Rhythm Pharmaceuticals, Inc 10-Q for FY2025 Q2

Rhythm Pharmaceuticals, Inc. (RYTM)

10-Q 2025-08-05 For: 2025-06-30

Added on April 08, 2026

About this 10-Q

Rhythm Pharmaceuticals, Inc filed this 10-Q on August 5, 2025, covering the quarter ended June 30, 2025 (FY2025 Q2).

Headline figures

Quarter ended June 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $48.5M; up 66.8% from $29.08M a year earlier
Net loss: $46.63M; compared with a net loss of $32.26M a year earlier
Diluted EPS: -$0.75; compared with -$0.55 a year earlier

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Delaware	46-2159271
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value per share	RYTM	The Nasdaq Stock Market LLC (Nasdaq Global Market)


Large accelerated filer ☒	Accelerated filer ☐

Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐


		Page No.
PART I	FINANCIAL INFORMATION

	Item 1. Condensed Consolidated Financial Statements (Unaudited)	3

	Condensed Consolidated Balance Sheets	3

	Condensed Consolidated Statements of Operations and Comprehensive Loss	4


	Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity	5


	Condensed Consolidated Statements of Cash Flows	6

	Notes to Unaudited Condensed Consolidated Financial Statements	7

	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	26

	Item 3. Quantitative and Qualitative Disclosures About Market Risk	41

	Item 4. Controls and Procedures	41

PART II	OTHER INFORMATION

	Item 1. Legal Proceedings	42

	Item 1A. Risk Factors	42

	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	104

	Item 3. Defaults Upon Senior Securities	104

	Item 4. Mine Safety Disclosure	105

	Item 5. Other Information	105

	Item 6. Exhibits	105

SIGNATURES		107


	June 30,		December 31,
	2025		2024

Assets
Current assets:
Cash and cash equivalents	$	135,586	$	89,137
Short-term investments		155,444		231,428
Accounts receivable, net		26,122		18,512
Inventory		18,872		18,741
Prepaid expenses and other current assets		24,656		16,382
Total current assets		360,680		374,200
Property and equipment, net		297		632
Right-of-use asset		3,262		3,477
Intangible assets, net		5,747		6,174
Restricted cash		527		464
Other long-term assets		2,220		7,326
Total assets	$	372,733	$	392,273
Liabilities, Convertible Preferred Stock and Stockholders’ equity
Current liabilities:
Accounts payable	$	15,982	$	12,328
Accrued expenses and other current liabilities		69,185		62,658
Other current liability - LG Chem		40,000		37,704
Lease liability		510		—
Deferred revenue		—		1,286
Deferred royalty obligation, current		3,778		1,541
Total current liabilities		129,455		115,517
Long-term liabilities:
Deferred royalty obligation		106,014		108,269
Lease liability, non-current		3,681		3,938
Total liabilities		239,150		227,724
Commitments and contingencies (Note 14)
Series A convertible preferred stock, $0.001 par value: 150,000 shares authorized; 150,000 and 150,000 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively. Liquidation preference of $150,000 as of June 30, 2025.		145,491		142,820
Stockholders’ equity:
Preferred stock, $0.001 par value: 10,000,000 shares authorized; no shares issued and outstanding at June 30, 2025 and December 31, 2024		—		—
Common stock, $0.001 par value: 120,000,000 shares authorized; 63,913,185 and 62,390,654 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively		64		61
Additional paid-in capital		1,241,744		1,177,045
Accumulated other comprehensive (loss)		(2,248)		(39)
Accumulated deficit		(1,251,468)		(1,155,338)
Total stockholders’ equity		(11,908)		21,729
Total liabilities, convertible preferred stock and stockholders’ equity	$	372,733	$	392,273



	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Revenues:
Product revenue, net	$	48,502	$	29,078	$	86,220	$	55,045
License revenue		—		—		(5,014)		—
Total revenues		48,502		29,078		81,206		55,045
Costs and expenses:
Cost of sales		5,543		2,947		9,191		5,753
Research and development		42,308		30,194		79,281		158,858
Selling, general, and administrative		45,947		36,415		85,034		70,797
Total costs and expenses		93,798		69,556		173,506		235,408
Loss from operations		(45,296)		(40,478)		(92,300)		(180,363)
Other income (expense):
Other income (expense), net		1,576		302		932		824
Gain on settlement of forward contract		—		8,900		—		8,900
Interest expense		(5,817)		(4,603)		(11,226)		(9,358)
Interest income		3,242		4,097		6,881		7,143
Total other (expense), net		(999)		8,696		(3,413)		7,509
Loss before income taxes		(46,295)		(31,782)		(95,713)		(172,854)
Provision for income taxes		337		479		417		779
Net loss	$	(46,632)	$	(32,261)	$	(96,130)	$	(173,633)
Accrued dividends on convertible preferred stock		(1,349)		(1,302)		(2,671)		(1,302)
Net loss attributable to common stockholders	$	(47,981)	$	(33,563)	$	(98,801)	$	(174,935)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.75)	$	(0.55)	$	(1.56)	$	(2.89)

