RIME

Algorhythm Holdings, Inc. (RIME) ESG Analysis Analysis (2026)

Invetso Score: 5.3/10 — Balanced · Last Updated: 2026-09-01

Monthly Update

No material changes this month.

Environmental

Score: 5.2 (Moderate)

Zero reported R&D intensity suggests limited direct environmental innovation investment versus peers with active product or process decarbonization programs.

Negative gross margin indicates weaker operating efficiency, which can constrain capital available for environmental compliance and sustainability initiatives relative to better-margin peers.

No disclosed environmental metrics in the provided data limits evidence of superior emissions, energy, or resource management versus peers.

The absence of visible environmental disclosures is less favorable than peers with clearer targets and reporting, but it does not indicate a structural environmental controversy.

Social

Score:

Stock-based compensation at 13.2% of revenue is elevated, implying heavier dilution pressure than peers and potentially weaker alignment between employee incentives and shareholder interests.

No provided workforce, safety, or customer-impact metrics prevents evidence of stronger social practices versus peers with more transparent human-capital reporting.

The available data does not show a labor, product, or community controversy, leaving social positioning broadly neutral rather than advantaged.

Relative to peers with lower compensation intensity and fuller social disclosure, the current profile appears adequate but not distinctive.

Governance

Score:

Debt-to-equity of 2.75 indicates materially higher leverage than conservative peers, increasing governance sensitivity around capital allocation and balance-sheet discipline.

Negative net debt to EBITDA suggests net cash on the latest metric, partially offsetting leverage concerns and preventing a weaker governance assessment.

Stock-based compensation at 13.2% of revenue is a governance headwind versus peers with tighter dilution control and stronger pay discipline.

No filing-based evidence of board, audit, or control failures is provided, so the score reflects moderate rather than severe governance weakness.

Overall Score

Score:

RIME’s ESG positioning is broadly middle-of-pack versus peers, with limited disclosure and elevated compensation and leverage metrics offset by no evident severe controversy.

Score Driver: Elevated Stock-Based Compensation And Leverage Outweigh The Absence Of Disclosed ESG Controversies.

Sources

  • Company filings (10-K, 10-Q, investor presentations)
  • Financial and market data providers
  • Public news and industry information

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