RYTHM, Inc. Reports Fourth Quarter and Full Year 2025 Results
Rhea-AI Summary
RYTHM (Nasdaq: RYM) reported fourth-quarter 2025 revenue from continuing operations of $10.7 million, up 164% sequentially, and gross profit of $8.0 million (75% margin). The quarter included $7.0 million of licensing revenue and an $8.5 million non-cash impairment causing an operating loss of $12.9 million. Year highlights include acquiring multiple brands, generating $7.8 million in licensing fees for 2025, establishing retail distribution in >6,000 locations across 18 states, placement in over 800 Circle K stores, and a United Center partnership. Cash balance was $32.2 million.
Positive
- Revenue +164% QoQ to $10.7M in Q4 2025
- Gross margin 75% (Q4 2025)
- Licensing revenue $7.0M in Q4; $7.8M for 2025
- Retail footprint >6,000 locations across 18 states
- Cash balance $32.2M at year-end
Negative
- Operating loss $12.9M in Q4 2025
- $8.5M non-cash impairment drove much of the Q4 loss
- Potential dilution: 2.1M shares outstanding vs 10.9M warrants and 3.0M convertible-note shares
- Persistent regulatory headwinds for THC products cited by management
Key Figures
Market Reality Check
Peers on Argus
While RYM was down 9.66% pre-earnings, multiple industrial peers (e.g., HCAI, GENC, XOS, CMCO) showed gains, suggesting the move was stock-specific rather than a sector-wide shift.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 07 | Quarterly earnings | Neutral | -3.7% | Q3 2025 results with rising revenue but ongoing operating loss and cash update. |
Limited earnings history shows the prior earnings release coincided with a modest -3.71% move, hinting at cautious reactions to financial updates.
Over the past several months, RYTHM pivoted into a brand- and licensing-focused THC strategy. The prior earnings report on Nov 7, 2025 showed revenue from continuing operations of $4.0M, an $8.9M operating loss, and $35.6M in cash. Strategically, the company acquired key THC brands and rolled out Señorita THC Margaritas and other products through large retailers. Today’s 4Q/2025 and full-year results build directly on that shift toward branded THC and licensing economics.
Historical Comparison
Past earnings (one event) saw a -3.71% move on mixed results. This update similarly pairs strong growth with sizable operating losses, fitting that cautious pattern.
Earnings updates show progression from Q3 2025 revenue of $4.0M to Q4 2025 revenue of $10.7M, while operating losses remain a central theme.
Market Pulse Summary
This announcement highlights rapid scaling of RYTHM’s THC-focused brand platform, with Q4 2025 revenue of $10.7M, gross profit of $8.0M and full-year licensing fees of $7.8M. At the same time, a $12.9M operating loss, including an $8.5M non-cash impairment, underscores ongoing profitability challenges. Prior earnings drew a modest -3.71% move, suggesting historically cautious reactions. Investors tracking this story may focus on margin durability, operating leverage, and the impact of warrants and convertibles on the capital structure.
Key Terms
non-cash impairment charge financial
warrants financial
convertible notes financial
hemp-derived THC medical
AI-generated analysis. Not financial advice.
ROLLING MEADOWS, Ill., March 03, 2026 (GLOBE NEWSWIRE) -- RYTHM, Inc. (Nasdaq: RYM) (“RYTHM” or the “Company”), which delivers well-being to consumers through its portfolio of iconic brands and hemp-derived THC products including Señorita THC Margaritas, incredibles, and RYTHM Beverages, today announced financial results for the fourth quarter and full year ended December 31, 2025.
Highlights for the fourth quarter ended December 31, 2025:
- Revenue from continuing operations of
$10.7 million , up164% from$4.0 million in the prior quarter. - Gross Profit from continuing operations of
$8.0 million or75% of revenue, up from$1.4 million or34% of revenue in the prior quarter. - Operating loss from continuing operations of
$12.9 million , primarily driven by an$8.5 million non-cash impairment charge. - Cash balance of
$32.2 million . - At year end, the Company had approximately 2.1 million shares outstanding, as well as warrants convertible into 10.9 million shares, and 3.0 million shares issuable upon conversion of convertible notes (excluding interest).
