RYTHM (RYM) AI Stock Analysis

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RYTHM

(NASDAQ:RYM)

Select Model

Rating:61Neutral

Price Target:$17.50▼(-0.62% Downside)

Action:reiterated

Date:11/04/26

RYTHM's moderate overall score of 61 is anchored by its remarkable fundamental turnaround, heavily highlighted by drastic debt reduction and an inflection to positive cash flow generation. However, this underlying financial strength is significantly counterbalanced by severe bearish technical trends, an unappealing negative P/E valuation, and prominent shareholder dilution risks stemming from recent corporate actions.

Positive Factors

Improved Cash GenerationTTM operating and free cash flow both reached about $13.0M after prior annual cash burn. If sustained, this provides more internal funding capacity and reduces dependence on external capital, although the uneven history makes durability important to monitor.

Negative Factors

Negative Operating ProfitabilityPersistent negative EBIT and EBITDA show that gross profit still does not cover the company’s operating cost base. Combined with a roughly 7.9% TTM revenue decline, this weakens confidence that the recent net income improvement represents a durable operating trend.

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

Market Cap: $37.85M
Dividend Yield: ―
Average Volume (3M): 15.47K
Price to Earnings (P/E): -2.9
Beta (1Y): 2.43
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

RYTHM has executed a strong financial turnaround, marked by a heavily de-risked balance sheet with debt reduced from $80.6 million to $8.6 million and robust cash flow generation of $13.0 million. While net income recovered to $6.9 million, lingering negative EBITDA (-$2.5 million) indicates ongoing core operational challenges.

Income Statement

75Positive

Balance Sheet

82Very Positive

Cash Flow

88Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Mar 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	46.97M	17.28M	9.68M	15.14M	58.26M	59.86M
Gross Profit	51.88M	10.19M	665.00K	2.71M	-31.80M	5.23M
EBITDA	-2.54M	-25.38M	-26.68M	-9.39M	-119.62M	-32.35M
Net Income	6.97M	-33.26M	-41.75M	-18.65M	-188.17M	-32.47M
Balance Sheet
Total Assets	134.66M	106.68M	54.02M	45.69M	69.69M	182.05M
Cash, Cash Equivalents and Short-Term Investments	48.24M	32.22M	31.17M	434.00K	10.92M	56.56M
Total Debt	8.62M	80.62M	11.04M	21.80M	31.71M	2.77M
Total Liabilities	92.58M	93.66M	25.93M	60.40M	78.73M	44.62M
Stockholders Equity	42.07M	13.02M	27.86M	-14.94M	-9.27M	137.06M
Cash Flow
Free Cash Flow	13.01M	-23.54M	-11.59M	-31.03M	-80.16M	-32.47M
Operating Cash Flow	13.01M	-23.54M	-11.58M	-30.97M	-72.02M	-30.15M
Investing Cash Flow	0	-55.08M	-54.00K	25.17M	-2.32M	-104.74M
Financing Cash Flow	-337.00K	79.66M	42.37M	-4.23M	72.78M	138.79M

RYTHM Technical Analysis

Technical Analysis SentimentNeutral

Last Price17.61

Price Trends

50DMA20.26Negative

100DMA21.56Negative

200DMA21.94Negative

Market Momentum

MACD-1.02Negative

RSI47.62Neutral

STOCH61.86Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYM, the sentiment is Neutral. The current price of 17.61 is above the 20-day moving average (MA) of 17.33, below the 50-day MA of 20.26, and below the 200-day MA of 21.94, indicating a neutral trend. The MACD of -1.02 indicates Negative momentum. The RSI at 47.62 is Neutral, neither overbought nor oversold. The STOCH value of 61.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	61Neutral	$76.53M	-2.95	9.58%	―	52.38%	70.10%
RYM	61Neutral	$35.96M	-2.95	21.31%	―	665.00%	65.65%
SHIM	46Neutral	$105.82M	-5.16	30.27%	―	-15.98%	73.32%
SUNE	45Neutral	$14.46M	-2.11	-24.03%	―	10.34%	99.97%
BLNK	37Underperform	$61.71M	-1.12	-75.18%	―	-7.89%	80.70%

* Consumer Defensive Sector Average

Performance Comparison

RYM and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
RYM	Rythm, Inc.	17.61	-21.17	-54.59%
SUNE	Sunation Energy, Inc.	2.28	0.99	76.74%
VATE	INNOVATE Corp	5.43	-0.44	-7.50%
BLNK	Blink Charging	0.45	-1.06	-70.13%
SHIM	Shimmick Corporation	2.39	0.22	10.14%

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: Nov 04, 2026

RYTHM AI Stock Analysis