Revenue scaled to $13.3M in 2026Q1, yet the company continues to struggle with a -30.4% operating margin, indicating that legacy overhead remains a persistent drag on profitability.
| Sales/Revenue | 30.03M | 17.28M | 9.68M | 15.14M | 58.26M | 59.86M | 12.09M | 4.09M | 1.77M |
| Revenue Growth % | 549.18% | 78.54% | -36.07% | -74.01% | -2.67% | 395.23% | 195.67% | 131.09% | - |
| Cost of Goods Sold | 18.8M | 13.25M | 9.02M | 11.12M | 90.05M | 54.63M | 11.52M | 4.33M | 1.55M |
| COGS % of Revenue | - | 76.66% | 93.13% | 73.46% | 154.58% | 91.26% | 95.28% | 105.99% | 87.45% |
| Gross Profit | 11.23M | 4.03M | 665K | 4.02M | -31.8M | 5.23M | 570K | -245K | 222K |
| Gross Margin % | 37.41% | 23.34% | 6.87% | 26.54% | -54.58% | 8.74% | 4.72% | -5.99% | 12.55% |
| Gross Profit Growth % | - | 506.62% | -83.45% | 112.64% | -707.47% | 818.25% | 332.65% | -210.36% | - |
| Operating Expenses | 35.43M | 27.9M | 10.88M | 17.04M | 161.53M | 40.31M | 13.19M | 2.85M | 1.24M |
| OpEx % of Revenue | - | 161.42% | 112.4% | 112.55% | 277.26% | 67.34% | 109.09% | 69.62% | 69.98% |
| Selling, General & Admin | 35.43M | 34.05M | 12.3M | 16.06M | 82.69M | 34.97M | 9.83M | 2.74M | 1.22M |
| SG&A % of Revenue | - | 197.04% | 127.12% | 106.04% | 141.94% | 58.42% | 81.34% | 66.95% | 69.02% |
| Research & Development | 0 | 0 | 743K | 2.29M | 8.18M | 3.92M | 3.35M | 109K | 17K |
| R&D % of Revenue | - | - | 7.68% | 15.16% | 14.04% | 6.56% | 27.75% | 2.67% | 0.96% |
| Other Operating Expenses | 0 | -6.16M | -2.17M | -1.31M | 70.66M | 1.41M | 0 | 0 | 2K |
| Operating Income | -24.2M | -23.86M | -10.21M | -13.02M | -193.33M | -35.07M | -12.62M | -3.09M | -1.02M |
| Operating Margin % | -80.58% | -138.08% | -105.53% | -86.01% | -331.84% | -58.59% | -104.38% | -75.61% | -57.43% |
| Operating Income Growth % | - | -133.63% | 21.57% | 93.26% | -451.21% | -178% | -308.15% | -204.23% | - |
| EBITDA | -14.94M | -17.71M | -8.79M | -11.13M | -190.28M | -33.76M | -12.21M | -3.08M | 0 |
| EBITDA Margin % | -49.73% | -102.46% | -90.85% | -73.49% | -326.61% | -56.4% | -101.01% | -75.37% | - |
| EBITDA Growth % | 1.71% | -101.38% | 20.97% | 94.15% | -463.57% | -176.54% | -296.27% | - | - |
| D&A (Non-Cash Add-back) | 9.26M | 6.16M | 1.42M | 1.9M | 3.05M | 1.31M | 407K | 10K | 1.02M |
| EBIT | -32.19M | -31.54M | -28.1M | -11.28M | -122.67M | -33.66M | -12.62M | -3.09M | -1.02M |
| Net Interest Income | -4.95M | -3.2M | -256K | -2.15M | -8.75M | 74K | -481K | 49K | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 74K | 0 | 49K | 0 |
| Interest Expense | 4.95M | 3.2M | 256K | 2.15M | 8.75M | 0 | 481K | 0 | 0 |
| Other Income/Expense | -12.94M | -10.88M | -18.14M | -403K | 5.04M | 2.77M | -9.02M | 49K | 2K |
| Pretax Income | -37.14M | -34.74M | -28.35M | -13.43M | -188.28M | -32.3M | -21.64M | -3.04M | -1.01M |
| Pretax Margin % | -123.66% | -201.01% | -292.91% | -88.67% | -323.18% | -53.96% | -179.03% | -74.41% | -57.32% |
| Income Tax | -25.59M | 0 | -2K | 2K | 23K | 25K | 0 | 0 | 0 |
| Effective Tax Rate % | 68.92% | 0% | 0.01% | -0.01% | -0.01% | -0.08% | 0% | 0% | 0% |
| Net Income | -11.68M | -33.26M | -41.75M | -18.65M | -188.17M | -32.47M | -21.62M | -3.04M | -1.01M |
| Net Margin % | -38.89% | -192.43% | -431.26% | -123.16% | -322.99% | -54.24% | -178.84% | -74.41% | -57.32% |
| Net Income Growth % | 77.18% | 20.33% | -123.85% | 90.09% | -479.62% | -50.18% | -610.62% | -200% | - |
| Net Income (Continuing) | -11.54M | -34.74M | -28.35M | -13.43M | -188.31M | -32.33M | -21.64M | -3.04M | -1.01M |
| Discontinued Operations | -136K | 1.48M | -13.39M | -5.22M | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 230K | 230K | 231K | 365K | 225K | 0 | 0 |
| EPS (Diluted) | -222.59 | -16.68 | -40.92 | -187.63 | -13532.00 | -4394.01 | -3195.39 | -449.67 | -149.88 |
| EPS Growth % | 275.67% | 59.24% | 78.19% | 98.61% | -207.96% | -37.51% | -610.61% | -200.02% | - |
| EPS (Basic) | - | -16.68 | -40.92 | -187.63 | -13532.00 | -4394.01 | -3195.39 | -449.67 | -149.88 |
| Diluted Shares Outstanding | 52.47K | 1.99M | 1.02M | 99.39K | 13.9K | 7.4K | 6.76K | 6.76K | 6.76K |
