Rhythm Pharmaceuticals, Inc.RYTM
NasdaqGM•Healthcare•Biotechnology
Rhythm Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the rare neuroendocrine diseases in the United States and internationally. The company's lead product candidate is IMCIVREE (setmelanotide), a rare melanocortin-4 receptor for the treatment of pro-opiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1, leptin receptor (LEPR) deficiency obesity, Bardet-Biedl and Alström syndrome, Prader-Willi syndrome, and hypothalamic obesity. It is in Phase 3 clinical trials for treating acquired hypothalamic obesity, congenital hypothalamic obesity, pro-opiomelanocortin (POMC) and LEPR insufficiency obesities, SRC1 deficiency obesity, and SH2B1 deficiency obesity; and in phase 2 clinical trails for the treatment of Prader-Willi syndrome and MC4R deficiency. The company is also developing bivamelagon, an investigational oral small molecule MC4R agonist that is in phase 2 clinical trial for the treatment of MC4R pathway diseases; and RM-718, a next generation MC4R peptide agonist that is in phase 1 clinical trial for the treatment of hypothalamic obesity. The company was formerly known as Rhythm Metabolic, Inc. and changed its name to Rhythm Pharmaceuticals, Inc. in October 2015. Rhythm Pharmaceuticals, Inc. was founded in 2008 and is headquartered in Boston, Massachusetts.
Rhythm Pharmaceuticals, Inc. (RYTM) reported trailing twelve months revenue of $217.16M as of March 2026, a 58.7% increase year-over-year. Quarterly revenue reached $60.11M, reflecting continued top-line momentum.
Rhythm Pharmaceuticals, Inc. reported a TTM net loss of $202.68M, with quarterly EBITDA of $-52.36M. The operating margin expanded from -143.7% to -87.1%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (-87.1%) and net margin (-92.6%) indicates moderate non-operating costs. Net margin has improved from -151.4% a year ago, signaling stronger bottom-line efficiency.
RYTM trades at a P/S of 30.0x. The price-to-book ratio of 53.0x indicates a significant premium over book value.
The company reported negative free cash flow of $-44.19M, indicating cash consumption over the period. The balance sheet shows $442.32M in total assets with $98.34M in long-term debt against $122.91M in stockholders equity for a debt-to-equity ratio of 0.8. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are under pressure, averaging -109.9%. The business may lack pricing power or face rising costs.'
ROE is low or negative, suggesting limited competitive advantage or capital allocation challenges.
Only 0 of the last 8 quarters had positive FCF — the business may require external capital to sustain operations.
TTM revenue has grown consistently (7 of 7 quarters up), with ~113.4% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
The company posted negative operating margins in recent quarters — core operations are unprofitable.
Free cash flow has been negative in 8 of the last 8 quarters — earnings are not translating to cash.
D/E ratio is 0.8 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
The last 8 consecutive quarters had negative FCF — the company is burning cash and may need external funding.
Shares outstanding increased 11.4% — significant dilution, likely from stock compensation or capital raises.