RYTHM, Inc. Reports Fourth Quarter and Full Year 2025 Results
MWN-AI** Summary
RYTHM, Inc. (Nasdaq: RYM), a company specializing in hemp-derived THC products, announced significant financial results for the fourth quarter and full year ended December 31, 2025. For Q4, RYTHM reported revenues from continuing operations of $10.7 million, reflecting a remarkable 164% increase from $4.0 million in the prior quarter. The gross profit also surged to $8.0 million, equating to 75% of revenues, compared to $1.4 million (34% of revenues) in Q3. However, the operating loss for the fourth quarter stood at $12.9 million, primarily attributed to an $8.5 million non-cash impairment charge. As of year-end, the company maintained a cash balance of $32.2 million.
For the full year, RYTHM generated total revenues of $17.3 million, a considerable leap from just $18, largely due to the acquisition of a portfolio of brand intellectual property. The company earned $7.8 million in licensing fees from a deal with Green Thumb Industries and expanded its retail presence to over 6,000 locations across 18 states, securing placement of its Señorita THC Margaritas in over 800 Circle K stores.
Chairman and Interim CEO Ben Kovler highlighted 2025 as a transformational year, with increased licensing revenue contributing to strong gross margins. Despite facing regulatory challenges, he emphasized the growing consumer demand for safe, high-quality THC products. RYTHM aims to leverage its iconic brands amidst this evolving market landscape, focusing on accessibility and consumer trust in their wide array of offerings including beverages and other THC products. As RYTHM continues to develop its strategies, it remains committed to reshaping THC consumption experiences for American consumers.
MWN-AI** Analysis
RYTHM, Inc. recently reported impressive fourth-quarter and fiscal year results for 2025, showcasing robust growth in revenue and gross profit despite ongoing operational challenges. The stock, currently trading on NASDAQ (RYM), unveils a narrative of transformation and potential within the booming THC market.
In Q4 2025, RYTHM generated $10.7 million in revenue, a remarkable 164% rise from the previous quarter. This swift increase signals strong consumer adoption of their hemp-derived products, particularly the Señorita THC Margaritas and RYTHM Beverages. Supporting this growth, the company achieved a notable gross profit margin of 75%, an increase from 34% in the prior quarter, indicating improved operational efficiency and product acceptance.
However, it's important to address the $12.9 million operating loss, driven in part by a non-cash impairment charge. Investors should remain cautious; while the revenue boom is encouraging, losses reflect ongoing costs related to scaling and brand acquisition strategies. Nonetheless, the strong cash position of $32.2 million provides a buffer for continued investment in growth initiatives.
The company’s strategic expansion, particularly its retail agreement to place products in over 6,000 locations nationwide and its historic launch at Chicago’s United Center, underscores its commitment to capturing market share in the evolving THC landscape. Furthermore, the $7.8 million in licensing fees from partnerships, such as with Green Thumb Industries, diversifies revenue streams and solidifies RYTHM's brand portfolio.
Looking forward, while regulatory challenges and sector volatility pose risks, increasing consumer demand for quality THC products presents RYTHM with significant opportunities. Investors may consider taking a position, but due diligence remains essential given the potential for market fluctuations and the company's concentrated investments in brand development. Overall, RYTHM is well-positioned to capitalize on the growing acceptance of hemp-derived products in the U.S. marketplace.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
ROLLING MEADOWS, Ill., March 03, 2026 (GLOBE NEWSWIRE) -- RYTHM, Inc. (Nasdaq: RYM) (“RYTHM” or the “Company”), which delivers well-being to consumers through its portfolio of iconic brands and hemp-derived THC products including Señorita THC Margaritas, incredibles, and RYTHM Beverages, today announced financial results for the fourth quarter and full year ended December 31, 2025.
Highlights for the fourth quarter ended December 31, 2025:
- Revenue from continuing operations of $10.7 million, up 164% from $4.0 million in the prior quarter.
- Gross Profit from continuing operations of $8.0 million or 75% of revenue, up from $1.4 million or 34% of revenue in the prior quarter.
- Operating loss from continuing operations of $12.9 million, primarily driven by an $8.5 million non-cash impairment charge.
- Cash balance of $32.2 million.
- At year end, the Company had approximately 2.1 million shares outstanding, as well as warrants convertible into 10.9 million shares, and 3.0 million shares issuable upon conversion of convertible notes (excluding interest).
