RYTHM Inc. Common Stock (RYM)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach RYTHM as a speculative consumer start-up, not a steady compounder. It sells hemp-derived THC beverages and ready-to-drink cocktails, a category with novelty and regulatory risk. The profit record is weak: in fiscal 2025, the year ended 2025-12-31, revenue was $17.3M and net loss was $33.3M; in fiscal 2024, the year ended 2024-12-31, revenue was $18,000 and net loss was $41.7M; in fiscal 2023, the year ended 2023-12-31, revenue was $15.1M and net loss was $18.6M. The Lynch screen finds no category because it lost money in each of the last four years. The latest filed quarter, fiscal Q2 2026 ended 2026-06-30, showed revenue of $23.0M and net income of $1.2M, or diluted EPS of $0.09. That is an improvement from fiscal Q2 2025 ended 2025-06-30, when revenue was $2.0M and net loss was $7.4M, but one quarter does not prove durability. At the close on 2026-10-13, the price was $18.73; FairStock calculations show a P/B of 1.04, a negative P/E of -1.77, a 3.2% FCF yield on $1.3M trailing free cash flow, and a Piotroski F-Score of 7/9. Against that, FairStock's Altman Z-Score is -3.18 and debt/equity is 2.06. Beta is 9.43, and the 52-week range is $14.00-$53.65. With one employee, no dividend, and no consistent profits, I see no durable moat. The price may be near book value, but without a multi-year earnings record there is no Graham margin of safety.

In plain English: RYTHM makes hemp-derived drinks and cocktails. The business has grown sales quickly from almost nothing and made a small profit in its latest quarter, but it has lost money over the past few years and has a lot of debt. At $18.73, the price looks close to the company's accounting value, but without steady profits it is hard to call it cheap or safe.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K/A (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer