $0.1950 | ▲ +70.45% | ▲ +73.70% | $0.1039 (+84.26%) |
Jun 18, 2026 18w ago | 8-K | $0.6400 $0.2173 | ▲ +66.05% | ▲ +67.79% | $0.1039 (+83.77%) |
Jun 4, 2026 20w ago | EFFECT | $0.7300 $0.2608 | ▲ +64.27% | ▲ +66.16% | $0.1039 (+85.77%) |
May 21, 2026 22w ago | 8-K | $0.7400 $0.3151 | ▼ −57.42% | ▼ −60.61% | $0.1039 (−85.96%) |
May 12, 2026 23w ago | Press Release | $0.7600 | awaiting T+60 | — | $0.1039 (−86.33%) |
May 8, 2026 24w ago | S-1/A | $0.6100 $0.4036 | ▲ +33.84% | ▲ +38.23% | $0.1039 (+82.97%) |
US Market Status
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