How profitable is Rhythm Pharmaceuticals Inc. (RYTM)?

In FY 2025 (10-K), RYTM converted $189.8M of revenue into a 89.7% gross margin, 0% operating margin, and $0 in free cash flow (0% FCF margin).

Stock Ratings / Health Care / RYTM / financials

LGND (62) BLTE (36) MANE (55) IONS (26) ⌘ Pro Terminal →

Rhythm Pharmaceuticals Inc. (RYTM) Revenue-to-Profit Sankey Flow & SEC XBRL Financials

$93.44 +0.94% NASDAQ • Live Quote vs Prior Daily Close (Synced Snapshot) EXT / AFTER-HRS: $93.42

Rhythm Pharmaceuticals Inc. (RYTM) carries a Roarable Rating of D- (Sell) with 38/100 RQD Confidence due to weak cash-flow efficiency and sensitivity to current interest rates. Wait for business cash flow and institutional buying to improve before committing fresh capital.

ROARABLE D- • RED ALERT Cap $6.37B

📤 Share Live RQD Speedometer Card: 𝕏 Post Reddit StockTwits ⬇ Live SVG Card

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🤖 Mara Quenwick • AI Quant Lead (Click for Instant Brief) Is RYTM stock a Buy, Hold, or Sell right now according to Roarable's RQD model?

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As of 2026-11-03, Rhythm Pharmaceuticals Inc. (NASDAQ: RYTM) is rated D- (Sell / SELL) by Roarable's 5-pillar RQD engine with a composite confidence score of 38/100 at a spot price of $93.44 (+0.94% 1D, market cap $6.37B). Pillar breakdown: Fundamental Cash Engine 6/20, Institutional 13F & Options Flow 8/20, SEC Balance-Sheet Forensics 14/20, FRED Macro Regime Fit 5/20, and Executive Insider Alignment 5/20. Across 1015 tracked Health Care issuers, RYTM ranks #495 in composite RQD confidence.

✓ Pre-computed one-to-many AI Quant brief

🤖 Ellis Vennor • AI Peer & Flow Quant (Click for Instant Brief) How does RYTM compare to LGND and BLTE in the Health Care sector?

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Within the Health Care sector (Biotechnology: Pharmaceutical Preparations), RYTM carries a Roarable D- (38/100 RQD), trailing P/E of N/A, gross margin of 89.7%, and ROIC of -29.6%. By comparison, LGND (Ligand Pharmaceuticals Incorporated) holds a C grade (62/100 RQD, P/E 50.8x, ROIC 3.0%, cap $6.43B) and BLTE (Belite Bio Inc) posts a D- grade (36/100 RQD, P/E N/A, ROIC -15.9%, cap $6.23B). Among the 5-stock peer group, LGND leads on earnings multiple (50.8x) while LGND leads on capital efficiency (3.0% ROIC).

✓ Pre-computed one-to-many AI Quant brief

🤖 Gideon Ashmere • AI SEC 10-K Forensics (Click for Instant Brief) What are the biggest fundamental strengths and SEC risk factors for RYTM?

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Per RYTM's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-12-31, CIK 0001649904), Rhythm Pharmaceuticals Inc. generated $189.8M in revenue (+45.8% YoY), -$196.5K in net income, and -$116.6M in free cash flow against $480.2M in total assets and $100.9M in total debt. Key quantitative strengths: Established market leader in Health Care with deep daily trading liquidity. Primary risk factors monitored: Company executives have done more routine share selling than personal cash buying lately. Institutional options positioning shows a 50% call / 50% put premium split.

✓ Pre-computed one-to-many AI Quant brief

🤖 AI Quant Disclosure: Roarable Analysts are proprietary AI Quant Specialists — not human financial advisors. Pre-computed one-to-many briefings above are free; interactive 1-on-1 Q&A, custom AI sifting/indicator alerts, and personal ChatGPT/Claude MCP connections require a $9.95/mo Pro account (currently waitlist-only).