Highlights for the year ended December 31, 2025:
- Acquired portfolio of brand intellectual property including RYTHM, Dogwalkers, incredibles, Beboe, and others.
- Generated $7.8 million in licensing fees by licensing brands to cannabis operator Green Thumb Industries.
- Established a beverage retail footprint of over 6,000 locations across 18 states.
- Secured placement of Señorita THC Margaritas in over 800 Circle K stores as part of the largest U.S. convenience store rollout of hemp-derived THC beverages to date.
- Launched Señorita THC Margaritas and RYTHM Beverages at Chicago’s United Center through a multi-year partnership, making the brands the first THC beverages available at a major U.S. arena.
Management Commentary
“2025 was a transformational year for RYTHM, Inc., marked by a new name, a new ticker, and a new strategic direction as we expanded our role in the THC category, with RYTHM, Dogwalkers, and Señorita leading the way,” said Chairman and Interim CEO Ben Kovler.
“We exited the year with fourth quarter licensing revenue of $7.0 million, which was a key contributor to the Company’s total gross margins of approximately 75% for the quarter. The licensing revenue from our most recent brand acquisition began November 1, resulting in two months of contribution reflected in the fourth quarter.
“THC has faced persistent structural and regulatory headwinds, but consumer demand continues to rise. We believe consumers deserve access to safe, high-quality THC products where they already live, shop, and gather, and we have worked relentlessly to make that a reality. In a historic first, we launched a partnership with Chicago’s United Center, making Señorita and RYTHM the first THC beverages to be offered at a major U.S. arena. Bringing THC to the nation’s largest arena is a powerful example of real progress with a world-class partner who recognizes evolving consumer demand.
“Even as federal policy continues to lag consumer reality, we remain focused on providing consumers with iconic brands they trust. Our brands are performing extremely well across diverse U.S. markets at a time when THC consumption continues to grow and Americans just say no to alcohol. As the hemp and cannabis market continues to evolve globally, we believe owning leading U.S. brands provides long-term strategic value.”
About Us
RYTHM, Inc.’s portfolio of hemp-derived THC products delivers well-being to millions of Americans every year, and its brands are among the most recognized and trusted names in the cannabis and hemp industries, including RYTHM, incredibles, Dogwalkers, Beboe, Señorita THC Margaritas, &Shine, Doctor Solomon’s and Good Green. RYTHM, Inc. products are rooted in quality, safety and innovation and are available in thousands of physical locations and online channels. The Company is deeply committed to shaping THC experiences that enhance the daily lives of American consumers. Learn more and explore the full brand portfolio at www.RYTHMinc.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning RYTHM, Inc. and other matters. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements including, without limitation, statements regarding future financial results, regulatory trends, potential annual licensing revenue, continued momentum for hemp-derived beverages, and potential trends in the hemp-derived beverage and alcohol markets. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. You should carefully consider the risks and uncertainties that affect our business, including the risk that Congress does not amend or repeal the pending federal prohibition on hemp-derived THC products prior to its November 2026 effective date as well as those described in our filings with the Securities and Exchange Commission (“SEC”), including under the caption “Risk Factors” in our most recent Annual Report on Form 10-K, which can be obtained on the SEC website at www.sec.gov. These forward-looking statements speak only as of the date of this communication. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and filings with the SEC.
Investor Contact
IR@RYTHMinc.com
Media Contact
Media@RYTHMinc.com
RYTHM, Inc.
