Cash generation remains weak, evidenced by a 0.05 operating cash flow to net income ratio in 2026Q1, which suggests that reported earnings are not translating into meaningful liquidity.
| Cash from Operations | -15.77M | -23.54M | -11.58M | -30.97M | -72.02M | -30.15M | -14.78M | -3.44M | 49K |
| Operating CF Margin % | - | -136.19% | -119.66% | -204.56% | -123.62% | -50.37% | -122.3% | -84.17% | 2.77% |
| Operating CF Growth % | -476.57% | -103.2% | 62.6% | 56.99% | -138.88% | -103.96% | -329.58% | -7122.45% | - |
| Net Income | -11.68M | -33.26M | -41.75M | -18.65M | -188.17M | -32.47M | -21.62M | -3.04M | -1.01M |
| Depreciation & Amortization | 9.26M | 6.16M | 1.42M | 1.9M | 3.05M | 1.31M | 407K | 10K | 0 |
| Stock-Based Compensation | 2.14M | 2.16M | 1.17M | 2.66M | 4.32M | 5.55M | 1.92M | 109K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 23K | 25K | 0 | 0 | 0 |
| Other Non-Cash Items | -11.77M | 8.46M | 20.55M | -30.62M | 130.9M | 996K | 9.14M | 0 | 11K |
| Working Capital Changes | -2.86M | -7.06M | 7.03M | 13.73M | -22.14M | -5.57M | -4.63M | -518K | 1.05M |
| Change in Receivables | -7.01M | -8.77M | 646K | 1.35M | 1.54M | -3.39M | -3.71M | 0 | 34K |
| Change in Inventory | -2.68M | -2.89M | 8.34M | 17.16M | -30.25M | -6.57M | -2.94M | -369K | -845K |
| Change in Payables | -5K | 303K | -4.56M | 108K | 11.24M | 1.13M | -527K | -833K | 841K |
| Cash from Investing | -55.08M | -55.08M | -54K | 25.17M | -2.32M | -104.74M | -1.23M | -184K | 0 |
| Capital Expenditures | 0 | 0 | -4K | -59K | -8.13M | -2.32M | -136K | -41K | 0 |
| CapEx % of Revenue | 0% | - | 0.04% | 0.39% | 13.96% | 3.88% | 1.13% | 1% | - |
| Acquisitions | 0 | 0 | 0 | 0 | -3.52M | -35.91M | -1.09M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -60.15M | -55.08M | -50K | 14.78M | -24.99M | -22.04M | 0 | -143K | 0 |
| Cash from Financing | 79.66M | 79.66M | 42.37M | -4.23M | 72.78M | 138.79M | 23.91M | 3.75M | 0 |
| Debt Issued (Net) | 80M | 80M | 14.08M | -7.35M | 23.73M | -148K | 13.84M | -133K | 0 |
| Equity Issued (Net) | 0 | 0 | 28.26M | 1.54M | 49.03M | 136.8M | 10.04M | 3.88M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -337K | -337K | 36K | 1.58M | 20K | 2.14M | 40K | 0 | 0 |
| Net Change in Cash | 8.81M | 1.05M | 30.74M | -10.03M | -1.56M | 3.9M | 7.91M | 121K | 49K |
| Free Cash Flow | -15.77M | -23.54M | -11.59M | -31.03M | -80.16M | -32.47M | -14.92M | -3.63M | 49K |
| FCF Margin % | -52.53% | -136.19% | -119.7% | -204.95% | -137.58% | -54.25% | -123.42% | -88.67% | 2.77% |
| FCF Growth % | -2.98% | -103.13% | 62.66% | 61.28% | -146.84% | -117.68% | -311.53% | -7497.96% | - |
| FCF per Share | -300.61 | -11.80 | -11.36 | -312.23 | -5764.89 | -4387.06 | -2205.17 | -535.85 | 7.24 |
| FCF Conversion (FCF/Net Income) | 1.35x | 0.71x | 0.28x | 1.66x | 0.38x | 0.93x | 0.68x | 1.13x | -0.05x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11.09M | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Regulatory Farm Bill Volatility
According to the provided cash flow data, RYM's operating cash flow to net income ratio of 0.05 in 2026Q1 highlights a significant divergence between reported accounting profits and actual cash generation, suggesting that recent earnings figures may be heavily influenced by non-cash items or accounting adjustments.
The stark gap between the $19.9M net income and the meager $1.0M in operating cash flow warrants deep skepticism regarding the quality of earnings. Investors should monitor whether this disconnect stems from non-recurring gains or aggressive revenue recognition practices that fail to translate into tangible liquidity.
As reported in financial statements, RYM's free cash flow trajectory has been consistently negative across most of the last ten quarters, with the exception of a minor $1.0M positive print in 2026Q1, indicating that the business model is not yet self-funding its operational pivot.
The inability to sustain positive free cash flow suggests that the company remains reliant on external financing to bridge the gap between its high marketing-driven burn and its current revenue scale. This pattern implies that the transition to a beverage-focused model has yet to achieve the necessary operating leverage to reach cash flow break-even.
Based on historical cash flow filings, RYM has experienced erratic working capital swings, including a $7.3M inflow in 2023Q4 followed by subsequent periods of cash outflows, which suggests that inventory management and collection cycles are highly unstable during this strategic transition to the Señorita brand.
These fluctuations in working capital appear to be a primary driver of the company's inconsistent cash flow performance. The reliance on these swings to manage liquidity may indicate underlying inefficiencies in the supply chain as the company attempts to scale its beverage distribution footprint.
Analysis of the cash flow statement reveals that stock-based compensation remains a persistent expense, averaging roughly $500K per quarter, which effectively dilutes shareholders while the company continues to burn cash to support its high-cost entry into the competitive hemp-derived beverage market.
The cash flow statement obscures the true economic cost of the pivot by masking the impact of ongoing stock-based compensation and potential capitalized costs related to the legacy hardware wind-down. Investors should be wary that these non-cash expenses do not reflect the actual capital required to maintain the company's current growth trajectory.
Quick answers to the most common questions about buying RYM stock.
RYTHM, Inc. (RYM) generated $-23.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
RYTHM, Inc. (RYM) reported negative free cash flow of $23.5M in 2025, indicating capital requirements exceeded cash from operations.
RYTHM, Inc. (RYM) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.