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Rhythm Pharmaceuticals, Inc.. (RYTM) Stock Fundamental Analysis & AI Rating 2026

RYTM Nasdaq Pharmaceutical Preparations DE CIK: 0001649904
Recently Updated • Analysis: Apr 15, 2026 • SEC Data: 2025-12-31
SELL
78% Conf
Pending
Analysis scheduled

📊 RYTM Key Takeaways

Revenue: $189.8M
Net Margin: -103.6%
Free Cash Flow: $-116.6M
Current Ratio: 4.41x
Debt/Equity: 0.73x
EPS: $-3.11
AI Rating: SELL with 78% confidence
Rhythm Pharmaceuticals, Inc.. (RYTM) receives a SELL rating with 78% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $189.8M, net profit margin of -103.6%, and return on equity (ROE) of -141.3%, Rhythm Pharmaceuticals, Inc.. demonstrates mixed fundamentals in the Healthcare sector. Below is our complete RYTM stock analysis for 2026.

Is Rhythm Pharmaceuticals, Inc.. (RYTM) a Good Investment?

Claude

Rhythm Pharmaceuticals shows impressive 45.8% revenue growth, but operates at massive scale losses (-$192M operating loss on $189.8M revenue) with only ~5.6 months of cash runway at current -$115.7M annual operating burn. While loss improvement trends are positive, near-term capital requirements and high execution risk outweigh growth momentum.

Why Buy Rhythm Pharmaceuticals, Inc.. Stock? RYTM Key Strengths

Claude
  • + Strong revenue growth of 45.8% YoY demonstrates significant market demand and commercialization progress
  • + Improving loss trajectory with YoY loss reduction of 2.7%, suggesting operational leverage potential
  • + Excellent liquidity position with 4.41x current ratio and 4.16x quick ratio providing near-term operational flexibility
  • + Moderate leverage at 0.73x debt/equity maintains balance sheet flexibility for refinancing or capital raises

RYTM Stock Risks: Rhythm Pharmaceuticals, Inc.. Investment Risks

Claude
  • ! Severe cash burn of -$115.7M annually with only $54.3M cash reserves creates critical ~5.6 month runway requiring immediate capital raise
  • ! Operating margin of -101.2% indicates company is losing more than $1 for every $1 of revenue, making current unit economics unsustainable
  • ! Path to profitability unclear; company must achieve 2x+ revenue growth or 50%+ cost reduction to breakeven at current scale
  • ! Biotech sector execution risk: profitability depends on sustained product demand, regulatory environment, and competitive landscape

Key Metrics to Watch

Claude
  • * Monthly operating cash burn trend and cash position depletion rate
  • * Gross margin expansion and revenue per dollar of operating expense efficiency
  • * Time to profitability projection based on current growth trajectory and cost structure
  • * Capital raise announcements, terms, and shareholder dilution impact

Rhythm Pharmaceuticals, Inc.. (RYTM) Financial Metrics & Key Ratios

Revenue
$189.8M
Net Income
$-196.5M
EPS (Diluted)
$-3.11
Free Cash Flow
$-116.6M
Total Assets
$480.2M
Cash Position
$54.3M

💡 AI Analyst Insight

Strong liquidity with a 4.41x current ratio provides a solid financial cushion.

RYTM Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin -101.2%
Net Margin -103.6%
ROE -141.3%
ROA -40.9%
FCF Margin -61.5%

RYTM vs Healthcare Sector: How Rhythm Pharmaceuticals, Inc.. Compares

How Rhythm Pharmaceuticals, Inc.. compares to Healthcare sector averages

Net Margin
RYTM -103.6%
vs
Sector Avg 12.0%
RYTM Sector
ROE
RYTM -141.3%
vs
Sector Avg 15.0%
RYTM Sector
Current Ratio
RYTM 4.4x
vs
Sector Avg 2.0x
RYTM Sector
Debt/Equity
RYTM 0.7x
vs
Sector Avg 0.6x
RYTM Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Rhythm Pharmaceuticals, Inc.. Stock Overvalued? RYTM Valuation Analysis 2026

Based on fundamental analysis, Rhythm Pharmaceuticals, Inc.. shows some fundamental concerns relative to the Healthcare sector in 2026.

Return on Equity
-141.3%
Sector avg: 15%
Net Profit Margin
-103.6%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.73x
Sector avg: 0.6x

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.

Rhythm Pharmaceuticals, Inc.. Balance Sheet: RYTM Debt, Cash & Liquidity

Current Ratio
4.41x
Quick Ratio
4.16x
Debt/Equity
0.73x
Debt/Assets
43.8%
Interest Coverage
-40.38x
Long-term Debt
$100.9M

RYTM Revenue & Earnings Growth: 5-Year Financial Trend

RYTM 5-year financial data: Year 2023: Revenue $77.4M, Net Income -$69.6M, EPS $-1.40. Year 2024: Revenue $130.1M, Net Income -$181.1M, EPS $-3.20. Year 2025: Revenue $189.8M, Net Income -$184.7M, EPS $-3.20.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Rhythm Pharmaceuticals, Inc..'s revenue has grown significantly by 145% over the 5-year period, indicating strong business expansion. The most recent EPS of $-3.20 indicates the company is currently unprofitable.

RYTM Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-61.5%
Free cash flow / Revenue

RYTM Quarterly Earnings & Performance

Quarterly financial performance data for Rhythm Pharmaceuticals, Inc.. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $33.3M -$32.3M $-0.73
Q2 2025 $29.1M -$32.3M $-0.55
Q1 2025 $26.0M -$49.5M $-0.81
Q3 2024 $22.5M -$32.3M $-0.73

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Rhythm Pharmaceuticals, Inc.. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$115.7M
Cash generated from operations
Capital Expenditures
$953.0K
Investment in assets
Dividends
None
No dividend program

RYTM SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Rhythm Pharmaceuticals, Inc.. (CIK: 0001649904)

📋 Recent SEC Filings

Date Form Document Action
Apr 3, 2026 4 xslF345X06/tm2611099-1_4seq1.xml View →
Apr 3, 2026 4 xslF345X06/tm2611099-2_4seq1.xml View →
Apr 3, 2026 8-K rytm-20260401.htm View →
Mar 26, 2026 8-K rytm-20260326.htm View →
Mar 20, 2026 8-K rytm-20260319.htm View →

Frequently Asked Questions about RYTM

What is the AI rating for RYTM?

Rhythm Pharmaceuticals, Inc.. (RYTM) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are RYTM's key strengths?

Claude: Strong revenue growth of 45.8% YoY demonstrates significant market demand and commercialization progress. Improving loss trajectory with YoY loss reduction of 2.7%, suggesting operational leverage potential.

What are the risks of investing in RYTM?

Claude: Severe cash burn of -$115.7M annually with only $54.3M cash reserves creates critical ~5.6 month runway requiring immediate capital raise. Operating margin of -101.2% indicates company is losing more than $1 for every $1 of revenue, making current unit economics unsustainable.

What is RYTM's revenue and growth?

Rhythm Pharmaceuticals, Inc.. reported revenue of $189.8M.

Does RYTM pay dividends?

Rhythm Pharmaceuticals, Inc.. does not currently pay dividends.

Where can I find RYTM SEC filings?

Official SEC filings for Rhythm Pharmaceuticals, Inc.. (CIK: 0001649904) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is RYTM's EPS?

Rhythm Pharmaceuticals, Inc.. has a diluted EPS of $-3.11.

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 rating reflects both perspectives for balanced insights.

Is RYTM a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Rhythm Pharmaceuticals, Inc.. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is RYTM stock overvalued or undervalued?

Valuation metrics for RYTM: ROE of -141.3% (sector avg: 15%), net margin of -103.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

Should I buy RYTM stock in 2026?

Our dual AI analysis gives Rhythm Pharmaceuticals, Inc.. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is RYTM's free cash flow?

Rhythm Pharmaceuticals, Inc..'s operating cash flow is $-115.7M, with capital expenditures of $953.0K. FCF margin is -61.5%.

How does RYTM compare to other Healthcare stocks?

Vs Healthcare sector averages: Net margin -103.6% (avg: 12%), ROE -141.3% (avg: 15%), current ratio 4.41 (avg: 2).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 15, 2026 | Data as of: 2025-12-31 | Powered by Claude AI