Rhythm Pharmaceuticals (RYTM)
NASDAQ:RYTM
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Rhythm Pharmaceuticals
(NASDAQ:RYTM)
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Rating:49Neutral
Price Target:
$88.00
▼(-0.78% Downside)
Action:Reiterated
Date:06/16/26
The score is primarily constrained by weak financial quality—persistent losses, meaningful cash burn, and reduced balance-sheet flexibility—despite strong revenue scaling and attractive gross margins. Earnings-call commentary is supportive due to accelerating international growth, early HO launch traction, and a solid cash runway, while technical signals are mostly neutral and valuation support is limited by negative earnings and no dividend.
Positive Factors
Revenue scaling & high gross margins
Sustained top-line growth to $217M TTM paired with ~88–91% gross margins shows attractive unit economics. Durable high gross margins provide structural room to reinvest in launches and R&D while supporting long-term profitability if operating expense growth is controlled.
Negative Factors
Persistent cash burn & negative free cash flow
Consistent negative operating and free cash flow indicates the business is a real cash consumer, not just an accounting loss. Sustained cash burn forces reliance on external capital, increases dilution risk over time, and constrains the company’s ability to fund unanticipated needs without raising financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue scaling & high gross margins
Sustained top-line growth to $217M TTM paired with ~88–91% gross margins shows attractive unit economics. Durable high gross margins provide structural room to reinvest in launches and R&D while supporting long-term profitability if operating expense growth is controlled.
Read all positive factors
Rhythm Pharmaceuticals Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks revenue into sources such as product sales, partnerships, milestones, and royalties to show whether the company relies on a single drug, partner agreements, or recurring product income. A business skewed toward one-time milestones or a single product carries higher execution and commercialization risk, while diversified or recurring revenue points to more sustainable cash flow and clearer paths to profitability.
Breaks revenue into sources such as product sales, partnerships, milestones, and royalties to show whether the company relies on a single drug, partner agreements, or recurring product income. A business skewed toward one-time milestones or a single product carries higher execution and commercialization risk, while diversified or recurring revenue points to more sustainable cash flow and clearer paths to profitability.
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The Fly
The FlyRhythm Pharmaceuticals (RYTM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.15B
Dividend YieldN/A
Average Volume (3M)743.49K
Price to Earnings (P/E)―
Beta (1Y)1.61
Revenue Growth58.67%
EPS Growth-11.45%
CountryUS
Employees283
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-3.13
Shares Outstanding68,593,575
10 Day Avg. Volume863,594
30 Day Avg. Volume743,487
Financial Highlights & Ratios
PEG Ratio1.25
Price to Book (P/B)50.02
Price to Sales (P/S)36.66
P/FCF Ratio-59.64
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue31.03
Enterprise Value/Gross Profit34.70
Enterprise Value/Ebitda-37.28
Forecast
1Y Price Target
$138.08Price Target Upside55.68% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)-3.13
Revenue Forecast (FY)$298.08M
Rhythm Pharmaceuticals Business Overview & Revenue Model
Company Description
Rhythm Pharmaceuticals, Inc. is a biopharmaceutical company with commercial products, dedicated to the discovery, development, and market launch of therapies addressing rare genetic conditions that cause obesity. Its leading pharmaceutical, IMCIVR...
How the Company Makes Money
Rhythm Pharmaceuticals primarily makes money by selling its prescription drug IMCIVREE (setmelanotide). Revenue is generated from product sales to customers such as specialty pharmacies, distributors, and/or healthcare providers (depending on mark...
Rhythm Pharmaceuticals Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call presented a largely positive commercial and regulatory picture: sequential revenue growth (5%), strong international acceleration (27% QoQ outside U.S.), an encouraging early HO launch (150+ start forms, broad prescriber base), EU marketing authorization and a progressing Japan filing, supported by a solid cash runway (~$341M). Offsetting these positives are meaningful increases in operating expenses (notably SG&A up ~62.7% YoY), ongoing GAAP losses (Q1 EPS -$0.83) and near-term variability and uncertainty tied to payer policy timing, inventory effects and the pace of clinical-to-commercial conversions. Overall, the operational momentum and regulatory wins outweigh the financial and execution risks highlighted for the near term.Positive Updates
Quarterly Revenue Growth
Global net revenues of $60.1M in Q1 2026, representing 5% sequential growth from $57M in Q4 2025. 61% of Q1 revenue was generated in the United States.
Negative Updates
GAAP Loss and Cash Burn
GAAP net loss per share of $0.83 in Q1 2026 and cash used in operations of approximately $44.2M during the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Revenue Growth
Global net revenues of $60.1M in Q1 2026, representing 5% sequential growth from $57M in Q4 2025. 61% of Q1 revenue was generated in the United States.
