Rhythm Pharmaceuticals (RYTM) AI Stock Analysis

• Market Cap: $7.56B
• Dividend Yield: N/A
• Average Volume (3M): 798.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• Revenue Growth: 54.92%
• EPS Growth: 28.47%
• Country: US
• Employees: 283
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.82
• Shares Outstanding: 66,736,050
• 10 Day Avg. Volume: 576,246
• 30 Day Avg. Volume: 798,217
• PEG Ratio: -0.37
• Price to Book (P/B): 20.75
• Price to Sales (P/S): 26.24
• P/FCF Ratio: -29.98
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 37.84
• Enterprise Value/Gross Profit: 42.33
• Enterprise Value/Ebitda: -39.03
• 1Y Price Target: $141.00
• Price Target Upside: 32.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): -2.7
• Revenue Forecast (FY): $292.97M

• Rating: 53 Neutral
• Price Target: $115.00 ▲(8.43% Upside)

The score is held back primarily by weak financial fundamentals (ongoing losses/negative ROE and negative operating cash flow) and bearish technicals (below major moving averages with negative MACD). These are partially offset by positive earnings-call guidance and sentiment around sales growth and upcoming regulatory/clinical catalysts, plus supportive recent corporate updates.

Positive Factors

Strong revenue growth and high gross margin

Sustained revenue growth alongside an unusually high gross margin indicates the core product, IMCIVREE, benefits from strong pricing power and low COGS. This supports durable cash generation potential from sales, enabling reinvestment into trials and commercialization as uptake expands.

Regulatory progress and pipeline breadth

Acceptance of filings and a defined PDUFA timeline for acquired hypothalamic obesity, plus planned Phase 3 programs and oral-agent development, materially deepen the company’s addressable patient populations. Successful approvals would sustainably expand the rare-obesity franchise.

Improved liquidity and operational runway

A sizeable equity raise meaningfully reduces near-term financing risk, allowing the company to fund ongoing Phase 3 trials and commercial expansion without immediate dependence on external debt. This preserves strategic optionality to advance indications and launches.

Negative Factors

Persistent unprofitability and negative operating cash flow

Ongoing losses and negative operating cash flow constrain the firm’s ability to self-fund growth and increase dependence on capital markets. Over multiple quarters, this can pressure strategic flexibility, raise dilution risk, and force prioritization among costly late-stage programs.

International reimbursement variability

Reimbursement complexities and one-time pricing charges in international markets demonstrate execution risk expanding beyond the U.S. Long-term revenue scaling depends on securing stable payer terms; variability and negotiated discounts can limit realized revenue and margin overseas.

Rising R&D burden amid multiple late-stage programs

Advancing multiple Phase 3 programs and formulation work raises structural R&D spend and cash burn. Persistent higher R&D outlays will weigh on operating margins and funding needs through pivotal readouts, requiring continued capital or rapid product revenue ramps to avoid dilution.

Rhythm Pharmaceuticals Business Overview & Revenue Model

Company Description

Rhythm Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the development and commercialization of therapeutics for the treatment of rare genetic diseases of obesity. The company's lead product candidate is IMCIVREE, a potent melanocortin-4 receptor for the treatment of pro-opiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1, leptin receptor (LEPR) deficiency obesity, and Bardet-Biedl and Alström syndrome. It is also developing setmelanotide, which is in Phase II clinical trials for treating POMC or LEPR heterozygous deficiency obesities, steroid receptor coactivator 1 deficiency obesity, SH2B1 deficiency obesity, MC4 receptor deficiency obesity, Smith-Magenis syndrome obesity, POMC epigenetic disorders, and other MC4R disorders. Rhythm Pharmaceuticals, Inc. has a collaborative research agreement with the Clinical Registry Investigating Bardet-Biedl Syndrome. The company was formerly known as Rhythm Metabolic, Inc. and changed its name to Rhythm Pharmaceuticals, Inc. in October 2015. Rhythm Pharmaceuticals, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

Rhythm Pharmaceuticals generates revenue primarily through the commercialization of its lead product, setmelanotide, which is marketed under the brand name Imcivree. The company earns income from product sales to healthcare providers and patients. Additionally, Rhythm may engage in collaborations or licensing agreements with other pharmaceutical companies to expand its reach and share in the development of new therapies or indications. Research grants and funding from government or non-profit organizations focused on obesity and metabolic disorders also contribute to its financial resources. The company's revenue model is heavily influenced by the successful uptake of its product in the market, reimbursement policies, and the growing awareness of genetic obesity disorders.

Rhythm Pharmaceuticals Financial Statement Overview

Summary

Revenue is growing (TTM revenue growth 11.55%) with strong gross margin (89.40%), and free cash flow growth improved (61.14%). However, profitability remains weak with negative net/EBIT margins and negative ROE, and operating cash flow is still negative.

Income Statement

Rhythm Pharmaceuticals shows a positive revenue growth trend with a TTM revenue growth rate of 11.55%. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin remains strong at 89.40% TTM, suggesting efficient cost management, but the overall profitability is hindered by high operating expenses.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.56 in the previous year, which has improved to 0.00 in the TTM, indicating reduced leverage. However, the return on equity remains negative, reflecting ongoing losses. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets.

