New Fortune 500 customer contracts, 10x increase in contracted freight volume, and successful launch of Apex SaaS platform are expected to drive accelerating long-term revenue growth

Fort Lauderdale, FL, Dec. 22, 2025 (GLOBE NEWSWIRE) -- Algorhythm Holdings, Inc. (“Algorhythm”) (NASDAQ: RIME ) – a leading AI technology company, today issued a year-end business recap of the corporate transformation that it underwent during 2025 and the strong revenue growth achieved by its SemiCab business.

Algorhythm entered the second half of the year as a pure-play AI logistics platform following the divestiture of its legacy Singing Machine consumer electronics business in August. Algorhythm has entered a period of rapid growth due to the success of SemiCab’s proprietary AI powered Collaborative Transportation Platform, which is quickly being adopted by major global shippers and carriers that want to generate the cost savings and distribution efficiencies that SemiCab can deliver.

Financial Achievements

SemiCab achieved significant growth in a variety of financial metrics during the 2025 calendar year, including the following:

  • SemiCab’s annualized revenue run-rate (ARR) increased 220% from $2.5 million in January to over $8 million today.

  • SemiCab currently has a forward-looking ARR of $15 million based on current customer contracts and recent contract expansions.

Algorhythm expects these financial metrics to continue to improve throughout 2026 as it executes upon new contracts and contract expansions that SemiCab signed during 2025.

Contract Wins and Expansions

During 2025, SemiCab achieved five new contract wins with some of the largest multinational fast moving consumer goods companies (FMCGs) in India, and was awarded six contract expansions for increased lanes and trip volume ranging between 100% and 600%, including the following:

  • In June, SemiCab announced that it was awarded a multi-million-dollar expansion by Proctor & Gamble India that covering new geographic regions across the country.

  • In July, SemiCab announced that Kellanova awarded the Company a significant expansion into new freight lanes following a successful pilot program.

  • In August, SemiCab announced that the Company signed a new master service agreement with Bajaj Electricals, one of the largest electronics manufacturers in India, with over $560 million in annual sales.

  • In November, SemiCab announced it was awarded a contract expansion by Marico of up to a $3 million for freight coverage across key India distribution lanes.

  • In December, the Company announced that Asian Paints, one of the 10 largest global shippers in the paints industry with over $4 billion in annual sales, awarded SemiCab a $6 million contract expansion, the largest in SemiCab’s history, increasing Asian Paints’ active lanes from 25 to 183.

These results reflect the scalability of SemiCab’s AI model and the strong demand from global FMCGs seeking to save money and reduce the number of empty and idle trucks on the roads.

Business Highlights

On a broader, strategic level, 2025 represented a transformative year for Algorhythm, marked by several major transactions and additions to its management team that transformed Algorhythm into a technology focused AI distribution and logistics company growing rapidly on two continents.

  • Algorhythm completed the acquisition of SMCB Solutions Private Ltd., expanding its SemiCab AI logistics and distribution business into India.

  • Algorhythm divested its legacy Singing Machine karaoke business to Stingray Group, a global audio and video streaming and distribution business, for $4.5 million, reducing its cash burn and improving its balance sheet.

  • SemiCab, launched “Apex”, its new software-as-a-service (SaaS) platform that brings SemiCab’s proven AI-driven collaborative logistics technology to 3PLs and multi-enterprise shippers in the United States.

  • SemiCab appointed Michael Silvagni as its new VP of U.S. Sales to drive SemiCab’s SaaS strategy in the United States and Vasudha Khurana as VP of Brand and Communications to lead its brand development, marketing strategies, and global go-to-market initiatives.

  • SemiCab won “Best Value” Award from its largest customer at LogiMeet 2025.

Through these initiatives, Algorhythm solidified SemiCab’s stature as the preeminent leader in the AI logistics and distribution space in India and as an emerging force in the SaaS space in the United States.

Outlook for 2026

Algorhythm enters 2026 with a rapidly growing global footprint, a quickly expanding enterprise customer base, and an asset-light SaaS strategy designed to improve the company’s margins and the scalability of its software. SemiCab’s deep pipeline of FMCGs and new Apex SaaS platform will drive new enterprise pilots across India and the United States. This, coupled with additional contract expansions with existing FMCG customers, will drive strong revenue growth throughout 2026.

“2026 is going to be an exciting year for us as we continue to position the company for long-term accelerating growth,” stated Gary Atkinson, CEO of Algorhythm Holdings. “SemiCab has evolved into a leading high-growth AI logistics platform that is delivering real savings, real efficiency gains, and real environmental benefits to some of the world’s largest shippers. During 2025, we acquired several new and expanded enterprise relationships, secured the largest contract award in our Company’s history, and meaningfully increased our annual run-rate revenues to more than $8 million.”

“We recently marked our entry into the $450 billion U.S. full-truckload market through our new Apex SaaS platform,” continued Mr. Atkinson. “Apex will provide us with asset-light recurring revenue and high gross profit margins from platform licensing, accelerated market penetration through white-label partnerships, and a growing data ecosystem that strengthens AI accuracy and customer value. Apex allows us to serve 3PLs and enterprise shippers with a flexible, scalable solution that enhances – rather than replaces – their existing transportation systems. We believe 2026 will be a pivotal year as we scale our technology across new customers, new markets, and new geographies.”

About Algorhythm Holdings

Algorhythm Holdings, Inc. is a leading AI technology company focused on the growth and development of SemiCab, an emerging leader in the global logistics and distribution industry. Since 2020, SemiCab has enabled major retailers, brands and transportation providers to address common supply-chain problems globally. Its AI-enabled, cloud-based Collaborative Transportation Platform achieves the scalability required to predict and optimize millions of loads and hundreds of thousands of trucks. SemiCab uses real-time data from API-based load tendering and pre-built integrations with TMS and ELD partners to orchestrate collaboration across manufacturers, retailers, distributors, and their carriers. SemiCab uses AI/ML predictions and advanced predictive optimization models to enable fully loaded round trips. With SemiCab’s AI platform, shippers pay less and carriers make more without having to change a thing. For additional information, please go to: http://www.semicab.com

Investor Relations Contact

Brendan Hopkins
407-645-5295
[email protected]
www.algoholdings.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 SEC, including, without limitation Algorhythm’s Annual Report on Form 10-K for the year ended December 31, 2024. You should not place undue reliance on any forward-looking statement, each of which applies only as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations, or as a result of new information, future events or otherwise.