RYTHM, Inc. (Nasdaq: RYM) announced third‑quarter 2026 results, delivering $23.9 million in revenue, a 4% increase from the prior quarter, and boosting cash to $48.2 million. The company also reported operating income of $1.0 million and a net loss of $0.5 million.
Financial Highlights
Revenue from continuing operations rose to $23.9 million, up 4% sequentially, while operating income reached $1.0 million and net loss was $0.5 million. Adjusted EBITDA totaled $5.9 million, down from $6.4 million a quarter earlier, and cash and cash equivalents increased to $48.2 million.
Business Growth
THC beverage depletions climbed 15% sequentially to an annualized 320,000 cases and rose 185% year‑over‑year, with the product line now in roughly 8,000 retail doors across 18 states. Hemp‑derived revenue grew 15% to $6.4 million, and the new RYTHM Lifted Lemon beverage launched during the quarter. Brand visibility expanded through appearances at Lollapalooza, Riot Fest and other major venues, and a partnership with Chicago’s Navy Pier was secured.
Regulatory and Corporate Updates
RYTHM amended its licensing agreement with Green Thumb, raising the annual fee to $70.25 million and preserving exclusive rights to commercialize Señorita outside dispensary channels. Shareholders approved removal of the 49.99% ownership limitation on convertible notes and related agreements effective October 10, 2026, allowing Green Thumb to consolidate results while RYTHM continues independent SEC filings. A federal delay pushes the effective date of hemp‑derived THC restrictions to December 11, 2026, with Illinois restrictions taking effect November 12; the Company withholds a Q4 2026 outlook.
Management Commentary
Chairman and interim CEO Ben Kovler said the quarter’s revenue growth and 15% sequential increase in THC beverage depletions reflect strong consumer demand and effective execution. He noted cash flow from operations of $6.3 million and a strong cash position, and said THC beverages are emerging as a fourth adult beverage category supported by major retailers.
Outlook
Because pending federal and state regulations could restrict sales of its current hemp‑derived THC products, RYTHM does not provide a fourth‑quarter 2026 financial forecast at this time.
