Rhythm Pharmaceuticals (RYTM) Q1 2026 earnings summary

Executive summary

• Achieved $60.1 million in Q1 2026 product revenue, up 59% year-over-year and 5% sequentially, driven by IMCIVREE sales growth in both U.S. and international markets, including a strong U.S. launch for acquired hypothalamic obesity (HO) with over 150 patient start forms.

• FDA and European Commission approved IMCIVREE for acquired HO; launches in Europe expected in 2027, and Japanese regulatory review ongoing with anticipated launch by end of 2026.

• Net loss for Q1 2026 was $56.7 million, or $(0.83) per share, reflecting increased R&D and SG&A expenses to support commercial and clinical expansion.

• Cash, cash equivalents, and short-term investments totaled $340.6 million as of March 31, 2026, expected to fund operations for at least 24 months.

• Board changes included the appointment of Kim Popovits and resignation of Ed Mathers.

Financial highlights

• Q1 2026 product revenue was $60.1 million, up 59% year-over-year and 5% sequentially, with 61% from the U.S. and 39% international.

• U.S. revenue was $36.9 million, down 5% sequentially; international revenue was $23.2 million, up 27% sequentially, driven by growth in Germany, France, Saudi Arabia, and Greece.

• Cost of goods sold was $7.2 million (about 12% of product revenue); gross to net for U.S. sales was 84%.

• R&D expenses were $41.7 million, up from $37 million year-over-year; SG&A expenses rose to $63.6 million from $39.1 million.

• Non-GAAP operating expenses for Q1 were $82.2 million.

Outlook and guidance

• Non-GAAP operating expenses for 2026 expected to be $385–415 million, with R&D at $197–213 million and SG&A at $188–202 million.

• Cash runway expected to fund operations for at least 24 months.

• Anticipate steady growth in IMCIVREE prescriptions for acquired HO throughout 2026, with payer policy establishment expected in 3–9 months post-approval.

• Key milestones include regulatory decisions in Japan and Europe, clinical trial readouts for Prader-Willi syndrome and RM-718, and initiation of pivotal trials for pipeline assets.