RYTHM Reports Q3 2026 Financial Results

ROLLING MEADOWS – RYTHM, Inc. posted Q3 2026 revenue of $23.9 million, up 4% from the prior quarter and nearly six times its Q3 2025 figure. The company recorded a net loss of $533,000 alongside operating income from continuing operations of approximately $1 million, a material reversal from the $10.6 million operating loss in the same period last year. Cash ended the quarter at $48.2 million, supported by $6.3 million in operating cash flow. Adjusted EBITDA of $5.9 million came in slightly below the $6.4 million from Q2.

The standout result for the quarter was the company’s THC beverage business. Depletions [distributor shipments to retailers] rose approximately 15% sequentially and 185% YoY, reaching an annualized run rate of 320,000 cases. The retail footprint for RYTHM’s THC beverages expanded to roughly 8,000 doors across 18 states, including the United Center in Chicago and Opry Entertainment Group venues. Señorita appeared at Lollapalooza, Riot Fest, and Shaky Knees, while RYTHM became the official THC beverage partner of Chicago’s Navy Pier.

Hemp-derived product revenue climbed 15% from Q2 to $6.4 million, driving much of the sequential top-line improvement. The licensing business, a fixed-fee arrangement with Green Thumb Industries (GTI), now totaling $70.25 million annually after Señorita was added to the structure – continued to anchor operating cash generation.

On the corporate side, stockholders voted in August to lift a 49.99% beneficial ownership cap on GTI’s position, effective October 10, 2026. GTI has since disclosed it will begin consolidating RYTHM’s financial results into its own reporting, though RYTHM will continue filing independently with the SEC.

The more pressing development is regulatory. A federal deadline for changes that would prohibit RYTHM’s hemp-derived THC products in their current form has been extended from November 12 to December 11, 2026, but Congress has yet to deliver a legislative fix. Illinois restrictions take effect November 12, narrowing sales in that state sooner. Facing that uncertainty, RYTHM issued no Q4 forecast.

With all numbers considered, RYTHM enters Q4 with a solid balance sheet, proven brand activations and strong consumer momentum, as evidenced by the depletion data. Meanwhile, December 11 is a hard stop that revenue growth alone cannot navigate. For investors and industry watchers, the next several weeks will carry more weight than the last nine months combined.