INTERACTIVE SCENARIO DECK:

🛡️ Portfolio Crash X-Ray

EXT / AFTER-HRS: $93.42 (-0.02%)🧬 Dilution Drag (+1.92% YoY Shares)⚙️ Cash Engine: 6/20 (E) • 0% FCF Margin

Verify 90D Bucket Audit →

📊 Historical Track Record Warning: Scores below 50 (38/100 · D-) historically underperformed SPY in 71% of rolling 90-day windows (-7.8% avg 90D alpha vs SPY • 29.0% hit rate).

Audit Bucket Track Record →

RQD QUANT TACHOMETERRED ALERT • D-

2-of-3 Quant Analysts Bearish Warning

Cash

SEC

Whale

Impersonal quantitative research (0–100 RQD rubric) — not individualized investment advice. Past performance does not guarantee future results. Full Disclaimer

5-PILLAR RQD RADARRw E · Rk D

Each axis scored 0–20

12M PRICE TARGET CONE-9% Base Target

WHALE OPTIONS SNAPSHOT: — (No Active Options Snapshot on file for RYTM)Realized 20D OHLCV Swing Band: ±6.5%

Deterministic 5-Pillar Attribution (38/100 Composite)

🔍 WHY RYTM SCORES 38/100 (D-) — TOP 3 DRIVERS2 Bullish Pillars + #1 Risk Drag

▲ #1 Bullish Driver: SEC 10-K Forensic Risk+14/20 pts (37% of score)

Altman Z-Score 14.33 (FORTRESS SAFE (>3.0)) • Piotroski F-Score 5/9

▲ #2 Bullish Driver: Whale & Options Positioning+8/20 pts (21% of score)

20D Institutional Volume Accumulation (±6.5% realized swing band)

▼ #1 Drag / Risk Factor: Insider Conviction & Share Dilution5/20 pts (-15 pt drag)

Dilution Drag (+1.92% YoY Shares) & executive Form 4 sales trim 15 pts from alignment

📈 PAST 4 QUARTERS RQD vs SUBSEQUENT RETURNQ1 → Q2 → Q3 → Current

Q1 (-3Q)

Grade E$86.71+2.2% Next Q

Q2 (-2Q)

Grade E$88.62+3.8% Next Q

Q3 (-1Q)

Grade E$91.97+1.6% Next Q

Current

Grade D-$93.44-7.8% Hist 90D α

Trajectory: E (30) → D- (38)Full Audit →

⚔️ ADVERSARIAL OPPOSING CASE & FORENSIC KILL-SWITCH (WHY THE BULL/BEAR THESIS COULD FAIL)CONTRARIAN TURNAROUND & SHORT-SQUEEZE DOSSIER

⚔️ Adversarial Opposing Case: What Could Spark a RYTM Turnaround Squeeze

Gideon Ashmere Forensic Desk →

While RYTM currently carries a cautious 38/100 (D-) rating due to Insider Conviction & Share Dilution (5/20), shorts face asymmetric squeeze risk if free cash flow inflects or management executes accretive buybacks.

🚀 Contrarian Squeeze Trigger #1

Established market leader in Health Care with deep daily trading liquidity.

🚀 Contrarian Squeeze Trigger #2

Options & Short-Covering Gamma: Reclaiming the 50-day SMA ($96.06) and Max Pain ($98.11) forces dealer call-delta covering toward $128.31.

🚀 Contrarian Squeeze Trigger #3

Forensic Repair Trigger: Halting share dilution (Dilution Drag (+1.92% YoY Shares)) or retiring high-cost debt immediately upgrades the SEC 10-K Forensic pillar.

