Algorhythm Holdings, Inc. Q4 FY2025 earnings call

Gary Atkinson introduced that the global truckload market is a $3 trillion - a - year industry but very inefficient with about one - third of miles driven empty. Semicab platform is purpose - built to address this, reducing empty miles by over 70% in real - world production and handling four times the freight volume without additional headcount. In 2025, 4 new Fortune 500 clients were secured in India and 5 pilot programs were converted into multimillion - dollar contract expansions, pushing annualized revenue run rate to nearly $10 million by year - end. Alex Andre mentioned that 2025 financial results were impacted by acquisitions and selling the legacy consumer electronics business, sales increased, gross loss changed, operating expenses decreased, net loss from continuing operations decreased, and balance sheet strengthened. Gary distinguished between managed services business in India and the Apex platform, where managed services is a virtual carrier model working with Indian enterprise shippers, and Apex is a high - margin, asset - light SaaS offering adjacent to existing TMS systems, easily deployable and implementable.

In 2025, sales increased 1,370%. From May 2, 2025 to December 31, 2025, Semicab Indian business (SMCB) delivered $4.4 million of revenue. Semicab's legacy U.S. business generated $300,000 revenue in 2024. The annualized revenue run rate of Semicab was nearly $10 million by year - end 2025 and is expected to increase to between $15 million and $20 million by the end of 2026, largely attributable to growth in the Semicab Indian managed services business and revenue from the new SaaS business. Gross loss for 2025 was $1.3 million compared to $194,000 last year. The managed services business in India works with notable enterprise shippers' India business segments, and the new Semicab APEX platform is a high - margin, asset - light, globally deployable SaaS offering that can generate recurring SAS revenue with strong gross margins.

The annualized revenue run rate of Semicab is expected to increase to between $15 million and $20 million by the end of 2026, largely attributable to growth in the Semicab Indian managed services business and revenue from the new SaaS business announced in the past fall.

This call contains forward - looking statements subject to risks and uncertainties under U.S. federal securities laws that could cause actual results to differ materially from historical experience or present expectations. A description of some of these risks and uncertainties can be found in the reports filed with the Securities and Exchange Commission, including the cautionary statement provided in current and periodic filings.

Q: On the SaaS business, can you give us some high - level overview of what the pipeline into that looks like, inquiries, and if you're building a dedicated sales team to support that product?

A: With recent media attention, there's a strong pipeline of commercial sales opportunities with large logistics service providers. There's been a strong inbound flow of communication from industry executives, and the company has attracted high - caliber talent to help lead sales efforts for the APEX platform.

Q: What are the restrictions on restricted cash and how do you access that?

A: Restricted cash consists of cash received from Streeterville held in a reserve account until they purchase securities from us, and funds have been released over time since the November transaction.

Q: If you can put a range around how much time you think it'll take for customers to roll out APEX, and then secondly, maybe more importantly, What are the obstacles or objections that the customers have?

A: The Apex platform is already developed and available, not a heavy integration cycle. It's more of a commercial agreement cycle. Customers' concerns vary, with larger customers being more cautious, but the platform is cloud - based and can be connected via simple APIs.

Q: What are one or two key drivers that you believe could have the biggest impact on future revenue growth?

A: The SaaS model is a key driver, as it's recurring revenue, high - margin, and sticky, with the potential to unlock significant value for large enterprise customers by reducing empty miles by a large percentage.