Revenue Increases 25% Sequentially and 161% YOY to
Q2 2026 Financial Highlights
- Revenue increased 25% sequentially to
$3.0 million for the second quarter of 2026 compared to$2.4 million in the first quarter of 2026. - Revenue increased
$1.8 million , or 161%, from$1.2 million in the second quarter of 2025. - Gross margin percentage improved by 850 basis points or approximately 30% sequentially.
- Cash and restricted cash totaled approximately
$8.0 million as ofJune 30, 2026 . - Total assets grew 46% to
$18.6 million atJune 30, 2026 from$12.7 million atDecember 31, 2025 .
Q2 2026 Business Highlights
During the quarter, the Company’s business continued to execute on numerous fronts as follows:
- Expanded SemiCab's relationship with Procter &
Gamble India through an additional contract expansion, increasing annualized contract value by approximately 32%. - Signed a new Master Services Agreement with
Onida Electronics , expanding SemiCab's enterprise customer portfolio inIndia . - Continued commercial expansion of the SemiCab Apex SaaS platform in
North America through investments in business development and the hiring ofJonathan Miller as Vice President ofU.S . Sales. - Participated as a Gold Sponsor at Reuters Events:
Supply Chain USA 2026, showcasing Apex to enterprise shippers, logistics providers and transportation leaders. - Hosted the inaugural
SemiCab Freight Network Forum , bringing together supply chain executives to discuss AI, freight orchestration and transportation network optimization.
CEO Commentary
"We are pleased with our second quarter financial results, highlighted by continued strong sequential and year-over-year revenue growth," said
“During the quarter, we signed a new master services agreement with
“Looking ahead, our focus will be on financial discipline,” added
About
Investor Relations Contact
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www.algoholdings.com
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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 | $ | 4,972,000 | $ | 1,632,000 | ||||
| Restricted cash | 2,983,000 | 4,514,000 | ||||||
| Accounts receivable, net of allowances of | 1,444,000 | 1,061,000 | ||||||
| Prepaid expenses and other current assets | 3,988,000 | 729,000 | ||||||
| Total Current Assets | 13,387,000 | 7,936,000 | ||||||
| Property and equipment, net | 36,000 | 22,000 | ||||||
| Operating lease- right of use assets | 304,000 | - | ||||||
| Other non-current assets | 95,000 | 79,000 | ||||||
| Intangible assets, net | 2,064,000 | 2,005,000 | ||||||
| 2,682,000 | 2,682,000 | |||||||
| Total Assets | $ | 18,568,000 | $ | 12,724,000 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 2,229,000 | $ | 1,413,000 | ||||
| Accrued expenses | 3,106,000 | 1,556,000 | ||||||
| Other current liabilities | 756,000 | 69,000 | ||||||
| Current portion of operating lease liabilities | 90,000 | - | ||||||
| Promissory notes payable, net | 6,413,000 | 9,102,000 | ||||||
| Notes payable to related parties | 2,300,000 | 2,300,000 | ||||||
| Total Current Liabilities | 14,894,000 | 14,440,000 | ||||||
| Operating lease liabities, net of current portion | 216,000 | - | ||||||
| Long-term provision for employee benefits | 178,000 | 144,000 | ||||||
| Total Liabilities | 15,288,000 | 14,584,000 | ||||||
| Commitments and Contingencies | ||||||||
| Shareholders’ Equity (Deficit) | ||||||||
| Preferred stock, | 4,000 | - | ||||||
| Common stock, | 157,000 | 35,000 | ||||||
| Additional paid-in capital | 80,210,000 | 65,674,000 | ||||||
| Accumulated other comprehensive loss | (19,000 | ) | (25,000 | ) | ||||
| Accumulated deficit | (73,978,000 | ) | (65,043,000 | ) | ||||
| Non-controlling interest | (2,336,000 | ) | (1,743,000 | ) | ||||
| (758,000 | ) | (758,000 | ) | |||||
| Total Shareholders’ Equity (Deficit) | 3,280,000 | (1,860,000 | ) | |||||
| Total Liabilities and Shareholders’ Equity (Deficit) | $ | 18,568,000 | $ | 12,724,000 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| $ | 3,005,000 | $ | 1,152,000 | $ | 5,405,000 | $ | 1,275,000 | |||||||||
| Cost of Sales | 3,598,000 | 1,492,000 | 6,675,000 | 1,621,000 | ||||||||||||
| Gross Loss | (593,000 | ) | (340,000 | ) | (1,270,000 | ) | (346,000 | ) | ||||||||
| Operating Expenses | ||||||||||||||||
| Selling expenses | 49,000 | - | 82,000 | - | ||||||||||||
| General and administrative expenses | 2,059,000 | 868,000 | 5,693,000 | 1,924,000 | ||||||||||||
| Total Operating Expenses | 2,108,000 | 868,000 | 5,775,000 | 1,924,000 | ||||||||||||
| Loss From Operations | (2,701,000 | ) | (1,208,000 | ) | (7,045,000 | ) | (2,270,000 | ) | ||||||||
| Other Expenses | ||||||||||||||||
| Change in fair value of warrant liability | - | - | - | (6,468,000 | ) | |||||||||||
| Loss on debt extinguishment | (400,000 | ) | - | (400,000 | ) | - | ||||||||||
| Interest expense, net | (1,045,000 | ) | (27,000 | ) | (2,081,000 | ) | (43,000 | ) | ||||||||
| Total Other Expenses | (1,445,000 | ) | (27,000 | ) | (2,481,000 | ) | (6,511,000 | ) | ||||||||
| Loss From Continuing Operations Before Income Tax | (4,146,000 | ) | (1,235,000 | ) | (9,526,000 | ) | (8,781,000 | ) | ||||||||
| Income tax loss attributable to continuing operations | (3,000 | ) | - | (3,000 | ) | - | ||||||||||
| Net Loss From Continuing Operations | (4,149,000 | ) | (1,235,000 | ) | (9,529,000 | ) | (8,781,000 | ) | ||||||||
| Net loss from discontinued operations | - | 426,000 | - | (1,322,000 | ) | |||||||||||
| Net Loss | (4,149,000 | ) | (809,000 | ) | (9,529,000 | ) | (10,103,000 | ) | ||||||||
| Net loss attributable to non-controlling interest | 320,000 | 224,000 | 594,000 | 327,000 | ||||||||||||
| Net Loss Available to Common Shareholders | $ | (3,829,000 | ) | $ | (585,000 | ) | $ | (8,935,000 | ) | $ | (9,776,000 | ) | ||||
| Loss Per Common Share | ||||||||||||||||
| Basic and diluted from continuing operations | $ | (0.25 | ) | $ | (0.41 | ) | $ | (0.71 | ) | $ | (3.80 | ) | ||||
| Basic and diluted from discontinued operations | - | 0.17 | - | (0.59 | ) | |||||||||||
| Basic and diluted | $ | (0.25 | ) | $ | (0.24 | ) | $ | (0.71 | ) | $ | (4.40 | ) | ||||
| Weighted Average Common and Common Equivalent Shares: | ||||||||||||||||
| Basic and diluted | 15,148,297 | 2,472,464 | 12,537,525 | 2,224,047 | ||||||||||||
