on 13-Feb-2026 13 February 2026 Midcap Research When AI threatens the moat #2: Our selection of "AI risk-proof" long ideas Aleksander Peterc +33 1 57 29 45 25 aleksander.peterc@bernsteinsg.com Marie Line Fort +33 1 42 13 85 21 marie-line.fort@bernsteinsg.com Philippe Lorrain +33 1 42 14 75 16 philippe.lorrain@bernsteinsg.com Victor Acitores +34 915 893 901 victor.acitores@bernsteinsg.com +44 20 7676 8355 will.kirkness@bernsteinsg.com Marios Pastou +44 20 7676 6881 marios.pastou@bernsteinsg.com Building on o ...

Core Insights - SemiCab has been awarded a pilot program with Hindustan Coca-Cola Beverages Private Limited to launch a transportation program on its collaborative freight platform, aiming to cut transportation costs and reduce empty miles for Coca-Cola India [1][2] Company Overview - Algorhythm Holdings, Inc. is a leading AI technology company focused on the growth of SemiCab, which addresses supply-chain problems globally through its AI-enabled, cloud-based Collaborative Transportation Platform [6] - SemiCab's platform utilizes artificial intelligence and machine learning to optimize freight logistics, enabling fully loaded round trips and dynamic route optimization, which leads to improved asset utilization and reduced empty backhaul miles [4][6] Industry Impact - The partnership with Coca-Cola India marks a significant milestone in SemiCab's expansion within India's fast-moving consumer goods (FMCG) sector, following recent contract wins with other industry leaders such as Procter & Gamble India and Unilever India [2][5] - The pilot program is designed to evaluate SemiCab's effectiveness in reducing empty miles and improving delivery efficiency, which could lead to a broader rollout of its solutions if successful [3][5]

Core Insights - Algorhythm Holdings, Inc. has secured an additional $9.5 million under its existing $20 million financing facility, raising the total capital to $19.5 million, which positions the company to execute its global growth strategy for the SemiCab platform [1][2] Financial Position - Following the new funding, Algorhythm reported approximately $12.5 million in cash on hand, providing sufficient capital for the expansion of its SemiCab platform in India, the U.S., and other international markets [2] - The company has repaid approximately $7 million of the initial $10 million under the financing facility, enhancing its balance sheet and increasing stockholders' equity [3] Strategic Focus - The company aims to utilize the proceeds from the funding to accelerate U.S. go-to-market efforts for the newly launched SemiCab Apex SaaS platform, grow its customer base in India, expand into new freight logistics markets, and develop complementary products and services [6] Company Overview - Algorhythm Holdings, Inc. is a leading AI technology company focused on the growth of SemiCab, which addresses supply-chain challenges globally through its AI-enabled, cloud-based Collaborative Transportation Platform [4] - SemiCab's platform utilizes real-time data and advanced predictive optimization models to enhance logistics efficiency, allowing shippers to reduce costs while increasing carrier earnings [4]

Core Insights - Algorhythm Holdings, Inc. aims to transform the freight trucking industry through intelligent coordination and AI technology, addressing inefficiencies in freight management [1][5] Industry Overview - The global freight industry is vast, with approximately 3 million tractor-trailers operating on U.S. highways, transporting trillions of dollars' worth of products [2] - Despite its scale, the freight management sector is highly fragmented, relying on disconnected systems and manual workflows, leading to significant inefficiencies [3] Inefficiencies in Freight Management - 30-35% of freight miles are driven empty, resulting in wasted fuel, unproductive driver payments, and depreciating equipment [3][4] - These inefficiencies increase operating costs for carriers and logistics providers, ultimately leading to higher consumer prices [4] SemiCab Vision and Mission - SemiCab believes that freight operations can be improved through connected planning, execution, and learning across participants [5] - The company emphasizes the importance of real-time decision-making and intelligence at network scale to enhance freight transportation efficiency [5] Performance Gains - SemiCab has reported a 70% reduction in empty freight miles driven and a throughput increase of 300-400% without increasing headcount [8] - The platform has also improved freight service reliability and reduced fuel usage and emissions [8] Collaborative Approach - Algorhythm Holdings positions itself as a partner to freight companies, brokers, and shippers, aiming to unlock structural efficiencies through collaboration [6][9] - The company has worked with notable clients such as Kellanova, Procter & Gamble, and others to achieve these efficiencies [9] Future Outlook - The momentum gained positions Algorhythm for continued growth in enterprise customers, larger contracts, and geographic expansion as it moves into 2026 [9]

