Rhythm Pharmaceuticals (NASDAQ:RYTM) Releases Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Rhythm Pharmaceuticals (NASDAQ:RYTM) announced its quarterly earnings data on Tuesday. The company reported ($0.83) earnings per share (EPS) for the quarter, topping the consensus estimate 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 firm had revenue of $60.11 million during the quarter, compared to analysts’ expectations of $55.78 million. During the same period last year, the business posted ($0.81) earnings per share. The company’s revenue for the quarter 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 Stock Performance

Shares of NASDAQ:RYTM traded up $7.23 during trading on Tuesday, reaching $92.81. The stock had a trading volume of 1,148,859 shares, compared to its average volume of 778,281. The business has a fifty day moving average price of $88.12 and a 200-day moving average price of $99.56. The stock has a market cap of $6.36 billion, a PE ratio of -29.85 and a beta of 1.94. Rhythm Pharmaceuticals has a 1-year low of $55.31 and a 1-year high of $122.20.

Insider Buying and Selling

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

Hedge Funds Weigh In On Rhythm Pharmaceuticals

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Smartleaf Asset Management LLC boosted its stake in Rhythm Pharmaceuticals by 39.5% during the fourth 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 last quarter. Osaic Holdings Inc. boosted its stake in Rhythm Pharmaceuticals by 65.9% during the second quarter. Osaic Holdings Inc. now owns 979 shares of the company’s stock worth $62,000 after buying an additional 389 shares during the last quarter. State of Wyoming acquired a new position in Rhythm Pharmaceuticals during the second quarter worth $67,000. Persistent Asset Partners Ltd acquired a new position in Rhythm Pharmaceuticals during the fourth quarter worth $155,000. Finally, Abel Hall LLC acquired a new position in Rhythm Pharmaceuticals during the fourth quarter worth $229,000.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on RYTM shares. Morgan Stanley reduced their price objective on Rhythm Pharmaceuticals from $150.00 to $136.00 and set an “overweight” rating for the company in a research note on Tuesday, March 17th. Zacks Research upgraded Rhythm Pharmaceuticals from a “strong sell” rating to a “hold” rating in a research note on Tuesday, February 17th. Citigroup reduced their price objective on Rhythm Pharmaceuticals from $136.00 to $131.00 and set a “buy” rating for the company in a research note on Tuesday, March 17th. Telsey Advisory Group set a $143.00 price objective on Rhythm Pharmaceuticals in a research note on Thursday, March 12th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Rhythm Pharmaceuticals in a research note on Tuesday, April 21st. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Rhythm Pharmaceuticals presently has a consensus rating of “Moderate Buy” and a consensus target price of $131.13.

Rhythm Pharmaceuticals Company Profile

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.