Rhythm Pharmaceuticals (NASDAQ:RYTM) Issues Earnings Results

Rhythm Pharmaceuticals (NASDAQ:RYTM) posted its quarterly earnings results on Thursday. The company reported ($0.73) EPS for the quarter, beating the consensus estimate of ($0.79) by $0.06, FiscalAI reports. Rhythm Pharmaceuticals had a negative net margin of 103.57% and a negative return on equity of 378.31%. The business had revenue of $57.25 million during the quarter, compared to analyst estimates of $56.16 million. During the same quarter in the previous year, the business posted ($0.72) EPS. The company’s quarterly revenue was up 36.9% compared to the same quarter last year.

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

• Bivamelagon demonstrated persistent BMI reductions through 40 weeks with mean decreases of about 10.8% (400 mg) and 14.3% (600 mg) and a tolerable safety profile, supporting progression to phase 3.
• The FDA indicated a new chemical entity will require a full 12‑month randomized controlled phase 3 and a larger safety database (likely near the 142‑patient size of the setmelanotide trial), increasing time and cost to approval.
• Commercial momentum for IMCIVREE continued with Q4 sales of $57.3M and FY2025 revenue of $194.8M (≈50% YoY), broader availability in 25+ ex‑US countries, and a U.S. sales force expanded from 16 to 42 ahead of an HO launch.
• Multiple near‑term catalysts are scheduled: the FDA PDUFA date for Acquired HO on March 20, top‑line Japanese HO cohort and M&A readouts expected in March, and an anticipated CHMP opinion in Q2 with EU authorization in H2 2026.
• Rhythm guided 2026 non‑GAAP operating expenses of $385M–$415M (≈35% increase) to fund next‑gen MC4R programs and commercial expansion, while holding about $389M in cash/short‑term investments (estimated >24 months runway).

Rhythm Pharmaceuticals Trading Down 5.4%

Shares of RYTM stock traded down $5.34 during trading hours on Friday, reaching $92.73. 1,322,069 shares of the company’s stock were exchanged, compared to its average volume of 698,163. Rhythm Pharmaceuticals has a 1 year low of $45.90 and a 1 year high of $122.20. The stock has a market cap of $6.19 billion, a PE ratio of -29.82 and a beta of 2.00. The stock’s fifty day moving average price is $103.90 and its two-hundred day moving average price is $103.49.

Insider Activity at Rhythm Pharmaceuticals

In other news, CFO Hunter C. Smith sold 4,385 shares of Rhythm Pharmaceuticals stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $101.26, for a total transaction of $444,025.10. Following the completion of the sale, the chief financial officer directly owned 110,512 shares in the company, valued at approximately $11,190,445.12. The trade was a 3.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Pamela J. Cramer sold 3,350 shares of the business’s stock in a transaction on Thursday, December 11th. The shares were sold at an average price of $111.00, for a total transaction of $371,850.00. Following the sale, the insider directly owned 20,814 shares in the company, valued at $2,310,354. This trade represents a 13.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 25,003 shares of company stock valued at $2,589,015 over the last ninety days. 6.10% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rhythm Pharmaceuticals

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Xponance LLC raised its stake in shares of Rhythm Pharmaceuticals by 2.6% in the fourth quarter. Xponance LLC now owns 4,269 shares of the company’s stock worth $457,000 after purchasing an additional 107 shares during the last quarter. Smartleaf Asset Management LLC increased its holdings in Rhythm Pharmaceuticals by 39.5% in the 4th quarter. Smartleaf Asset Management LLC now owns 399 shares of the company’s stock worth $43,000 after buying an additional 113 shares during the period. Captrust Financial Advisors raised its position in Rhythm Pharmaceuticals by 0.7% during the 2nd quarter. Captrust Financial Advisors now owns 17,471 shares of the company’s stock worth $1,104,000 after buying an additional 114 shares during the last quarter. California State Teachers Retirement System raised its position in Rhythm Pharmaceuticals by 0.5% during the 2nd quarter. California State Teachers Retirement System now owns 42,917 shares of the company’s stock worth $2,712,000 after buying an additional 196 shares during the last quarter. Finally, E Fund Management Co. Ltd. lifted its stake in Rhythm Pharmaceuticals by 6.8% during the 2nd quarter. E Fund Management Co. Ltd. now owns 5,761 shares of the company’s stock valued at $364,000 after acquiring an additional 365 shares during the period.

Rhythm Pharmaceuticals News Summary

Here are the key news stories impacting Rhythm Pharmaceuticals this week:

• Positive Sentiment: Q4 results beat estimates: EPS of $-0.73 vs. consensus of $-0.79 and revenue of $57.25M (y/y revenue +36.9%). The beat supports commercial traction for IMCIVREE. Zacks: Rhythm Reports Q4 Loss, Beats Revenue Estimates
• Positive Sentiment: Analyst upgrade/target raise: Citizens JMP raised its price target to $176 and kept a “market outperform” rating, signaling strong upside to Street models. Benzinga: Citizens JMP raises PT
• Positive Sentiment: Analyst raise: Guggenheim lifted its target to $143 and maintained a “buy” rating, adding another constructive analyst signal. Benzinga: Guggenheim raises PT
• Positive Sentiment: Near‑term clinical/regulatory catalysts remain: PDUFA goal date for the sNDA in acquired hypothalamic obesity on March 20, plus March topline readouts from Phase 3 programs (EMANATE and a Japanese cohort) that could significantly re‑rate the story. GlobeNewswire: Rhythm Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Analyst trim but still constructive: Wells Fargo cut its target to $136 but kept an “overweight” rating, signaling continued confidence despite a smaller upside. Benzinga: Wells Fargo lowers PT
• Neutral Sentiment: Needham lowered its target to $139 but maintained a “buy”—another sign that sell‑side views remain broadly positive even as models are adjusted. TickerReport: Needham lowers PT
• Negative Sentiment: Large near‑term spending guide: Rhythm told investors it expects $385M–$415M in 2026 non‑GAAP operating expenses as hypothalamic‑obesity (HO) launch preparations accelerate — higher burn that may pressure margins and cash runway in the near term. Seeking Alpha: Rhythm anticipates $385M–$415M in 2026 non‑GAAP operating expenses

Analyst Upgrades and Downgrades

A number of research firms have weighed in on RYTM. Oppenheimer lowered Rhythm Pharmaceuticals from an “outperform” rating to a “market perform” rating in a report on Wednesday, November 5th. Wells Fargo & Company reduced their price target on Rhythm Pharmaceuticals from $145.00 to $136.00 and set an “overweight” rating for the company in a research report on Friday. The Goldman Sachs Group upped their price objective on Rhythm Pharmaceuticals from $141.00 to $157.00 and gave the stock a “buy” rating in a research note on Friday, December 12th. HC Wainwright lifted their target price on Rhythm Pharmaceuticals from $123.00 to $125.00 and gave the company a “buy” rating in a research note on Tuesday, January 20th. Finally, Guggenheim boosted their target price on shares of Rhythm Pharmaceuticals from $140.00 to $143.00 and gave the stock a “buy” rating in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $133.71.

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.