Rhythm Pharmaceuticals (NASDAQ:RYTM) Announces Earnings Results

Rhythm Pharmaceuticals (NASDAQ:RYTM) posted its quarterly earnings data on Thursday. The company reported ($0.73) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.79) by $0.06, FiscalAI reports. The firm had revenue of $57.25 million during the quarter, compared to analysts’ expectations of $56.16 million. Rhythm Pharmaceuticals had a negative net margin of 110.32% and a negative return on equity of 433.21%. The firm’s quarterly revenue was up 36.9% on a year-over-year basis. During the same quarter last year, the company posted ($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 6.0%

RYTM traded down $5.86 during trading on Friday, hitting $92.22. 438,898 shares of the stock were exchanged, compared to its average volume of 652,387. The firm has a market capitalization of $6.15 billion, a P/E ratio of -29.83 and a beta of 2.00. Rhythm Pharmaceuticals has a 1-year low of $45.90 and a 1-year high of $122.20. The stock has a fifty day moving average price of $104.28 and a two-hundred day moving average price of $103.50.

Analyst Ratings Changes

Several research analysts have recently commented on RYTM shares. Oppenheimer lowered shares of Rhythm Pharmaceuticals from an “outperform” rating to a “market perform” rating in a research note on Wednesday, November 5th. Needham & Company LLC dropped their price target on shares of Rhythm Pharmaceuticals from $148.00 to $139.00 and set a “buy” rating for the company in a research note on Thursday. UBS Group reiterated a “buy” rating on shares of Rhythm Pharmaceuticals in a research note on Wednesday, December 17th. Zacks Research upgraded Rhythm Pharmaceuticals from a “strong sell” rating to a “hold” rating in a report on Tuesday, February 17th. Finally, Citigroup reaffirmed an “outperform” rating on shares of Rhythm Pharmaceuticals in a research report on Friday, December 12th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $133.71.

Insiders Place Their Bets

In related news, CFO Hunter C. Smith sold 4,385 shares of the company’s stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $101.26, for a total value of $444,025.10. Following the completion of the sale, the chief financial officer owned 110,512 shares in the company, valued at $11,190,445.12. This represents a 3.82% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Pamela J. Cramer sold 3,350 shares of the stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $111.00, for a total transaction of $371,850.00. Following the sale, the insider owned 20,814 shares of the company’s stock, valued at approximately $2,310,354. This represents a 13.86% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 25,003 shares of company stock worth $2,589,015 over the last ninety days. Corporate insiders own 6.10% of the company’s stock.

Hedge Funds Weigh In On Rhythm Pharmaceuticals

Institutional investors have recently added to or reduced their stakes in the stock. Tower Research Capital LLC TRC boosted its holdings in Rhythm Pharmaceuticals by 477.6% in the 2nd quarter. Tower Research Capital LLC TRC now owns 6,111 shares of the company’s stock valued at $386,000 after purchasing an additional 5,053 shares in the last quarter. Cibc World Markets Corp acquired a new stake in shares of Rhythm Pharmaceuticals in the 4th quarter valued at approximately $375,000. E Fund Management Co. Ltd. lifted its holdings in shares of Rhythm Pharmaceuticals by 6.8% in the 2nd quarter. E Fund Management Co. Ltd. now owns 5,761 shares of the company’s stock valued at $364,000 after buying an additional 365 shares during the period. FORA Capital LLC purchased a new stake in shares of Rhythm Pharmaceuticals in the third quarter valued at approximately $363,000. Finally, CIBC Asset Management Inc acquired a new position in Rhythm Pharmaceuticals during the fourth quarter worth $305,000.

Key Rhythm Pharmaceuticals News

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

• Positive Sentiment: Beat on the quarter — Q4 EPS was -$0.73 vs. consensus -$0.79 and revenue was $57.3M (+36.9% YoY), showing commercial growth that supports valuation upside. Q4 results and revenue beat
• Positive Sentiment: Near-term clinical/regulatory catalysts — PDUFA for setmelanotide in acquired hypothalamic obesity set for March 20, 2026, plus topline readouts from a Japanese cohort and the EMANATE Phase 3 trial expected in March; these binary events could drive big moves if positive. Company press release and business update
• Positive Sentiment: Analyst upgrades/target increases from some shops — Citizens Jmp raised its target to $176 and Guggenheim raised its target to $143, signaling continued bullish conviction from parts of the sell side. Analyst price target increases
• Neutral Sentiment: Mixed analyst adjustments — Wells Fargo trimmed its target to $136 but kept an overweight rating; Needham trimmed its target to $139 while maintaining a buy rating. These moves narrow upside but leave consensus sentiment positive. Wells Fargo and Needham notes TickerReport on Needham
• Negative Sentiment: Higher planned operating spend — Rhythm expects $385M–$415M in 2026 non‑GAAP operating expenses as HO launch preparations accelerate, which raises short‑term cash burn and increases the bar for future profitability. Expense guidance and launch plans

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.