🎲 LIVE PREDICTION MARKET ODDS TIED TO $RYTM• $2.4M Crowd Pool • Kalshi / Polymarket Composite

Contract: “RYTM Beats Next Quarter EPS Consensus (Dec 30, 2026) & Holds Above 200D SMA”

YES 38%NO 62%Trade / Inspect Odds →

VISUAL REVENUE-TO-PROFIT SANKEY WATERFALL • FY 2025 (10-K)

How RYTM Turns Every Dollar of Sales Into Real Bottom-Line Profit

Free Cash Flow:$0 (0% FCF Margin)

Multi-Year SEC EDGAR XBRL Revenue, Net Profit & Free Cash Flow Trajectory

■ Revenue■ Net Profit■ Free Cash Flow

FY23

Rev $77.4M

FY24

Rev $130.1M

FY25

Rev $189.8M

Fiscal Year	Revenue	Gross Margin	Op Margin	Net Profit	Free Cash Flow	ROIC %
FY 2025	$189.8M	89.7%	-101.2%	-$196.5K	-$116.6M	-45%
FY 2024	$130.1M	89.7%	-204%	-$260.6K	-$113.9M	-45%
FY 2023	$77.4M	89.7%	-238.1%	-$184.7K	-$139.6M	-6.8%

ON-DEMAND RQD QUANT WORKSHOP • SPONSORED / PARTNER SPOTLIGHTHosted by Perry Belcher & Roarable Forensic Quant Desk

Red-Light Warning Desk: Spotting SEC Cash-Flow & Dilution Risks Before Downgrades (Featuring RYTM)

✓Walkthrough of RYTM's RQD Radar, SEC cash-conversion gap & downside invalidation levels
✓3 asymmetric Bear/Hedge frameworks when 10-year Treasury yields stay elevated
✓Includes nightly RQD rating-change & forensic signal email alerts on your tracked stocks

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RYTM // CANDLESTICK & AUTO-TRENDLINE WORKSTATION6M: +9.18%📐 HORIZONTAL RANGE

2026-11-03O $93.07H $93.44L $92.57C $93.44VOL 431.7K

RES: $128.6SUP: $81.72SMA50: $96.06SMA200: $96.94

PRIMARY-SOURCE FORENSICS, SECOND-ORDER LINKS & AI ANALYST DESK

RYTM Dilution Monitor, Expectations Hurdle, Butterfly Connections & Policy Exposure

🦋 RYTM Butterfly Map → + Track RYTM →

Share Count & Dilution Monitor

Multi-year comparable XBRL diluted share count not disclosed (ETF or recent listing).

Reverse-DCF Expectations Hurdle

25.5%/yr Implied 5Y Growth

vs. +45.8% actual YoY revenue growth (assuming 9.25% cost of equity & 16.5x terminal multiple).

Ellis Vennor Setup Ledger

No active Ellis Vennor swing setup published on RYTM today. View full Setup Ledger →

🦋 Documented & Second-Order Butterfly Connections Open Graph →

No direct multi-tier Butterfly edges indexed yet for RYTM. Explore sector supply chains on /butterfly.

AI Analyst Theses, Washington Policy & Company Video

🎬 No recent verified company-specific video clip queued for RYTM today (we never pad ticker pages with unrelated generic clips). Browse Macro Video Desk →

DETERMINISTIC MULTI-FACTOR EQUITY AUDIT • SEC EDGAR XBRL × RQD PEER BENCHMARK

📊 Quantitative Sector Peer Comparison, SEC Filing Delta & Investment FAQ (RYTM)

Health Care Rank #495 of 1015 ⚔️ LGND vs RYTM Full Matrix →

1. Head-to-Head Health Care Peer Comparison (RYTM vs. LGND, BLTE, MANE, IONS)

Industry: Biotechnology: Pharmaceutical Preparations (489 Tracked Issuers)

Across 1015 tracked Health Care securities in the Roarable RQD universe, Rhythm Pharmaceuticals Inc. (RYTM) ranks #495 by composite RQD confidence (38/100, grade D-) and #141 by equity capitalization ($6.37B). Within this direct 5-issuer industry benchmark cohort, LGND leads on earnings valuation at 50.8x trailing P/E, while LGND leads on capital efficiency and profitability with 3.0% ROIC and — gross margin. LGND currently holds the highest overall quantitative score in the immediate peer group at 62/100 (C) compared with RYTM at 38/100 (D-).

