RYTM Healthcare

Rhythm Pharmaceuticals, Inc.

$86.44-7.49%

Price as of close on Nov 3, 2026 · Financials updated Sep 30, 2026

Basics

Sector: Healthcare
Industry: Biotechnology
Country: United States
Market cap: 6.0B USD
Enterprise value: 5.7B USD
Full-time employees: 414

Overall health

Strength: growing faster than most peersgrowing faster than peers
Drawback: less profitable than most peersless profitable than peers
Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings
Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 1.97 vs a peer median of 0.63) and more debt relative to equity (1.03× vs a peer median of 0.22×)higher risk: bigger price swings (beta 1.97 vs peers 0.63) and more debt vs equity (1.03× vs peers 0.22×)

Ranks #949 of 1,157 healthcare companies (bottom 19%)

See how it ranks against its peers

Worth knowing

Shareholders being diluted. Shares outstanding up 22% from December 2022 to August 2026.
Rhythm Pharmaceuticals had 22% more shares at August 2026 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.Rhythm Pharmaceuticals had 22% more shares at August 2026 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.
Earnings slid into a loss. Loss per share this year after a profit last year.
Rhythm Pharmaceuticals made a loss per share in its latest year after a profit the year before.
Stock-based pay is a large cost. Stock pay was 35% of revenue in 2025.
Rhythm Pharmaceuticals paid employees $67M in stock in 2025, 35% of its $190M revenue. It doesn't use cash, so it flatters cash flow, but it is a real cost to shareholders through dilution.
Operating loss narrowing. Operating margin -101% in 2025, the smallest loss relative to revenue of the last 5 years.
Rhythm Pharmaceuticals still lost money on operations in 2025 (margin -101%), but that was its smallest operating loss relative to revenue in the 5 years of filings we have.

StockQuotient Score

32/ 100

Oct 5 32 → Nov 4 32

Valuation

Is the price right?

8/100

Weak

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why

Weaker than most peers on:

▼ Earnings yield
▼ EBITDA yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield-0.2%

SEC filings · 12 months to Jun 2026Negative (a loss or cash outflow), so it counts as zero whatever the share price30% base weight · Z-score -1.00Sector median: 0.0148 · MAD: 0.0148

EBITDA yield-3.5%

SEC filings · 12 months to Jun 2026Negative (a loss or cash outflow), so it counts as zero whatever the share price50% base weight · Z-score -1.00Sector median: 0.0401 · MAD: 0.0401

Free cash flow yield-1.8%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingNegative (a loss or cash outflow), so it counts as zero whatever the share price20% base weight · Z-score 0.00Sector median: 0.0000 · MAD: 0.0000

Other data (not scored)

Book yield1.7%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.3716 · MAD: 0.2313

Growth

Is it growing?

91/100

Strong

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

12-month revenue up 10.5%

Why

Stronger than most peers on:

▲ 3-yr revenue
▲ Revenue growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growthUnavailable

Earnings per share turned from a profit to a loss33% base weight · Z-score -1.99Sector median: 0.0976 · MAD: 0.2991

3-year revenue growth76.3%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score 8.39Sector median: 0.0584 · MAD: 0.0840

Revenue growth53.5%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 4.87Sector median: 0.0609 · MAD: 0.0974

Profitability

Does it earn well?

16/100

Weak

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

Operating margin rose 7.3 points to -83.6%

Why

Weaker than most peers on:

▼ ROIC
▼ Operating margin
▼ ROA

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin-83.6%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -7.45Sector median: 0.0706 · MAD: 0.1217

Return on assets-2.1%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.69Sector median: 0.0166 · MAD: 0.0537

Return on invested capital-110.5%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -11.47Sector median: 0.0471 · MAD: 0.1004

Other data (not scored)

Gross margin89.0%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.4697 · MAD: 0.2310

Return on equity-8.7%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0330 · MAD: 0.1225

Risk

Debt, liquidity, price swings

Higher

Higher relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ Beta
▼ Debt / equity

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta1.97

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score -3.97Sector median: 0.6250 · MAD: 0.3380

Current ratio3.45×

SEC filings · latest balance sheetReported value33% base weight · Z-score 0.62Sector median: 2.5860 · MAD: 1.3850

Debt / equity1.03×

SEC filings · latest balance sheetReported value33% base weight · Z-score -3.97Sector median: 0.2215 · MAD: 0.2039

