RIME Still Gets Mispriced Because Too Many People Think The Karaoke Business Still Exists

One mispricing driver I keep running into with RIME is basic misunderstanding. People still talk about it as if the karaoke business is part of the company, which anchors their valuation and keeps the conversation stuck in the past. That confusion shows up in comment sections, screeners, and even casual summaries.

In reality, Algorhythm sold the Singing Machine karaoke unit in August 2025 for $4.5M, and management said the sale reduced cash burn and improved the balance sheet (source type: company press release). The remaining focus is SemiCab, an AI-driven logistics platform.

The company has now put key SemiCab metrics into public view. In the Dec 22, 2025 recap, management said SemiCab ARR increased 220% from $2.5M in January to over $8M by December and cited $15M forward ARR tied to existing customer contracts and expansions (source type: company press release). They also disclosed multiple contract expansions with lane and trip volume growth of 100% to 600%.

To me, the stock is still being priced by many people as if the old consumer electronics story is relevant, when the operating data points to a different business entirely.