Algorhythm | 10-Q: FY2025 Q2 Revenue: USD 2.716 M

Revenue: As of FY2025 Q2, the actual value is USD 2.716 M.

EPS: As of FY2025 Q2, the actual value is USD -0.24.

EBIT: As of FY2025 Q2, the actual value is USD -809 K.

Segment Revenue

• Singing Machine: Revenue for the three months ended June 30, 2025, was $1,564,000, and for the six months ended June 30, 2025, was $3,434,000.
• SemiCab: Revenue for the three months ended June 30, 2025, was $1,152,000, and for the six months ended June 30, 2025, was $1,275,000.

Operational Metrics

• Net Loss: For the three months ended June 30, 2025, the net loss was - $809,000, and for the six months ended June 30, 2025, it was - $10,103,000.
• Gross Profit: For the three months ended June 30, 2025, gross profit was $954,000, and for the six months ended June 30, 2025, it was $1,454,000.
• Operating Expenses: Total operating expenses for the three months ended June 30, 2025, were $1,736,000, and for the six months ended June 30, 2025, were $5,046,000.

Cash Flow

• Net Cash Used in Operating Activities: For the six months ended June 30, 2025, net cash used in operating activities was - $5,436,000.

Unique Metrics

• Goodwill: As of June 30, 2025, goodwill was $4,418,000, reflecting the acquisition of SMCB.

Future Outlook and Strategy

• Core Business Focus: Algorhythm Holdings, Inc. plans to invest in the SemiCab business to develop and grow it into a significant revenue producer, focusing on technology development, hiring, marketing, and back-office support. The company expects net sales from SemiCab to increase substantially over the next 12 months.
• Non-Core Business: The company sold its Singing Machine business on August 1, 2025, and will no longer generate sales from this business line.

Outlook Summary

Algorhythm Holdings, Inc. anticipates an increase in total net sales over the next 12 months due to growth in the SemiCab business, despite the loss of sales from the Singing Machine business. Gross profit is expected to decrease due to increased costs associated with SemiCab, partially offset by cost reductions from the sale of the Singing Machine business. Operating expenses are expected to decrease following the sale of the Singing Machine business.