Highlights from Unaudited Condensed Consolidated Statements of Operations
For the Three and Twelve Months Ended December 31, 2025 and December 31, 2024
(Amounts Expressed in Thousands of United States Dollars, Except for Share Amounts)
| Twelve months ended December 31, | Three months ended December 31, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
| Revenue | $ | 17,283 | $ | 18 | $ | 10,660 | $ | 18 | ||||||
| Cost of goods sold | 7,093 | 89 | 2,617 | 89 | ||||||||||
| Gross profit (loss) | 10,190 | (71 | ) | 8,043 | (71 | ) | ||||||||
| Operating expenses | 42,526 | 5,002 | 20,992 | 3,387 | ||||||||||
| Operating loss from continuing operations | (32,336 | ) | (5,073 | ) | (12,949 | ) | (3,458 | ) | ||||||
| Other expense, net | (2,404 | ) | (18,158 | ) | (679 | ) | (2,490 | ) | ||||||
| Loss from continuing operations before income taxes | (34,740 | ) | (23,231 | ) | (13,628 | ) | (5,948 | ) | ||||||
| Income tax provision | — | 2 | — | — | ||||||||||
| Loss from continuing operations, net of income taxes | (34,740 | ) | (23,229 | ) | (13,628 | ) | (5,948 | ) | ||||||
| Income (loss) from discontinued operations, net of income taxes | 1,483 | (18,517 | ) | 22 | (18,413 | ) | ||||||||
| Net loss | $ | (33,257 | ) | $ | (41,746 | ) | $ | (13,606 | ) | $ | (24,361 | ) | ||
| Basic and diluted (loss) income per share | ||||||||||||||
| Continuing operations | $ | (17.42 | ) | $ | (22.77 | ) | $ | (6.63 | ) | $ | (3.74 | ) | ||
| Discontinued operations | 0.74 | (18.15 | ) | 0.01 | (11.58 | ) | ||||||||
| Net loss per share attributable to Common Stockholders?–?basic and diluted (1) | $ | (16.68 | ) | $ | (40.92 | ) | $ | (6.62 | ) | $ | (15.32 | ) | ||
| Weighted average common shares outstanding - basic and diluted (1) | 1,993,947 | 1,020,185 | 2,054,242 | 1,589,453 | ||||||||||
(1) Periods presented have been adjusted to retroactively reflect the 1-for-15 reverse stock split on October 8, 2024. Additional information regarding reverse stock splits may be found in Note 1 – Overview, Basis of Presentation, and Significant Accounting Policies, included in the notes to the condensed consolidated financial statements.
RYTHM, Inc.
Highlights from Unaudited Condensed Consolidated Balance Sheet
(Amounts Expressed in Thousands of United States Dollars)
| As of December 31, | ||||
| 2025 | ||||
| Cash and cash equivalents | $ | 32,218 | ||
| Other current assets | 15,332 | |||
| Goodwill | 9,713 | |||
| Intangible assets and related party prepaid license rights | 49,400 | |||
| Non-current assets associated with discontinued operations | 14 | |||
| Total assets | $ | 106,677 | ||
| Accounts payable and accrued expenses | $ | 10,257 | ||
| Related party debt, current | 27,000 | |||
| Long-term debt, current | 3,621 | |||
| Current liabilities associated with discontinued operations | 2,082 | |||
| Warrant liabilities | 697 | |||
| Related party debt, net of current | 45,000 | |||
| Long-term debt, net of current | 5,000 | |||
| Total equity | 13,020 | |||
| Total liabilities and equity | $ | 106,677 | ||
RYTHM, Inc.
Highlights from Unaudited Condensed Consolidated Statement of Cash Flows
For the Year Ended December 31, 2025 and 2024
(Amounts Expressed in Thousands of United States Dollars)
| Year Ended December 31, | |||||||
| 2025 | 2024 | ||||||
| Cash flows (used in) provided by | |||||||
| Operating activities | $ | (23,537 | ) | $ | (11,583 | ) | |
| Investing activities | (55,075 | ) | (54 | ) | |||
| Financing activities | 79,660 | 42,373 | |||||
| Net increase (decrease) in cash and cash equivalents | $ | 1,048 | $ | 30,736 | |||
FAQ**
How do the recent financial results for "RYTHM Inc Com Par $0.001 (New) RYM" impact its overall valuation and investment appeal, given the significant revenue growth reported for Q4 2025?
Considering the operating losses reported by "RYTHM Inc Com Par $0.001 (New) RYM," what strategies is management implementing to improve profitability in 20and beyond?
With the recent launch of "RYTHM Inc Com Par $0.001 (New) RYM" products in major retail locations, how does the company plan to scale its distribution while navigating regulatory challenges in the hemp-derived THC market?
What are the potential impacts of the pending federal prohibition on hemp-derived THC products on the future growth and market strategy of "RYTHM Inc Com Par $0.001 (New) RYM," especially in light of its recent brand acquisitions?
**MWN-AI FAQ is based on asking OpenAI questions about RYTHM Inc Com Par $0.001 (New) (NASDAQ: RYM).
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