| Basic Shares Outstanding | 2.15M | 1.99M | 1.02M | 99.39K | 13.9K | 7.4K | 6.76K | 6.76K | 6.76K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Regulatory Farm Bill Volatility
According to recent quarterly filings, RYM achieved a significant revenue expansion to $13.3M in 2026Q1, representing a 23.7% sequential increase as the company aggressively transitions its business model from legacy industrial hardware toward the high-growth, hemp-derived beverage market under the Señorita brand name.
The rapid revenue acceleration appears to be a direct result of the company's pivot into consumer-facing CPG products, which benefit from broader retail distribution channels. Investors should monitor whether this growth trajectory is sustainable or if it relies on heavy promotional discounting to secure initial shelf space in a competitive beverage landscape.
As reported in financial statements, RYM's gross margin reached 52.3% in 2026Q1, yet this figure remains highly volatile compared to historical periods, suggesting that the company's underlying cost structure is still heavily influenced by the transition away from its legacy agricultural machinery manufacturing operations.
The inconsistency in gross margins, which fluctuated from negative territory in early 2025 to over 50% recently, indicates a lack of stable pricing power or predictable input costs. This volatility suggests that the company may be struggling to optimize its supply chain for the new beverage-focused business model.
Based on the provided income statement data, RYM continues to struggle with significant operating inefficiencies, as evidenced by the -30.4% operating margin in 2026Q1, which highlights the difficulty of scaling a new consumer brand while burdened by legacy corporate overhead and high marketing expenses.
The persistent gap between gross profit and operating income suggests that SG&A expenses are not scaling efficiently with revenue growth. This indicates that the company is currently prioritizing market share acquisition over operational profitability, which may necessitate further capital raises if the burn rate does not moderate.
Analysis of the 2026Q1 income statement reveals a net income of $19.9M, a figure that appears disconnected from the underlying operating loss of $4.0M, suggesting that non-operating items or accounting adjustments are significantly inflating the bottom line and obscuring the company's true cash-generating capability.
Investors should exercise caution regarding the reported net income, as it likely reflects one-time gains or non-cash adjustments rather than sustainable operational performance. The reliance on such items warrants further investigation into the quality of earnings, especially given the company's history of strategic pivots and operational volatility.
While the company's pivot to hemp-derived beverages has driven recent growth, the business model remains highly vulnerable to legislative shifts, as the entire revenue base relies on a specific interpretation of the 2018 Farm Bill that could be invalidated by future state or federal regulatory actions.
Short-term growth may be masking the existential risk posed by potential regulatory crackdowns on hemp-derived THC products. If regulators close the current loophole, the company's primary growth engine could be dismantled, leaving shareholders with the remnants of a legacy business that has historically struggled to achieve profitability.
Quick answers to the most common questions about buying RYM stock.
For fiscal year 2025, RYTHM, Inc. (RYM) reported total revenue of $17.3M. This represents a 877.0% increase compared to $1.8M in 2018.
RYTHM, Inc. (RYM) reported a net loss of $33.3M for the fiscal year ending 2025.
RYTHM, Inc. (RYM) reported an operating income of $-23.9M, resulting in an operating profit margin of -138.1%. This margin reflects the operational efficiency of the business before interest and taxes.
RYTHM, Inc. (RYM) generated $4.0M in gross profit for the year, representing a gross profit margin of 23.3%. This demonstrates the company's core pricing power and production efficiency.