Core Insights - Algorhythm Holdings' SemiCab platform enables customers to scale freight volumes by 300% to 400% without increasing operational headcount, showcasing significant productivity gains over traditional brokers [1][2] Group 1: Productivity Gains - The AI-driven Collaborative Transportation Platform allows individual operators to manage over 2,000 loads annually, compared to the traditional benchmark of approximately 500 loads per year per freight broker, resulting in a 4x improvement in workforce productivity [2][6] - SemiCab's technology automates network-level decision-making, enabling organizations to scale throughput without proportional increases in labor, infrastructure, or overhead [4][6] Group 2: Operational Efficiency - Traditional logistics operations rely heavily on manual workflows, which become inefficient as complexity increases; SemiCab's AI engine continuously learns and adjusts routing and capacity allocation in real time [3][5] - The platform supports improved margins and capital efficiency, allowing for lower costs per load and higher asset utilization as volumes grow [6][7] Group 3: Business Model and Expansion - SemiCab's model supports scalable growth with limited incremental fixed costs, reinforcing the company's asset-light, technology-driven business model [8] - The company plans to extend its AI-enabled operational leverage through its Apex SaaS platform in the U.S. and future international deployments, positioning itself for global expansion [9][10]

Core Insights - Algorhythm Holdings, Inc. has published a whitepaper demonstrating that its SemiCab platform can reduce empty freight miles by over 70% across active customer networks [1][3] - The global truckload transportation industry is valued at approximately $3 trillion annually, with inefficiencies leading to over $1 trillion lost each year due to empty miles [2] - Algorhythm estimates that, if deployed at scale, the SemiCab platform could eliminate up to $700 billion in global empty-mile waste [2] Industry Overview - The truckload transportation industry faces significant inefficiencies, with trucks driving empty nearly one out of every three miles [2] - In India, trucks run empty up to 40% of the time, which is significantly higher than the global average of 30-35%, contributing to elevated logistics costs and excessive fuel consumption [3] - Truck utilization in India is nearly 40% lower than in countries like the U.S. and China, indicating a need for improved logistics solutions [3] Company Technology and Impact - SemiCab's AI-driven Collaborative Transportation Platform addresses structural inefficiencies by enabling network-level planning and real-time load coordination [3][4] - The platform has demonstrated the ability to reduce empty-mile rates to below 10% in certain deployments, showcasing its effectiveness in lowering costs and increasing asset utilization [3][4] - The technology operates at the network level, pooling demand and supply across shippers, regions, and timeframes, which allows for structural efficiency improvements rather than temporary gains [7] Proven Results and Future Plans - Through live deployments in India, SemiCab's system-level planning model has enabled customers to achieve significant performance gains, which compound as network participation increases [5] - The company is extending its operating model to the United States with the Apex SaaS platform, aiming for asset-light recurring revenues and high profit margins [10] - The goal is to predict and optimize millions of load movements across hundreds of thousands of trucks worldwide, enhancing supply chain resilience and reducing emissions [11]

Core Insights - Algorhythm Holdings, Inc. and its SemiCab platform were highlighted in a Forbes article discussing freight inefficiency and its effects on food costs and global supply chain economics [1][2] Industry Insights - Approximately one-third of global freight miles are driven empty, resulting in nearly 33% systemic waste in food distribution networks, similar to airlines operating one out of every three flights without passengers [2][3] - The inefficiency of empty freight trucks contributes significantly to transportation costs, which are ultimately reflected in food prices [3][4] - Transportation is crucial for food distribution, with freight trucks moving the majority of agricultural goods and impacting retail food prices [4] Company Insights - SemiCab's AI-driven platform aims to reduce waste and improve efficiency in logistics, addressing the hidden costs associated with empty miles in global supply chains [4][5] - The platform treats freight transport as a continuous network, optimizing millions of freight loads across a vast truck network to reduce empty miles [5] - Algorhythm Holdings focuses on the growth of SemiCab, which has enabled major retailers and transportation providers to tackle common supply chain issues since 2020 [6]

