RYTHM (RYM) Q4 2025 earnings summary

Executive summary

• Revenue for Q4 2025 reached $10.7 million, a 164% increase from the prior quarter, with gross profit at $8.0 million (75% margin).

• Full-year 2025 revenue was $17.3 million, with significant brand acquisitions and expansion into over 6,000 retail locations across 18 states.

• Licensing revenue in Q4 was $7.0 million, driven by recent brand acquisitions, contributing to high gross margins.

• Señorita THC Margaritas launched in over 800 Circle K stores and at Chicago's United Center, marking a major U.S. arena debut for THC beverages.

Financial highlights

• Q4 2025 gross profit was $8.0 million (75% of revenue), up from $1.4 million (34%) in the prior quarter.

• Operating loss for Q4 was $12.9 million, primarily due to an $8.5 million non-cash impairment charge.

• Full-year operating loss from continuing operations was $32.3 million; net loss for the year was $33.3 million.

• Cash balance at year-end was $32.2 million.

Outlook and guidance

• Management expects continued momentum for hemp-derived beverages despite regulatory headwinds, emphasizing long-term strategic value in owning leading U.S. brands.

• Forward-looking statements highlight risks related to federal prohibition on hemp-derived THC products, with potential impact after November 2026.