Weighted-average common shares outstanding, basic and diluted		63,684,359		61,011,824		63,373,489		60,577,691

Other comprehensive loss:
Net loss attributable to common stockholders	$	(47,981)	$	(33,563)	$	(98,801)	$	(174,935)
Foreign currency translation adjustment		(2,104)		(302)		(2,106)		(373)
Unrealized (loss), net on marketable securities		(93)		(134)		(103)		(378)
Comprehensive loss	$	(50,178)	$	(33,999)	$	(101,010)	$	(175,686)


									Accumulated
	Series A Convertible						Additional		Other				Total
	Preferred Stock			Common Stock			Paid-In		Comprehensive		Accumulated		Stockholders’
	Shares	Amount		Shares	Amount		Capital		Income (Loss)		Deficit		Equity
Balance at December 31, 2024	150,000	$	142,820	62,390,654	$	61	$	1,177,045	$	(39)	$	(1,155,338)	$	21,729
Stock compensation expense	—		—	—		—		12,862		—		—		12,862
Issuance of common stock in connection with ESPP	—		—	21,875		—		854		—		—		854
Issuance of common stock in connection with exercise of stock options and vesting of restricted stock units	—		—	494,853		1		2,225		—		—		2,226
Issuance of common stock upon completion of ATM equity offering, net of $739 offering costs	—		—	587,510		—		32,108		—		—		32,108
Accretion of preferred stock dividends	—		1,322	—		—		(1,322)		—		—		(1,322)
Foreign currency translation adjustment	—		—	—		—		—		(2)		—		(2)
Net unrealized loss on marketable securities	—		—	—		—		—		(10)		—		(10)
Net loss	—		—	—		—		—		—		(49,498)		(49,498)
Balance at March 31, 2025	150,000	$	144,142	63,494,892	$	62	$	1,223,772	$	(51)	$	(1,204,836)	$	18,947
Stock compensation expense	—		—	—		—		15,880		—		—		15,880
Issuance of common stock in connection with ESPP	—		—	—		—		—		—		—		—
Issuance of common stock in connection with exercise of stock options and vesting of restricted stock units	—		—	418,293		2		3,441		—		—		3,443
Accretion of preferred stock dividends	—		1,349	—		—		(1,349)		—		—		(1,349)
Foreign currency translation adjustment	—		—	—		—		—		(2,104)		—		(2,104)
Net unrealized loss on marketable securities	—		—	—		—		—		(93)		—		(93)
Net loss	—		—	—		—		—		—		(46,632)		(46,632)
Balance at June 30, 2025	150,000	$	145,491	63,913,185	$	64	$	1,241,744	$	(2,248)	$	(1,251,468)	$	(11,908)

Balance at December 31, 2023	—		—	59,426,559	$	59	$	1,064,302	$	134	$	(894,736)	$	169,759
Stock-based compensation expense	—		—	—		—		7,767		—		—		7,767
Issuance of common stock in connection with ESPP	—		—	28,495		—		673		—		—		673
Issuance of common stock in connection with exercise of stock options and vesting of restricted stock units	—		—	1,077,271		1		6,352		—		—		6,353
Issuance of common stock as consideration for LGC license	—		—	432,143		—		18,716		—		—		18,716
Foreign currency translation adjustment	—		—	—		—		—		(71)		—		(71)
Unrealized loss on marketable securities	—		—	—		—		—		(244)		—		(244)
Net loss	—		—	—		—		—		—		(141,372)		(141,372)
Balance at March 31, 2024	—	$	—	60,964,468	$	60	$	1,097,810	$	(181)	$	(1,036,108)	$	61,581
Issuance of Series A Preferred Stock, net of $2,250 of issuance costs	150,000		138,850	—		—		—		—		—		—
Stock-based compensation expense	—		—	—		—		10,358		—		—		10,358
Issuance of common stock in connection with ESPP	—		—	—		—		—		—		—		—
Issuance of common stock in connection with exercise of stock options and vesting of restricted stock units	—		—	131,481		—		1,403		—		—		1,403
Issuance of common stock as consideration for LGC license	—		—	—		—		—		—		—		—
Accretion of preferred stock dividends	—		1,302	—		—		(1,302)		—		—		(1,302)
Foreign currency translation adjustment	—		—	—		—		—		(302)		—		(302)
Unrealized loss on marketable securities	—		—	—		—		—		(134)		—		(134)
Net loss	—		—	—		—		—		—		(32,261)		(32,261)
Balance at June 30, 2024	150,000	$	140,152	61,095,949	$	60	$	1,108,269	$	(617)	$	(1,068,369)	$	39,343


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Stock options		6,931,178		7,044,823		6,931,178		7,044,823
Restricted stock units		2,657,785		2,036,409		2,657,785		2,036,409
Performance stock units		294,644		—		294,644		—
Common stock reserved for the conversion of Series A convertible preferred stock		3,124,995		3,125,000		3,124,995		3,125,000
Potential common shares		13,008,602		12,206,232		13,008,602		12,206,232


