Revenue accelerated 45.8% YoY to $71.3M in Q2 2026 with gross margin at 87.5%, but operating margin remained deeply negative at -68.1% as SG&A of $67.4M outpaced R&D of $43.4M.
Rhythm Pharmaceuticals, Inc. (RYTM) annual income statement — 14-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 239.92M | 189.76M | 130.13M | 77.43M | 23.64M | 3.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Revenue Growth % | 53.51% | 45.83% | 68.06% | 227.56% | 649.46% | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 26.39M | 19.49M | 13.37M | 9.3M | 2.13M | 599K | 690K | 834K | 442K | 223K | 144K | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | 10.27% | 10.27% | 12.01% | 9.02% | 18.99% | - | - | - | - | - | - | - | - | - |
| Gross Profit | 213.53M | 170.26M | 116.76M | 68.13M | 21.5M | 2.56M | -690K | -834K | -442K | -223K | -144K | 0 | 0 | 0 | 0 |
| Gross Margin % | 89% | 89.73% | 89.73% | 87.99% | 90.98% | 81.01% | - | - | - | - | - | - | - | - | - |
| Gross Profit Growth % | - | 45.83% | 71.39% | 216.79% | 741.68% | 470.29% | 17.27% | -88.69% | -98.21% | -54.86% | - | - | - | - | - |
| Operating Expenses | 414.16M | 362.28M | 382.26M | 252.48M | 200.66M | 172.61M | 135.88M | 145.17M | 78.42M | 32.41M | 25.91M | 10.57M | 6.49M | 21.45M | 18.14M |
| OpEx % of Revenue | - | 190.92% | 293.76% | 326.09% | 848.9% | 5472.86% | - | - | - | - | - | - | - | - | - |
| Selling, General & Admin | 240.95M | 194.94M | 144.3M | 117.53M | 92.03M | 68.49M | 46.13M | 36.55M | 28.08M | 9.52M | 6.31M | 3.42M | 1.21M | 3.43M | 2.46M |
| SG&A % of Revenue | - | 102.73% | 110.9% | 151.8% | 389.34% | 2171.4% | - | - | - | - | - | - | - | - | - |
| Research & Development | 173.21M | 167.34M | 237.96M | 134.95M | 108.63M | 104.13M | 90.45M | 109.45M | 50.34M | 22.89M | 19.59M | 7.15M | 5.28M | 18.02M | 15.68M |
| R&D % of Revenue | - | 88.19% | 182.87% | 174.29% | 459.56% | 3301.46% | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | -690K | -834K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -200.63M | -192.02M | -265.5M | -184.36M | -179.16M | -170.06M | -136.57M | -146M | -78.42M | -32.41M | -25.91M | -10.57M | -6.49M | -21.45M | -18.14M |
| Operating Margin % | -83.62% | -101.19% | -204.04% | -238.1% | -757.92% | -5391.85% | - | - | - | - | - | - | - | - | - |
| Operating Income Growth % | - | 27.68% | -44.02% | -2.9% | -5.35% | -24.52% | 6.46% | -86.18% | -141.94% | -25.12% | -145.01% | -62.84% | 69.73% | -18.25% | - |
| EBITDA | -199.55M | -190.68M | -263.94M | -182.6M | -177.49M | -168.9M | -135.88M | -145.17M | -77.97M | -32.19M | -25.76M | -10.07M | 0 | -21.43M | -18.12M |
| EBITDA Margin % | -83.17% | -100.49% | -202.83% | -235.83% | -750.85% | -5355.14% | - | - | - | - | - | - | - | - | - |
| EBITDA Growth % | -13.44% | 27.76% | -44.55% | -2.88% | -5.08% | -24.3% | 6.39% | -86.17% | -142.24% | -24.95% | -155.74% | - | 100% | -18.25% | - |
| D&A (Non-Cash Add-back) | 1.08M | 1.34M | 1.56M | 1.76M | 1.67M | 1.16M | 690K | 834K | 442K | 223K | 144K | 500K | 6.49M | 20K | 17K |