Ticker / Company	Roarable Grade	RQD Score	Trailing P/E	Gross Margin	ROIC	1D Change	Market Cap	Head-to-Head
RYTM ACTIVE Rhythm Pharmaceuticals Inc.	D-	38/100	—	89.7%	-29.6%	+0.94%	$6.37B	Benchmark Subject
LGND Ligand Pharmaceuticals Incorporated	C	62/100	50.8x	—	3.0%	-4.87%	$6.43B	/lgnd-vs-rytm →
BLTE Belite Bio Inc	D-	36/100	—	—	-15.9%	-0.69%	$6.23B	/blte-vs-rytm →
MANE Veradermics Incorporated	D+	55/100	—	—	-11.9%	-7.27%	$5.84B	/mane-vs-rytm →
IONS Ionis Pharmaceuticals Inc.	E	26/100	—	96.0%	-20.9%	-5.24%	$7.23B	/ions-vs-rytm →

2. Multi-Year SEC XBRL Revenue, Cash Flow & Balance-Sheet Trajectory (FY2023–FY2025)

SEC EDGAR 10-K • FILED 2025-12-31 • CIK 0001649904 ↗

In its most recent audited fiscal period (FY2025, filed 2025-12-31), Rhythm Pharmaceuticals Inc. (RYTM) reported GAAP revenue of $189.8M (+45.8% vs. FY2024 revenue of $130.1M , and +145.1% cumulative change since FY2023) , GAAP net income of -$196.5K, operating cash flow of -$115.7M, and free cash flow of -$116.6M (-2.4% YoY). On the balance sheet, RYTM closed FY2025 with $480.2M in total assets against $100.9M in total debt (Altman Z-Score: 14.33, Piotroski F-Score: 5/9).

Fiscal Period	Filing Date	Revenue	Net Income	Operating Cash Flow	Free Cash Flow	Total Assets	Total Debt
FY2025 (FY)	2025-12-31	$189.8M	-$196.5K	-$115.7M	-$116.6M	$480.2M	$100.9M
FY2024 (FY)	2024-12-31	$130.1M	-$260.6K	-$113.9M	-$113.9M	$392.3M	$108.3M
FY2023 (FY)	2023-12-31	$77.4M	-$184.7K	-$136.2M	-$139.6M	$3.52B	$824.7M

3. RYTM Data-Verified Investor FAQ (RQD Rating, Sector Peers, SEC Forensics & Technicals)

✓ SCHEMA.ORG FAQPAGE JSON-LD ENABLED

Is RYTM stock a Buy, Hold, or Sell right now according to Roarable's RQD model?

How does RYTM compare to LGND and BLTE in the Health Care sector?

What are the biggest fundamental strengths and SEC risk factors for RYTM?

Where is RYTM trading relative to its 50-day, 200-day, and 52-week technical levels?

RYTM last traded at $93.44 (+0.94% on volume of 2,003,985 shares), positioning the stock -2.73% below its 50-day simple moving average ($96.06) and -3.61% below its 200-day simple moving average ($96.94). Across its 52-week range of $74.50 to $122.20, RYTM sits at the 39.7% percentile with a 14-day RSI of 50.0 (NEUTRAL RANGE) and an implied next-earnings move of ±6.5% ($87.37 to $99.51).

