RYTHM 2025 Q3 Earnings 42.8% Reduction in Net Loss Despite Revenue Surge

RYTHM (RYM) reported its fiscal 2025 Q3 earnings on Nov 8, 2025, showcasing a significant 109.0% year-over-year revenue increase and a 42.8% reduction in net losses. The stock, however, faced downward pressure post-earnings, with mixed short-term price action.

Revenue

RYTHM’s revenue surge was driven by hemp-derived products, which generated $3.51 million, while royalty revenue added $532,000, totaling $4.04 million. The 109.0% year-over-year growth reflects the company’s strategic focus on expanding its product portfolio and licensing agreements.

Earnings/Net Income

The company narrowed its losses to $5.33 per share in 2025 Q3, a 69.2% improvement from $17.31 per share in 2024 Q3. Meanwhile, the net loss reduced to $-10.66 million, down 42.8% from $-18.65 million in 2024 Q3. Despite the revenue growth, the EPS loss narrowed by 69.2%, and the net loss improved by 42.8%, indicating progress in cost management.

Post-Earnings Price Action Review

Following the earnings report, RYTHM’s stock price declined 3.71% in the latest trading day, with a sharper 18.19% drop over the past week and a 21.80% decline month-to-date, reflecting mixed investor sentiment amid the improved financials.

CEO Commentary

Chairman and Interim CEO Ben Kovler emphasized RYTHM’s transformation into “America’s THC Company,” highlighting the launch of RYTHM Beverages and the expansion of Señorita THC Margaritas into 1,000 Circle K stores and select Target locations. He noted the growing consumer shift toward THC beverages and the company’s competitive edge in flavor innovation.

Guidance

No forward-looking guidance was provided in the Q3 2025 earnings report.

Additional News

1. M&A Activity: On Aug 27, 2025, RYTHM acquired a portfolio of brand intellectual properties, including RYTHM, Dogwalkers, and Beboe, to strengthen its licensing strategy.

2. C-Level Changes: Ben Kovler assumed the role of Interim CEO, succeeding the previous leadership, as the company restructured its executive team.

3. Product Launches: The launch of Strawberry Supernova Comets, a 100mg THC gummy, on Sep 4, 2025, expanded RYTHM’s edibles portfolio to meet growing demand in the cannabis market.