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Rhythm Pharmaceuticals

Is Rhythm Pharmaceuticals getting weaker?: Its latest SEC filing (Aug 4, 2026) got stronger: operating margin rose 7.3 points to -83.6%. Its overall score is unchanged at 32/100 since Oct 28, 2026.
How is Rhythm Pharmaceuticals valued vs its peers?: Priced higher than most peers relative to what it earns. Valuation scores 8/100 against 1,393 healthcare peers. Earnings yield -0.2% vs a peer median of 1.5% (weaker than 100% of peers).Earnings yield -0.2% vs peers 1.5% (weaker than 100% of peers).
Is Rhythm Pharmaceuticals growing?: Yes, faster than most of its peers. Growth scores 91/100 against 1,393 healthcare peers. 3-year revenue growth 76.3% vs a peer median of 5.8% (stronger than 95% of peers).3-year revenue growth 76.3% vs peers 5.8% (stronger than 95% of peers).
How profitable is Rhythm Pharmaceuticals?: Less profitable than most of its peers. Profitability scores 16/100 against 1,393 healthcare peers. Return on invested capital -110.5% vs a peer median of 4.7% (weaker than 93% of peers).Return on invested capital -110.5% vs peers 4.7% (weaker than 93% of peers).
How risky is Rhythm Pharmaceuticals?: Higher risk relative to 1,393 healthcare peers, judged on debt, liquidity and share-price swings. Current ratio 3.45× vs a peer median of 2.59× (stronger than 61% of peers).Current ratio 3.45× vs peers 2.59× (stronger than 61% of peers). Beta 1.97 vs a peer median of 0.63 (weaker than 94% of peers).Beta 1.97 vs peers 0.63 (weaker than 94% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Aug 4, 2026 · compared with the quarter ended Mar 31, 2026

Got stronger

Operating margin rose 7.3 points to -83.6%

Worth watching: Rhythm Pharmaceuticals is in the bottom fifth of its sector on profitability. From 2021 to 2025, 63% of companies in that position posted a loss over the following year, against 4% for the top fifth.

	Previous quarter	Latest quarter	Change
Revenue (12 months)	217.2M USD	239.9M USD	+10.5%
Net income (12 months)	−6.3M USD	−9.0M USD	+42.1%
Operating margin	-90.9%	-83.6%	+7.3 pts
Debt	108.5M USD	106.1M USD	−2.2%
Cash	62.1M USD	65.6M USD	+5.6%
Shares outstanding	68.5M	68.9M	+0.5%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Industry: Biotechnology · 132 companies

Valuations in Biotechnology are within their usual range since 2016.

48% of months since 2016 were valued lower than now.
22% of companies are in the most expensive fifth of their own price-to-sales history.
Median price-to-sales is +530% vs the whole market, against a usual +637%.

2016Shaded: most expensive fifth of its range2026

Earnings-based measures are left out for now because many companies in Biotechnology are losing money.

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Gross margin	81.0%	91.0%	88.0%	89.7%	89.7%	▲ 0.0 pts
Operating margin	-5391.9%	-757.9%	-238.1%	-204.0%	-101.2%	▲ 103 pts
Net margin	-2207.1%	-766.2%	-238.5%	-200.3%	-103.6%	▲ 97 pts
Return on assets (ROA)	-21.1%	-47.4%	-55.5%	-66.4%	-40.9%	▲ 26 pts
Return on equity (ROE)	-24.5%	-68.5%	-108.8%	-1199.3%	-141.3%	▲ >999 pts
Free cash flow margin	-4642.9%	-734.9%	-175.9%	-87.5%	-61.5%	▲ 26 pts
Current ratio	7.10×	8.90×	5.58×	3.24×	4.41×	▲ 36%
Quick ratio	7.10×	8.83×	5.43×	3.08×	4.16×	▲ 35%
Debt to equity	—	—	0.63×	5.05×	0.78×	▼ 85%
Interest coverage	—	-34.45×	-13.27×	-12.89×	-9.33×	▲ 28%

RYTM price history

Price history is added with the daily price update and will appear after the next one.

