Rhythm Pharmaceuticals AI Stock Analysis
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Rhythm Pharmaceuticals (RYTM) AI Stock Analysis
Rhythm Pharmaceuticals
(NASDAQ:RYTM)
The score is driven primarily by strong technical momentum and a very positive earnings-call setup (accelerating commercial traction, improving payer access, and a stated multi-year cash runway). Offsetting these positives, financial performance remains constrained by large ongoing losses and negative free cash flow, and valuation is harder to anchor given a negative P/E and no dividend yield.
Rhythm Pharmaceuticals Key Performance Indicators (KPIs)
Revenue by SegmentBreaks 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.
Product revenue is on an accelerating commercial trajectory driven by the IMCIVREE U.S. launch and sustained ex‑US BBS demand, with management noting improving GTN and rising reimbursed patient counts that support durability. The lone negative license/international blip reflects a one‑time timing/France adjustment that masks underlying growth. Watch diagnosis/access bottlenecks, specialty‑pharmacy inventory timing and elevated SG&A—these can create near‑term volatility even as strong payer uptake and a healthy cash runway underpin continued top‑line momentum.
The FlyRhythm Pharmaceuticals (RYTM) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $7.97B
- Dividend Yield
- ―
- Average Volume (3M)
- 1.00M
- Price to Earnings (P/E)
- -39.7
- Beta (1Y)
- 1.29
- Revenue Growth
- 61.04%
- EPS Growth
- 6.14%
- Country
- US
- Employees
- 414
- Sector
- Healthcare
- Sector Strength
- 51
- Industry
- Biotechnology
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, IMCIVREE,...
How the Company Makes Money
Rhythm primarily makes money from sales of its prescription drug IMCIVREE (setmelanotide). Revenue is generated when IMCIVREE is prescribed for eligible patients and reimbursed by payers (e.g., government programs and commercial insurers) or paid for...
Rhythm Pharmaceuticals Earnings Call Summary
The call was strongly positive, led by 29% sequential revenue growth, a solid U.S. acquired HO launch, improving payer coverage, strong prescriber and reimbursed-patient trends, the Japan launch, and progress toward phase III studies in acquired HO and Prader-Willi syndrome. The company also reported substantial liquidity and expanded financing flexibility. Offsetting factors included a GAAP loss, higher R&D spending, the operational limitation of Japan's two-week prescription supply during its first year, ongoing physician-education and diagnosis work, and significant payments associated with the LG Chem amendment. Highlights significantly outweighed the lowlights.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Rhythm anticipates approximately $360 million-$380 million in non-GAAP operating expenses for 2026, comprised of non-GAAP R&D of $165 million-$175 million and non-GAAP SG&A of $195 million-$205 million; approximately $321 million in cash equivalents and short-term investments is expected to be sufficient to fund planned operations for at least 24 months. The company hopes to begin screening patients at the first sites for its 52-week bivamelagon HO study by the end of the year and expects to dose the first patients in January, with a six-month phase III PWS study targeted for 2027. In Japan, prescriptions are limited to a two-week supply during the first year, the restriction is expected to be lifted in November 2027, eligible patients may then receive prescription supply for up to three months, and the company anticipates a greater commercial contribution from Japan in the second and third years of launch; country-level acquired HO launches in Europe are expected during 2027, beginning with Germany.
Rhythm Pharmaceuticals Financial Statement Overview
Summary
Financials are mixed: revenue growth and very high gross margins are strong positives, and the balance sheet is conservatively levered. However, the company remains deeply unprofitable with significant ongoing cash burn and negative free cash flow, which is the primary financial risk despite some improvement versus the prior year.
Income Statement
44NeutralBalance Sheet
72PositiveCash Flow
38Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 280.75M | 189.76M | 130.13M | 77.43M | 23.64M | 3.15M |
| Gross Profit | 247.69M | 170.26M | 116.76M | 68.13M | 21.50M | 2.56M |
| EBITDA | -173.24M | -174.12M | -238.09M | -168.46M | -174.25M | -68.45M |
| Net Income | -193.81M | -196.54M | -260.60M | -184.68M | -181.12M | -69.61M |
Balance Sheet | ||||||
| Total Assets | 443.13M | 480.20M | 392.27M | 332.75M | 382.48M | 329.52M |
| Cash, Cash Equivalents and Short-Term Investments | 320.94M | 388.95M | 320.56M | 275.85M | 333.29M | 294.86M |
| Total Debt | 3.52M | 3.99M | 3.94M | 1.26M | 1.94M | 2.55M |
| Total Liabilities | 241.59M | 210.17M | 227.72M | 162.99M | 118.22M | 45.37M |
| Stockholders Equity | 201.54M | 270.03M | 164.55M | 169.76M | 264.26M | 284.15M |
Cash Flow | ||||||
| Free Cash Flow | -127.43M | -116.63M | -113.88M | -136.20M | -177.71M | -151.44M |
| Operating Cash Flow | -125.97M | -115.67M | -113.88M | -136.16M | -173.43M | -146.00M |
| Investing Cash Flow | 142.36M | -137.15M | -48.17M | -5.67M | 28.03M | -62.16M |
| Financing Cash Flow | -21.16M | 217.96M | 191.24M | 74.37M | 213.83M | 166.48M |
Rhythm Pharmaceuticals Technical Analysis
Price Trends
Market Momentum
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 115.02 is above the 20-day moving average (MA) of 98.96, above the 50-day MA of 96.88, and above the 200-day MA of 97.24, indicating a bullish trend. The MACD of 5.37 indicates Negative momentum. The RSI at 66.28 is Neutral, neither overbought nor oversold. The STOCH value of 89.10 is Negative, 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 69 risk factors in its most recent earnings report. Rhythm Pharmaceuticals reported the most risks in the "Tech & Innovation" category.
Latest Risks Added
3 New RisksRhythm Pharmaceuticals Peers Comparison
Overall Rating
- RYTM64Neutral
QURE50Neutral
GPCR42Neutral
VKTX42Neutral
MBX34Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| RYTM | 64Neutral | $7.62B | -39.66 | -83.68% | ― | 61.04% | 6.14% |
| Sector * | 51Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
| QURE | 50Neutral | $1.73B | -6.72 | -96.34% | ― | 28.04% | 19.12% |
| GPCR | 42Neutral | $1.42B | -5.13 | -21.24% | ― | ― | -8.08% |
| VKTX | 42Neutral | $3.52B | -5.41 | -117.35% | ― | ― | -155.21% |
| MBX | 34Underperform | $2.71B | -18.28 | -34.35% | ― | ― | -27.83% |
* Healthcare Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| RYTM | Rhythm Pharmaceuticals | 115.02 | 14.33 | 14.23% | |
| QURE | uniQure N.V. | 23.81 | -6.52 | -21.50% | |
| VKTX | Viking Therapeutics | 29.22 | -9.00 | -23.55% | |
| GPCR | Structure Therapeutics, Inc. Sponsored ADR | 20.00 | -17.44 | -46.58% | |
| MBX | MBX Biosciences, Inc. | 55.94 | 30.33 | 118.43% | |
| KLRA | Kailera Therapeutics, Inc. | 13.27 | -12.73 | -48.96% |
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 05, 2026