Highlights for the year ended December 31, 2025:
- Acquired portfolio of brand intellectual property including RYTHM, Dogwalkers, incredibles, Beboe, and others.
- Generated
$7.8 million in licensing fees by licensing brands to cannabis operator Green Thumb Industries. - Established a beverage retail footprint of over 6,000 locations across 18 states.
- Secured placement of Señorita THC Margaritas in over 800 Circle K stores as part of the largest U.S. convenience store rollout of hemp-derived THC beverages to date.
- Launched Señorita THC Margaritas and RYTHM Beverages at Chicago’s United Center through a multi-year partnership, making the brands the first THC beverages available at a major U.S. arena.
Management Commentary
“2025 was a transformational year for RYTHM, Inc., marked by a new name, a new ticker, and a new strategic direction as we expanded our role in the THC category, with RYTHM, Dogwalkers, and Señorita leading the way,” said Chairman and Interim CEO Ben Kovler.
“We exited the year with fourth quarter licensing revenue of
“THC has faced persistent structural and regulatory headwinds, but consumer demand continues to rise. We believe consumers deserve access to safe, high-quality THC products where they already live, shop, and gather, and we have worked relentlessly to make that a reality. In a historic first, we launched a partnership with Chicago’s United Center, making Señorita and RYTHM the first THC beverages to be offered at a major U.S. arena. Bringing THC to the nation’s largest arena is a powerful example of real progress with a world-class partner who recognizes evolving consumer demand.
“Even as federal policy continues to lag consumer reality, we remain focused on providing consumers with iconic brands they trust. Our brands are performing extremely well across diverse U.S. markets at a time when THC consumption continues to grow and Americans just say no to alcohol. As the hemp and cannabis market continues to evolve globally, we believe owning leading U.S. brands provides long-term strategic value.”
About Us
RYTHM, Inc.’s portfolio of hemp-derived THC products delivers well-being to millions of Americans every year, and its brands are among the most recognized and trusted names in the cannabis and hemp industries, including RYTHM, incredibles, Dogwalkers, Beboe, Señorita THC Margaritas, &Shine, Doctor Solomon’s and Good Green. RYTHM, Inc. products are rooted in quality, safety and innovation and are available in thousands of physical locations and online channels. The Company is deeply committed to shaping THC experiences that enhance the daily lives of American consumers. Learn more and explore the full brand portfolio at www.RYTHMinc.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning RYTHM, Inc. and other matters. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements including, without limitation, statements regarding future financial results, regulatory trends, potential annual licensing revenue, continued momentum for hemp-derived beverages, and potential trends in the hemp-derived beverage and alcohol markets. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. You should carefully consider the risks and uncertainties that affect our business, including the risk that Congress does not amend or repeal the pending federal prohibition on hemp-derived THC products prior to its November 2026 effective date as well as those described in our filings with the Securities and Exchange Commission (“SEC”), including under the caption “Risk Factors” in our most recent Annual Report on Form 10-K, which can be obtained on the SEC website at www.sec.gov. These forward-looking statements speak only as of the date of this communication. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and filings with the SEC.
Investor Contact
IR@RYTHMinc.com
Media Contact
Media@RYTHMinc.com
RYTHM, Inc.
