Rhythm Pharmaceuticals (NASDAQ:RYTM) Issues Quarterly Earnings Results

Rhythm Pharmaceuticals (NASDAQ:RYTM) posted its quarterly earnings results on Tuesday. The company reported ($0.83) earnings per share for the quarter, topping the consensus estimate of ($0.86) by $0.03, Zacks reports. Rhythm Pharmaceuticals had a negative return on equity of 266.56% and a negative net margin of 103.57%.The business had revenue of $60.11 million during the quarter, compared to the consensus estimate of $55.78 million. During the same period in the prior year, the company posted ($0.81) EPS. The firm’s revenue for the quarter was up 83.8% compared to the same quarter last year.

Here are the key takeaways from Rhythm Pharmaceuticals’ conference call:

• IMCIVREE launch for acquired hypothalamic obesity (HO) has started strongly with >150 start forms in six weeks, ~110 unique prescribers (≈80% new to IMCIVREE) and early payer approvals and receptivity.
• Rhythm achieved a major international advance with a faster-than-expected EU marketing authorization for HO and the Japanese NDA accepted, positioning launches/negotiations in Europe and a potential Japan approval by end of 2026.
• Q1 results show momentum with $60.1M net revenue (5% sequential growth), an 8% increase in patients on reimbursed therapy QoQ, and about $341M cash expected to fund operations for at least 24 months.
• Operating costs and losses remain high—Q1 operating expenses were ~$105M (non‑GAAP $82M), GAAP net loss of $0.83/sh, and FY non‑GAAP OpEx guidance of $385–415M—which increases near‑term cash burn and pressure on profitability.

Rhythm Pharmaceuticals Stock Performance

Shares of RYTM traded up $4.01 during mid-day trading on Wednesday, hitting $96.32. 856,866 shares of the stock were exchanged, compared to its average volume of 787,183. The company has a market cap of $6.60 billion, a PE ratio of -30.94 and a beta of 1.94. Rhythm Pharmaceuticals has a 52-week low of $55.31 and a 52-week high of $122.20. The firm has a 50-day moving average of $87.97 and a two-hundred day moving average of $99.44.

Key Headlines Impacting Rhythm Pharmaceuticals

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

• Positive Sentiment: Wells Fargo raised its price target to $144 and maintained an “overweight” rating, implying meaningful upside versus current levels. Wells Fargo price target raise
• Positive Sentiment: Royal Bank of Canada increased its price target to $137 and kept an “outperform” stance, supporting bullish analyst momentum. RBC price target raise
• Positive Sentiment: Q1 results beat expectations: EPS loss of $0.83 vs. a -$0.86 estimate and revenue of $60.1M (up ~84% y/y), driven by initial commercial sales of IMCIVREE and >150 patient start forms in the first six weeks after U.S. approval. These operational signs support revenue growth prospects. Q1 2026 results and business update
• Positive Sentiment: Regulatory and clinical catalysts: IMCIVREE received European Commission marketing authorization for acquired hypothalamic obesity and Japan NDA review is underway — both broaden addressable markets. Regulatory updates
• Positive Sentiment: Upcoming investor visibility: CEO David Meeker is scheduled for a fireside chat at the Bank of America Global Healthcare Conference (May 13), which could accelerate analyst coverage and liquidity. BoA conference participation
• Neutral Sentiment: Data and narrative pieces are circulating (EMANATE results, IMCIVREE expansion), offering mixed read-throughs on long-term growth; these items may influence sentiment as more data are digested. Long-term IMCIVREE analysis
• Negative Sentiment: Profitability remains a concern: Rhythm reported a negative net margin (~-103.6%) and negative ROE (~-266.6%). The company is still loss-making despite the beat, so investors need to balance revenue momentum against continuing structural losses. Earnings detail and metrics

Analyst Ratings Changes

Several research firms have weighed in on RYTM. Needham & Company LLC dropped their price target on Rhythm Pharmaceuticals from $139.00 to $130.00 and set a “buy” rating for the company in a research note on Tuesday, March 17th. Stifel Nicolaus set a $131.00 price target on Rhythm Pharmaceuticals in a research note on Thursday, February 26th. Wall Street Zen downgraded Rhythm Pharmaceuticals from a “hold” rating to a “sell” rating in a research note on Sunday, April 19th. Morgan Stanley dropped their price target on Rhythm Pharmaceuticals from $150.00 to $136.00 and set an “overweight” rating for the company in a research note on Tuesday, March 17th. Finally, Canaccord Genuity Group decreased their price objective on Rhythm Pharmaceuticals from $141.00 to $140.00 and set a “buy” rating on the stock in a report on Monday, March 2nd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $131.63.

Insider Activity at Rhythm Pharmaceuticals

In other news, CAO Christopher Paul German sold 5,614 shares of the company’s stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $89.56, for a total transaction of $502,789.84. Following the sale, the chief accounting officer directly owned 160 shares of the company’s stock, valued at $14,329.60. This represents a 97.23% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Hunter C. Smith sold 4,385 shares of the company’s stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $101.26, for a total value of $444,025.10. Following the sale, the chief financial officer directly owned 110,512 shares in the company, valued at $11,190,445.12. This trade represents a 3.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 24,020 shares of company stock worth $2,375,805 over the last ninety days. Insiders own 6.10% of the company’s stock.

Institutional Trading of Rhythm Pharmaceuticals

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Smartleaf Asset Management LLC raised its holdings in Rhythm Pharmaceuticals by 39.5% during the 4th quarter. Smartleaf Asset Management LLC now owns 399 shares of the company’s stock valued at $43,000 after buying an additional 113 shares during the period. Osaic Holdings Inc. raised its holdings in Rhythm Pharmaceuticals by 65.9% during 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 period. State of Wyoming purchased a new stake in Rhythm Pharmaceuticals during the 2nd quarter valued at $67,000. Persistent Asset Partners Ltd purchased a new stake in Rhythm Pharmaceuticals during the 4th quarter valued at $155,000. Finally, Abel Hall LLC purchased a new stake in Rhythm Pharmaceuticals during the 4th quarter valued at $229,000.

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.