RYTHM (RYM) AI Stock Analysis

• Market Cap: $37.56M
• Dividend Yield: N/A
• Average Volume (3M): 162.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.22
• Revenue Growth: -15.48%
• EPS Growth: -155.83%
• Country: US
• Employees: 11
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): -6.63
• Shares Outstanding: 2,149,148
• 10 Day Avg. Volume: 451,026
• 30 Day Avg. Volume: 162,547
• PEG Ratio: 0.02
• Price to Book (P/B): 3.27
• Price to Sales (P/S): 2.46
• P/FCF Ratio: -1.81
• Enterprise Value/Market Cap: 2.28
• Enterprise Value/Revenue: 4.96
• Enterprise Value/Gross Profit: 21.27
• Enterprise Value/Ebitda: -4.84
• 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: $16.50 ▼(-15.77% Downside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is primarily held down by weak financial performance—persistent large losses, ongoing negative operating/free cash flow, and elevated leverage with limited equity cushion. Technicals add a modest negative bias given the price remains below key moving averages and MACD is negative. Valuation offers little support because earnings are negative (negative P/E) and no dividend yield is available.

Positive Factors

Strong 2025 revenue rebound

A near-100% revenue rebound in 2025 indicates the company can scale sales and regain demand after prior weakness. Sustained top-line recovery supports investment in operations and increases the likelihood management can convert growth into durable market share if operational leverage follows.

Improved gross margin (~59%)

A materially higher gross margin suggests improving unit economics or product mix, which is a structural lever for long-term profitability. If maintained, ~59% gross margin gives room to absorb SG&A and R&D while moving toward sustainable operating profits as revenue scales.

Larger asset base ($106.7M)

Rising total assets reflect investment in capacity, inventory or IP that can support future growth and create operational scale. A larger asset base can enable higher revenue throughput and potential barriers to entry if assets are productive and tied to differentiated machinery or capabilities.

Negative Factors

Persistent net losses

Chronic losses and an extremely negative 2025 net margin undermine retained earnings and prevent the business from self-funding growth. Continued unprofitability raises long-term solvency risk, pressures investor support, and forces reliance on external capital or restructuring to reach durable profitability.

Elevated leverage, fragile equity

High leverage and prior negative equity materially reduce financial flexibility. Large debt loads increase fixed servicing costs and constrain the company's ability to weather downturns or invest opportunistically, raising the risk of distress or dilutive recapitalizations if operating improvements falter.

Sustained cash burn (-$23.5M CFO/FCF)

Persistent negative operating and free cash flow indicate operations do not generate internal funding, forcing ongoing external financing. This cash burn raises dilution and refinancing risk, limits investment in R&D or commercialization, and makes long-term execution contingent on capital markets access.

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 sharp 2025 revenue rebound (~96.9%) and improved gross margin (~59%), the company remains fundamentally weak: net losses persist with an extremely negative 2025 net margin (~-192%), operating profitability is still negative, leverage is elevated (debt-to-equity ~3.46x with a history of negative equity), and cash burn continues (2025 operating cash flow and free cash flow about -$23.5M).

Income Statement

Revenue rebounded sharply in 2025 (annual revenue growth ~96.9%), but profitability remains very weak. Net losses persist every year (2020–2025), with 2025 net margin around -192% despite a much stronger gross margin (~59%). Operating profitability is still negative, indicating the business has not yet converted the higher sales level into sustainable earnings power.

Balance Sheet

Leverage has risen materially: total debt increased to ~$45.0M in 2025 while equity fell to ~$13.0M, pushing debt-to-equity to ~3.46x. The company also has a history of negative equity in multiple years (e.g., 2020, 2022, 2023), highlighting balance-sheet fragility and limited cushion if losses continue. Total assets grew to ~$106.7M in 2025, but returns on equity remain deeply negative due to ongoing losses.

Cash Flow

Cash generation is a major concern: operating cash flow and free cash flow are negative across all years shown. In 2025, operating cash flow was about -$23.5M and free cash flow about -$23.5M, worse than 2024, indicating continued cash burn even as revenue grows. The business is effectively funding operations through external capital rather than internally generated cash.

Breakdown	Dec 2025	Dec 2024	Mar 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	17.28M	9.68M	15.14M	58.26M	59.86M
Gross Profit	4.03M	665.00K	4.02M	-31.80M	5.23M
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 Assets	106.68M	54.02M	45.69M	69.69M	182.05M
Cash, Cash Equivalents and Short-Term Investments	32.22M	31.17M	434.00K	10.92M	56.56M
Total Debt	80.62M	11.04M	21.80M	31.71M	2.77M
Total Liabilities	93.66M	25.93M	60.40M	78.73M	44.62M
Stockholders Equity	13.02M	27.86M	-14.94M	-9.27M	137.06M
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	-54.00K	25.17M	-2.32M	-104.74M
Financing Cash Flow	79.66M	42.37M	-4.23M	72.78M	138.79M

RYTHM Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 17.62, above the 50-day MA of 18.02, and below the 200-day MA of 27.08, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.19 is Neutral, neither overbought nor oversold. The STOCH value of 60.86 is Neutral, 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%
SUNE	53 Neutral	$4.91M	―	-120.96%	―	-1.41%	98.90%
VATE	51 Neutral	$54.35M	-1.82	33.49%	―	-10.69%	-81.71%
SHIM	48 Neutral	$107.19M	-9.13	―	―	-3.64%	53.82%
BLNK	43 Neutral	$80.51M	-520.18	-131.92%	―	-23.14%	14.29%
RYM	42 Neutral	$37.56M	-1.28	-183.42%	―	-15.48%	-155.83%