10-Q · May 5, 2026
Rhythm Pharmaceuticals reported Q1 2026 revenue of $60.1 million, beating expectations of $56.2 million, while EPS of -$0.83 slightly missed estimates. The company anticipates $385 million to $415 million in operating…
Earnings analysis · 10-Q
RYTM earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Rhythm delivered a strong Q2 top-line result, with $71.3 million of IMCIVREE revenue up 19% sequentially and 47% year over year, led by a 38% sequential increase in U.S. revenue after the acquired-HO launch. Margins and…
Read full summary
Rhythm delivered a strong Q2 top-line result, with $71.3 million of IMCIVREE revenue up 19% sequentially and 47% year over year, led by a 38% sequential increase in U.S. revenue after the acquired-HO launch. Margins and EPS improved sequentially, but the company remains loss-making as SG&A expanded 47% year over year to support commercialization, while a $3.8 million France rebate charge reduced international sales. Liquidity of $330.9 million supports at least 24 months of planned operations, though management continues to expect additional financing needs as it funds global launches and pipeline trials.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.73
What stood out
-
Revenue accelerated to $71.3M
Q2 product revenue was $71.3 million, up 19% sequentially and 47% from $48.5 million in Q2 2025. Revenue exceeded the reported $67.2 million consensus estimate by 6.04%.
-
U.S. acquired-HO launch drove growth
U.S. revenue reached $51.0 million, up $14.1 million, or 38%, versus Q1, driven primarily by acquired hypothalamic obesity demand and continued BBS growth. More than 400 acquired-HO patient start forms had been received from approximately 300 prescribers as of June 30.
-
Operating leverage improved sequentially
Gross margin was 87.5% ($71.3 million revenue less $8.9 million cost of sales), down from 88.1% in Q1 but still high. Operating margin improved to negative 68.1% from negative 87.1% in Q1 and negative 93.4% in Q2 2025 as revenue outpaced expenses.
-
EPS beat and sequential improvement
Diluted EPS was negative $0.73, improving from negative $0.83 in Q1 and negative $0.75 in Q2 2025, and ahead of the negative $0.84 consensus estimate.
-
Cash runway supports development plan
Operating cash use improved to $53.3 million for the first six months of 2026 from $63.7 million a year earlier. Cash, cash equivalents and short-term investments were $330.9 million at June 30, which management says funds planned operations for at least 24 months.
-
Clinical data support MC4R platform
The acquired-HO pipeline and launch opportunity advanced: the Phase 3 TRANSCEND study showed an 18.4% placebo-adjusted BMI reduction, while preliminary RM-718 data showed an 11.6% mean BMI reduction at 16 weeks in 7 patients.
What to watch
-
Commercial buildout keeps losses elevated
Despite 47% revenue growth, net loss increased 6% year over year to $49.3 million. SG&A rose 47% to $67.4 million, including $18.7 million higher personnel costs, while R&D rose 3% to $43.4 million.
-
France rebate charge pressured ex-U.S. sales
Ex-U.S. revenue declined 13% sequentially to $20.3 million because of a $3.8 million retrospective rebate charge in France, of which $3.1 million related to revenue recorded before Q2. This illustrates reimbursement and rebate volatility in international markets.
-
Receivables and inventory absorbed cash
Working-capital growth consumed cash: accounts receivable increased $14.3 million and inventory increased $5.4 million in the first six months of 2026. Management also states it may need additional funding beyond its stated 24-month cash runway.
-
Royalty financing and milestones weigh on cash
The company has paid $51.5 million under its revenue-interest financing agreement as of June 30, 2026, and potential milestone payments of up to $18 million could become payable during the next 12 months. These obligations can constrain cash available for development and commercialization.
-
Early RM-718 data have small-sample risk
Management’s preliminary RM-718 data are based on only 11 enrolled acquired-HO patients, with 7 evaluable at 16 weeks; 2 participants discontinued because of adverse events. The filing cautions preliminary and interim data may change after full review and audit.
-
New data-security compliance exposure
A material regulatory-risk update notes the U.S. DOJ Data Security Program became effective April 8, 2025 and fully enforceable July 9, 2025. Noncompliance could result in significant civil or criminal penalties and may require changes to data transfers and vendors.
Management's outlook
The 10-Q provides no quantitative revenue or EPS outlook. Management expects existing cash, cash equivalents and short-term investments of $330.9 million to fund planned operations for at least 24 months; it anticipates a Japan acquired-HO launch by year-end 2026, a pivotal bivamelagon Phase 3 initiation by year-end 2026, and European acquired-HO launches beginning in 2027.
Earlier filings 4
10-K · February 26, 2026
Rhythm is a commercial-stage biopharma focused on MC4R agonists led by IMCIVREE (setmelanotide). The company reported continued product revenue growth (Q4 2025 net product revenues $57,253,000) while remaining…
10-Q · August 5, 2025
Rhythm Pharmaceuticals reported a significant revenue increase of 68% quarter-over-quarter, from $29 million in Q2 2024 to $49 million in Q2 2025. However, net loss widened compared to the previous year, reflecting…
10-K · February 28, 2025
Rhythm reports a commercial-stage business centered on IMCIVREE (setmelanotide) with clear near-term clinical catalysts (Phase 3 topline for acquired hypothalamic obesity expected Q2 2025) and multi-quarter revenue…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.