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RYTHM (RYM) investor relations material
RYTHM Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.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.
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