Rhythm Pharmaceuticals (NASDAQ:RYTM) Announces Quarterly Earnings Results

Rhythm Pharmaceuticals (NASDAQ:RYTM) posted its quarterly earnings data on Thursday. The company reported ($0.73) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.79) by $0.06, FiscalAI reports. The firm had revenue of $57.25 million for the quarter, compared to the consensus estimate of $56.16 million. Rhythm Pharmaceuticals had a negative return on equity of 433.21% and a negative net margin of 110.32%.The business’s revenue for the quarter was up 36.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.72) EPS.

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 Stock Down 1.1%

Shares of RYTM traded down $1.08 during trading hours on Thursday, reaching $98.07. The stock had a trading volume of 983,171 shares, compared to its average volume of 661,749. The company has a market cap of $6.55 billion, a P/E ratio of -31.64 and a beta of 2.00. Rhythm Pharmaceuticals has a 52 week low of $45.90 and a 52 week high of $122.20. The firm has a 50-day moving average of $104.28 and a 200 day moving average of $103.50.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the company. Citigroup reiterated an “outperform” rating on shares of Rhythm Pharmaceuticals in a report on Friday, December 12th. Wall Street Zen downgraded shares of Rhythm Pharmaceuticals from a “hold” rating to a “sell” rating in a research report on Saturday, November 8th. Guggenheim lifted their price target on shares of Rhythm Pharmaceuticals from $120.00 to $140.00 and gave the stock a “buy” rating in a research report on Wednesday, December 17th. Royal Bank Of Canada began coverage on shares of Rhythm Pharmaceuticals in a report on Wednesday, February 18th. They issued an “outperform” rating and a $145.00 price objective on the stock. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rhythm Pharmaceuticals in a research note on Thursday, January 22nd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $134.14.

Insider Activity at Rhythm Pharmaceuticals

In other news, CFO Hunter C. Smith sold 4,385 shares of the 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 owned 110,512 shares of the company’s stock, valued at $11,190,445.12. This represents a 3.82% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 completion of the sale, the insider directly owned 20,814 shares in the company, valued at $2,310,354. This represents a 13.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 25,003 shares of company stock worth $2,589,015 over the last 90 days. Corporate insiders own 6.10% of the company’s stock.

Hedge Funds Weigh In On Rhythm Pharmaceuticals

A number of large investors have recently added to or reduced their stakes in RYTM. Invesco Ltd. lifted its holdings in shares of Rhythm Pharmaceuticals by 102.8% in the fourth quarter. Invesco Ltd. now owns 291,150 shares of the company’s stock valued at $31,165,000 after purchasing an additional 147,595 shares in the last quarter. Empowered Funds LLC lifted its stake in Rhythm Pharmaceuticals by 94.1% in the 4th quarter. Empowered Funds LLC now owns 4,164 shares of the company’s stock valued at $446,000 after acquiring an additional 2,019 shares in the last quarter. XTX Topco Ltd acquired a new position in Rhythm Pharmaceuticals during the 4th quarter worth approximately $1,117,000. Wellington Management Group LLP boosted its position in Rhythm Pharmaceuticals by 922.0% during the 4th quarter. Wellington Management Group LLP now owns 250,156 shares of the company’s stock worth $26,777,000 after acquiring an additional 225,679 shares during the last quarter. Finally, SummitTX Capital L.P. grew its stake in shares of Rhythm Pharmaceuticals by 580.2% during the 4th quarter. SummitTX Capital L.P. now owns 80,729 shares of the company’s stock worth $8,641,000 after acquiring an additional 68,860 shares in the last quarter.

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.