| EBIT | -185.8M | -175.46M | -239.65M | -170.22M | -175.92M | -69.61M | -136.57M | -146M | -78.42M | -32.41M | -25.91M | -11.07M | -6.49M | -21.43M | -18.13M |
| Net Interest Income | -3.29M | -5.29M | -5.89M | 53K | -1.17M | 447K | 2.58M | 5.27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 15.19M | 15.29M | 14.71M | 13.95M | 4.03M | 447K | 2.58M | 5.27M | 4.35M | 566K | 33K | 0 | 0 | 0 | 0 |
| Interest Expense | 18.48M | 20.58M | 20.6M | 13.89M | 5.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -3.65M | -4.03M | 5.25M | 243K | -1.96M | 100.45M | 2.58M | 5.27M | 4.35M | -1.3M | 33K | -500K | 0 | 17K | 8K |
| Pretax Income | -204.28M | -196.04M | -260.26M | -184.11M | -181.12M | -69.61M | -134M | -140.73M | -74.06M | -33.71M | -25.87M | -11.07M | -6.49M | -21.43M | -18.13M |
| Pretax Margin % | -85.14% | -103.31% | -200% | -237.79% | -766.22% | -2207.1% | - | - | - | - | - | - | - | - | - |
| Income Tax | 1.07M | 497K | 346K | 564K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | -0.52% | -0.25% | -0.13% | -0.31% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -205.35M | -196.54M | -260.6M | -184.68M | -181.12M | -69.61M | -130.73M | -134.62M | -74.06M | -33.71M | -25.87M | -11.07M | -6.49M | -21.43M | -18.13M |
| Net Margin % | -85.59% | -103.57% | -200.27% | -238.52% | -766.22% | -2207.1% | - | - | - | - | - | - | - | - | - |
| Net Income Growth % | -12.17% | 24.58% | -41.11% | -1.97% | -160.18% | 46.75% | 2.89% | -81.77% | -119.72% | -30.29% | -133.65% | -70.54% | 69.7% | -18.21% | - |
| Net Income (Continuing) | -205.35M | -196.54M | -260.6M | -184.68M | -181.12M | -69.61M | -134M | -140.73M | -74.06M | -33.71M | -25.87M | -11.07M | -6.49M | -21.43M | -18.13M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.99 | -3.11 | -4.34 | -3.20 | -3.51 | -1.37 | -2.96 | -3.70 | -2.39 | -1.26 | -1.55 | -1.09 | -0.64 | -0.43 | -0.36 |
| EPS Growth % | -4.01% | 28.34% | -35.63% | 8.83% | -156.2% | 53.72% | 20% | -54.81% | -89.68% | 18.71% | -42.2% | -70.31% | -48.84% | -19.44% | - |
| EPS (Basic) | - | -3.11 | -4.34 | -3.20 | -3.51 | -1.37 | -2.96 | -3.70 | -2.39 | -1.26 | -1.55 | -1.09 | -0.64 | -0.43 | -0.36 |
| Diluted Shares Outstanding | 68.59M | 64.98M | 60.99M | 57.67M | 52.12M | 49.6M | 44.13M | 36.42M | 31M | 26.73M | 16.73M | 10.2M | 10.2M | 50.27M | 50.27M |
| Basic Shares Outstanding | 68.59M | 64.98M | 60.99M | 57.67M | 52.12M | 49.6M | 44.13M | 36.42M | 31M | 26.73M | 16.73M | 10.2M | 10.2M | 50.27M | 50.27M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying RYTM stock.
For fiscal year 2025, Rhythm Pharmaceuticals, Inc. (RYTM) reported total revenue of $189.8M.
Rhythm Pharmaceuticals, Inc. (RYTM) reported a net loss of $196.5M for the fiscal year ending 2025.
Rhythm Pharmaceuticals, Inc. (RYTM) reported an operating income of $-192.0M, resulting in an operating profit margin of -101.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Rhythm Pharmaceuticals, Inc. (RYTM) generated $170.3M in gross profit for the year, representing a gross profit margin of 89.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Cash runway and dilution risk
Metrics are mathematically derived from official filings.
