RYTHM, Inc. (RYM) AI Stock Analysis

NASDAQ: RYMAI research summary: business, growth, valuation, analysts, bull and bear case.

RYM AI stock analysis summary

AI Research

RYTHM, Inc. (RYM) provides hemp-derived tetrahydrocannabinol beverages and cannabis solutions across the United States. While trailing twelve months revenue reached $51.0M alongside a quarterly revenue growth rate of 1027.4% as of June 30, 2026, the company remains unprofitable with a net profit margin of -6.2%. The business also carries $80.6M in total debt against $41.9M in cash and short-term investments.

Market cap
$36.9M
Revenue (TTM)
$51.0M
P/E
—
1Y return
-62.5%
S&P 500 16.8%
Avg. target
—

Bull case

  • Trailing twelve months revenue reached $51.0M, aided by a 1027.4% year-over-year quarterly revenue increase for the period ended June 30, 2026.
  • Annual gross margin expanded significantly to 59.0% in FY2025 from 6.9% in FY2024.
  • Insiders maintain substantial alignment with shareholders, owning 46.0% of the company's equity.

Bear case

  • The balance sheet carries $80.6M in total debt against $41.9M in cash and short-term investments, with a current ratio of 0.59.
  • Free cash flow has remained consistently negative, registering at -$23.5M in FY2025.
  • Dilution has been severe, with the share count increasing by 3273.7% over the 5-year period.

What RYTHM does

RYTHM, Inc. provides solutions for the cannabis and hemp industry in the United States. The company offers consumers hemp-derived tetrahydrocannabinol beverages and other hemp-derived products through retailers, online channels, and direct-to-retail partnerships. Its beverage lineup includes four cocktail flavors: classic Lime Jalapeño Margarita, Mango Margarita, Paloma, and Ranch Water, positioned as alternatives to alcoholic drinks. In addition, the company licenses its brands for manufacturing and distribution. Products are sold under brands including RYTHM, incredibles, Dogwalkers, Beboe, &Shine, Doctor Solomon's, Good Green, and Señorita. Formerly known as Agrify Corporation, the company changed its name to RYTHM, Inc. in August 2025.

Growth and profitability

Annual revenue fluctuated significantly from FY2021 to FY2025, falling from $59.9M in FY2021 to $9.7M in FY2024 before rebounding 78.5% to $17.3M in FY2025. Over the 5-year period from FY2020 to FY2025, revenue generated a CAGR of 7.4%. Gross margin improved to 59.0% in FY2025, up from 6.9% in FY2024, but operating margin remained negative at -138.1%, contributing to a net loss of -$33.3M and an EPS of -$17.28. Over the trailing twelve months ended June 30, 2026, revenue stood at $51.0M with an operating margin of 8.4% and an EPS of -$10.45, supported by a latest quarterly year-over-year revenue expansion of 1027.4%.

RYM income statement →

Balance sheet and cash flow

As of June 30, 2026, RYTHM held $41.9M in cash and short-term investments alongside total debt of $80.6M, resulting in net debt of $38.7M. The current ratio stood at 0.59, and the debt-to-equity ratio was 2.06 against shareholders' equity of $39.1M out of $135.4M in total assets. Cash flow remained under pressure in FY2025, with operating cash flow and free cash flow both reporting -$23.5M. Capital deployment in FY2025 included $337,000 directed toward share buybacks, while the share count expanded 3273.7% over 5 years.

RYM balance sheet →

Valuation and performance

With a market cap of $36.9M and enterprise value of $88.8M, RYTHM trades at a price-to-sales multiple of 0.7x, matching the 0.7x median of its US-listed Consumer Defensive peers. Its enterprise value-to-revenue multiple is 1.7x, and its price-to-book ratio is 1.3x. Over the past year, the stock has declined 62.5%, compared to a 16.8% gain for the S&P 500 (SPY). Over a 5-year period, RYM shares fell 100.0%, trailing the 83.0% return of the benchmark index.

RYM key metrics →

What analysts expect

RYTHM has beaten EPS estimates in 2 of the last 4 quarters. The company's next earnings report is scheduled for November 6, 2026. The stock closed at $17.16 on October 16, 2026, which is 22.8% below its 200-day moving average.

Key risks and what to watch

  • Liquidity risk is heightened by a low current ratio of 0.59 and net debt of $38.7M as of June 30, 2026.
  • The stock displays extreme price volatility, evidenced by a high beta of 9.45.
  • Net income remained negative at -$33.3M in FY2025, yielding a return on equity of -10.5% over the trailing twelve months.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this RYM AI stock analysis

This page is an AI-written research summary of RYTHM, Inc. (RYM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: RYM income statement, RYM balance sheet, RYM key metrics, RYM chart. See the RYM stock overview for the latest quote and news.

RYM AI stock analysis FAQ

What products does RYTHM, Inc. sell?

The company sells hemp-derived tetrahydrocannabinol beverages and alternative cocktail flavors such as Lime Jalapeño Margarita, Mango Margarita, Paloma, and Ranch Water. Its portfolio also includes brands like RYTHM, incredibles, Dogwalkers, Beboe, &Shine, Doctor Solomon's, Good Green, and Señorita.

What is RYTHM's current cash and debt position?

As of June 30, 2026, RYTHM had $41.9M in cash and short-term investments, $80.6M in total debt, and a net debt position of $38.7M.

Does RYTHM pay a dividend?

No, RYTHM does not pay a dividend.

When is RYTHM's next earnings announcement?

The next earnings date is scheduled for November 6, 2026.

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