Algorhythm Holdings, Inc.

Net sales were $2.4 million for Q1 2026, up 1,850% from $123,000 in Q1 2025 and up 71% from $1.4 million in Q4 2025. Gross loss was $680,000 versus $6,000 a year ago. Operating expenses increased to $3.7 million from $1.1 million, while other expenses fell to $1.0 million from $6.5 million. Net loss from continuing operations improved to $5.4 million from $7.5 million. Cash on hand was $10.9 million at March 31, 2026, and stockholders’ equity improved to $3.2 million from a deficit of $1.9 million at year-end 2025. Management said SemiCab’s annualized revenue run rate exceeded $12 million in Q1 and is expected to rise to between $15 million and $20 million by the end of 2026.

Gary Atkinson framed the quarter as evidence that SemiCab’s AI-driven orchestration model is gaining traction with shippers and logistics providers. He emphasized that the company is solving a large, inefficient market and said conversations with prospects have shifted meaningfully, accelerating business development and opening new partnerships. He also stressed that the decision not to make the initial $1.5 million note payment was deliberate, with capital being prioritized toward scaling managed services in India and rolling out Apex SaaS.

Alex Andre highlighted the reported figures behind the quarter: $2.4 million in net sales, $680,000 in gross loss, $3.7 million in operating expenses, $1.0 million in other expenses, and a $5.4 million net loss from continuing operations. He explained that the gross loss reflects the managed-services ramp in India, where trucks are contracted before revenue fully scales, and said margins should improve over the next 12 months as utilization rises. He also pointed to the balance sheet improvement, with cash up to $10.9 million and stockholders’ equity up to $3.2 million, above Nasdaq’s $2.5 million continued-listing threshold.

There were no analyst questions on the call, so the only direct issue addressed was management’s own discussion of the missed $1.5 million promissory note payment. Gary said the company has adequate liquidity, had about $9.4 million of cash on hand as of May 2, and received a 45-day forbearance while it works to restructure the note payment schedule. He also reiterated that U.S. Apex sales cycles are long, but said the pipeline is expanding and feedback from prospective customers has been highly positive.