Highlights from Unaudited Condensed Consolidated Statements of Operations
For the Three and Twelve Months Ended December 31, 2025 and December 31, 2024
(Amounts Expressed in Thousands of United States Dollars, Except for Share Amounts)
| Twelve months ended December 31, | Three months ended December 31, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
| Revenue | $ | 17,283 | $ | 18 | $ | 10,660 | $ | 18 | ||||||
| Cost of goods sold | 7,093 | 89 | 2,617 | 89 | ||||||||||
| Gross profit (loss) | 10,190 | (71 | ) | 8,043 | (71 | ) | ||||||||
| Operating expenses | 42,526 | 5,002 | 20,992 | 3,387 | ||||||||||
| Operating loss from continuing operations | (32,336 | ) | (5,073 | ) | (12,949 | ) | (3,458 | ) | ||||||
| Other expense, net | (2,404 | ) | (18,158 | ) | (679 | ) | (2,490 | ) | ||||||
| Loss from continuing operations before income taxes | (34,740 | ) | (23,231 | ) | (13,628 | ) | (5,948 | ) | ||||||
| Income tax provision | — | 2 | — | — | ||||||||||
| Loss from continuing operations, net of income taxes | (34,740 | ) | (23,229 | ) | (13,628 | ) | (5,948 | ) | ||||||
| Income (loss) from discontinued operations, net of income taxes | 1,483 | (18,517 | ) | 22 | (18,413 | ) | ||||||||
| Net loss | $ | (33,257 | ) | $ | (41,746 | ) | $ | (13,606 | ) | $ | (24,361 | ) | ||
| Basic and diluted (loss) income per share | ||||||||||||||
| Continuing operations | $ | (17.42 | ) | $ | (22.77 | ) | $ | (6.63 | ) | $ | (3.74 | ) | ||
| Discontinued operations | 0.74 | (18.15 | ) | 0.01 | (11.58 | ) | ||||||||
| Net loss per share attributable to Common Stockholders – basic and diluted (1) | $ | (16.68 | ) | $ | (40.92 | ) | $ | (6.62 | ) | $ | (15.32 | ) | ||
| Weighted average common shares outstanding - basic and diluted (1) | 1,993,947 | 1,020,185 | 2,054,242 | 1,589,453 | ||||||||||
(1) Periods presented have been adjusted to retroactively reflect the 1-for-15 reverse stock split on October 8, 2024. Additional information regarding reverse stock splits may be found in Note 1 – Overview, Basis of Presentation, and Significant Accounting Policies, included in the notes to the condensed consolidated financial statements.
RYTHM, Inc.
Highlights from Unaudited Condensed Consolidated Balance Sheet
(Amounts Expressed in Thousands of United States Dollars)
| As of December 31, | ||||
| 2025 | ||||
| Cash and cash equivalents | $ | 32,218 | ||
| Other current assets | 15,332 | |||
| Goodwill | 9,713 | |||
| Intangible assets and related party prepaid license rights | 49,400 | |||
| Non-current assets associated with discontinued operations | 14 | |||
| Total assets | $ | 106,677 | ||
| Accounts payable and accrued expenses | $ | 10,257 | ||
| Related party debt, current | 27,000 | |||
| Long-term debt, current | 3,621 | |||
| Current liabilities associated with discontinued operations | 2,082 | |||
| Warrant liabilities | 697 | |||
| Related party debt, net of current | 45,000 | |||
| Long-term debt, net of current | 5,000 | |||
| Total equity | 13,020 | |||
| Total liabilities and equity | $ | 106,677 | ||
RYTHM, Inc.
Highlights from Unaudited Condensed Consolidated Statement of Cash Flows
For the Year Ended December 31, 2025 and 2024
(Amounts Expressed in Thousands of United States Dollars)
| Year Ended December 31, | |||||||
| 2025 | 2024 | ||||||
| Cash flows (used in) provided by | |||||||
| Operating activities | $ | (23,537 | ) | $ | (11,583 | ) | |
| Investing activities | (55,075 | ) | (54 | ) | |||
| Financing activities | 79,660 | 42,373 | |||||
| Net increase (decrease) in cash and cash equivalents | $ | 1,048 | $ | 30,736 | |||
FAQ
What were RYTHM (RYM) fourth-quarter 2025 revenue and gross margin?
How much licensing revenue did RYTHM (RYM) generate in 2025 and Q4?
Why did RYTHM (RYM) have an operating loss in Q4 2025?
What distribution expansion did RYTHM (RYM) report for 2025?
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