Rythm (RYM)
Market Price (1/21/2026): $18.115 | Market Cap: $36.3 MilSector: Consumer Staples | Industry: Tobacco
Rythm (RYM)
Market Price (1/21/2026): $18.115Market Cap: $36.3 MilSector: Consumer StaplesIndustry: Tobacco
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -47% | Weak multi-year price returns2Y Excs Rtn is -92%, 3Y Excs Rtn is -120% | Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -28 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -172% |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 1339% | Significant share based compensationSBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 12% | |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -66% | Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -159%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -159% | |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -126% | ||
| High stock price volatilityVol 12M is 139% | ||
| Key risksRYM key risks include [1] dependence on successful clinical trial outcomes and regulatory approval for its lead product, Show more. |
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -47% |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 1339% |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -66% |
| Weak multi-year price returns2Y Excs Rtn is -92%, 3Y Excs Rtn is -120% |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -28 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -172% |
| Significant share based compensationSBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 12% |
| Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -159%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -159% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -126% |
| High stock price volatilityVol 12M is 139% |
| Key risksRYM key risks include [1] dependence on successful clinical trial outcomes and regulatory approval for its lead product, Show more. |
Why The Stock Moved
Qualitative Assessment
AI Analysis | Feedback
1. Persistent Financial Losses and Cash Burn: Rythm (RYM) experienced significant financial challenges, reporting a net loss of $19.7 million on only $6.6 million in revenues for the first nine months of 2025. This was coupled with a substantial cash burn of $20.5 million during the same period, indicating an unsustainable financial trajectory.
2. High Debt Burden and Inefficient Cost Structure: The company's financial health was further strained by a debt-heavy capital structure, carrying $90.6 million in debt (primarily related-party convertible notes) against a limited cash reserve of $35.6 million by the end of the third quarter of 2025. Additionally, selling, general, and administrative expenses, which totaled $21.5 million for the first nine months of 2025, were more than triple the revenues, highlighting a highly inefficient cost structure.
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Stock Movement Drivers
Fundamental Drivers
The -60.3% change in RYM stock from 10/31/2025 to 1/20/2026 was primarily driven by a -69.6% change in the company's P/S Multiple.| 10312025 | 1202026 | Change | |
|---|---|---|---|
| Stock Price ($) | 45.64 | 18.11 | -60.32% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 12.26 | 16.30 | 32.98% |
| P/S Multiple | 7.32 | 2.22 | -69.60% |
| Shares Outstanding (Mil) | 1.97 | 2.00 | -1.89% |
| Cumulative Contribution | -60.33% |
Market Drivers
10/31/2025 to 1/20/2026| Return | Correlation | |
|---|---|---|
| RYM | -60.3% | |
| Market (SPY) | -0.7% | -13.5% |
| Sector (XLP) | 8.0% | 11.1% |
Fundamental Drivers
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Market Drivers
7/31/2025 to 1/20/2026| Return | Correlation | |
|---|---|---|
| RYM | ||
| Market (SPY) | 7.5% | 1.9% |
| Sector (XLP) | 3.9% | -3.0% |
Fundamental Drivers
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Market Drivers
1/31/2025 to 1/20/2026| Return | Correlation | |
|---|---|---|
| RYM | ||
| Market (SPY) | 13.6% | 1.9% |
| Sector (XLP) | 6.3% | -3.0% |
Fundamental Drivers
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Market Drivers
1/31/2023 to 1/20/2026| Return | Correlation | |
|---|---|---|
| RYM | ||
| Market (SPY) | 72.9% | 1.9% |
| Sector (XLP) | 20.1% | -3.0% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| RYM Return | - | - | - | - | -41% | -8% | -46% |
| Peers Return | -16% | -48% | -32% | -15% | -15% | 2% | -78% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 1% | 85% |
Monthly Win Rates [3] | |||||||
| RYM Win Rate | - | - | - | - | 75% | 0% | |
| Peers Win Rate | 23% | 23% | 37% | 37% | 35% | 60% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 100% | |
Max Drawdowns [4] | |||||||
| RYM Max Drawdown | - | - | - | - | -55% | -8% | |
| Peers Max Drawdown | -28% | -51% | -50% | -29% | -49% | -1% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | 0% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: SMG, TLRY, CGC, CRON, SNDL.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 1/20/2026 (YTD)
How Low Can It Go
RYM has limited trading history. Below is the Consumer Staples sector ETF (XLP) in its place.