Read all positive updates
Company Guidance
Rhythm reiterated full‑year 2026 non‑GAAP operating expense guidance of $385–415 million (comprised of non‑GAAP R&D ~$197–213M and non‑GAAP SG&A ~$188–202M) and said non‑GAAP operating expenses are expected to rise through 2026 due to CMC and clinical supply investments; Q1 results included $60.1M global net revenue (+5% sequential from $57M) with 61% U.S. contribution and non‑U.S. revenue $23.2M (+27% Q/Q from $18.3M), gross‑to‑net (U.S.) 84%, COGS 11.9% of product revenue, R&D $41.7M (vs $37.0M a year ago), SG&A $63.6M (vs $39.1M a year ago; +$6.1M QoQ), total operating expenses ≈$105.3M (including $23.1M stock‑based comp), non‑GAAP op exp Q1 $82.2M, GAAP loss per share $0.83 (weighted avg shares 68M), cash used in operations ~$44.2M, and cash, cash equivalents and short‑term investments ~$341M (expected runway ≥24 months); commercial/timing guidance included an 8% QoQ increase in patients on reimbursed therapy, >150 HO start forms in six weeks (≈110 unique prescribers; ~80% new prescribers; ~40 from trial conversions), expectation that HO‑specific payer policies will take ~3–9 months, G‑BA process ~6–9 months with EU launches planned in 2027, anticipated Japan approval/launch by end‑2026, and a target to begin a Phase III trial of bivamelagon in HO by end‑2026 with clinical data updates (Dr. Miller PWS 6‑month data at Endo in June, 718 midyear, Part C HO on the Q2 call).Rhythm Pharmaceuticals Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
38
Negative
Cash Flow
32
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 217.16M | 189.76M | 130.13M | 77.43M | 23.64M | 3.15M |
| Gross Profit | 194.16M | 170.26M | 116.76M | 68.13M | 21.50M | 2.56M |
| EBITDA | -180.75M | -174.12M | -238.09M | -168.46M | -174.25M | -68.45M |
| Net Income | -202.68M | -196.54M | -260.60M | -184.68M | -181.12M | -69.61M |
Balance Sheet | ||||||
| Total Assets | 442.32M | 481.19M | 392.27M | 332.75M | 382.48M | 329.52M |
| Cash, Cash Equivalents and Short-Term Investments | 340.63M | 388.95M | 320.56M | 275.85M | 333.29M | 294.86M |
| Total Debt | 227.02M | 246.47M | 3.94M | 1.26M | 1.94M | 2.55M |
| Total Liabilities | 319.41M | 342.13M | 227.72M | 162.99M | 118.22M | 45.37M |
| Stockholders Equity | 122.91M | 139.07M | 164.55M | 169.76M | 264.26M | 284.15M |
Cash Flow | ||||||
| Free Cash Flow | -120.46M | -116.63M | -113.88M | -136.20M | -177.71M | -151.44M |
| Operating Cash Flow | -119.51M | -115.67M | -113.88M | -136.16M | -173.43M | -146.00M |
| Investing Cash Flow | -104.91M | -137.15M | -48.17M | -5.67M | 28.03M | -62.16M |
| Financing Cash Flow | 180.06M | 217.96M | 191.24M | 74.37M | 213.83M | 166.48M |
Rhythm Pharmaceuticals Technical Analysis
Positive
88.69
Price Trends
88.36
Positive
91.20
Positive
97.77
Negative
Market Momentum
1.08
Negative
64.49
Neutral
65.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYTM, the sentiment is Positive. The current price of 88.69 is below the 20-day moving average (MA) of 88.95, above the 50-day MA of 88.36, and below the 200-day MA of 97.77, indicating a neutral trend. The MACD of 1.08 indicates Negative momentum. The RSI at 64.49 is Neutral, neither overbought nor oversold. The STOCH value of 65.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RYTM.
Rhythm Pharmaceuticals Risk Analysis
Rhythm Pharmaceuticals disclosed 70 risk factors in its most recent earnings report. Rhythm Pharmaceuticals reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rhythm Pharmaceuticals Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $8.15B | 16.64 | 87.36% | ― | 81.26% | 1079.73% | |
53 Neutral | $5.19B | -20.62 | -24.91% | ― | 56.70% | -13.77% | |
52 Neutral | $9.36B | ― | 139.66% | ― | 450.60% | -28.90% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $6.15B | ― | -203.25% | ― | 58.67% | -11.45% | |
45 Neutral | $216.56M | -3.35 | -29.67% | ― | ― | ― | |
43 Neutral | $7.88B | -17.83 | -165.19% | ― | ― | ― |
* Healthcare Sector Average
RYTM
Rhythm Pharmaceuticals
96.79
34.80
56.14%
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ABVX
Abivax SA Sponsored ADR
99.15
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1560.80%
Rhythm Pharmaceuticals Corporate Events
Business Operations and StrategyProduct-Related Announcements
Rhythm Showcases Positive Setmelanotide Data Across Obesity Trials
Positive
Jun 15, 2026
On June 13 and June 15, 2026, Rhythm Pharmaceuticals reported positive interim six-month data from an exploratory Phase 2 trial of setmelanotide in Prader-Willi syndrome and unveiled multiple new clinical and real-world data sets at ENDO 2026 in C...
Business Operations and StrategyProduct-Related AnnouncementsRegulatory Filings and Compliance
Rhythm Pharmaceuticals Gains EMA Backing for IMCIVREE Expansion
Positive
Mar 26, 2026
On March 26, 2026, Rhythm Pharmaceuticals reported that the EMA’s Committee for Medicinal Products for Human Use issued a positive opinion backing an expansion of IMCIVREE’s marketing authorization. The proposed label would cover treat...
Business Operations and StrategyProduct-Related Announcements
Rhythm Wins FDA Nod for Hypothalamic Obesity Therapy
Positive
Mar 20, 2026
On March 19, 2026, Rhythm Pharmaceuticals reported that the U.S. Food and Drug Administration approved an expanded indication for its MC4R agonist IMCIVREE (setmelanotide) to treat acquired hypothalamic obesity in adults and children aged four and...
Business Operations and Strategy
Rhythm Pharmaceuticals Reports Mixed Phase 3 EMANATE Results
Negative
Mar 16, 2026
On March 16, 2026, Rhythm Pharmaceuticals reported topline data from EMANATE, a global Phase 3 trial of setmelanotide in four rare, genetically driven obesity subgroups, showing that none of the substudies met the pre-specified primary endpoint of...
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.