Cash Flow

The cash flow statement shows a significant improvement in free cash flow growth at 61.14% TTM. The operating cash flow to net income ratio is positive, suggesting some operational efficiency. However, the company still faces challenges with negative operating cash flow, indicating a need for better cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	174.33M	130.13M	77.43M	23.64M	3.15M	0.00
Gross Profit	155.86M	116.76M	68.13M	21.50M	2.56M	-690.00K
EBITDA	-169.02M	-238.09M	-168.46M	-174.25M	-68.45M	-135.88M
Net Income	-192.33M	-260.60M	-184.68M	-181.12M	-69.61M	-130.73M
Balance Sheet
Total Assets	506.87M	392.27M	332.75M	382.48M	329.52M	187.07M
Cash, Cash Equivalents and Short-Term Investments	416.05M	320.56M	275.85M	333.29M	294.86M	172.79M
Total Debt	151.00M	3.94M	1.26M	1.94M	2.55M	3.09M
Total Liabilities	358.06M	227.72M	162.99M	118.22M	45.37M	20.55M
Stockholders Equity	148.82M	164.55M	169.76M	264.26M	284.15M	166.53M
Cash Flow
Free Cash Flow	-109.13M	-113.88M	-136.20M	-177.71M	-151.44M	-122.19M
Operating Cash Flow	-109.13M	-113.88M	-136.16M	-173.43M	-146.00M	-121.98M
Investing Cash Flow	-146.34M	-48.17M	-5.67M	28.03M	-62.16M	158.53M
Financing Cash Flow	259.24M	191.24M	74.37M	213.83M	166.48M	2.01M

Rhythm Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 106.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYTM, the sentiment is Positive. The current price of 106.06 is below the 20-day moving average (MA) of 107.40, above the 50-day MA of 105.38, and above the 200-day MA of 87.83, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 49.52 is Neutral, neither overbought nor oversold. The STOCH value of 82.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RYTM.

Rhythm Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TGTX	62 Neutral	$4.69B	11.05	111.96%	―	100.88%	―
RNA	62 Neutral	$10.94B	-17.41	-32.44%	―	106.27%	-43.90%
CYTK	57 Neutral	$7.90B	-10.05	―	―	2609.26%	-17.08%
RYTM	53 Neutral	$7.56B	-34.18	-240.36%	―	54.92%	28.47%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LEGN	46 Neutral	$4.30B	-16.93	-22.60%	―	74.91%	31.54%
ABVX	44 Neutral	$9.83B	-38.63	―	―	―	18.47%

Rhythm Pharmaceuticals Corporate Events

Rhythm Pharmaceuticals Reports Strong Preliminary 2025 IMCIVREE Revenue

On January 9, 2026, Rhythm Pharmaceuticals reported preliminary, unaudited net product revenues from global sales of IMCIVREE of about $57 million for the fourth quarter of 2025, up 11% sequentially from the third quarter, and approximately $194 million for full-year 2025, a roughly 50% increase over 2024, with U.S. sales accounting for about two-thirds of the total; the company plans to release final fourth-quarter and full-year results in late February 2026. Rhythm also outlined a packed 2026 clinical and regulatory agenda centered on expanding setmelanotide into acquired and congenital hypothalamic obesity and genetically caused MC4R pathway diseases, advancing programs in Prader-Willi syndrome, and progressing its oral MC4R agonist bivamelagon and next-generation candidate RM-718, underscoring its bid to deepen its rare obesity franchise and sustain growth, although all financial figures remain preliminary and unaudited.

The most recent analyst rating on (RYTM) stock is a Buy with a $129.00 price target. To see the full list of analyst forecasts on Rhythm Pharmaceuticals stock, see the RYTM Stock Forecast page.

Rhythm Pharmaceuticals Announces Resignation of Board Member Bedrosian

On December 16, 2025, Rhythm Pharmaceuticals announced that board member Camille L. Bedrosian, M.D. resigned from the company’s Board of Directors, effective immediately. Bedrosian, who served on the Compensation & Management Development Committee and the Governance and Nominating Committee, left her roles without any disagreement related to the company’s operations, policies or practices, suggesting the departure is not expected to signal governance or strategic conflict for stakeholders.

The most recent analyst rating on (RYTM) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Rhythm Pharmaceuticals stock, see the RYTM Stock Forecast page.

Rhythm Pharmaceuticals Announces Positive Phase 2 Trial Results

On December 11, 2025, Rhythm Pharmaceuticals announced positive preliminary results from its exploratory Phase 2 trial of setmelanotide in patients with Prader-Willi syndrome (PWS). The trial, which enrolled 18 patients, showed potential therapeutic benefits with reductions in BMI and hyperphagia at Months 3 and 6. Encouraged by these results, Rhythm plans to advance setmelanotide into a Phase 3 trial and has initiated a Phase 1 study of another MC4R agonist, RM-718, in PWS patients. The announcement underscores the company’s commitment to addressing the unmet needs of the PWS patient population, which faces significant health challenges due to severe obesity and hyperphagia.

The most recent analyst rating on (RYTM) stock is a Buy with a $136.00 price target. To see the full list of analyst forecasts on Rhythm Pharmaceuticals stock, see the RYTM Stock Forecast page.

Rhythm Pharmaceuticals Faces FDA Review Extension

On November 7, 2025, Rhythm Pharmaceuticals announced that the FDA extended the review period for the supplemental New Drug Application for IMCIVREE® (setmelanotide) for acquired hypothalamic obesity by three months, moving the PDUFA goal date to March 20, 2026. This extension follows the FDA’s request for additional sensitivity analyses of clinical efficacy data, which were considered a major amendment. The company remains confident in the drug’s potential and is preparing to deliver it to a patient community with no approved treatment options.

The most recent analyst rating on (RYTM) stock is a Hold with a $106.00 price target. To see the full list of analyst forecasts on Rhythm Pharmaceuticals stock, see the RYTM Stock Forecast page.