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RYTHM (RYM) investor relations material
RYTHM Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Revenue for Q2 2025 was $2.0 million, up from zero in Q2 2024, driven by acquisitions of Señorita and MC Brands and a shift to hemp-derived THC products and royalties.
Gross profit for Q2 2025 was $682,000 (33.4% margin), with a net loss of $7.4 million, reflecting higher SG&A and transition costs.
Discontinued operations include the sale of the Cultivation Business and wind-down of the Extraction Business, resulting in a $1.5 million net gain from Extraction and a $514,000 loss from Cultivation in Q2 2025.
Cash and cash equivalents at June 30, 2025 were $41.0 million, supported by $30 million in new convertible notes issued in May 2025.
The company operates as a single segment focused on hemp-derived products and related royalties after divesting legacy businesses.
Financial highlights
Q2 2025 revenue: $2.0 million (Q2 2024: $0); six months ended June 30, 2025: $2.6 million (2024: $0).
Q2 2025 net loss: $7.4 million (Q2 2024: $3.0 million loss); six months net loss: $9.0 million (2024: $1.3 million income).
SG&A expenses rose to $7.5 million in Q2 2025 from $677,000 in Q2 2024, reflecting investment in sales, marketing, and transition.
Gross margin for Q2 2025 was 33.4%; for the six months ended June 30, 2025, gross margin was 29.9%.
No income tax expense or benefit was recorded for Q2 or the six months ended June 30, 2025.
Outlook and guidance
Management is focused on expanding hemp-derived beverage and edible brands, with distribution in 11 U.S. states and Canada and plans for further growth.
The company may seek additional debt or equity financing to support growth, but future access to capital is not assured.
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