| Event | XLP | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -17.5% | -25.4% |
| % Gain to Breakeven | 21.2% | 34.1% |
| Time to Breakeven | 682 days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -24.9% | -33.9% |
| % Gain to Breakeven | 33.2% | 51.3% |
| Time to Breakeven | 154 days | 148 days |
| 2018 Correction | ||
| % Loss | -16.6% | -19.8% |
| % Gain to Breakeven | 19.9% | 24.7% |
| Time to Breakeven | 404 days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -33.4% | -56.8% |
| % Gain to Breakeven | 50.2% | 131.3% |
| Time to Breakeven | 605 days | 1,480 days |
Compare to SMG, TLRY, CGC, CRON, SNDL
In The Past
SPDR Select Sector Fund's stock fell -17.5% during the 2022 Inflation Shock from a high on 4/20/2022. A -17.5% loss requires a 21.2% gain to breakeven.
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AI Analysis | Feedback
Here are a few analogies for Rythm (RYM):
- An Oura Ring for brainwave-optimized sleep.
- A Muse headband engineered for therapeutic sleep enhancement.
AI Analysis | Feedback
I could not find a publicly traded company named "Rythm" with the stock symbol "RYM". However, if you are referring to Rhythm Pharmaceuticals (symbol: RYTM), its major product is:
- IMCIVREE (setmelanotide): A prescription medicine used for chronic weight management in adults and children 6 years of age and older with obesity due to certain rare genetic conditions, such as POMC, PCSK1, LEPR deficiency, or Bardet-Biedl Syndrome.
AI Analysis | Feedback
Upon reviewing major financial databases and public company listings, there does not appear to be a public company named "Rythm" with the stock symbol "RYM".
While there has been a private French company named Rythm Inc., known for its Dreem sleep tracking headband, this entity is not publicly traded and does not use the symbol RYM. Furthermore, this company faced financial difficulties, and its assets were acquired, meaning its direct-to-consumer product, the Dreem headband, is no longer actively sold by Rythm Inc. in its original form.
As the requested public company "Rythm (symbol: RYM)" does not seem to exist, I am unable to identify its major customers or customer categories.
AI Analysis | Feedback
nullAI Analysis | Feedback
Ben Kovler, Chairman of the Board, Interim Chief Executive Officer, President, Secretary and Treasurer
Ben Kovler was appointed Interim CEO of RYTHM, Inc. in November 2024, also serving as Chairman, President, Secretary, and Treasurer. He spearheaded the company's rebranding from Agrify Corporation to RYTHM, Inc. in September 2025, following the acquisition of key brand intellectual property such as RYTHM, Dogwalkers, and Beboe, thereby shifting the company's strategic focus to hemp-derived THC products.
Brad Asher, Chief Financial Officer and Principal Accounting Officer
Brad Asher holds the position of Chief Financial Officer and Principal Accounting Officer at RYTHM, Inc.
AI Analysis | Feedback
The key risks for Rhythm Pharmaceuticals (RYTM) are primarily centered around the inherent challenges of the biopharmaceutical industry, particularly concerning product development and commercialization, as well as the company's current financial standing.
