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Rhythm Pharmaceuticals, Inc.

RYTMHealthcareNASDAQ

Biotechnology · Last scanned Jun 3, 2026

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Financials · Annual
Revenue
$189.8M
+45.8% YoY
Net Income
-$196.5M
+24.6% YoY
EBITDA
-$174.1M
+26.9% YoY
Free Cash Flow
-$150.7M

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About Rhythm Pharmaceuticals, Inc.

Headquartered within the healthcare sector, Rhythm Pharmaceuticals, Inc. focuses on Biotechnology services and products. Rhythm Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the rare neuroendocrine diseases in the United States and internationally. With a market capitalization of $5.79B, it sits in mid-cap territory. The company's lead product candidate is IMCIVREE (setmelanotide), a rare melanocortin-4 receptor for the treatment of pro-opiomelanocortin (POMC), proprotein convertase subtilisin/kexin type 1, leptin receptor (LEPR) deficiency obesity, Bardet-Biedl and Alström syndrome, Prader-Willi syndrome, and hypothalamic obesity.

Key stats
Market Cap$5.79B
Fwd P/E-74.21
EPS$-3.13
Beta1.94
52W Change+31.0%
ROE-101.2%
Analysis

Rhythm Pharmaceuticals, Inc. holds $340.6M in cash against $112.3M in total debt, giving it a net cash position. This means the company could theoretically pay off all its debt and still have cash remaining. The company is burning cash, with free cash flow at -$150.7M. This typically occurs when a company is investing aggressively in growth, but sustained cash burn can strain the balance sheet. Return on equity stands at -101.2%, which is negative for the sector. ROE measures how effectively a company uses shareholder capital to generate profits. Revenue has grown from $23.6M (2022) to $189.8M (2025), reflecting a 703% increase over the period.

Rhythm Pharmaceuticals, Inc.'s elevated beta suggests the stock experiences more pronounced price movements than the overall market, which increases both upside potential and downside risk. The strong cash position relative to debt provides a financial cushion that reduces balance sheet risk. Negative free cash flow means the company is currently spending more than it generates, which may require future fundraising or debt if the trend continues. Understanding these risk dimensions helps frame what to watch going forward as conditions evolve for Rhythm Pharmaceuticals, Inc. and its sector.

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