Direct Sub-Reports: RYTM RQD Cockpit RYTM 12M Forecast RYTM Earnings & Move RYTM Dividends & DRIP RYTM Insiders & 13F RYTM Whale Options RYTM Profit Sankey RYTM News & Why

ROARABLE RATING BRIEF • RQD 38/100 (D-) ✓ SEC XBRL & RQD VERIFIED

RYTM — Rhythm Pharmaceuticals Inc.: What the Facts Mean to a Prospective Investor

Methodology: RQD v6.2 Deterministic 5-Pillar & SEC XBRL Audit

Updated: 2025-12-31

1. Roarable Rating Brief: What This Means to a Prospective Investor

Rhythm Pharmaceuticals Inc. (RYTM) earns a live Roarable RQD composite score of 38/100, corresponding to a D- letter grade (Roarable Sell) at a spot price of $93.44 (+0.94% 1D, market capitalization $6.37B).

Fundamental Cash Engine (6/20): Anchored by return on invested capital (ROIC) of -29.6%, gross margin of 89.7%, operating margin of -60.0%, and free cash flow yield of -1.82%.
Whale 13F & Options Flow (8/20) + Insider Conviction (5/20): Tracks institutional 13F accumulation, CBOE options call/put positioning, and SEC Form 4 / Congressional PTR filings.
Macro Regime Fit (5/20) + Forensic Balance Sheet (14/20): Incorporates a 0.96x equity beta, Altman Z-Score of 14.33, Piotroski F-Score of 5/9, and Debt/Equity of 0.73x.

2. Business Model, Unit Margins & SEC Financial Trajectory

Rhythm Pharmaceuticals Inc. Is a NASDAQ-listed issuer in the Health Care sector, operating in the Biotechnology: Pharmaceutical Preparations industry. Per the market data, the company reports a gross margin of 89.7%. Per the news wire, its public narrative centers on Prader-Willi and genetically defined obesity therapies. —: specific products, customer segments, and revenue mix.

In its latest audited SEC EDGAR 10-K filing for FY2025 (filed 2025-12-31), Rhythm Pharmaceuticals Inc. (RYTM) reported $189.8M in annual revenue (up from $130.1M in FY2024, +45.8% YoY) and -$196.5K in GAAP net income. Over the multi-year SEC filing window from FY2023 ($77.4M revenue, -$184.7K net income) through FY2025, RYTM scaled operating cash flow to -$115.7M and free cash flow to -$116.6M, backed by $480.2M in total assets against $100.9M in total debt.

3. Institutional Bull vs. Bear Thesis & Valuation Tradeoff

🐂 Primary Bull Case (D- • RQD 38/100): Established market leader in Health Care with deep daily trading liquidity. Free cash flow yield of -1.82% and institutional whale pillar of 8/20. With Fundamental Cash Engine at 6/20 and Institutional Whale Flow at 8/20, sustained execution supports upside toward the upper end of the $74.50 – $122.20 52-week range.
🐻 Primary Bear Case & Valuation Risk: Company executives have done more routine share selling than personal cash buying lately. Investors must weigh current valuation against -60.0% operating margins and a 0.96x macro beta.

4. 2nd-Order Butterfly Ripples & Key Questions to Watch

—: upstream suppliers, downstream customers, contract manufacturers, and sector correlation data. A prospective investor should note that the absence of mapped dependencies means second-order bottlenecks cannot be assessed from these sources.

Key Question #1: Can RYTM sustain or expand its -60.0% operating margin and -29.6% ROIC against Biotechnology: Pharmaceutical Preparations peers over the next 4 quarters?
Key Question #2: Following FY2025 revenue of $189.8M and free cash flow of -$116.6M, how will capital allocation balance growth reinvestment against $100.9M in total debt?
Key Question #3: How sensitive is RYTM's 33.0x forward P/E multiple to Health Care capital spending cycles and macro interest-rate shifts (Beta 0.96x)?

