Rhythm Pharmaceuticals (NASDAQ:RYTM) Releases Earnings Results, Beats Expectations By $0.06 EPS

Rhythm Pharmaceuticals (NASDAQ:RYTM) announced its quarterly earnings results on Thursday. The company reported ($0.73) EPS for the quarter, topping the consensus estimate of ($0.79) by $0.06, FiscalAI reports. The business had revenue of $57.25 million for the quarter, compared to analyst estimates of $56.16 million. Rhythm Pharmaceuticals had a negative return on equity of 433.21% and a negative net margin of 110.32%.The company’s quarterly revenue was up 36.9% on a year-over-year basis. During the same quarter in the previous year, the company 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 Trading Down 1.1%

RYTM traded down $1.08 during midday trading on Thursday, hitting $98.07. The company’s stock had a trading volume of 983,171 shares, compared to its average volume of 661,749. 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 price of $104.28 and a two-hundred day moving average price of $103.50. The firm has a market cap of $6.55 billion, a P/E ratio of -31.64 and a beta of 2.00.

Insider Activity at Rhythm Pharmaceuticals

In related news, insider Pamela J. Cramer sold 3,350 shares of the business’s stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $111.00, for a total value of $371,850.00. Following the completion of the sale, the insider directly owned 20,814 shares in the company, valued at approximately $2,310,354. The trade was a 13.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Hunter C. Smith sold 4,385 shares of the business’s 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 sale, the chief financial officer directly 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 25,003 shares of company stock worth $2,589,015 over the last three months. Corporate insiders own 6.10% of the company’s stock.

Institutional Investors Weigh In On Rhythm Pharmaceuticals

Several institutional investors have recently bought and sold shares of RYTM. Smartleaf Asset Management LLC raised its stake in shares of Rhythm Pharmaceuticals by 39.5% in the 4th quarter. Smartleaf Asset Management LLC now owns 399 shares of the company’s stock valued at $43,000 after acquiring an additional 113 shares during the period. Osaic Holdings Inc. boosted its position in Rhythm Pharmaceuticals by 65.9% in the 2nd quarter. Osaic Holdings Inc. now owns 979 shares of the company’s stock valued at $62,000 after buying an additional 389 shares during the last quarter. State of Wyoming acquired a new stake in shares of Rhythm Pharmaceuticals during the second quarter valued at about $67,000. Persistent Asset Partners Ltd acquired a new position in shares of Rhythm Pharmaceuticals in the fourth quarter worth about $155,000. Finally, Abel Hall LLC purchased a new position in Rhythm Pharmaceuticals in the fourth quarter valued at about $229,000.

Analysts Set New Price Targets

RYTM has been the topic of a number of research analyst reports. Canaccord Genuity Group boosted their target price on Rhythm Pharmaceuticals from $114.00 to $141.00 and gave the stock a “buy” rating in a research report on Friday, December 12th. Royal Bank Of Canada assumed coverage on shares of Rhythm Pharmaceuticals in a research report on Wednesday, February 18th. They issued an “outperform” rating and a $145.00 price objective on the stock. Citigroup restated an “outperform” rating on shares of Rhythm Pharmaceuticals in a report on Friday, December 12th. Stifel Nicolaus set a $131.00 price target on shares of Rhythm Pharmaceuticals in a report on Thursday. Finally, HC Wainwright raised their price objective on shares of Rhythm Pharmaceuticals from $123.00 to $125.00 and gave the stock a “buy” rating in a research note on Tuesday, January 20th. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $134.14.

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.