Algorhythm Holdings (NasdaqCM:RIME) Q3 2025 Earnings Call November 19, 2025 10:00 AM ET Company ParticipantsGary Atkinson - CEOAlex Andre - CFOConference Call ParticipantsEric Nickerson - Research AnalystOperatorGood day, everyone, and welcome to the Algorhythm Holdings Third Quarter 2025 Financial Results Earning Call. My name is Elvis, and I'll be your operator today. As a reminder, this call is being recorded. We have a brief safe harbor statement, and then we'll get started. This call contains forward-l ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 increased to $1.7 million from $100,000 in Q3 2024, primarily due to the acquisition of SMCB Solutions Private Limited [7] - Annualized revenue run rate for Semicab has tripled to over $7 million since January 2025, with expectations to generate around $2 million in Q4 2025 [8] - Gross loss for Q3 2025 increased to $351,000 from $32,000 in Q3 2024, with gross margin percentage improving to -20% from -25% [8][9] - Net loss for Q3 2025 decreased to $1.8 million from $2.1 million in Q3 2024, attributed to cost reduction measures [11] Business Line Data and Key Metrics Changes - Semicab's operations in India contributed $1.7 million in revenue during Q3 2025, while the legacy U.S. business generated $100,000 in Q3 2024 [7] - The company added four new Fortune 500 clients in India and converted five pilot programs into multi-million dollar contract expansions [4] Market Data and Key Metrics Changes - The global truckload transportation market is approximately $3 trillion per year, with significant inefficiencies leading to over $1 trillion in costs due to empty miles [3] - In India, truck utilization rates improved to approximately 85%, outperforming the industry average by more than 20 percentage points [4] Company Strategy and Development Direction - The company is focused on disrupting freight logistics through AI and network optimization, with a new SaaS platform, Semicab APEX, aimed at enhancing scalability and profitability [13][14] - APEX is designed to integrate easily with existing transportation management systems, allowing for rapid deployment and global adaptability [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the U.S. market for APEX due to higher gross margins and scalability compared to operations in India, which require more operational resources [28] - The company anticipates substantial revenue growth over the next 12 months, with an expected annualized revenue run rate of $15 million to $20 million by the end of next year [8] Other Important Information - The company completed the sale of its legacy Singing Machine business, resulting in a clean financial presentation focused solely on core operations [2][6] - Operating expenses for Q3 2025 decreased to $1.2 million from $1.8 million in Q3 2024 due to cost reduction measures [10] Q&A Session Summary Question: Can you explain the go-to-market strategy for APEX? - Management identified three verticals for APEX: enterprise shippers, 3PL warehousing customers, and carriers, emphasizing the ease of integration with existing systems [18][19][20] Question: Is the U.S. market a better immediate target than India? - Management highlighted the higher gross margins and scalability of the U.S. market for APEX, while acknowledging significant growth opportunities in India that require more operational resources [28]