Similar companies

Sector leaderboards

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Bringing the fundamentals into focus…

Overall health

Strength: growing faster than most peersgrowing faster than peers

Drawback: less profitable than most peersless profitable than peers

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings

Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 1.97 vs a peer median of 0.63) and more debt relative to equity (1.03× vs a peer median of 0.22×)higher risk: bigger price swings (beta 1.97 vs peers 0.63) and more debt vs equity (1.03× vs peers 0.22×)

Ranks #949 of 1,157 healthcare companies (bottom 19%)

See how it ranks against its peers

Worth knowing

Shareholders being diluted. Shares outstanding up 22% from December 2022 to August 2026.

Rhythm Pharmaceuticals had 22% more shares at August 2026 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.Rhythm Pharmaceuticals had 22% more shares at August 2026 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.

Earnings slid into a loss. Loss per share this year after a profit last year.

Rhythm Pharmaceuticals made a loss per share in its latest year after a profit the year before.

Stock-based pay is a large cost. Stock pay was 35% of revenue in 2025.

Rhythm Pharmaceuticals paid employees $67M in stock in 2025, 35% of its $190M revenue. It doesn't use cash, so it flatters cash flow, but it is a real cost to shareholders through dilution.

Operating loss narrowing. Operating margin -101% in 2025, the smallest loss relative to revenue of the last 5 years.

Rhythm Pharmaceuticals still lost money on operations in 2025 (margin -101%), but that was its smallest operating loss relative to revenue in the 5 years of filings we have.

Questions investors ask about Rhythm Pharmaceuticals

Is Rhythm Pharmaceuticals getting weaker?

Its latest SEC filing (Aug 4, 2026) got stronger: operating margin rose 7.3 points to -83.6%. Its overall score is unchanged at 32/100 since Oct 28, 2026.

How is Rhythm Pharmaceuticals valued vs its peers?

Priced higher than most peers relative to what it earns. Valuation scores 8/100 against 1,393 healthcare peers. Earnings yield -0.2% vs a peer median of 1.5% (weaker than 100% of peers).Earnings yield -0.2% vs peers 1.5% (weaker than 100% of peers).

Is Rhythm Pharmaceuticals growing?

Yes, faster than most of its peers. Growth scores 91/100 against 1,393 healthcare peers. 3-year revenue growth 76.3% vs a peer median of 5.8% (stronger than 95% of peers).3-year revenue growth 76.3% vs peers 5.8% (stronger than 95% of peers).

How profitable is Rhythm Pharmaceuticals?

Less profitable than most of its peers. Profitability scores 16/100 against 1,393 healthcare peers. Return on invested capital -110.5% vs a peer median of 4.7% (weaker than 93% of peers).Return on invested capital -110.5% vs peers 4.7% (weaker than 93% of peers).

How risky is Rhythm Pharmaceuticals?

Higher risk relative to 1,393 healthcare peers, judged on debt, liquidity and share-price swings. Current ratio 3.45× vs a peer median of 2.59× (stronger than 61% of peers).Current ratio 3.45× vs peers 2.59× (stronger than 61% of peers). Beta 1.97 vs a peer median of 0.63 (weaker than 94% of peers).Beta 1.97 vs peers 0.63 (weaker than 94% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

217.2M USD

239.9M USD

+10.5%

Net income (12 months)

−6.3M USD

−9.0M USD

+42.1%

Operating margin

-90.9%

-83.6%

+7.3 pts

Debt

108.5M USD

106.1M USD

−2.2%

Cash

62.1M USD

65.6M USD

+5.6%

Shares outstanding

68.5M

68.9M

+0.5%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Gross margin

81.0%

91.0%

88.0%

89.7%

▲ 0.0 pts

Operating margin

-5391.9%

-757.9%

-238.1%

-204.0%

-101.2%

▲ 103 pts

Net margin

-2207.1%

-766.2%

-238.5%

-200.3%

-103.6%

▲ 97 pts

Return on assets (ROA)

-21.1%

-47.4%

-55.5%

-66.4%

-40.9%

▲ 26 pts

Return on equity (ROE)

-24.5%

-68.5%

-108.8%

-1199.3%

-141.3%

▲ >999 pts

Free cash flow margin

-4642.9%

-734.9%

-175.9%

-87.5%

-61.5%

▲ 26 pts

Current ratio

7.10×

8.90×

5.58×

3.24×

4.41×

▲ 36%

Quick ratio

7.10×

8.83×

5.43×

3.08×

4.16×

▲ 35%

Debt to equity

—

0.63×

5.05×

0.78×

▼ 85%

Interest coverage

—

-34.45×

-13.27×

-12.89×

-9.33×

▲ 28%