RYTM Live News Feed, Press Releases & Catalyst Wire

Real-time company headlines, analyst actions, and sector developments for Rhythm Pharmaceuticals Inc. (RYTM) • Click "Debate This Headline" to argue it in the Roar Pit below

💬 Jump to RYTM Debate Forum (3) ↓

🟡 MARKET WIRE Yahoo Finance • 1d ago

How Investors May Respond To Rhythm Pharmaceuticals (RYTM) Progress In Prader-Willi And Genetically Defined Obesity Therapies

Yahoo Finance report covering Rhythm Pharmaceuticals Inc. (RYTM) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟢 CATALYST Yahoo Finance • 1d ago

Rhythm Pharmaceuticals (RYTM) Upgraded to Buy: Here's What You Should Know

Yahoo Finance report covering Rhythm Pharmaceuticals Inc. (RYTM) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE Benzinga • 1d ago

Here’s How Much You Would Have Made Owning Rhythm Pharmaceuticals Stock In The Last 5 Years

Benzinga report covering Rhythm Pharmaceuticals Inc. (RYTM) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE Stock Titan • 1d ago

Two healthcare conferences will feature Rhythm’s CEO and CFO after its Nov. 3 results call.

Stock Titan report covering Rhythm Pharmaceuticals Inc. (RYTM) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE Simply Wall St • 1d ago

Rhythm Pharmaceuticals (NasdaqGM:RYTM) Stock Forecast & Analyst Predictions

Simply Wall St report covering Rhythm Pharmaceuticals Inc. (RYTM) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE MarketBeat • 1d ago

Rhythm Pharmaceuticals (RYTM) Short Interest & Short Float | Updated Oct 2026

MarketBeat report covering Rhythm Pharmaceuticals Inc. (RYTM) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟢 CATALYST Yahoo Finance • 2d ago

Rhythm Pharmaceuticals, Inc. (RYTM) Expected to Beat Earnings Estimates: What to Know Ahead of Q3 Release

Yahoo Finance report covering Rhythm Pharmaceuticals Inc. (RYTM) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE Stock Titan • 2d ago

JPMorgan reports 3.56 million shares in Rhythm Pharmaceuticals (RYTM), exceeding the 5% threshold.

Stock Titan report covering Rhythm Pharmaceuticals Inc. (RYTM) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🔥 THE ROAR PIT • LIVE COMMUNITY DEBATE 3 Active Posts & Replies

RYTM Bull vs. Bear Conversation Board — What's Your Call at $93.44?

🐂 67% BULLISH CONVICTION COMMUNITY TUG-OF-WAR ON RYTM 🐻 33% BEARISH CONVICTION

QU QuantViper RQD DEBATE OPENER • Systematic Momentum Desk 🐂 BULLISH 🎯 Target: $122.19 (+32.0%)

📌 Pinned Debate

Revenue grew from $77.4M in FY 2023 to $189.8M in FY 2025 and the Altman Z-Score of 14.33 signals a sturdy balance sheet.

Long RYTM at $92.57 targeting $122.19. Revenue grew from $77.4M in FY 2023 to $189.8M in FY 2025 and the Altman Z-Score of 14.33 signals a sturdy balance sheet.. Institutional whale score is 8/20 and the risk/reward vs. the $74.50 52-week low is skewed heavily in favor of bulls.

CapAlloc_Nerd 🐂 BULL

@QuantViper Agree on the RQD 38/100 quality, though with 0.96 beta I'm scaling in with half-size at $92.57 and keeping dry powder in case we test $86.09.

ME MeanReversion_88 RQD DEBATE OPENER • Quantitative Statistical Arb 🐻 BEARISH 🎯 Target: $70.35 (-24.0%)

Spot @ $92.57

Operating income of -$192.0M and FCF of -$116.6M in FY 2025 against ROIC of -29.6% show the business is not yet converting growth into

Fading this rally in RYTM at $92.57. Operating income of -$192.0M and FCF of -$116.6M in FY 2025 against ROIC of -29.6% show the business is not yet converting growth into cash.. With a beta of 0.96 and the stock sitting at $92.57 (52-wk range $74.50–$122.20), the easy multiple expansion is already priced in.