Revenue: As of FY2026 Q1, the actual value is USD 13.29 M.EPS: As of FY2026 Q1, the actual value is USD 1.33.EBIT: As of FY2026 Q1, the actual value is USD -2.334 M.<h4>Revenue</h4>RYTHM, Inc.’s total revenue from continuing operations increased by $12,748 thousand, or 2370%, for the three months ended March 31, 2026, reaching $13,286 thousand, compared to $538 thousand in the same period of 2025. Non-licensing Revenue: Increased by $2,773 thousand, or 515%, to $3,311 thousand for the three months ended March 31, 2026, from $538 thousand in the prior year period. Licensing Revenue: Commenced in May and August 2025, contributing $9,975 thousand for the three months ended March 31, 2026, with no comparable revenue in the prior year period. Related parties contributed $10,000 thousand to revenue in Q1 2026, up from $80 thousand in Q1 2025.<h4>Operational Metrics</h4><ul><li>Gross Profit: Increased substantially to $10,397 thousand (78% of total revenue) for the three months ended March 31, 2026, from $90 thousand (17% of total revenue) in the same period of 2025, primarily due to the commencement of Licensing Revenue.</li><li>Selling, General and Administrative (SG&amp;A) Expenses: Increased by $10,640 thousand, or 281%, to $14,431 thousand for the three months ended March 31, 2026, from $3,791 thousand in Q1 2025.</li><li>Operating Loss from Continuing Operations: Increased to - $4,034 thousand for the three months ended March 31, 2026, from - $3,701 thousand in Q1 2025.</li><li>Interest (Expense) Income, Net: Shifted to a net expense of - $1,742 thousand in Q1 2026, compared to net income of $1 thousand in Q1 2025.</li><li>Change in Fair Value of Warrant Liabilities: Resulted in a gain of $105 thousand in Q1 2026, down from a gain of $407 thousand in Q1 2025.</li><li>Income Tax Benefit: Recognized a benefit of $25,593 thousand for the three months ended March 31, 2026, compared to $0 thousand in Q1 2025.</li><li>Net Income (Loss): RYTHM, Inc. reported a net income of $19,922 thousand for the three months ended March 31, 2026, a significant improvement from a net loss of - $1,626 thousand in Q1 2025.</li><li>Adjusted EBITDA (non-GAAP): Improved to - $21 thousand for the three months ended March 31, 2026, from - $2,757 thousand in Q1 2025.</li></ul><h4>Cash Flow</h4><ul><li>Net Cash Provided by (Used in) Operating Activities: Generated $1,043 thousand in cash from operating activities for the three months ended March 31, 2026, a positive shift from - $6,720 thousand used in operating activities in Q1 2025.</li><li>Cash and Cash Equivalents at End of Period: Totaled $33,261 thousand as of March 31, 2026, compared to $24,449 thousand as of March 31, 2025.</li></ul><h4>Unique Metrics</h4><ul><li>Prepaid License Rights (Related Party): Net carrying amount of $45,957 thousand as of March 31, 2026, down from $49,400 thousand as of December 31, 2025.</li><li>Total Related Party Debt: Remained at $72,000 thousand as of March 31, 2026, with $72,000 thousand classified as current, compared to $45,000 thousand long-term related party debt as of December 31, 2025.</li><li>Outstanding Warrants: Totaled 11,034,325 warrants as of March 31, 2026, with a weighted-average exercise price of $5.01, including approximately 9,900 thousand held by subsidiaries of Green Thumb.</li></ul><h4>Future Outlook and Strategy</h4>RYTHM, Inc. has amended its licensing agreements with GTI Core, effective April 1, 2026, to replace sales-based royalty consideration with fixed annual fees. Under the new terms, the company is entitled to aggregate fixed payments of $70 million per year, subject to annual escalation based on a 2x multiple of CPI changes starting January 1, 2027, with a maximum year-over-year increase of 10%. The company expects to recognize approximately $308.4 million in contractual Licensing Revenue from these fixed fees through August 27, 2030, recognizing this amount ratably over the license term. Management believes that the company’s current cash and cash equivalents of $33.3 million, combined with anticipated contractual Licensing Revenue and the ability to address outstanding Convertible Notes, will provide sufficient liquidity for the next 12 months. Convertible Notes totaling $80.0 million mature through February 2027, with $72.0 million held by a related party, and management anticipates these obligations will be managed through extension or conversion, consistent with historical practice.

RYTHM | 10-Q: FY2026 Q1 Revenue: USD 13.29 M