- Clinical Trial Outcomes and Regulatory Approvals: A significant risk for Rhythm Pharmaceuticals is the success of its ongoing clinical trials and the ability to obtain and maintain regulatory approvals for its product candidates. The company's lead product, IMCIVREE (setmelanotide), is in advanced stages of clinical trials for various rare genetic disorders, and future revenue generation is highly dependent on favorable outcomes and subsequent regulatory authorizations. The inherent risks associated with biotech investments often involve trial failures and the uncertainties of regulatory pathways.
- Lack of Profitability and Need for Future Funding: Rhythm Pharmaceuticals is currently operating at a net loss, reporting negative earnings per share and a negative return on equity. The company's valuation metrics reflect expectations of continued losses in the near term. While the company anticipated having sufficient cash to fund operations into 2027 as of its February 2025 financial results, sustained unprofitability necessitates careful financial management and potentially future capital raises to support ongoing operations and development.
- Commercialization Challenges, Competition, Pricing, and Reimbursement: Even with regulatory approval, Rhythm Pharmaceuticals faces risks related to the commercial success of its products. These challenges include the impact of competition from other treatments, the ability to effectively market and commercialize IMCIVREE, and unfavorable pricing regulations or third-party reimbursement practices. These factors can significantly influence the market uptake and profitability of their therapies.
AI Analysis | Feedback
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AI Analysis | Feedback
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AI Analysis | Feedback
Here are 3-5 expected drivers of future revenue growth for Rythm (symbol: RYM) over the next 2-3 years:
- Growth in Hemp-Derived Product Segment and THC Beverages: Rythm has demonstrated significant revenue increases driven by its hemp-derived product segment, with a reported 109% year-over-year revenue increase in Q3 2025, primarily from these offerings. The company recently launched RYTHM Beverages and expanded the distribution of its "Señorita THC Margaritas" to over 1,000 Circle K stores nationwide and select Target stores. This expansion into the rapidly growing THC beverage market is a key growth avenue.
- Strategic Acquisitions and Brand Portfolio Expansion: Rythm has actively pursued growth through strategic acquisitions, such as acquiring brand intellectual property portfolios including RYTHM, Dogwalkers, and Beboe on August 27, 2025. These acquisitions enhance the company's product offerings and strengthen its licensing agreements for manufacturing and distribution.
- Expansion of Market Presence through Increased Distribution: The company is focused on broadening its market reach for its hemp-derived products. The introduction of Señorita THC Margaritas into major retail chains like Target and a significant rollout to over 1,000 Circle K convenience stores highlights a clear strategy to increase product accessibility and capture a larger market share.
- Capitalizing on Evolving Consumer Preferences for THC Beverages: Rythm is strategically aligning with the increasing consumer trend, particularly among younger generations, who are choosing THC beverages as an alternative to alcohol. This shift in consumer preference is viewed by the company's leadership as a "promising growth avenue" and a "long tailwind for growth."
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Share Issuance
- RYTHM (formerly Agrify Corporation) raised approximately $54 million in gross proceeds from its Initial Public Offering (IPO) in 2021.
- In November 2024, Agrify Corporation raised approximately $25.9 million through a private placement of securities to institutional and accredited investors.
- As of September 30, 2025, RYTHM had approximately 2.0 million shares outstanding, along with 7.6 million warrants and 6.2 million shares issuable upon the conversion of outstanding convertible notes.
Inbound Investments
- In August 2025, RYTHM (formerly Agrify Corporation) issued $50 million in secured convertible notes.
- Agrify Corporation completed a $25.9 million private placement with institutional and accredited investors in November 2024.
Outbound Investments
- On August 27, 2025, Agrify Corporation acquired a portfolio of brand intellectual properties, including RYTHM, Dogwalkers, and Beboe, from Green Thumb Industries for US$50 million, paid via a convertible note.
- On May 20, 2025, Agrify Corp acquired MC Brands LLC and Core Growth LLC for $5,075,000, which included intellectual properties.
Capital Expenditures
- Agrify Corporation's statement of cash flows indicates investing activities of $(54) thousand for the twelve months ended December 31, 2024, and $25,179 thousand for the same period in 2023.
