While the company maintains an impressive 88.1% gross margin as of 2026Q1, the lack of operating leverage is evident in the -87.1% operating margin, which continues to be pressured by high commercialization costs.
| 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 | 217.16M | 189.76M | 130.13M | 77.43M | 23.64M | 3.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Revenue Growth % | 58.67% | 45.83% | 68.06% | 227.56% | 649.46% | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 23M | 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 | 194.16M | 170.26M | 116.76M | 68.13M | 21.5M | 2.56M | -690K | -834K | -442K | -223K | -144K | 0 | 0 | 0 | 0 |
| Gross Margin % | 89.41% | 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 | 391.54M | 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 | 219.44M | 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 | 172.09M | 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 | -197.37M | -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 % | -90.89% | -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 | -196.42M | -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 % | -90.45% | -100.49% | -202.83% | -235.83% | -750.85% | -5355.14% | - | - | - | - | - | - | - | - | - |
| EBITDA Growth % | -14.81% | 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) | 955K | 1.34M | 1.56M | 1.76M | 1.67M | 1.16M | 690K | 834K | 442K | 223K | 144K | 500K | 6.49M | 20K | 17K |
| EBIT | -131.45M | -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 | -3.52M | -5.29M | -5.89M | 53K | -1.17M | 447K | 2.58M | 5.27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 15.21M | 15.29M | 14.71M | 13.95M | 4.03M | 447K | 2.58M | 5.27M | 4.35M | 566K | 33K | 0 | 0 | 0 | 0 |
| Interest Expense | 10.59M | 20.58M | 20.6M | 13.89M | 5.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -4.34M | -4.03M | 5.25M | 243K | -1.96M | 100.45M | 2.58M | 5.27M | 4.35M | -1.3M | 33K | -500K | 0 | 17K | 8K |
| Pretax Income | -201.72M | -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 % | -92.89% | -103.31% | -200% | -237.79% | -766.22% | -2207.1% | - | - | - | - | - | - | - | - | - |
| Income Tax | 962K | 497K | 346K | 564K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | -0.48% | -0.25% | -0.13% | -0.31% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -203.78M | -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 % | -93.84% | -103.57% | -200.27% | -238.52% | -766.22% | -2207.1% | - | - | - | - | - | - | - | - | - |
| Net Income Growth % | -20.8% | 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) | -203.78M | -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) | -3.00 | -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 % | -13% | 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 | 67.97M | 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 | 67.97M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Persistent operating cash burn
As reported in recent financial statements, RYTM achieved a robust 45.83% year-over-year revenue growth, primarily driven by the commercial expansion of IMCIVREE for Bardet-Biedl Syndrome, which suggests that the company is successfully penetrating its targeted rare disease patient population despite the inherent limitations of orphan drug markets.
The consistent quarterly revenue progression indicates that the company's diagnostic-led commercial strategy is gaining traction among pediatric endocrinologists. However, investors should monitor whether this growth trajectory can maintain its current momentum as the company exhausts the initial pool of early-adopter patients and faces more rigorous payer scrutiny.
Based on the provided income statement data, RYTM maintains an impressive gross margin profile of approximately 89.73%, reflecting the significant pricing power inherent in its orphan drug portfolio, though this structural advantage is currently insufficient to offset the substantial fixed costs associated with specialized commercialization efforts.
The stability of these gross margins suggests that manufacturing and distribution costs are well-contained, which is typical for high-value biotechnology assets. The persistent gap between gross profit and operating expenses implies that the company remains in a high-investment phase where profitability is secondary to market share acquisition.
According to the latest quarterly figures, the company's operating margin of -101.19% highlights a lack of operating leverage, as SG&A and R&D expenditures continue to scale alongside revenue, suggesting that the business model has not yet reached the critical mass required for self-sustaining operational efficiency.
The data indicates that every dollar of revenue growth is currently accompanied by significant incremental spending on sales force expansion and clinical development. This trend warrants further investigation into whether management can eventually decouple revenue growth from the current high-burn operating structure to achieve a path toward positive operating income.
Analysis of the income statement reveals that R&D and SG&A expenses remain the primary drivers of the company's net losses, with quarterly R&D spending consistently exceeding $40 million, which underscores the high cost of maintaining a pipeline while simultaneously supporting a commercial-stage rare disease product launch.
The expense discipline appears focused on aggressive market development rather than immediate cost optimization, which is a common trade-off in the biotechnology sector. Investors should monitor the sustainability of this spending, as the current level of investment may necessitate future capital raises if revenue growth does not accelerate significantly.
Based on reported figures, the company's cash and equivalents of $54.3 million against a TTM net loss exceeding $190 million suggests a precarious liquidity position, which may force management to seek dilutive financing or strategic partnerships to bridge the gap before achieving a self-sustaining capital structure.
Short-term observers may focus on the potential for a liquidity crunch, as the current burn rate appears to outpace the company's cash reserves. This financial reality creates a significant overhang for shareholders, as the market may anticipate equity issuance to fund ongoing operations and clinical trial milestones.
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.