Algorhythm Holdings, Inc. (RIME) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning everyone and welcome to Algorithm Holdings, second quarter, 2025, Financial Results Earnings Call. My name is Jen and I will be your operator. As a reminder, today's call is being recorded. We have a brief safe harbor and then we'll get started. This call contains forward-looking statements under U.S. Federal Security laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations. A description of some of the risks and uncertainties can be found in our reports that we file with the Securities and Exchange Commissions, including the cautionary statement included in our current and periodic filings. I would now like to turn the call over to Gary Atkinson, Company CEO. Hi, thank you. Good morning ladies and gentlemen. Thank you all for joining us for our second quarter 2025 earnings call. As mentioned, my name is Gary Atkinson, Company CEO. I am also joined this morning by Alex Andre, Company CFO, who will be providing a detailed update on the results of operations. Before we start, I'd like to focus on two key topics for today. The first is the strategic sale of the singing machine, our legacy consumer electronics business. And the second is the accelerated growth and outlook for semi-cap, our high-growing AI logistics platform. I'll start this morning with singing machines. This business has been the leader in its category for over 40 years as the number one brand for home karaoke. However, the consumer electronics market, particularly consumer karaoke, has faced persistent headwinds over the last few years. The business has experienced declining sales year over year, rising costs, uncertain global tariffs, inflation and supply chain disruptions. To posi...