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RYTHM (RYM)
NASDAQ:RYM
US Market
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RYTHM (RYM) AI Stock Analysis

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RYM

RYTHM

(NASDAQ:RYM)

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Neutral 48 (OpenAI - 5.2)
Rating:48Neutral
Price Target:
$21.00
▲(7.20% Upside)
Action:Reiterated
Date:06/19/26
The score is held down primarily by weak financial performance—persistent operating losses and continued cash burn—plus limited valuation support due to negative earnings and no dividend yield. These are partially offset by mildly positive technical signals and moderately positive corporate actions aimed at improving revenue predictability and listing stability.
Positive Factors
Predictable licensing revenue
Shifting to a fixed $70M annual licensing fee materially increases revenue visibility and reduces quarter-to-quarter volatility. Over 2–6 months this structural change supports planning, lowers revenue uncertainty, and can reduce reliance on short-term financing while improving covenant and listing stability.
Negative Factors
Persistent cash burn
Consistent negative operating and free cash flow indicates the business cannot self-fund operations. Persistent cash burn increases dependence on external financing, risks recurring dilution or costly debt, and constrains investments and working capital — a structural headwind until cash generation reverses.
Read all positive and negative factors
Positive Factors
Negative Factors
Predictable licensing revenue
Shifting to a fixed $70M annual licensing fee materially increases revenue visibility and reduces quarter-to-quarter volatility. Over 2–6 months this structural change supports planning, lowers revenue uncertainty, and can reduce reliance on short-term financing while improving covenant and listing stability.
Read all positive factors

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

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...
How the Company Makes Money
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RYTHM Financial Statement Overview

Summary
Financials are weak overall: the company remains unprofitable with negative operating and net income, and cash generation is consistently negative with ongoing free-cash-flow burn. The balance sheet has improved to modest leverage in the latest TTM snapshot, but prior periods showed negative equity and at least one year of very high leverage, indicating instability. Losses have narrowed versus prior peak-stress periods, but sustainable profitability and self-funding are still not evident.
Income Statement
18
Very Negative
Balance Sheet
44
Neutral
Cash Flow
16
Very Negative
BreakdownTTMDec 2025Dec 2024Mar 2024Dec 2022Dec 2021
Income Statement
Total Revenue30.03M17.28M9.68M15.14M58.26M59.86M
Gross Profit17.05M10.19M665.00K4.02M-31.80M5.23M
EBITDA-22.93M-25.38M-26.68M-9.39M-119.62M-32.35M
Net Income-11.71M-33.26M-41.75M-18.65M-188.17M-32.47M
Balance Sheet
Total Assets127.52M106.68M54.02M45.69M69.69M182.05M
Cash, Cash Equivalents and Short-Term Investments33.26M32.22M31.17M434.00K10.92M56.56M
Total Debt80.62M80.62M11.04M21.80M31.71M2.77M
Total Liabilities90.95M93.66M25.93M60.40M78.73M44.62M
Stockholders Equity36.58M13.02M27.86M-14.94M-9.27M137.06M
Cash Flow
Free Cash Flow-15.77M-23.54M-11.59M-31.03M-80.16M-32.47M
Operating Cash Flow-15.77M-23.54M-11.58M-30.97M-72.02M-30.15M
Investing Cash Flow-55.08M-55.08M-54.00K25.17M-2.32M-104.74M
Financing Cash Flow79.66M79.66M42.37M-4.23M72.78M138.79M

RYTHM Technical Analysis

Technical Analysis Sentiment
Negative
Last Price19.59
Price Trends
50DMA
26.54
Negative
100DMA
23.81
Negative
200DMA
25.81
Negative
Market Momentum
MACD
-1.09
Positive
RSI
32.30
Neutral
STOCH
7.51
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYM, the sentiment is Negative. The current price of 19.59 is below the 20-day moving average (MA) of 25.78, below the 50-day MA of 26.54, and below the 200-day MA of 25.81, indicating a bearish trend. The MACD of -1.09 indicates Positive momentum. The RSI at 32.30 is Neutral, neither overbought nor oversold. The STOCH value of 7.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
57
Neutral
$10.56M-1.10-51.96%18.10%99.97%
50
Neutral
$85.15M-0.87-106.04%-5.36%66.13%
48
Neutral
$46.66M-1.51-56.78%294.11%50.33%
47
Neutral
$152.47M-6.3937.16%-4.88%82.47%
46
Neutral
$138.60M-2.3522.84%25.37%-52.95%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RYM
RYTHM
21.46
-3.34
-13.47%
SUNE
SUNation Energy
3.83
2.14
126.63%
VATE
INNOVATE Corp
9.93
4.38
78.92%
BLNK
Blink Charging Co
0.57
-0.40
-40.99%
SHIM
Shimmick Corporation
3.77
1.78
89.45%
SKK
SKK Holdings Limited
4.73
-1.65
-25.92%

RYTHM Corporate Events

Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Rythm Stockholders Approve Directors and Expanded Equity Plan
Positive
Jun 18, 2026
On June 16, 2026, Rythm held its 2026 Annual Meeting of Stockholders virtually, with approximately 72.61% of the 2,149,128 eligible common shares represented, establishing a quorum for business. Shareholders elected all nominated directors to one-...
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: Jun 19, 2026