RYTHM (RYM) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 was $4.0 million, up from zero in Q3 2024 and nearly double the prior quarter, driven by acquisitions, new brand launches, and expansion in hemp-derived THC beverages.

• Net loss from continuing operations was $10.6 million for Q3 2025, compared to $16.4 million in Q3 2024; operating loss was $8.9 million, and net loss per share was $(5.33).

• Discontinued operations (Cultivation and Extraction) resulted in a net gain of $1.5 million for the nine months ended September 30, 2025, due to a $3.5 million gain on disposal.

• The company completed major strategic shifts, exiting Cultivation and Extraction to focus on branded hemp-derived products and licensing, and changed its name to RYTHM, Inc.

• Cash and cash equivalents were $35.6 million as of September 30, 2025.

Financial highlights

• Gross profit for Q3 2025 was $1.4 million (34% margin), up from $0.7 million in the previous quarter; for the nine months, $2.1 million (32.4% margin).

• SG&A/operating expenses rose to $10.3 million in Q3 2025, up from $1.2 million in Q3 2024 and $7.5 million in the prior quarter, mainly due to sales and marketing for new product lines.

• Interest expense increased to $1.1 million in Q3 2025, reflecting higher debt levels from new convertible notes.

• Net cash used in operating activities was $20.5 million for the nine months ended September 30, 2025.

• Basic and diluted net loss per share was $5.33 for Q3 2025.

Outlook and guidance

• Management is focused on expanding distribution of hemp-derived beverages and edibles, with plans for further market expansion and increased brand visibility, especially for Señorita and RYTHM beverages.

• The company may seek additional debt or equity financing to support growth, but future access to capital is not guaranteed.

• Management anticipates continued growth in THC beverage demand, especially among younger consumers, and expects to capitalize on both licensing and direct sales revenue streams.