MeritValue

Algorhythm Holdings, Inc.

RIMEdata completeness 75%16 fiscal years on file
The thesis, from the filings

Algorhythm Holdings, Inc. earns about -2% on invested capital, but has diluted owners by 90% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$45.8M1$47.5M2$39.3M2$297,0003$4.39M3
Net income$2.17M4$230,4715−$4.64M5−$23.3M6−$15.9M6
Operating cash flow$171,0177−$2.01M8−$330,2728−$8.56M9−$7.31M10
Capital expenditure$201,16111$117,57312$243,72912$70,00013$14,00014
Free cash flow (derived)−$30,1447−$2.13M8−$574,0018−$8.63M9−$7.32M10
Total debt—————
Cash & equivalents$396,57915$2.29M16$2.89M16——
Diluted shares1.3M1.6M2.8M65,7222.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
−$7.51
your share of equity
Profit it earned you last year
−$64.12
Free cash flow it threw off
−$29.58
Debt you’d be carrying
—

10 shares is a claim on −$7.51 of net worth that earned you −$64.12 and generated −$29.58 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-2% avg · 5y
FY21 29%FY22 3%FY23 -38%FY24 —FY25 —

It earned an average -2% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+90% shares · 5y

Share count is up 90% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-03-31 · accession 0001493152-22-019311 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-03-31 · accession 0001493152-23-024594 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-12-31 · accession 0001493152-26-014724 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-03-31 · accession 0001493152-22-019311 (NetIncomeLoss)
  5. 10-K · period ending 2022-03-31 · accession 0001493152-23-024594 (NetIncomeLoss)
  6. 10-K · period ending 2024-12-31 · accession 0001493152-26-014724 (NetIncomeLoss)
  7. 10-K · period ending 2021-03-31 · accession 0001493152-22-019311 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-03-31 · accession 0001493152-23-024594 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-12-31 · accession 0001641172-25-004792 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2025-12-31 · accession 0001493152-26-014724 (NetCashProvidedByUsedInOperatingActivitiesContinuingOperations)
  11. 10-K · period ending 2021-03-31 · accession 0001493152-22-019311 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2022-03-31 · accession 0001493152-23-024594 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2024-12-31 · accession 0001641172-25-004792 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2025-12-31 · accession 0001493152-26-014724 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2021-03-31 · accession 0001493152-22-019311 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-03-31 · accession 0001493152-23-024594 (CashAndCashEquivalentsAtCarryingValue)