Revenue Increases 71% Sequentially as Cash Balance Grows to Almost
First Quarter 2026 Financial Highlights
- Revenue increased
$1.0 million , or 71%, sequentially to$2.4 million for the three months endedMarch 31, 2026 compared to$1.4 million for the three months endedDecember 31, 2025 . - Revenue increased
$2.3 million , or 1,851%, year-over-year to$2.4 million for the three months endedMarch 31, 2026 from$123,000 for the three months endedMarch 31, 2025 . - Cash and restricted cash totaled
$10.9 million atMarch 31, 2026 , an increase of 78% compared to$6.1 million atDecember 31, 2025 . - Net loss decreased
$3.9 million , or 42%, to$5.4 million (of which$1.8 million consisted of non-cash expenses) for the three months endedMarch 31, 2026 from$9.3 million for the three months endedMarch 31, 2025 . - Total assets grew 45% to
$18.5 million atMarch 31, 2026 compared to$12.7 million atDecember 31, 2025 .
“We are off to a strong start in 2026, with first quarter revenue growing more than 71% sequentially and more than 1,800% year-over-year as we continue to scale our SemiCab business,” stated
“Our balance sheet strengthened significantly during the first quarter,” added
“We also reduced our net loss by more than 40% year-over-year, reflecting both the elimination of prior-year non-cash warrant charges and continued discipline in managing our operating expenses relative to revenue growth,” added
The Company expects net sales to continue to grow over the remainder of 2026 as its SemiCab business expands its customer base in
First Quarter 2026 Business Highlights
During its first fiscal quarter, the Company made several notable announcements, including the following:
- The Company achieved an annualized revenue run rate (ARR) of more than
$12 million . - It entered into new service agreements with
Coca-Cola India andMTR Foods and was awarded a contract expansion withUnilever India and Apollo Tyres. - It raised an additional
$9.5 million under its existing$20 million financing facility. - SemiCab appointed
Jonathan Miller as Vice President ofU.S. Sales to drive sales of its Apex SaaS platform offering in theU.S. andEurope , bringing almost 30 years of logistics and freight technology leadership experience to the company.
“SemiCab has evolved into a leading high-growth AI logistics company that is delivering real savings, real efficiency gains, and real environmental benefits to some of the world’s largest shippers,” stated
Conference Call Details
Management will host a conference call to discuss the financial results and provide a business update.
Date:
Time:
Dial-in number: 888-999-3182
Conference ID: RIME
About
Investor Relations Contact
407-645-5295
investors@algoholdings.com
www.algoholdings.com
Media Contact
FischTank PR
Algorhythm@fischtankpr.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as "expects," "anticipates," "believes," "will," "will likely result," "will continue," "plans to," "potential," "promising," and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements, including the risk factors described from time to time in Algorhythm’s reports to the
CONDENSED CONSOLIDATED BALANCE SHEETS
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash | $ | 7,699,000 | $ | 1,632,000 | ||||
| Restricted cash | 3,240,000 | 4,514,000 | ||||||
| Accounts receivable, net of allowances of | 918,000 | 1,061,000 | ||||||
| Prepaid expenses and other current assets | 1,773,000 | 729,000 | ||||||
| Total Current Assets | 13,630,000 | 7,936,000 | ||||||
| Property and equipment, net | 34,000 | 22,000 | ||||||
| Other non-current assets | 81,000 | 79,000 | ||||||
| Intangible assets, net | 2,028,000 | 2,005,000 | ||||||
| 2,682,000 | 2,682,000 | |||||||
| Total Assets | $ | 18,455,000 | $ | 12,724,000 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 984,000 | $ | 1,413,000 | ||||
| Accrued expenses | 1,691,000 | 1,556,000 | ||||||
| Other current liabilities | 688,000 | 69,000 | ||||||
| Promissory notes payable, net | 9,498,000 | 9,102,000 | ||||||
| Notes payable to related parties | 2,300,000 | 2,300,000 | ||||||
| Total Current Liabilities | 15,161,000 | 14,440,000 | ||||||
| Long-term provision for employee benefits | 126,000 | 144,000 | ||||||
| Total Liabilities | 15,287,000 | 14,584,000 | ||||||
| Commitments and Contingencies | ||||||||
| Shareholders’ Equity (Deficit) | ||||||||
| Preferred stock, | - | - | ||||||
| Common stock, | 147,000 | 35,000 | ||||||
| Additional paid-in capital | 75,979,000 | 65,674,000 | ||||||
| Accumulated other comprehensive loss | (32,000 | ) | (25,000 | ) | ||||
| Accumulated deficit | (70,149,000 | ) | (65,043,000 | ) | ||||
| Non-controlling interest | (2,019,000 | ) | (1,743,000 | ) | ||||
| (758,000 | ) | (758,000 | ) | |||||
| Total Shareholders’ Equity (Deficit) | 3,168,000 | (1,860,000 | ) | |||||
| Total Liabilities and Shareholders’ Equity/ (Deficit) | $ | 18,455,000 | $ | 12,724,000 | ||||
See notes to the condensed consolidated financial statements
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Three Months Ended | ||||||||
| $ | 2,400,000 | $ | 123,000 | |||||
| Cost of Sales | 3,077,000 | 129,000 | ||||||
| Gross Loss | (677,000 | ) | (6,000 | ) | ||||
| Operating Expenses | ||||||||
| Selling expenses | 33,000 | - | ||||||
| General and administrative expenses | 3,634,000 | 1,056,000 | ||||||
| Total Operating Expenses | 3,667,000 | 1,056,000 | ||||||
| Loss From Operations | (4,344,000 | ) | (1,062,000 | ) | ||||
| Other Expenses | ||||||||
| Change in fair value of warrant liability | - | (6,468,000 | ) | |||||
| Interest expense, net | (1,036,000 | ) | (16,000 | ) | ||||
| Total Other Expenses | (1,036,000 | ) | (6,484,000 | ) | ||||
| Loss From Continuing Operations Before Income Tax | (5,380,000 | ) | (7,546,000 | ) | ||||
| Income tax loss attributable to continuing operations | - | - | ||||||
| Net Loss From Continuing Operations | (5,380,000 | ) | (7,546,000 | ) | ||||
| Net loss from discontinued operations | - | (1,748,000 | ) | |||||
| Net Loss | (5,380,000 | ) | (9,294,000 | ) | ||||
| Net loss attributable to non-controlling interest | 274,000 | 103,000 | ||||||
| Net Loss Available to Common Shareholders | $ | (5,106,000 | ) | $ | (9,191,000 | ) | ||
| Loss Per Common Share | ||||||||
| Basic and diluted from continuing operations | $ | (0.52 | ) | $ | (3.77 | ) | ||
| Basic and diluted from discontinued operations | - | (0.89 | ) | |||||
| Basic and diluted | $ | (0.52 | ) | $ | (4.66 | ) | ||
| Weighted Average Common and Common Equivalent Shares: | ||||||||
| Basic and diluted | 9,897,743 | 1,972,869 | ||||||
See notes to the condensed consolidated financial statements
