RYTHM (RYM) AI Stock Analysis

RYTHM

(NASDAQ:RYM)

Select Model

Rating:37Underperform

Price Target:$17.00▲(1.86% Upside)

Action:downgraded

Date:10/16/26

The overall score is constrained by persistent, deep unprofitability and negative cash flows, which are the most significant risks. Technicals confirm a bearish trend with the stock trading below all major moving averages. While revenue growth is a bright spot, it is not yet translating into financial stability or shareholder value.

Positive Factors

Revenue growth and gross marginSharp TTM revenue growth combined with a healthy gross margin indicates stronger product economics and expanding commercial activity. If the company can convert this scale into operating leverage, the improved revenue base could support more durable earnings potential over the next several quarters.

Negative Factors

Persistent unprofitabilityRevenue growth has not yet translated into sustainable profitability, as losses continue across EBIT, EBITDA, and net income. The absence of operating leverage leaves the company dependent on future execution and scale improvements, making earnings durability and shareholder returns uncertain over the medium term.

RYTHM (RYM) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $34.82M
Dividend Yield: ―
Average Volume (3M): 14.67K
Price to Earnings (P/E): -1.4
Beta (1Y): 2.47
Revenue Growth: 665.00%
EPS Growth: 65.65%
Country: US
Employees: 1
Sector: Consumer Defensive
Sector Strength: 62
Industry: Tobacco

RYTHM Business Overview & Revenue Model

Company Description

RYTHM, Inc. is a company that delivers solutions for the cannabis and industrial hemp sectors throughout the United States. Among its offerings are hemp-derived tetrahydrocannabinol (THC) beverages, which it markets to consumers under the Señorita br...

RYTHM Financial Statement Overview

Summary

Strong revenue growth (+114.1%) and a healthy gross margin (56.8%) are offset by deep unprofitability (net margin -39.0%), negative equity returns, and ongoing cash burn. The balance sheet is stabilizing but remains highly leveraged.

Income Statement

35Negative

Balance Sheet

30Negative

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Mar 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	51.01M	17.28M	9.68M	15.14M	58.26M	59.86M
Gross Profit	34.91M	10.19M	665.00K	2.71M	-31.80M	5.23M
EBITDA	-11.31M	-25.38M	-26.68M	-9.39M	-119.62M	-32.35M
Net Income	-3.17M	-33.26M	-41.75M	-18.65M	-188.17M	-32.47M
Balance Sheet
Total Assets	135.38M	106.68M	54.02M	45.69M	69.69M	182.05M
Cash, Cash Equivalents and Short-Term Investments	41.91M	32.22M	31.17M	434.00K	10.92M	56.56M
Total Debt	80.62M	80.62M	11.04M	21.80M	31.71M	2.77M
Total Liabilities	96.29M	93.66M	25.93M	60.40M	78.73M	44.62M
Stockholders Equity	39.09M	13.02M	27.86M	-14.94M	-9.27M	137.06M
Cash Flow
Free Cash Flow	1.30M	-23.54M	-11.59M	-31.03M	-80.16M	-32.47M
Operating Cash Flow	1.30M	-23.54M	-11.58M	-30.97M	-72.02M	-30.15M
Investing Cash Flow	-50.00M	-55.08M	-54.00K	25.17M	-2.32M	-104.74M
Financing Cash Flow	49.66M	79.66M	42.37M	-4.23M	72.78M	138.79M

RYTHM Technical Analysis

Technical Analysis SentimentNegative

Last Price16.69

Price Trends

50DMA20.51Negative

100DMA21.78Negative

200DMA21.96Negative

Market Momentum

MACD-1.25Negative

RSI37.61Neutral

STOCH53.91Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYM, the sentiment is Negative. The current price of 16.69 is below the 20-day moving average (MA) of 17.59, below the 50-day MA of 20.51, and below the 200-day MA of 21.96, indicating a bearish trend. The MACD of -1.25 indicates Negative momentum. The RSI at 37.61 is Neutral, neither overbought nor oversold. The STOCH value of 53.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RYM.

RYTHM Risk Analysis

RYTHM disclosed 59 risk factors in its most recent earnings report. RYTHM reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

RYTHM Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

RYM against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VATE	54Neutral	$75.17M	-2.92	9.58%	―	52.38%	70.10%
BLNK	48Neutral	$58.05M	-1.06	-75.18%	―	-7.89%	80.70%
SUNE	45Neutral	$13.35M	-1.94	-24.03%	―	10.34%	99.97%
SHIM	45Neutral	$103.75M	-5.42	30.27%	―	-15.98%	73.32%
RYM	37Underperform	$35.20M	-1.44	-12.61%	―	665.00%	65.65%

* Consumer Defensive Sector Average

Performance Comparison

RYM and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
RYM	Rythm, Inc.	16.20	-24.17	-59.87%
SUNE	Sunation Energy, Inc.	2.10	0.76	56.72%
VATE	INNOVATE Corp	5.38	-0.22	-3.93%
BLNK	Blink Charging	0.43	-1.05	-71.22%
SHIM	Shimmick Corporation	2.51	0.22	9.61%

RYTHM Corporate Events

Business Operations and Strategy

RYTHM Expands Señorita Brand Licensing with GTI Core

Positive

Oct 16, 2026

On October 13, 2026, RYTHM subsidiary VCP IP Holdings, LLC and Green Thumb’s GTI Core, LLC amended their August 27, 2025 trademark and recipe license agreement to add RYTHM’s Señorita brand to the portfolio licensed to GTI Core. The...

Private Placements and FinancingRegulatory Filings and ComplianceShareholder Meetings

RYTHM Shareholders Approve Dilutive Equity Issuance Changes

Negative

Aug 11, 2026

On August 10, 2026, RYTHM, Inc. entered into an amendment agreement with Green Thumb subsidiaries RSLGH, LLC and Vision Management Services, LLC to revise the terms of outstanding secured convertible notes, pre-funded warrants and a shared services a...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 16, 2026

RYTHM AI Stock Analysis