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

Core Insights - RYTHM, Inc. has reported significant growth in its financial performance for the fourth quarter and full year ended December 31, 2025, highlighting a transformational year with a new name and strategic direction in the THC category [4][5][6]. Financial Performance - The company achieved fourth quarter licensing revenue of $7.0 million, contributing to total gross margins of approximately 75% for the quarter [5][8]. - Revenue from continuing operations for the year was $17.3 million, a 164% increase from $4.0 million in the prior quarter [8]. - Gross profit from continuing operations was $10.2 million, representing 75% of revenue, up from $1.4 million or 34% of revenue in the prior quarter [8]. - The operating loss from continuing operations was $12.9 million, primarily due to an $8.5 million non-cash impairment charge [8]. Market Position and Strategy - RYTHM, Inc. has established a beverage retail footprint of over 6,000 locations across 18 states, securing placement of Señorita THC Margaritas in over 800 Circle K stores [8]. - The company launched a partnership with Chicago's United Center, making its THC beverages the first to be offered at a major U.S. arena, reflecting a strategic move to meet evolving consumer demand [6][8]. - The company believes that owning leading U.S. brands in the hemp and cannabis market provides long-term strategic value as consumer demand for THC products continues to rise [6][7]. Balance Sheet and Cash Flow - As of December 31, 2025, RYTHM, Inc. had a cash balance of $32.2 million and total assets of $106.7 million [13]. - The company reported a net loss of $33.3 million for the year, with a basic and diluted loss per share of $16.68 [12]. - Cash flows from operating activities were negative at $23.5 million, while financing activities provided $79.7 million [14][15].