RYTHM 2025 Q3 Earnings 42.8% Net Loss Reduction Amid Revenue Surge

RYTHM (RYM) reported Q3 2025 earnings with a 109% revenue increase to $4.04 million and a 42.8% reduction in net loss to -$10.66 million, aligning with guidance on cost discipline. The CEO highlighted macroeconomic challenges but emphasized R&D and operational efficiency as growth drivers.

Revenue

RYTHM's total revenue surged to $4.04 million in Q3 2025, driven primarily by its hemp-derived product segment, which contributed $3.51 million. Royalty revenue added $532,000 to the top line, rounding out the $4.04 million in total revenue. This marks a 109% year-over-year increase from $1.93 million in Q3 2024, reflecting strong demand for hemp-derived offerings.

Earnings/Net Income

The company narrowed its net loss to -$10.66 million in Q3 2025, a 42.8% improvement from the -$18.65 million loss in Q3 2024. Earnings per share also improved to -$5.33 from -$17.31, signaling progress in cost management. While the net loss remains significant, the reduction demonstrates early traction in operational efficiency initiatives.

Post-Earnings Price Action Review

The strategy of buying RYTHM shares upon quarterly earnings releases and holding for 30 days yielded a 17.3% return over three years. This approach capitalized on revenue growth milestones and smoothed out short-term volatility, with the 30-day holding period stabilizing returns amid market fluctuations. The strategy’s success underscores the market’s positive reaction to revenue consistency and cost-cutting measures.

CEO Commentary

The CEO acknowledged macroeconomic and supply chain challenges but emphasized strategic investments in R&D and digital transformation. Leadership remains focused on optimizing operations and expanding into high-growth segments, expressing confidence in long-term recovery despite near-term pressures.

Guidance

RYTHM expects Q4 2025 revenue growth and a continued narrowing of its net loss, driven by improved demand and cost discipline. While specific targets were not disclosed, the company prioritizes EBITDA improvement and disciplined capital allocation to align with strategic goals.

Additional News

1. M&A Activity: RYTHM acquired brand IP portfolios (RYTHM, Dogwalkers, Beboe) and entered licensing agreements for manufacturing and distribution on August 27, 2025.

2. C-Level Changes: The company rebranded as RYTHM, Inc. on September 2, 2025, and began trading under the ticker RYM.

3. Product Launches: Señorita THC Margaritas debuted in over 1,000 Circle K stores and select Target Minnesota locations, while Strawberry Supernova Comets launched in September 2025. These initiatives aim to expand market reach and strengthen brand recognition in the hemp-derived THC beverage sector.