- In 2024, Agrify noted an increase in capital expenditures, particularly in newly licensed states, to support its vertical farming unit (VFU) technology.
Latest Trefis Analyses
| Title | Topic | |
|---|---|---|
| DASHBOARDS | ||
| Rythm Earnings Notes | ||
| Would You Still Hold Rythm Stock If It Fell Another 30%? | Return |
| Title | |
|---|---|
| ARTICLES |
Research & Analysis
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Peer Comparisons for Rythm
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 5.65 |
| Mkt Cap | 0.7 |
| Rev LTM | 558 |
| Op Inc LTM | -26 |
| FCF LTM | -16 |
| FCF 3Y Avg | -25 |
| CFO LTM | -2 |
| CFO 3Y Avg | -19 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 2.7% |
| Rev Chg 3Y Avg | 14.6% |
| Rev Chg Q | 3.1% |
| QoQ Delta Rev Chg LTM | 1.1% |
| Op Mgn LTM | -13.7% |
| Op Mgn 3Y Avg | -33.0% |
| QoQ Delta Op Mgn LTM | 1.4% |
| CFO/Rev LTM | 2.0% |
| CFO/Rev 3Y Avg | -11.8% |
| FCF/Rev LTM | -6.3% |
| FCF/Rev 3Y Avg | -19.4% |
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 11/7/2025 | -3.7% | -39.0% | -51.8% |
| SUMMARY STATS | |||
| # Positive | 0 | 0 | 0 |
| # Negative | 1 | 1 | 1 |
| Median Positive | |||
| Median Negative | -3.7% | -39.0% | -51.8% |
| Max Positive | |||
| Max Negative | -3.7% | -39.0% | -51.8% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2025 | 11/07/2025 | 10-Q (09/30/2025) |
| 06/30/2025 | 08/08/2025 | 10-Q (06/30/2025) |
| 03/31/2025 | 05/09/2025 | 10-Q (03/31/2025) |
| 12/31/2024 | 03/21/2025 | 10-K (12/31/2024) |
| 09/30/2024 | 11/14/2024 | 10-Q (09/30/2024) |
| 06/30/2024 | 08/14/2024 | 10-Q (06/30/2024) |
| 03/31/2024 | 05/21/2024 | 10-Q (03/31/2024) |
| 12/31/2023 | 04/15/2024 | 10-K (12/31/2023) |
| 09/30/2023 | 01/03/2024 | 10-Q (09/30/2023) |
| 06/30/2023 | 12/12/2023 | 10-Q (06/30/2023) |
| 03/31/2023 | 11/28/2023 | 10-Q (03/31/2023) |
| 12/31/2022 | 11/28/2023 | 10-K (12/31/2022) |
| 09/30/2022 | 11/14/2022 | 10-Q (09/30/2022) |
| 06/30/2022 | 08/15/2022 | 10-Q (06/30/2022) |
| 03/31/2022 | 05/16/2022 | 10-Q (03/31/2022) |
| 12/31/2021 | 03/31/2022 | 10-K (12/31/2021) |
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Kovler, Benjamin | Interim CEO | Direct | Buy | 9292025 | 37.08 | 1,000 | 37,084 | 704,602 | Form |
| 2 | Kovler, Benjamin | Interim CEO | Direct | Buy | 9222025 | 39.99 | 1,000 | 39,990 | 719,820 | Form |
| 3 | Vakili, Armon | Direct | Sell | 9102025 | 38.23 | 1,900 | 72,633 | 309,644 | Form | |
| 4 | Kovler, Benjamin | Interim CEO | Direct | Buy | 9032025 | 36.70 | 1,000 | 36,700 | 623,900 | Form |
| 5 | Kovler, Benjamin | Interim CEO | Direct | Buy | 9022025 | 46.70 | 1,000 | 46,700 | 747,200 | Form |
External Quote Links
| Y Finance | Barrons |
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| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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