Revenue Momentum Accelerates on BBS and HO
Revenue surged 45.8% YoY to $71.3M in Q2 2026, with sequential growth of 18.6%, driven by BBS and early HO uptake, per recent financial statements.
The 46.9% YoY growth in Q2 2026 marks the third consecutive quarter of accelerating revenue growth, from 36.9% in Q4 2025 to 83.8% in Q1 2026. This suggests that the BBS launch is scaling and the HO indication is adding incremental volume. However, the absolute revenue base remains small, and durability depends on payer coverage and patient persistence, which are not yet proven.
Gross Margin Stability Masks Operating Drag
Gross margin held at 87.5% in Q2 2026, down from 91.6% in Q4 2025, reflecting product mix and GTN adjustments, as reported in quarterly filings.
The slight gross margin erosion from 91.6% to 87.5% over two quarters may indicate higher gross-to-net deductions or a shift toward international sales with lower net pricing. Despite the high gross margin, the operating margin of -68.1% in Q2 2026, while improved from -102.6% in Q3 2025, remains deeply negative, underscoring that the company has not yet achieved the scale to cover its fixed commercial and R&D costs.
Operating Leverage Still Elusive
Operating loss narrowed to $48.6M in Q2 2026 from $52.7M in Q3 2025, despite revenue growth of 39% over that period, indicating limited operating leverage.
While revenue grew from $51.3M to $71.3M between Q3 2025 and Q2 2026, operating expenses (R&D + SG&A) rose from $98.4M to $110.8M, a 12.6% increase. This suggests that SG&A and R&D costs are scaling with revenue, preventing meaningful operating leverage. The company's high fixed-cost structure and ongoing investment in the HO launch may continue to suppress margin expansion until revenue reaches a critical mass.
SBC Inflates Losses and Dilution
Stock-based compensation jumped to $49.2M in Q2 2026, up from $15.9M a year earlier, representing 69% of revenue and inflating reported losses, per income statement data.
The dramatic increase in SBC, from $10.4M in Q2 2024 to $49.2M in Q2 2026, suggests heavy equity-based compensation, likely tied to the HO launch and talent retention. This non-cash expense distorts the true cash burn and EPS, as the reported net loss of $49.3M includes a significant SBC component. Investors should adjust for SBC to assess the underlying cash economics, which may be less severe than reported.
SG&A Outpaces R&D as Commercial Push Intensifies
SG&A reached $67.4M in Q2 2026, exceeding R&D of $43.4M, reflecting heavy investment in sales force and market access, as disclosed in quarterly results.
For the first time in the provided data, SG&A (67.4M) surpassed R&D (43.4M), indicating a strategic shift toward commercialization. SG&A has grown 47% YoY, while R&D grew only 2.6% YoY, suggesting that the company is prioritizing the HO launch and expanding its commercial infrastructure. This cost structure implies that the path to profitability hinges on revenue growth outpacing SG&A growth, which has not yet occurred.
Q1 2024 R&D Spike Distorts Trend
Q1 2024 R&D of $128.5M, nearly four times the typical quarterly spend, drove a one-time operating loss of $139.9M, as reported in financial statements.
The $128.5M R&D expense in Q1 2024 appears to be an outlier, likely due to a one-time milestone payment or acquisition-related charge. Excluding this quarter, R&D has remained relatively stable around $40M per quarter, indicating that the underlying R&D run-rate is consistent. This anomaly should be excluded when assessing the company's normalized operating performance, as it does not reflect ongoing operational efficiency.
What Could Invalidate the Base Case
Despite 45.8% revenue growth, the company's cash burn of $190M TTM against $54.3M cash suggests imminent dilution, while operating margin remains -101.2%, per financial statements.
The most significant challenge to the growth narrative is the sustainability of the revenue acceleration. With cash and equivalents of only $54.3M against a TTM net loss exceeding $190M, the company appears likely to require external financing, which could dilute shareholders. Additionally, the operating margin of -101.2% indicates that even with strong revenue growth, the company is far from profitability, and any slowdown in BBS or HO uptake could exacerbate the cash crunch. Investors should monitor payer conversion times and patient persistence, as these are critical to whether the revenue trajectory can outpace the fixed cost base.