RYTHM, Inc. Reports Fourth Quarter and Full Year 2025 Results

ROLLING MEADOWS, Ill., March 03, 2026 (GLOBE NEWSWIRE) -- RYTHM, Inc. (Nasdaq: RYM) (“RYTHM” or the “Company”), which delivers well-being to consumers through its portfolio of iconic brands and hemp-derived THC products including Señorita THC Margaritas, incredibles, and RYTHM Beverages, today announced financial results for the fourth quarter and full year ended December 31, 2025.

Highlights for the fourth quarter ended December 31, 2025:

• Revenue from continuing operations of $10.7 million, up 164% from $4.0 million in the prior quarter.
• Gross Profit from continuing operations of $8.0 million or 75% of revenue, up from $1.4 million or 34% of revenue in the prior quarter.  
• Operating loss from continuing operations of $12.9 million, primarily driven by an $8.5 million non-cash impairment charge.
• Cash balance of $32.2 million.
• At year end, the Company had approximately 2.1 million shares outstanding, as well as warrants convertible into 10.9 million shares, and 3.0 million shares issuable upon conversion of convertible notes (excluding interest).
  
  

Highlights for the year ended December 31, 2025:  

• Acquired portfolio of brand intellectual property including RYTHM, Dogwalkers, incredibles, Beboe, and others.
• Generated $7.8 million in licensing fees by licensing brands to cannabis operator Green Thumb Industries.
• Established a beverage retail footprint of over 6,000 locations across 18 states.
• Secured placement of Señorita THC Margaritas in over 800 Circle K stores as part of the largest U.S. convenience store rollout of hemp-derived THC beverages to date.
• Launched Señorita THC Margaritas and RYTHM Beverages at Chicago’s United Center through a multi-year partnership, making the brands the first THC beverages available at a major U.S. arena.
  
  

Management Commentary

“2025 was a transformational year for RYTHM, Inc., marked by a new name, a new ticker, and a new strategic direction as we expanded our role in the THC category, with RYTHM, Dogwalkers, and Señorita leading the way,” said Chairman and Interim CEO Ben Kovler.

“We exited the year with fourth quarter licensing revenue of $7.0 million, which was a key contributor to the Company’s total gross margins of approximately 75% for the quarter. The licensing revenue from our most recent brand acquisition began November 1, resulting in two months of contribution reflected in the fourth quarter.

“THC has faced persistent structural and regulatory headwinds, but consumer demand continues to rise. We believe consumers deserve access to safe, high-quality THC products where they already live, shop, and gather, and we have worked relentlessly to make that a reality. In a historic first, we launched a partnership with Chicago’s United Center, making Señorita and RYTHM the first THC beverages to be offered at a major U.S. arena. Bringing THC to the nation’s largest arena is a powerful example of real progress with a world-class partner who recognizes evolving consumer demand.

“Even as federal policy continues to lag consumer reality, we remain focused on providing consumers with iconic brands they trust. Our brands are performing extremely well across diverse U.S. markets at a time when THC consumption continues to grow and Americans just say no to alcohol. As the hemp and cannabis market continues to evolve globally, we believe owning leading U.S. brands provides long-term strategic value.”

About Us

RYTHM, Inc.’s portfolio of hemp-derived THC products delivers well-being to millions of Americans every year, and its brands are among the most recognized and trusted names in the cannabis and hemp industries, including RYTHM, incredibles, Dogwalkers, Beboe, Señorita THC Margaritas, &Shine, Doctor Solomon’s and Good Green. RYTHM, Inc. products are rooted in quality, safety and innovation and are available in thousands of physical locations and online channels. The Company is deeply committed to shaping THC experiences that enhance the daily lives of American consumers.

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RYTHM, Inc.
Highlights from Unaudited Condensed Consolidated Statements of Operations
For the Three and Twelve Months Ended December 31, 2025 and December 31, 2024
(Amounts Expressed in Thousands of United States Dollars, Except for Share Amounts)

		Twelve months ended December 31,							Three months ended December 31,
			2025			2024				2025			2024
									(Unaudited)			(Unaudited)
Revenue		$	17,283		$	18			$	10,660		$	18
Cost of goods sold			7,093			89				2,617			89
Gross profit (loss)			10,190			(71	)			8,043			(71	)
Operating expenses			42,526			5,002				20,992			3,387
Operating loss from continuing operations			(32,336	)		(5,073	)			(12,949	)		(3,458	)
Other expense, net			(2,404	)		(18,158	)			(679	)		(2,490	)
Loss from continuing operations before income taxes			(34,740	)		(23,231	)			(13,628	)		(5,948	)
Income tax provision			—			2				—			—
Loss from continuing operations, net of income taxes			(34,740	)		(23,229	)			(13,628	)		(5,948	)
Income (loss) from discontinued operations, net of income taxes			1,483			(18,517	)			22			(18,413	)
Net loss		$	(33,257	)	$	(41,746	)		$	(13,606	)	$	(24,361	)
Basic and diluted (loss) income per share
Continuing operations		$	(17.42	)	$	(22.77	)		$	(6.63	)	$	(3.74	)
Discontinued operations			0.74			(18.15	)			0.01			(11.58	)
Net loss per share attributable to Common Stockholders – basic and diluted (1)		$	(16.68	)	$	(40.92	)		$	(6.62	)	$	(15.32	)
Weighted average common shares outstanding - basic and diluted (1)			1,993,947			1,020,185				2,054,242			1,589,453

(1) Periods presented have been adjusted to retroactively reflect the 1-for-15 reverse stock split on October 8, 2024. Additional information regarding reverse stock splits may be found in Note 1 – Overview, Basis of Presentation, and Significant Accounting Policies, included in the notes to the condensed consolidated financial statements.

RYTHM, Inc.
Highlights from Unaudited Condensed Consolidated Balance Sheet
(Amounts Expressed in Thousands of United States Dollars)

		As of December 31,
			2025
Cash and cash equivalents		$	32,218
Other current assets			15,332
Goodwill			9,713
Intangible assets and related party prepaid license rights			49,400
Non-current assets associated with discontinued operations			14
Total assets		$	106,677
Accounts payable and accrued expenses		$	10,257
Related party debt, current			27,000
Long-term debt, current			3,621
Current liabilities associated with discontinued operations			2,082
Warrant liabilities			697
Related party debt, net of current			45,000
Long-term debt, net of current			5,000
Total equity			13,020
Total liabilities and equity		$	106,677

RYTHM, Inc.
Highlights from Unaudited Condensed Consolidated Statement of Cash Flows
For the Year Ended December 31, 2025 and 2024
(Amounts Expressed in Thousands of United States Dollars)

		Year Ended December 31,
			2025			2024
Cash flows (used in) provided by
Operating activities		$	(23,537	)	$	(11,583	)
Investing activities			(55,075	)		(54	)
Financing activities			79,660			42,373
Net increase (decrease) in cash and cash equivalents		$	1,048		$	30,736