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RYTHM (RYM)
NASDAQ:RYM
US Market

RYTHM (RYM) AI Stock Analysis

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RYM

RYTHM

(NASDAQ:RYM)

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Neutral 45 (OpenAI - 5.2)
Rating:45Neutral
Price Target:
$23.50
▲(19.96% Upside)
Action:ReiteratedDate:04/02/26
The score is held down primarily by weak financial performance—large ongoing losses, persistent cash burn, and significantly higher leverage. Technical indicators are neutral-to-mixed with limited momentum, and valuation support is constrained by negative earnings and no stated dividend. A positive corporate event improves revenue visibility but is not enough to offset the core financial risks.
Positive Factors
Fixed licensing fees
Converting variable royalties into a fixed $70M annual fee materially increases revenue predictability and decouples cash flow from illicit THC sales volatility. This structural change improves multi-year cash visibility, supports listing compliance and reduces revenue cyclicality inherent to the industry.
Negative Factors
Persistent unprofitability
Deep and ongoing net losses signal that core operations are not yet profitable despite higher revenue. Sustained negative margins erode equity, limit reinvestment capacity, and mean the company remains reliant on external funding until clear, durable profitability is achieved.
Read all positive and negative factors
Positive Factors
Negative Factors
Fixed licensing fees
Converting variable royalties into a fixed $70M annual fee materially increases revenue predictability and decouples cash flow from illicit THC sales volatility. This structural change improves multi-year cash visibility, supports listing compliance and reduces revenue cyclicality inherent to the industry.
Read all positive factors

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

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 t...

RYTHM Financial Statement Overview

Summary
Despite a sharp 2025 revenue rebound and improved gross margin, results remain deeply unprofitable with very large net losses, consistently negative operating/free cash flow, and meaningfully higher leverage (debt up while equity fell), indicating elevated funding and balance-sheet risk.
Income Statement
18
Very Negative
Balance Sheet
22
Negative
Cash Flow
16
Very Negative
BreakdownDec 2025Dec 2024Mar 2024Dec 2022Dec 2021
Income Statement
Total Revenue17.28M9.68M15.14M58.26M59.86M
Gross Profit4.03M665.00K4.02M-31.80M5.23M
EBITDA-17.71M-26.68M-9.39M-119.62M-32.35M
Net Income-33.26M-41.75M-18.65M-188.17M-32.47M
Balance Sheet
Total Assets106.68M54.02M45.69M69.69M182.05M
Cash, Cash Equivalents and Short-Term Investments32.22M31.17M434.00K10.92M56.56M
Total Debt80.62M11.04M21.80M31.71M2.77M
Total Liabilities93.66M25.93M60.40M78.73M44.62M
Stockholders Equity13.02M27.86M-14.94M-9.27M137.06M
Cash Flow
Free Cash Flow-23.54M-11.59M-31.03M-80.16M-32.47M
Operating Cash Flow-23.54M-11.58M-30.97M-72.02M-30.15M
Investing Cash Flow-55.08M-54.00K25.17M-2.32M-104.74M
Financing Cash Flow79.66M42.37M-4.23M72.78M138.79M

RYTHM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price19.59
Price Trends
50DMA
18.21
Positive
100DMA
19.72
Positive
200DMA
26.75
Negative
Market Momentum
MACD
1.96
Negative
RSI
59.19
Neutral
STOCH
54.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYM, the sentiment is Positive. The current price of 19.59 is below the 20-day moving average (MA) of 19.83, above the 50-day MA of 18.21, and below the 200-day MA of 26.75, indicating a neutral trend. The MACD of 1.96 indicates Negative momentum. The RSI at 59.19 is Neutral, neither overbought nor oversold. The STOCH value of 54.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RYM.

RYTHM Risk Analysis

RYTHM disclosed 55 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%
58
Neutral
$6.47M0.25-52.51%-1.41%98.90%
55
Neutral
$110.66M-2.0427.42%-10.69%-81.71%
48
Neutral
$133.90M-4.13-3.64%53.82%
47
Neutral
$82.45M-104.05%-23.14%14.29%
45
Neutral
$51.54M-1.28-183.42%-15.48%-155.83%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RYM
RYTHM
23.98
5.98
33.22%
SUNE
SUNation Energy
1.90
-2.04
-51.78%
VATE
INNOVATE Corp
8.11
1.92
31.02%
BLNK
Blink Charging Co
0.59
-0.17
-21.87%
SHIM
Shimmick Corporation
3.71
2.35
172.79%
SKK
SKK Holdings Limited
2.32
-5.43
-70.08%

RYTHM Corporate Events

Business Operations and StrategyDelistings and Listing ChangesRegulatory Filings and Compliance
RYTHM Sets Fixed Licensing Fees to Support Listing
Positive
Apr 1, 2026
On March 31, 2026, RYTHM subsidiaries VCP IP Holdings and MC Brands amended existing trademark and recipe license agreements with Green Thumb Industries’ unit GTI Core, converting variable, sales-based royalties into fixed annual cash fees e...
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: Apr 02, 2026