RYTHM (RYM) AI Stock Analysis

• Market Cap: $33.96M
• Dividend Yield: N/A
• Average Volume (3M): 162.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.33
• Revenue Growth: -15.48%
• EPS Growth: -155.83%
• Country: US
• Employees: 11
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): -5.33
• Shares Outstanding: 2,149,128
• 10 Day Avg. Volume: 451,026
• 30 Day Avg. Volume: 162,547
• PEG Ratio: <0.01
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 3.06
• P/FCF Ratio: -2.55
• Enterprise Value/Market Cap: 2.64
• Enterprise Value/Revenue: 10.23
• Enterprise Value/Gross Profit: -179.51
• Enterprise Value/Ebitda: -3.24
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $14.50 ▼(-25.98% Downside)

The score is held down primarily by weak financial performance—persistent losses, negative cash flows, and materially higher leverage with unstable equity—despite the recent TTM revenue rebound. Technicals also remain bearish with the stock trading below major moving averages, while valuation signals are constrained by negative earnings and the absence of dividend support.

Positive Factors

Top-line rebound

A 31.6% TTM revenue rebound shows recovering end-market demand and improved sales execution. Over the next 2–6 months this provides a foundation to leverage fixed costs, invest in scale, and validate product-market fit if management sustains growth drivers beyond a one-off bounce.

Asset base expansion

An increase in total assets during the TTM suggests management has invested in capacity or working capital to support growth. Durable asset expansion can underpin higher output and revenue resilience, provided financing is available and deployed toward productive, revenue-generating uses.

Improving cash-flow trend

Sequential improvement in free cash flow versus prior year signals progress toward operating discipline or better revenue quality. If sustained, this reduces reliance on external financing, supports reinvestment, and indicates management can gradually close the cash-burn gap long-term.

Negative Factors

Persistent cash burn

Consistent negative operating and free cash flow (~-$25.9M TTM) creates structural liquidity pressure and forces reliance on external capital. Over months this elevates refinancing, dilution, or covenant risk, limiting the company’s ability to fund operations, capex, or strategic initiatives without outside support.

Sharp rise in leverage

A material jump in total debt from ~$11.0M to ~$90.6M dramatically increases fixed financial obligations and interest exposure. High leverage reduces strategic flexibility, raises default and covenant risks, and amplifies downside if operating losses persist over the medium term.

Sustained unprofitability

Persistent net losses and a negative TTM gross margin reflect structural cost or pricing issues rather than cyclical weakness. Without meaningful margin recovery, the business lacks self-sustaining profitability, threatening long-term viability and requiring fundamental operational or strategic change to restore profitability.

RYTHM Business Overview & Revenue Model

Company Description

RYTHM (RYM) is a technology company focused on enhancing user experience through innovative solutions in the fields of music streaming, wellness, and social connectivity. The company leverages cutting-edge technology to provide a unique platform that integrates music, mental wellness resources, and community engagement, catering to diverse user needs across various demographics and regions.

How the Company Makes Money

RYTHM generates revenue through multiple streams, including subscription fees from users accessing premium features on its music streaming platform, advertising revenue from free-tier users, and partnerships with wellness brands for integrated services. Additionally, the company may earn income from affiliate marketing through sales of wellness-related products and services promoted on its platform. Strategic collaborations with music labels and content creators further enhance its content offerings and attract a larger user base, contributing to overall earnings.

RYTHM Financial Statement Overview

Summary

Despite a strong TTM revenue rebound (+31.6%), the company remains deeply unprofitable with consistently negative margins (TTM gross margin turned negative), negative operating and free cash flow in all periods, and a sharp TTM increase in leverage (total debt rising to ~$90.6M) alongside unstable equity.

Income Statement

Revenue is volatile, falling sharply from 2021–2023, stabilizing in 2024, and then showing strong growth in TTM (Trailing-Twelve-Months) (+31.6%). However, profitability remains very weak: the company is deeply loss-making across all periods, with negative operating earnings and net losses every year. Margins are consistently negative, and TTM (Trailing-Twelve-Months) gross margin also turned negative, signaling unfavorable cost structure and limited operating leverage despite the recent top-line rebound.

Balance Sheet

Leverage and equity quality are key concerns. Debt levels increased materially in TTM (Trailing-Twelve-Months) (total debt ~$90.6M vs. ~$11.0M in 2024), pushing debt relative to equity to a very high level. Equity has also been unstable over time (including negative equity in multiple historical years), which reduces financial flexibility. Total assets increased in TTM (Trailing-Twelve-Months), but returns to shareholders are sharply negative due to ongoing losses.

Cash Flow

Cash generation is a major weakness. Operating cash flow and free cash flow are negative in every period provided, including TTM (Trailing-Twelve-Months) (operating cash flow about -$25.9M). While free cash flow improved versus the prior year in both 2024 and TTM (Trailing-Twelve-Months), the business is still consuming cash to operate, increasing reliance on external financing and elevating liquidity risk if funding conditions tighten.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.78M	9.68M	15.14M	58.26M	59.86M	12.09M
Gross Profit	-500.00K	665.00K	4.02M	-31.80M	5.23M	570.00K
EBITDA	-27.73M	-26.68M	-9.39M	-119.62M	-32.35M	-12.21M
Net Income	-44.01M	-41.75M	-18.65M	-188.17M	-32.47M	-21.62M
Balance Sheet
Total Assets	115.15M	54.02M	45.69M	69.69M	182.05M	21.84M
Cash, Cash Equivalents and Short-Term Investments	35.57M	31.17M	434.00K	10.92M	56.56M	8.11M
Total Debt	90.62M	11.04M	21.80M	31.71M	2.77M	13.47M
Total Liabilities	103.43M	25.93M	60.40M	78.73M	44.62M	28.29M
Stockholders Equity	11.72M	27.86M	-14.94M	-9.27M	137.06M	-6.68M
Cash Flow
Free Cash Flow	-25.86M	-11.59M	-31.03M	-80.16M	-32.47M	-14.92M
Operating Cash Flow	-25.85M	-11.58M	-30.97M	-72.02M	-30.15M	-14.78M
Investing Cash Flow	-55.47M	-54.00K	25.17M	-2.32M	-104.74M	-1.23M
Financing Cash Flow	116.63M	42.37M	-4.23M	72.78M	138.79M	23.91M

RYTHM Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 above the 20-day moving average (MA) of 19.46, below the 50-day MA of 20.85, and below the 200-day MA of 27.86, indicating a bearish trend. The MACD of -1.72 indicates Positive momentum. The RSI at 31.91 is Neutral, neither overbought nor oversold. The STOCH value of 9.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RYM.

RYTHM Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SHIM	52 Neutral	$134.31M	-2.32	―	―	-3.64%	53.82%
VATE	51 Neutral	$76.33M	-1.04	―	―	-10.69%	-81.71%
SUNE	48 Neutral	$3.24M	>-0.01	-116.57%	―	-1.41%	98.90%
BLNK	43 Neutral	$100.29M	-0.57	-88.52%	―	-23.14%	14.29%
RYM	42 Neutral	$33.96M	-0.82	-378.51%	―	-15.48%	-155.83%