RYTHM Q2 Revenue Jumps 73% to $23M, Turns Profitable, but Pulls Guidance on Regulatory Uncertainty
RYM sits 47% above its 52-week low of $14 on elevated volume (1.9× avg).
Summary
RYTHM posted Q2 2026 revenue of $23 million, up 73% sequentially, with net income of $1.2 million and record THC beverage depletions. The company withdrew its Q3 outlook due to federal regulatory uncertainty effective November 2026.
Key Events · Earnings and Guidance · RYM
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Revenue Surges 73% Sequentially
Q2 2026 revenue reached $23.0 million, up from $13.3 million in Q1 2026, driven by the first full quarter of a $70 million annual licensing agreement and accelerating THC beverage sales.
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Swings to Net Profit
Net income was $1.2 million, or $0.09 per share, compared to a $7.2 million loss a year ago, aided by a $1.2 million income tax benefit.
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Record THC Beverage Depletions
THC beverage depletions hit a record ~25,000 cases in June 2026 across 18 states, up from ~7,000 in June 2025, reflecting strong consumer demand in traditional retail channels.
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Cash Flow Turns Positive
Cash from operations was $8.7 million for the quarter, boosting cash and equivalents to $41.9 million at quarter-end.
Analysis · RYM · Industrial Applications And Services
A breakout quarter saw revenue leap 73% sequentially to $23 million, swinging the company to a $1.2 million net profit and generating $8.7 million in operating cash flow. THC beverage depletions reached a record 25,000 cases, and the $70 million annual licensing deal with Green Thumb is now fully contributing. Yet the company withdrew its Q3 outlook, citing the looming November 2026 federal ban on hemp-derived THC products — a regulatory cliff that overshadows strong operational momentum and could threaten the core growth engine.
How filings like this one have moved
In the 30 days to Oct 18, 2026, 29.6% of the 1460 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.49%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, RYM was trading at $20.65 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $45M. The 52-week trading range was $14.00 to $53.65. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.