📊 RYM Key Takeaways
Is RYTHM, Inc. (RYM) a Good Investment?
Despite exceptional revenue growth and reported net income, fundamental deterioration is severe: operating losses of -4.0M with negative interest coverage indicate the business cannot sustain its debt load from core operations. Liquidity position is precarious (0.51x current ratio), and the 149.9% net margin appears driven by non-operating items rather than sustainable operational performance.
RYTHM, Inc. Key Strengths (RYM)
- Strong gross margin of 78.3% demonstrates efficient cost of goods sold management
- Substantial cash position of 33.3M provides near-term financial buffer
- Positive free cash flow of 1.0M shows minimal capital requirements
RYM Stock Risks: RYTHM, Inc. Investment Risks
- Critical liquidity crisis: current ratio of 0.51x and quick ratio of 0.48x indicate inability to cover short-term obligations
- Negative operating income (-4.0M) with -1.0x interest coverage means the company cannot service 80.6M debt from operations
- Net income of 19.9M appears disconnected from operating performance, suggesting one-time non-operating gains that are not repeatable
- High leverage (2.20x debt-to-equity) combined with operational losses creates financial distress risk
- Extreme 95,916% YoY revenue growth is unsustainable and suggests volatility or merger-related accounting distortions
Key Metrics to Watch
- Operating cash flow and whether it can scale to cover interest expenses
- Current and quick ratios—any further deterioration signals default risk
- Operating margin path to profitability—core business must turn positive
- Composition of net income—determine if 19.9M gain is repeatable or one-time
RYTHM, Inc. (RYM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
RYM Profit Margin, ROE & Profitability Analysis
RYM vs Services Sector: How RYTHM, Inc. Compares
How RYTHM, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is RYTHM, Inc. Stock Overvalued? RYM Valuation Analysis 2026
Based on fundamental analysis, RYTHM, Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
RYTHM, Inc. Balance Sheet: RYM Debt, Cash & Liquidity
RYM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: RYTHM, Inc.'s revenue has declined by 71% over the 5-year period, indicating business contraction. The most recent EPS of $-40.92 indicates the company is currently unprofitable.
RYM Revenue Growth, EPS Growth & YoY Performance
RYM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $4.0M | -$1.6M | $-5.33 |
| Q2 2025 | $2.0M | $1.3M | $1.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
RYTHM, Inc. Dividends, Buybacks & Capital Allocation
RYM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for RYTHM, Inc. (CIK: 0001800637)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RYM
What is the AI rating for RYM?
RYTHM, Inc. (RYM) has an AI grade of C with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are RYM's key strengths?
Claude: Strong gross margin of 78.3% demonstrates efficient cost of goods sold management. Substantial cash position of 33.3M provides near-term financial buffer.
What are the risks of investing in RYM?
Claude: Critical liquidity crisis: current ratio of 0.51x and quick ratio of 0.48x indicate inability to cover short-term obligations. Negative operating income (-4.0M) with -1.0x interest coverage means the company cannot service 80.6M debt from operations.
What is RYM's revenue and growth?
RYTHM, Inc. reported revenue of $13.3M.
Does RYM pay dividends?
RYTHM, Inc. pays dividends, with $0.1M distributed to shareholders in the trailing twelve months.
Where can I find RYM SEC filings?
Official SEC filings for RYTHM, Inc. (CIK: 0001800637) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RYM's EPS?
RYTHM, Inc. has a diluted EPS of $1.33.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is RYM's fundamental grade?
Based on our AI fundamental analysis in May 2026, RYTHM, Inc. has a C grade with 85% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is RYM stock overvalued or undervalued?
Valuation metrics for RYM: ROE of 54.5% (sector avg: 16%), net margin of 149.9% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
What is RYM's AI grade for 2026?
Our dual AI analysis gives RYTHM, Inc. a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is RYM's free cash flow?
RYTHM, Inc.'s operating cash flow is $1.0M, with capital expenditures of $4.0K. FCF margin is 7.8%.
How does RYM compare to other Services stocks?
Vs Services sector averages: Net margin 149.9% (avg: 10%), ROE 54.5% (avg: 16%), current ratio 0.51 (avg: 1.5).
Is RYTHM, Inc. carrying too much debt?
RYM has a debt-to-equity ratio of 2.20x, which is above the Services sector average of 0.7x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.
Why is RYM's return on equity (ROE) so high?
RYTHM, Inc. has a return on equity of 54.5%, significantly above the Services sector average of 16%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 149.9% net margin.