Core Insights - Algorhythm Holdings, Inc. announced a $1.6 million contract expansion with Hindustan Unilever, Ltd. (HUL), marking a significant increase in business for SemiCab, a subsidiary focused on logistics and distribution [1][2] Group 1: Contract Details - The new contract represents a more than 10x increase in value compared to the previous pilot program [2] - The contract provides SemiCab with strategic geographic synergies in the Southern Corridor of Bangalore, where it holds a dominant market share [2] Group 2: Strategic Implications - The additional volume from HUL is expected to enhance SemiCab's freight network, minimizing empty mileage and improving fleet utilization [2][3] - The CEO of SemiCab emphasized that the contract aligns with their growth strategy for 2026, focusing on improved network optimization and lane density [3] Group 3: Company Overview - Algorhythm Holdings, through SemiCab, utilizes AI technology to address supply chain challenges, enabling collaboration among manufacturers, retailers, and carriers [4] - SemiCab's platform leverages real-time data and predictive optimization models to enhance logistics efficiency, allowing shippers to reduce costs while increasing carrier earnings [4]

Core Insights - SemiCab has expanded its Master Services Agreement with Apollo Tyres, which is the second largest tire manufacturer in India, potentially generating up to $2.5 million in annual revenue for SemiCab [1][2]. Company Overview - Algorhythm Holdings, Inc. is a leading AI technology company focused on the development of SemiCab, which addresses supply-chain challenges globally since 2020 [5]. - SemiCab's AI-enabled, cloud-based Collaborative Transportation Platform aims to optimize logistics by reducing service costs and improving delivery accuracy [3]. Partnership Details - The expanded agreement allows SemiCab to provide managed transportation services along 20 densely populated lanes in India, increasing the frequency of loads shipped [2]. - The partnership with Apollo Tyres is expected to drive significant cost efficiencies and performance improvements for both companies [4]. Technology and Innovation - SemiCab's platform enhances visibility in the transportation network through live tracking and real-time collaboration opportunities between shippers and transporters [3]. - The platform integrates with existing Transportation Management Systems (TMS) for automated processes, utilizing AI/ML predictions for optimizing logistics [5].

Core Insights - Algorhythm Holdings, Inc. announced a significant expansion of SemiCab's Master Services Agreement with a major Indian paint manufacturer, marking the largest contract expansion in the company's history with a tenfold increase over the initial pilot program [1][3] Company Overview - Algorhythm Holdings, Inc. is a leading AI technology company focused on the growth of SemiCab, which specializes in logistics and distribution solutions [6] - SemiCab's AI-enabled, cloud-based Collaborative Transportation Platform aims to reduce logistics costs, improve delivery accuracy, and eliminate empty miles, enhancing efficiency and sustainability in the global freight industry [3][6] Contract Expansion Details - The newly expanded agreement has increased the number of committed lanes from 25 to 183, resulting in an additional $5.5 million in annual service revenue for SemiCab [2] - This $6 million expansion is expected to raise SemiCab's annualized revenue run rate (ARR) to over $13 million upon completion [3] CEO Commentary - Ajesh Kapoor, CEO of SemiCab, expressed enthusiasm about the expansion, highlighting the validation of their AI-powered platform and the potential for greater efficiencies and cost savings for customers [4] - Kapoor emphasized the self-reinforcing cycle created by increased freight volume, which enhances network density and reach, leading to improved economics and rapid scaling opportunities [4] Industry Context - This expansion is the fifth major contract growth in India for SemiCab in 2025, indicating a trend of significant growth beyond initial pilot phases [5] - Since 2021, SemiCab has engaged in over a dozen pilot programs in the US and India, generating between $1 million and $2 million in freight services revenue per program [4]