Rhythm Pharmaceuticals (NASDAQ:RYTM) Announces Earnings Results

Key Points

• Rhythm reported Q1 GAAP loss per share of ($0.83), beating estimates by $0.03, with revenue of $60.1M—an 83.8% year‑over‑year increase.
• The IMCIVREE launch for acquired hypothalamic obesity shows early momentum with >150 start forms and ~110 prescribers in six weeks, while the company secured faster‑than‑expected EU approval and has a Japanese NDA accepted, targeting potential Japan approval by end of 2026.
• Operating costs remain high (Q1 OpEx ≈ $105M; non‑GAAP FY guidance $385–415M), but Rhythm says it has about $341M in cash, sufficient to fund operations for at least 24 months.

Rhythm Pharmaceuticals (NASDAQ:RYTM - Get Free Report) released its earnings results on Tuesday. The company reported ($0.83) earnings per share for the quarter, topping analysts' consensus estimates of ($0.86) by $0.03, Zacks reports. Rhythm Pharmaceuticals had a negative return on equity of 266.56% and a negative net margin of 103.57%.The business had revenue of $60.11 million for the quarter, compared to analyst estimates of $55.78 million. During the same quarter last year, the firm posted ($0.81) earnings per share. The business's revenue was up 83.8% compared to the same quarter last year.

Here are the key takeaways from Rhythm Pharmaceuticals' conference call:

• IMCIVREE launch for acquired hypothalamic obesity (HO) has started strongly with >150 start forms in six weeks, ~110 unique prescribers (≈80% new to IMCIVREE) and early payer approvals and receptivity.
• Rhythm achieved a major international advance with a faster-than-expected EU marketing authorization for HO and the Japanese NDA accepted, positioning launches/negotiations in Europe and a potential Japan approval by end of 2026.
• Q1 results show momentum with $60.1M net revenue (5% sequential growth), an 8% increase in patients on reimbursed therapy QoQ, and about $341M cash expected to fund operations for at least 24 months.
• Operating costs and losses remain high—Q1 operating expenses were ~$105M (non‑GAAP $82M), GAAP net loss of $0.83/sh, and FY non‑GAAP OpEx guidance of $385–415M—which increases near‑term cash burn and pressure on profitability.

Rhythm Pharmaceuticals Trading Up 8.4%

Shares of Rhythm Pharmaceuticals stock traded up $7.23 during trading on Tuesday, hitting $92.81. 1,148,859 shares of the stock traded hands, compared to its average volume of 778,281. The firm has a market cap of $6.36 billion, a P/E ratio of -29.85 and a beta of 1.94. Rhythm Pharmaceuticals has a 52-week low of $55.31 and a 52-week high of $122.20. The stock's fifty day simple moving average is $88.12 and its 200 day simple moving average is $99.56.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the company. Guggenheim increased their target price on Rhythm Pharmaceuticals from $140.00 to $143.00 and gave the stock a "buy" rating in a research note on Friday, February 27th. Zacks Research upgraded Rhythm Pharmaceuticals from a "strong sell" rating to a "hold" rating in a research note on Tuesday, February 17th. Telsey Advisory Group set a $143.00 target price on Rhythm Pharmaceuticals in a research note on Thursday, March 12th. Royal Bank Of Canada reduced their target price on Rhythm Pharmaceuticals from $140.00 to $130.00 and set an "outperform" rating on the stock in a research note on Tuesday, March 17th. Finally, Stifel Nicolaus set a $131.00 target price on Rhythm Pharmaceuticals in a research note on Thursday, February 26th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $131.13.

Insider Buying and Selling at Rhythm Pharmaceuticals

In other news, CFO Hunter C. Smith sold 4,385 shares of the firm's stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $101.26, for a total transaction of $444,025.10. Following the transaction, the chief financial officer owned 110,512 shares in the company, valued at approximately $11,190,445.12. This trade represents a 3.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CAO Christopher Paul German sold 5,614 shares of the firm's stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $89.56, for a total value of $502,789.84. Following the transaction, the chief accounting officer owned 160 shares in the company, valued at approximately $14,329.60. This represents a 97.23% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 27,267 shares of company stock worth $2,719,955. Insiders own 6.10% of the company's stock.

Hedge Funds Weigh In On Rhythm Pharmaceuticals

Several institutional investors have recently made changes to their positions in the company. Invesco Ltd. increased its stake in shares of Rhythm Pharmaceuticals by 102.8% during the fourth quarter. Invesco Ltd. now owns 291,150 shares of the company's stock valued at $31,165,000 after buying an additional 147,595 shares during the period. Empowered Funds LLC boosted its position in Rhythm Pharmaceuticals by 94.1% during the fourth quarter. Empowered Funds LLC now owns 4,164 shares of the company's stock valued at $446,000 after purchasing an additional 2,019 shares in the last quarter. XTX Topco Ltd bought a new stake in Rhythm Pharmaceuticals during the fourth quarter valued at about $1,117,000. Wellington Management Group LLP boosted its position in Rhythm Pharmaceuticals by 922.0% during the fourth quarter. Wellington Management Group LLP now owns 250,156 shares of the company's stock valued at $26,777,000 after purchasing an additional 225,679 shares in the last quarter. Finally, SummitTX Capital L.P. boosted its position in Rhythm Pharmaceuticals by 580.2% during the fourth quarter. SummitTX Capital L.P. now owns 80,729 shares of the company's stock valued at $8,641,000 after purchasing an additional 68,860 shares in the last quarter.

About Rhythm Pharmaceuticals

Rhythm Pharmaceuticals, Inc is a clinical‐stage biotechnology company dedicated to developing targeted therapies for rare genetic diseases of obesity and metabolic dysfunction. The company's research focuses on the melanocortin‐4 receptor (MC4R) pathway, which plays a central role in regulating appetite, energy expenditure and body weight. Using proprietary peptide technology, Rhythm aims to provide precision treatments to patients with specific genetic variants that disrupt normal weight regulation.

The company's lead investigational product, setmelanotide, is a selective MC4R agonist designed to restore signaling in patients with deficiencies in genes such as POMC, LEPR and PCSK1.

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