	Fair Value Measurements as of
	June 30, 2025 using:
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Commercial Paper	$	—	$	27,907	$	—	$	27,907
Money market funds		97,450		—		—		97,450
Marketable securities:
US treasury securities		53,409		—		—		53,409
Corporate debt securities and commercial paper		—		102,035		—		102,035
Derivative asset		—		—		690		690
Total	$	150,859	$	129,942	$	690	$	281,491


	Fair Value Measurements as of
	December 31, 2024 using:
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Commercial Paper	$	—	$	2,984	$	—	$	2,984
Money market funds		71,334		—		—		71,334
Marketable securities:
US treasury securities		65,118		—		—		65,118
Corporate debt securities and commercial paper		—		166,310		—		166,310
Derivative asset		—		—		270		270
Total	$	136,452	$	169,294	$	270	$	306,016


	June 30, 2025
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Assets
Corporate debt securities and commercial paper (due within 1 year)	$	102,060	$	5	$	(30)	$	102,035
U.S. Treasury Securities		53,389		31		(11)		53,409
	$	155,449	$	36	$	(41)	$	155,444


	December 31, 2024
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Assets
Corporate debt securities and commercial paper (due within 1 year)	$	166,255	$	147	$	(92)	$	166,310
U.S. Treasury Securities		65,074		79		(35)		65,118
	$	231,329	$	226	$	(127)	$	231,428


		As of June 30, 2025						As of December 31, 2024
	Estimated life (years)	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net

Capitalized Milestones	11	$	9,000	$	(3,253)	$	5,747	$	9,000	$	(2,826)	$	6,174


2025 (remainder)	$	427
2026		855
2027		855
2028		855
2029		855
Thereafter		1,900
Total	$	5,747


	Three Months Ended
	June 30,				Change
	2025		2024		$		%

	(in thousands)
Statement of Operations Data:
Product revenue, net	$	48,502	$	29,078	$	19,424	67	%
Costs and expenses:
Cost of sales		5,543		2,947		2,596	88	%
Research and development		42,308		30,194		12,114	40	%
Selling, general, and administrative		45,947		36,415		9,532	26	%
Total costs and expenses		93,798		69,556		24,242	35	%
Loss from operations		(45,296)		(40,478)		(4,818)	12	%
Other income (expense), net		(999)		8,696		(9,695)	(111)	%
Loss before income taxes		(46,295)		(31,782)		(14,513)	46	%
Provision for income taxes		337		479		(142)	(30)	%
Net loss	$	(46,632)	$	(32,261)	$	(14,371)	45	%


	June 30,		December 31,
	2025		2024
Raw Materials	$	4,477	$	6,776
WIP		767		1,250
Finished Goods		13,628		10,715
Total Inventory	$	18,872	$	18,741


	Six months ended
	June 30,
	2025		2024
Beginning aggregate estimated fair value of Level 3 liability (asset)	$	(270)	$	1,150
Change in fair value of embedded derivative		(420)		(790)
Fair value of forward contract - Series A Convertible Preferred Stock		—		8,900
Settlement of forward contract		—		(8,900)
Ending aggregate estimated fair value of Level 3 liability (asset)	$	(690)	$	360


		Incorporated by Reference
Exhibit Number	Exhibit Description	Form	Date	Number
3.1	Amended and Restated Certificate of Incorporation of Rhythm Pharmaceuticals, Inc. dated October 10, 2017, and the Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Rhythm Pharmaceuticals, Inc. dated June 25, 2025.	8-K	06/26/2025	3.1
3.2	Amended and Restated Bylaws.	8-K	12/18/2023	3.1
3.3	Certificate of Designations	8-K	04/16/2024	3.1
3.4	Amended and Restated Certificate of Designations	10-Q	05/07/2024	3.4
10.1*	Non-Employee Director Compensation Program
31.1*	Certification of the Principal Executive Officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
31.2*	Certification of the Principal Financial Officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
32.1**	Certification of the Principal Executive Officer, as required by Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
32.2**	Certification of the Principal Financial Officer, as required by Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).

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	RHYTHM PHARMACEUTICALS, INC.

Dated: August 5, 2025	By:	/s/ David P. Meeker, M.D.
		Name: David P. Meeker, M.D.
		Title: President and Chief Executive Officer
		(Principal Executive Officer)

Dated: August 5, 2025	By:	/s/ Hunter C. Smith
		Name: Hunter C. Smith
		Title: Chief Financial Officer and Treasurer
		(Principal Financial Officer)


Date: August 5, 2025

/s/ David P. Meeker, M.D.
Name: David P. Meeker, M.D.
Title: President and Chief Executive Officer (Principal Executive Officer)


Date: August 5, 2025

/s/ Hunter C. Smith
Name: Hunter C. Smith Title: Chief Financial Officer and Treasurer (Principal Financial Officer)